Business and Management Environment in Saudi Arabia Routledge Studies in International Business and the World Economy For a full list of list of titles in this series, please visit www.routledge.com 15 Multinational Corporations Emergence and Evolution Paz Estrella Tolentino 23 Ford and the Global Strategies of Multinationals The North American Auto Industry Isabel Studer Noguez 16 Foreign Direct Investment in Emerging Economies Corporate Strategy and Investment Behaviour in the Caribbean Lou Anne A Barclay 24 The World Trade Organization Millennium Round Freer Trade in the Next Century Klaus Deutsch / Bernhard Speyer 17 European Integration and Global Corporate Strategies Edited by Franỗois Chesnais, Grazia Ietto-Gillies and Roberto Simonetti 25 Consultancy and Innovation The Business Service Revolution in Europe Edited by Peter Wood 18 The Globalisation of Corporate R & D Implications for Innovation Systems in Host Countries Prasada Reddy 26 Knowledge Economies Clusters, Learning and Co-operative Advantage Philip Cooke 19 Globalization of Services Some Implications for Theory and Practice Edited by Yair Aharoni and Lilach Nachum 20 A Century of Foreign Investment in the Third World Michael J Twomey 21 Global Capitalism at Bay John H Dunning 22 Foreign Direct Investment Research Issues Edited by Bijit Bora 27 The Role of Resources in Global Competition John Fahy 28 Globalization, Employment and the Workplace Diverse Impacts Edited by Yaw A Debrah and Ian G Smith 29 Transnational Corporations Fragmentation amidst Integration Grazia Ietto-Gillies 30 Growth Theory and Growth Policy Edited by Harald Hagemann and Stephan Seiter 31 International Business and the Eclectic Paradigm Developing the OLI framework Edited by John Cantwell and Rajneesh Narula 32 Regulating Global Trade and the Environment Paul Street 33 Cultural Industries and the Production of Culture Edited by Dominic Power and Allen J Scott 34 Governing Interests Business Associations Facing Internationalization Edited by Wolfgang Streeck, Jürgen Grote, Volker Schneider and Jelle Visser 35 Infrastructure Development in the Pacific Region Edited by Akira Kohsaka 36 Big Business and Economic Development Conglomerates and Economic Groups in Developing Countries and Transition Economies under Globalisation Edited by Alex E Fernández Jilberto and Barbara Hogenboom 37 International Business Geography Case Studies of Corporate Firms Edited by Piet Pellenbarg and Egbert Wever 38 The World Bank and Global Managerialism Jonathan Murphy 39 Contemporary Corporate Strategy Global Perspectives Edited by John Saee 40 Trade, Globalization and Poverty Edited by Elias Dinopoulos, Pravin Krishna, Arvind Panagariya and Kar-yiu Wong 41 International Management and Language Susanne Tietze 42 Space, Oil and Capital Mazen Labban 43 Petroleum Taxation Sharing the Oil Wealth: a Study of Petroleum Taxation Yesterday, Today and Tomorrow Carole Nakhle 44 International Trade Theory A Critical Review Murray C Kemp 45 The Political Economy of Oil and Gas in Africa The Case of Nigeria Soala Ariweriokuma 46 Successfully Doing Business/ Marketing in Eastern Europe Edited by V.H Kirpalani, Lechoslaw Garbarski, and Eredener Kaynak 47 Marketing in Developing Countries Nigerian Advertising and Mass Media Emmanuel C Alozie 48 Business and Management Environment in Saudi Arabia Challenges and Opportunities for Multinational Corporations Abbas J Ali Business and Management Environment in Saudi