Social exclusion - The dark side of informal networks

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By Sven Horak, St. John’s University, New York, USA, and Fadi Alsarhan, ISC Paris Business School, Paris, France

Introduction

Informal networking has been regarded to be an important accelerator for getting a job and for career progression in general (Granovetter, 1995, 2017). However, so far, there has been little discussion about whether this holds true for men and women alike, and whether we can generalize across countries. Informal networking can have drawbacks such as its vulnerability to cronyism, favoritism and intransparency that often leads to unfair decisions (e.g., jobs may be given to incompetent but well-connected individuals). In parallel to a discussion of the dark side of informal networking that currently evolves beyond the traditional themes of corruption and bribery (Horak et al., 2020), policy makers have discovered that social exclusion can become a negative side effect of informal networking. On the contrary, social inclusion is important to democratic development and civic participation.

According to the European Commission (2002), certain factors negatively influence an individual’s social inclusion, one of these factors is gender. In business, gendered social contexts function as barriers to women’s careers (O’Neil, Hopkins, & Bilimoria, 2008). This is especially true in male-dominated organizations where female employees are socially isolated and have less access to developmental experiences (Fitzsimmons, Callan, & Paulsen, 2014). While there has been research conducted on the dark side of social ties and networks as well as on the same theme with a focus on social exclusion, so far, both discussions have developed in parallel. In order to connect both, we suggest to further develop social exclusion theory by explicitly including gender-relevant aspects in an informal network context. How far do informal networks exclude women from access to social resources by creating barriers to them accessing informal networks? This is an important question that has not been fully explored.

Social exclusion theory has been primarily focused on its effects on the individual, little attention has been paid to the exclusion of certain groups from positions of power or involvement in managerial professions. Thus far, poverty has been the major focus of research on social exclusion. However, whereas poverty excludes an individual from participating in certain areas of society on a monetary basis, social exclusion refers to the exclusion from all different areas of society, including political, economic, social, and civil (Walker, 1997, Haan, 1998). Social exclusion poses questions concerning access to certain resources and common cultural practices as well as to social networks and support (Saith, 2001). Some scholars define social exclusion as ‘lack of social capital’ and regard social participation as a counteragent (Percy-Smith, 2000). Furthermore, Sen and Nussbaum (Nussbaum, 2005; Sen, 1999, 2005) focused their work on the ability to attain self-fulfillment in all aspects of life. Social exclusion itself can be seen as a part of capability poverty (Sen, 2000). For instance, this is an approach used by the World Bank to explain poverty in developing countries. However, how far informal networking and cultural practices are intertwined and how this leads to social exclusion as a form of gender discrimination has not been extensively analyzed, so far. In the following discussion, we will present two examples of informal networks in order to show how their male dominance and intertwinement with cultural traditions represent sources of social exclusion of women as a facet of gender discrimination. The examples consist of informal networks in Korea, (i.e., yongo) and wasta in the middle east.

Informal networks, culture and social exclusion

Yongo can be described as consisting of effective ties between individual actors that form on an aggregate organizational level; they operate as particularistic and rather exclusive informal networks (Horak, 2014; Lew, 2013; Yee, 2000). The affective nature of yongo in the local context is an important aspect of ties and network cohesion. Furthermore, it can be regarded to be the central source of identity construction, because in Korea, “the individual was always viewed in the context of his affection network” (Hahm, 1986, p. 286). The English translation of yongo would describe the syllable yon as an affective tie and go as its preexistence due to a shared background. Yongo is in principle cause-based. That is, it exists based on three preexisting ties: the same educational institution that actors attended, isochronous or not (in Korean: hakyon); (2) blood ties, attained by belonging to the same family (nuclear and extended) (hyulyon); and (3) social ties based on the same place of birth or hometown (jiyon). These ties are immutable and irreversible.

Since it is common in the Korean society to sharply distinguish between in-groups and out-groups, yongo can be regarded to be exclusive and determines whether people belong to an in or out-group. Inside a yongo circle, there is “flexibility, tolerance, and mutual understanding as well as trust. On the contrary, outside the boundary, people are treated as ‘non-persons’ and there can be discrimination and even hostility” (Kim, 2000, p. 179). Yongo ties are pervasive in Korea (Kim, 2000; Lew, 2013; Yee, 2015) and important for getting a job and for career progression in general. Can yongo also be regarded a source of social exclusion of women? By triangulating studies on gender discrimination in Korea and interview data with managers, we can say that yongo is male-dominated and women usually do not have access to these important ties and networks.