Arabia Challenges and Opportunities for Multinational Corporations Abbas J Ali New York London First published 2009 by Routledge 270 Madison Ave, New York, NY 10016 Simultaneously published in the UK by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2008 “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2009 Taylor & Francis All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe Library of Congress Cataloging in Publication Data Ali, Abbas Business and management environment in Saudi Arabia : challenges and opportunities for multinational corporations / by Abbas J Ali p cm.—(Routledge studies in international business and the world economy ; 48) Includes bibliographical references and index International business enterprises—Saudi Arabia—Management Saudi Arabia—Economic conditions Corporate culture—Saudi Arabia Organizational behavior—Saudi Arabia Economic development—Saudi Arabia I Title HD62.4.A39 2009 658'.04909538—dc22 2008031593 ISBN 0-203-88351-9 Master e-book ISBN ISBN10: 0–7890–3472–7 (hbk) ISBN 10: 0–2038–8351–9 (ebk) ISBN13: 978–0-7890–3472–4 (hbk) ISBN 13: 978–0-2038–8351–8 (ebk) Contents Preface vii Socio-Political Environment The State and Prospect of the Economy 16 Regional Markets and Business Environment 35 The Manager Role 50 Managerial Work Values and Beliefs 69 The Meaning and Centrality of Work 92 Group Dynamics and Work Relations 104 Communications and Negotiations 128 Human Resource Management and the Labor Market 142 10 Decision-Making Styles and Attitudes toward Risk 162 11 Organizational Change and Development 174 12 Organizational Form and Design 195 13 MNCs and Development 214 14 Globalization and Business Prospects 227 References Index 243 255 Preface The significant role that the Kingdom of Saudi Arabia plays in the global economy and in political affairs is evident in the worldwide concern over oil prices and political stability in the Middle East The Kingdom is endowed with one-fifth of the world’s proven oil reserves In terms of production costs, the Kingdom is considered one of the lowest producers of oil; and because of its aggressive investment in the energy sector, the Kingdom has strengthened its role in the world economy and has maintained a noticeable presence on the global economic stage Politically, since the early 1970s the Kingdom has used its oil revenue and its close connection to the United States to transform itself into a powerful restraining force in Middle East politics That is, economically and politically, many countries and the majority of the world’s population are affected by initiatives and actions taken by the Kingdom In fact, the Kingdom has become the United State’s most trusted ally, after Israel, in the Middle East In this newly found capacity, the Kingdom performs three roles: defender and justifier of U.S economic interests in the region, it enables forces to translate U.S Middle East foreign policy into a reality and acts as a restraining factor in Middle East Politics In playing these three roles, the ruling al Saud family understands that its grip on power is characteristically linked to the approval of the powerful Wahhabi religious establishment and the support of the United States Therefore, the Kingdom’s ruling family has carefully sought to faithfully serve U.S interests in the region while closely consulting with the religious authority on matters related to domestic and Islamic affairs Accordingly, the regime has engaged in four interrelated strategies Economically, it has adopted a system which optimally serves U.S interests while strengthening the role of the ruling family: Sheiko-Capitalism In terms of oil strategies, for example, the Kingdom has always sought to keep its oil production capacity in line with the interests of the industrial world and to use oil revenues to coopt opposition In terms of foreign policy, the Kingdom faithfully performs the role of executor of U.S Middle East policy and, behind the scenes, uses all its energy to paralyze any move on the Arab street to confront such policy Third, domestically the regime effectively pursues economic policies 250 References Inzerilli, G (1978) Some hypotheses on the nature of managerial roles in developing countries Academy of Management Proceedings, 282–86 Inzerilli, G., & Laurent, A (1983) Managerial views of organization structure in France and the USA International Studies of Management and Organization, 8(1–2), 97–118 Iseman, P (1978) The Arabian ethos Harper, 256(1533), 37–56 Iwao, S (1985, June 10) Changing values and economic behavior Look Japan, 10–13 Izzeddin, N (1953) The Arab World Chicago: Henry Regnery Jadwa Investment (2007) Saudi economy’s golden era: Phase two Riyadh: Jadwa Investment Jaeger, A (1986) Organizational development and national culture: Where’s the fit.? 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Kamal 233 Afanasev, V 70–71 Afghanistan 14 Africa 14, 214 Ahmad, E 165 Ahmad, K 95 Ajami, R 216, 218, 224–225 Akeel, M 156 Al-Aali, A 16 al-Amran, Abdullah 233 al-Aqad, Omer 233 al-Arabia Alarabiya 23 al-Autabi, Jehman 10 al-Awjan, Adel 233 Alawsat, Asharq 202 Al-Basam, A 129 Al-Dabbagh, A 226 Al Dossary, Nadia 60, 91 Al-Faisal, Foreign Minister Saud Al-Farsy, F 218 Algeria 35, 38, 41, 44, 46, 48, 53, 208, 217, 219 Algosaibi 59 Al-Gosaibi, Saud 184 Alhamrani Group 212 al-hamrani, Mohamed 233 Al-Hegelan, A 98, 99 Ali, A 3, 16, 17, 65, 70, 72, 74, 77–80, 82, 94–95, 97–100, 102, 112, 124, 162–165, 167, 171–173, 182, 196, 198–199, 204, 211, 218, 225, 229 Ali, Imam 95–97, 167, 170–171, 180 Al-iktisad 92 Ali Naimi 85, 86 Alireza 59, 167 Alireza family 107, 233 Al-Jafary, A 164–165 Al Jazeera 8, 36 AlKhatani and Sons 59 Al-Khurayef, Abdullah 184 Al-Khurayef, Abdulraman 59, 92 Al-Khurayef Brothers Co 92 Al-kuwaiz, Samra 156 Al-Kuwari, A 94 Allah, Abdul 219 Allianz 196 AlMajalah magazine 58 al-Manar Almaney, A 164, 166, 225 Almarai 59 Al-Naqaib, K 98 Al Nimir, S 78, 99, 102, 124, 164 Al-Olayan family 233 Al-Olayan, Sulaiman 92, 99, 184 al-Qusabi, Fahid 233 al-Qusabi, Ghazi 256 Index Al-Qusaibi 59, 110 AlRajhi Bank 59 AlRajhi Com for Human Resource Development 186 Al Rajhi Group 198, 227 al-Rasheed, Naser 233 al-Sadarey, Khalid 233 Al Sadhan 151 Al-Sale Eastern Co Ltd 91 al-Sanea, Maan 233–234 al Saud, Abdul Aziz Ibn 10, 108–109, 114, 129, 169–170, 178, 214 al Saud dynasty 178 al Saud family 5, 8, 10–14, 27–28, 30–33, 37, 55–60, 67–69, 81, 92, 108–110, 129, 135, 162, 166, 169, 217, 179, 207, 209, 232–233, 235–238, 240 al Saud, Prince Faisal bin Salman 207, 209, 234 al Saud, Prince Naif 118 Al-Shakhis 17, 94–95, 98, 100, 124, 164 Al-Sheikh, Abdulaziz Al 6, 202, 233 Al-Sheikh family 108, 110 al-Shura, Majils 13 Al-Sudeiri family 109–110 Altorki, S 85, 78 AlTuwairqi Group 59 Al-Zamil 59, 167, 233 Amnesty International 153, 166, 239 analysis of variance (ANOVA) 125, 167 Anderson, N 93 Anezah tribe 109–110 Arab Business Intelligence Report 28 Arab East 46 Arab Gulf 20, 40, 53, 94, 96, 206, 218 Arab House for Industry Consulting 185 Arabian Bemco Contracting Co 208–209 Arabian Cement Corporation 206–207 Arabian Gulf See Arab Gulf Arabian Pipes Co 206–207 Arab News 6, 23, 59, 151, 153, 157, 214 Arab oil embargo 225 Arab Peninsula Arab West 44 Arab World 36–37, 65, 67, 97, 138, 206, 216, 218 Aramco 85–86, 176, 227 Arbose, J 77 Arthur D Little 176 Asad, S 78 Asaf, M 149 Asia 145, 148 Atiyyah, H 206 A.T Kearney 176, 231–232 autocracy 4, 97, 119 B Baali, F 164, 166–167 Baathist ideology Badawy, M 164–165 Baghdad Bahrain 2, 36, 38, 40–41, 43–44, 46, 53, 218–219 Balal 154 Ball, D 103 Balubaid 151 Barakat, H 98, 127 Bass, B 164 Baz, Ibn BBC Bedouin 1, 6–7, 11, 71, 72, 75, 77, 86, 93, 105–107, 111, 128–130, 159, 162–163, 169, 177–178, 185 Beirut 86 Bennis, W 179, 196 Berque, J 80–81, 103, 194 Bhagat, R 77 Bhat, B 225 Bhaumik, S 215 Bill, J 163 Bishai, W 78 Black, J 138 Blake, D 216 Blunt, P 176 Blyton, P 165 boom era 17 Bores Dubai 43 Boston Consulting Group 176 Boulgarides 162 Bradley, John Brazil 214, 232 Britain 2, 26, 214, 236 Buchholz, R 73 Bulgaria 232 Burke, W 179 Bush, President 67 business 31, 33, 35 business environment 27, 29–30, 35 Byrne, J 123 C Carter Doctrine 238 Central Asia 43 Chandler, A 197, 215 Index Chaudhuri, A 216 Child, J 164–165 Chile 232 China 16, 46, 214, 231–232 Chow, C 95 Clariant Consulting 185 CNN 8, 43 CNN Marketplace Middle East 43 Cole, D 11 commodity-driven societies (CDS) 52, 53, 215–217 Common Market 44 Communications, 128–140 Barriers, 133 Effective, 130 Improving, 134 Conceptions of organizations, 210 Autocratic, 211–212 Sheikocratic, 212 Traditional group centered, 212 Spiritually enlightened, 212–213 conservative groups 46, 47 Consultative Council 224 Cooke, R 166 Cooper, M 71 Cordesman, A 13 corruption 9, 40, 44, 64, 66–67, 179, 239 Corruption Perceptions Index 239 Cotgrove, S 77, 79 Cowell, A 239 crimes 33–34, 239 Croatia 232 coup d’etat 37 Cyprus 108 D Dallah Albaraka 59, 227 Dallah Holding Company 116 Dallah Human Skills Development 186 Dallah Group 59, 198, 213 Dalo, B 97 Damascus Dammam 6, 55, 71, 77 Davila, G 176 Decision styles, 162–163, 166 Autocratic, 163–164 Pseudoconsultative, 164 Consultative, 164 Participative, 164 Pseudoparticipative, 165–166 Delegative, 166 Deloitte 176 democracy 4–5, 13 257 Denmark 94 dewan 115, 190 Dhohayan, A.R 176 Diriyah 5, 108 Diwaniha 61 Djibouti 38, 40–41, 218–219 Doing Business 2009 220 Dow Chemicals 196 Drucker, P 197 Dubai 222 Dubin, R 95 Duff, A 77, 79 du Pont 196 Dymsza,W 216 E East Asia 14, 45, 198, 214 Ebenstein, W 79 Economic Freedom Index 220 economics 2, 6–10, 18, 20, 22, 27–32, 35–37, 40, 42–57, 59–60, 65–68, 71–72, 74, 77–78, 84–85, 91–92, 96–99, 102–103, 105, 107–109, 121, 124, 126, 142–146, 153–155, 157–160, 163, 166–167, 173, 175, 179, 186, 195, 197–198, 211, 213–218, 220–224, 226–232, 234–237, 240–241 economy 9, 15, 20, 22, 25–27, 31, 33, 37, 45, 49, 51, 53–57, 68, 98, 142–145, 152, 157, 162, 167, 185, 195, 198, 215–216, 220– 222, 226, 234–236, 239–241 Egypt 14, 32, 36–38, 40–41, 43–44, 46, 48, 53, 96, 109, 215, 218–219, 232 ehsan 116, 119, 211–212 Eighth Development Plan 8–9, 23, 25, 151, 155 EIRE Global Consulting 185 Energy Information Administration 30, 221 England 50, 67, 225 England, G 77, 81, 85, 94 ethics 8, 66, 71, 193 Ethiopia 154 Europe 43, 50–52, 55–56, 104, 106, 196, 221 European market 45 European Union 44 Expatriate roles, 136 Ambassador, 136–137 Facilitator, 137 258 Index Fahid, King 13 Family business, 227, 232, 235 Traditional merchant, 233 Rising business stars, 233 Allied with members of the ruling family, 233 Members of the ruling family 233–234 Farag, S 98 Fassi 107 fatwa 5, 32, 118, 202 Fayerweather, J 216 Feather, N 77 Features of Industrial Policy in the Kingdom 220 fiat Field 224 Flowers, V 81–82 Forbes 60 foreign direct investment (FDI) 16, 143, 215, 220, 227–228, 231, 241 Foreign Investment Law 222 Fouad, Fouad 233 France 26 Franke, R 95 free enterprise system 16 free market economy 58, 175 free will French Revolution French, W 178 Future Experts 151 global marketplace 31 Global Retail Development Index 2007 231–232 Globalization, 47,227,229,235, 240 Barriers, 238–240 Definition Index 227, 231–232 Meaning, 228–230 Political stability,235–238 God 11, 79, 87, 103, 106, 132, 149, 154, 164, 170, 180, 182–184, 201 Goitein, S 106 Golembiewski, R 177 Gordon 71, 77 government 9, 12–16, 21, 22, 25–28, 30–32, 40, 43–45, 48, 54–57, 63–69, 71, 78, 81, 93, 98, 103, 106, 107, 108, 114, 118, 129, 133, 136, 141–148, 150–153, 155, 157, 159, 163, 174–176, 179, 186, 191, 204–205, 214, 216–217, 219–222, 224, 226– 228, 230, 231, 233, 235–240 Graves, C 82, 87 Greece 85 Greenwood, R 174 Gulf area See Gulf region Gulf Cooperation Council (GCC) 36, 43, 45–46, 48 Gulf region 2, 43, 53–54, 63, 67, 214, 217–218, 238, 241 Gulf Research Center 220 Gulf states See Gulf region Gulf Crisis 2, 5, 11–12, 17, 217 Guth, W.D 69 G H Gardner, G 171 Gazzaz family 233 Gazzaz, Hussein 92, 99, 167, 184 GCC, plus Iran 36 GDP (gross domestic product) 17–18, 21, 23, 40, 147, 230–231, 235 Gelb, S 215 General Electric (GE) 196 General Motors (GM) 196 Georgas, J 85 Germany 225 Gibb, H 106 global economy 2, 32, 40, 42–43, 57, 66, 77, 142, 152, 185–186, 217, 228–229, 231, 233–234, 236, 238, 240 Hail 108 Hajaz 108 Hajj 20 hajji 131 Hamady, S 76 Hampton, D 94 Hamrin, R 77 Hanafi 107 Hanware, K 218, 221 Harrison, R 151 Hawi, S 164 Hennessy, E 95 Heritage Foundation 220 hima system 11 Hinckley, S 162 Hinings, C 174 Catalyst, 137 extremism 31 Exxon 196 F Index Hitt, M 138 Hitti, P 97, 164 Hofstede, G 70, 77, 81, 94–95, 126, 162–163, 165, 176, 198 Hollingsworth 164–165 Hollywood 104 Holy Quran 5, 163, 169 Hu, A 215 Huat, T 95 Hudson, M 75 Hughes, C 82 Human Resource Development Fund 151 Human Rights Commission 150 Human Rights Watch 166, 239 Huse, E 187 Hussein, Saddam 5, 13 Hussein, Sherif 108–109 Hyde, Henry 67 I Ibn Rushd (Averroes) school Ibrahim, S.D 78, 217 ijma I-Khatani, Khalid 233 Ikhtiar school Ikhwan al Muslimin 11 Ikhwan-us-Safa school Ikhwan 108 India 143, 214, 231- 232 Indonesia 215 Inglehart, R 77 Inkeles, A 93 Interior Ministry 33 international economy See global economy International Electronic Co 59 International Energy Outlook 2007 30, 221 International Labor Organization (ILO) 150 Inzerilli, G 200–203, 205 Iran 14, 33, 36–38, 41, 44, 46, 48, 67, 214 Iran-Iraq War 17 Iranian Revolution 36 Iraq 1, 5, 11–14, 32–33, 36–38, 40–41, 44, 46, 49, 53, 74, 109, 217, 219 Iraqi military power 14 Isabya 123, 166 Iseman, P 75, 78 Islam 1, 3–5, 15, 18, 35, 60, 72, 74, 93, 96–97, 104–105, 116, 118, 259 128–129, 149, 154, 164–166, 169–170, 174, 178–179, 182–183, 201–204 and change, 178–181 nature of change, 181–184 Islami 107 Islamic environment Islamic schools of thought Ibn Rushd (Averroes) school Ikhtiar school Ikhwan-us-Safa school Jabria school 3–4 Mutazilas school Tafwiz school Islamic tradition 15 Islamic work ethic (IWE) See work ethic Israel 14 Israel-Palestinian conflict 14 Iwao, S 77 Izzeddin, N 3, 97 J Jabria school 3–4 Jadwa Investment 22, 25, 27 Jain, S 225 Jaeger, A 176 Jamel, Mohamed 233 Japan 16, 28, 50, 94, 231 Jasim, A 164 Jazan Economic City 30 Jeddah 6, 54, 58, 59, 71, 77, 232, 235 Jeddah Chamber of Commerce 156 Jeddah Economic Forum 185 jihad joint ventures (JVs) 16, 27, 28, 30, 33, 214, 222, 226, 234 Jones, M.L 176 Jordan 1, 38, 40–41, 43–46, 219 Jubail Juffali Training Center 186 Jundi, M 218 K Kaaba 10, 105 Kabbani Group 198 Kalleberg, A 70 Kamal 167 Kamel, Abdullah 59, 92 Kamel family 233 Kamel, Salh 116 Kaplan, H 94 Kapoor, A 217 Kassem, S 167 260 Index Katona, G 93 Kay, S 78 Khadra, B 167 Khalaf, S 122, 124 Khaldun, Ibn 123 Khaleej Times 224, 239 Khalid, Bandar Ben, Prince 13 Khashoggi, Adnan 233 Khashoggis 107 Khatan tribe 109–110 Khouri, F 109 King Abdullah Economic City 30 Kingdom Holding 227, 234 Knowledge Economic City 16–17, 30 Kristal, I 103 Kristof, Nicholas 10 Kuwait 2, 11, 32, 36, 38, 40–41, 43–45, 53, 181, 219 Kuwaiti crisis 57 L Labor Law 148, 153, 155, 157 Laden, Bakr Ben 233 Laden, Osama Ben 12 Lamb,D 77–78, 85–86 Landou, Rom 1, 98 Lasserre, P 198 Latin America 14 Latvia 232 Laurent, A 73, 200–205 Lebanon 14, 37–38, 40–41, 46, 53, 67, 208, 218–219 Lecraw, D 216 Lee, J 85 Legum, C 78, 85 Lehbeaux, C 94 Leiden, C 163 Lewis, B 169 liberalization 22, 27, 44, 49, 224, 236, 241 Libya 14, 38, 41, 44–45, 208, 217, 219 Lieberthal, K 215 Likert, R 164 Likert scale 95, 99, 201 Lipsky, G 124 Loyalty, 5, 7, 11, 30, 32, 53, 64, 69, 73, 75, 80, 82, 88, 101, 105–106, 114, 119–126,160, 167–171, 237 Loomis, C 79 Looney, R 17, 235 London 103 Long, D.E 17 M Maad Establishment 185 MacFarquhar, N 13 Mahfouz, Abdullah Bin 184 Majeed, Prince Abdul 156, 218 Malairaja, C 215 Malaki 107 Malaysia 232 management 3, 40, 50, 52–56, 58, 63–66, 69, 73, 76–78, 84–85, 87, 96, 102, 112, 117, 123, 126, 142, 148, 151–152, 154, 158, 161–162, 165, 167–168, 170, 172, 175–176, 180, 185–187, 199, 202–203, 206–208, 216, 226, 231 Management by Exception, 58 Gool tem, 58 Measurement, 58 Others, 58 Management Forum 185 manager 27, 29, 33, 34–36, 42, 48–52, 54–59, 60–63, 65–68, 71, 74–76, 82, 84–87, 90–92, 94–95, 98–100, 102–103, 112– 116, 118, 120, 123–124, 126, 128, 133–137, 139–140, 143, 148–150, 152–154, 156–168, 170–172, 174, 176–177, 180, 184–186, 190–191, 195–197, 199–208, 211–213, 215, 217, 223–226, 230 Managers’ roles, 55, 60 The Infancy stage, 55–56 The growing pain stage, 56–57 The maturity stage, 57 The flourishing stage, 57–58 Marei Bin Mahfouz Group 212 market-driven societies (MDS) 50 market economy 40, 52, 54, 220 marketing 30, 156, 206–207, 231 Marshak, R 181 Marx, Karl 79 Maslow, A 70 Mauritania 38, 40–41, 46, 218–219 Mazlish, B 215 McCulloch, W 103 McKinsey 176 McQuaid, S 77 Mecca 1, 10, 35, 71, 96, 105, 108, 156, 179, 218, 232 Medina 1, 17, 35, 71, 105, 179 mejlis 115 Index Melikian, L 78 Mexico 215, 231–232 Mhahfouz Group 59 Middle East 13, 14, 15, 27, 31–33, 35, 37, 59, 67, 136, 162, 194, 206–207, 209–210, 220, 227, 236–237, 241 mihnati.com 149 Mindell, M 71, 77 Ministry of Commerce and Industry 220 Ministry of Labor 150, 155, 157 Mitsubishi Consulting Services 185 Mohamed, Prophet 5, 92, 95, 105, 149, 154, 169–171, 179–180, 182–184, 193, 199, 201, 203 Mongols morals 3, 18, 100 Morocco 39–41, 43- 45, 111, 218–219, 232 Morrison, A 216 Morse, N 94 Motorola 159 MOW International Research Team 94 Mugreb countries See Arab West multinational corporations (MNCs) 3, 14–15, 22, 28, 30–33, 36, 44, 48–49, 68, 71, 86–87, 90, 96, 98, 103, 105, 111–112, 126, 137, 142–143, 148, 158, 163, 171, 174, 176, 187, 205, 213–227, 231, 233- 234, 239, 241 multivariate analysis of variance (MANOVA) 63, 65, 83, 125, 168 Muna, F 65, 124, 164, 167 Muslim 1–6, 14, 17, 35, 46, 72, 92, 96, 105–107, 111, 115–117, 120–121, 126, 149, 152, 164– 165, 170, 176, 187, 193–194, 202–205, 210, 212, 217 Muslim Brotherhood 11 Mutazilas school Myers, S 77 N Najad 108 NASDAQ 43 Nasser, Gamal Abdul 14, 32, 37 Nataraj, S 17 National Commercial Bank 151 National Organization for Human Rights 239 National Reform Document, The 12 National Shipping Co 59 261 National Society for Human Rights 150 Negotiation stages, 137–139 Nestlé 196 New York 103 New York Times 9, 217, 239 New Zealand 94 North America 221 Nye, J 216 O O’Boyle, T 123, 127 oil 1–2, 6, 8–9, 14, 16–18, 21–23, 26, 28, 30–32, 37, 40, 42–43, 45, 48, 51, 53–58, 63, 65, 77–78, 80, 86, 93–94, 96–97, 99, 103, 113, 143, 145–147, 153, 157, 176, 206, 214, 218, 221–222, 225–227, 229, 234–235, 241 Olayan 59, 167 Olayan, Lubna 60 Olayan Group 59 Oman 2, 33, 36, 39–41, 43–44, 53, 208, 219 Omayyad Empire 97 Omer, Caliph 149 OPEC 14 organizational development (OD) 174–178, 181, 185, 187–188, 190–193, 194 OD methods, 187–191 Trainer-centered guidelines, 191192 Intervention—focused guideline, 192–194 Orient 98, 104 Orwell, George 164 Osool Brokerage 156 Ottoman Empire 4, 53, 97 P Pacheco-Lopez, P 215 Pakistan 143 Palestine 37 Palestrina 46 Palmer, M 78, 98–99, 102, 124, 164 Parker, M 156 Parsons, Talcott 79–80 Patai, R 6, 75 Pateman, C 164–165 Perrow, C 196 Pezeshkpur, C 124, 126, 171 Pharon, Ghaith 233 Philby, Jack 214 Philippines 143 pillars 10, 106, 129 262 Index Pittsburgh 103 politics 9–10, 12, 14–15, 27–28, 31–35, 37, 42–43, 45, 47–49, 52, 54–58, 61, 63–68, 71, 77, 81, 85, 87, 91, 96, 98, 102–103, 105, 109, 113–114, 118, 133, 136, 139–141, 150, 153, 155, 158– 159, 162–163, 166, 173–175, 178–179, 181, 185, 191–192, 194, 204, 213–217, 219, 222, 224–231, 233, 235–241 Porter, L 94, 122–123, 138 Powell, W 5, 7, 178–179, 225 Prahalad, C.K 215 Prestowitz, C 95 Procter & Gamble (P&G) 196 Q Qatar 2, 32, 36, 39–41, 44–45, 53, 208, 218–219 Quran 5, 95, 149, 154, 166, 178–180, 182–184, 193, 201 Qusti, R 150, 157 Qazzaz, Hussein 59, 225 R Rahman, F 74 Ramkumar, K 218, 221 Ramstetter, E.D 215 Rasheed, Turki Fasial 184 Rashid, Ibn 108–109 Rashidun caliphs Reagan era 14 religion 14, 34–35, 46, 47, 78, 80–81, 95, 96, 99, 103–105, 107, 109, 112, 115–118, 121, 127, 129, 133, 139, 152, 156, 159, 166, 169–170, 174, 178–179, 181, 186, 191–192, 199–201, 205, 217, 223–224, 238 Reuters 155 Risk, 29, 162, 168- 172, 238, 241 Potential, 31–32 Riyadh 6, 54, 58–59, 77, 232, 235 Rokeach, M 70, 81 Rosen, L 111 Rowe, A 162 ruling family See al Saud family Russia 46, 231–232 S Saad Group 59 Said, Suliman al-MuhaidibWafic 233 Safari Group 198 Sagia 16–17, 220, 231 Salancik 122 Samper 176 Sanetan, Mohamed Ben 5, 106 Saud, Mohammed Ibn 5, 108 Saudi Basic Industries Corporation (SABIC) 176, 210, 227 Saudi Cable 59 Saudi Chamber of Commerce and Industry 220 Saudi Commercial Bank 59 Saudi Consulting 185 Saudi family See al Saud family Saudi Gazette 157 Saudi IBM Workforce Development 185 Saudi Management Association 185 Saudi Research and Marketing Group (SRMG) 207–209, 234 Saudi Royal Institute for Human Resource Development 151 Saudization 142, 144, 146, 157, 159, 224 Savola Group 59 Schein, E 73, 123 Scotland 184 Sears 196 secular groups 46, 47 sedentary Shammar tribe 109, 110 Sharabi, H 80 Sharia (Islamic) law 11, 220 Shariati, A 182–183 Shatkin, L 100 Shaw, J.A 17 sheikdoms 36 sheiko-capitalism 40, 46, 53–54, 65–66 sheik 2, 5, 11, 75, 106, 131, 135, 169 Sherif, C 70 Singapore 215 Singh, J 162 Singularis 234 Slovenia 232 Smith, D 93 Societal groups, 46, 117 Secular, 47 Conservative, 47 Religious, 47 Rebellious, 47–48 Somalia 14, 41 Sorokin, Pitirim 79–80 South Africa 215 South Asia 14, 214 Index South Korea 16 Soviet Union 14, 37, 43 Srinivas, K 177 Stahl 98 Steers, R 94, 122 Strauss, G 193 Strong, M 77 Sudan 39, 41, 44, 208, 218–219 Sulaman 154 Suleiman, Lama 60 Sultan, Prince Bander ben 239 Summer 94 Swiercz 164 Syria 33, 36–37, 39–41, 44–46, 53, 67, 208, 218–219 Szilagyi, A 164 T Tafwiz school Tagiuri, R 69 Taimiya, Ibn 150 Takii,S 215 Talal, Prince al-Walid Ben 234 Tannenbaum, A 166 Tauf 96 Tausky, C 94 terrorism 31, 33 Thailand 232 Thomas, B 225 Transparency International 239 Triandis, H 94–95 Truitt, N 216 Tunisia 39–41, 43–46, 219, 232 Turkey 214, 232 Turks 4, 46 Turner, B 97 U Udovitch, A 111 Ukraine 232 umma 106 Umrah 20 unemployment Unilever 196 United Arab Emirates (UAE) 2, 28, 36, 39–41, 43–44, 46, 53, 208, 218–219, 222, 232 United Nations (UN) 14 United States (U.S.) 13–14, 16, 26, 28, 30–31, 36–37, 44, 46, 50–52, 67, 77, 86, 91, 102, 104, 126–127, 152, 165, 171, 173, 175–177, 181, 184–185, 192–193, 195–197, 203, 206, 263 213–214, 220, 225, 230–231, 237–238 urf 11 Useem, J 197, 198 V Valenzi, E 164, values 18, 64, 69–73, 75–87, 91, 93–94, 99, 102–103, 115, 117, 125, 127–128, 130, 133, 163, 164, 169, 171, 177–179, 184, 193–194, 200, 205, 212, 218–219, 223, 225 Vernon, R 217 Vickers Vietnam 232 Vroom, V 164 W Wahhab Mohammed Ibn Abdul 4, 5, 108 Wahhabi 5, 10, 11, 15, 28, 32, 46, 67–68, 107–108, 118, 129, 155, 179, 201 Wahhabi Islamic thought 10–11 Wahhabi religious authority 5–6, 9, 11, 28, 32, 80, 107, 202, 237 Wahhabism 4–5, 10–11, 15, 80, 84, 104, 108, 140, 178 Waleed, Prince 59 Wardi 164, 166–167 Washington 31–32, 238 Washington, George 51 Wasiet 136 Webber, R 94, 123, 126 Weber, Max 79–80 Weiss, R 94 Welt, L 226 Werther, W 122–123, 126 West Bank and Gaza 39–41 Western Europe 231 Whyte, W 123 Wilensky, H 94 Wilkins, M 215 Wilson, J 77 Wittenberg-Cox, A 95 women 8, 9, 10, 45, 47, 60, 90, 131, 133, 151, 186 in management, 154–156 World Bank 220 world economy See global economy work centrality 94–95 work ethic 73–74, 94–96, 98–101, 103, 184 264 Index Wright, P 124, 126, 171 WTO (World Trade Organization) 16, 27, 29, 44, 57, 66, 227, 230–231 Yucelt,U 170 Yukl, G 165 Yunbi Yuthrab 96 Y Z Yasin, M 98, Yemen 2, 14, 32, 33, 39–41, 44, 46, 208, 218–219 Yergin, D 103 Zahran tribe 109–110 Zamil Industrial 59, 209 Zavalloni, M 78 Zawdie, G 215 ... in Developing Countries Nigerian Advertising and Mass Media Emmanuel C Alozie 48 Business and Management Environment in Saudi Arabia Challenges and Opportunities for Multinational Corporations. .. misunderstanding about the interplay of forces influencing business and management practices in the Kingdom, making it impossible for MNCs and their representatives to formulate a sound and practical... defense Business and Management Environment in Saudi Arabia and information system that does not serve foreign interests, competent and qualified personnel for embassies abroad, respect for individual