While extant research suggests that gender discrimination exists in firms independent of their size and across all industries (Patterson, Bae, & Lim, 2013), a reason for social exclusion can be seen in the male dominance within yongo networks, which can be seen to be a result of the sociocultural traditions. As a vice president of a Korean automotive firm explained: "The huge Korean business conglomerates are male societies. In Confucianism, the father is the head of the family. In Korean business, it just works the same way. Sure, these days you read a lot about promoting more women in business; some bigger firms have a diversity policy in place, but at the end of the day this changes very slowly" (#32).

Today, the role expectations of females are still pronounced, and societal pressure acts against further progress. As a female manager reports: “In the past, women were excluded from certain career paths. Expatriate positions abroad, for instance, were often solely filled with male candidates. When pregnant, it was quite common to leave a firm and stay at home. Today there are more opportunities for women, but change is happening very slowly and acceptance by the society is still rather low. Women in middle management positions are most affected. They carry a double burden by trying to manage their careers in addition to organizing the household and childcare. In most families, expectations towards the genders follow quite traditional conceptions” (#05).

Interestingly, although separated by considerable differences in their cultural structures, informal networks in the middle east (i.e., wasta), display a certain number of commonalities with their Korean counterparts, specifically as it pertains to gender. Indeed, similarly to yongo, wasta operates within a tacit yet well-structured system which tends to integrate certain masculinist societal norms into its apparatus. Studies by Alsarhan et al. (2021) and Bailey (2012) have found that female professionals in the Middle East do regard themselves as being marginalised, and even excluded from the processes and outcomes of informal networks. Wasta is understood as a process to achieve certain ends (professional career advancement, access to different opportunities, political gains, etc.) through connections established with a wide range of individuals. Semantically, the term wasta itself bears two meanings; it can be simultaneously interpreted as the mediator interceding on behalf of another to secure a gain for the latter, as well as the process of intercession itself. Terminologically, wasta can be defined as the intervention on behalf of others in the goal of helping them attain something they could not achieve alone (Brandstaetter et al., 2016; Al-Twal, 2021; Ali & Weir, 2020; Alsarhan & Valax, 2020; Alsarhan, 2019).

Wasta’s origins emanate from social and communal structures, such as nomadic tribes and clans which stretch across the Middle Eastern region (Al-Ramahi, 2008; Hutchings & Weir, 2006; Cunningham and Sarayrah 1993). It is also seen as a widespread institution reflecting values such as solidarity, loyalty, and reciprocity, which all rely on preferential treatment. Needless to say, these values are indeed normative as they hold high esteem within Arab societies, where it is even considered unethical to disregard them (Loewe, Blume and Speer, 2008). Through this social setting, and the shaming and shunning tactics, wasta becomes a self-sustaining system, capable of enduring changes in collective modes of societal life (Alsarhan et al. 2021; Alsarhan and Valax 2020). However, wasta tends to have a rather negative connotation, because it is often used for personal benefits in business settings or in dealing with the government and public authorities. Today, it is often equated with cronyism, favouritism, nepotism, and corruption (Aldossari & Robertson 2015; Berger et al. 2015; Abdalla et al. 1998); while in the past it was rather associated with its traditional role of providing mediation to reconcile family/clan conflicts. Since today wasta has rendered itself vital in coordinating business activities, the rules of reciprocity play an important role in its systems (El-Said and Harrigan 2009; Smith et al., 2012; Sidani & Thornberry 2013; Alsarhan et al. 2021). Hence, wasta can only really flourish between individuals and in areas where power circulates.

With these requirements in mind, how far can both genders draw on wasta to coordinate activities and get ahead professionally? In the study conducted by Bailey's (2012), female interviewees who thought of themselves as having wasta mentioned they were only able to access it via their fathers or husbands. One woman out of the thirty-seven who participated in the study explained: "My brother had a teacher who asked him for help. This teacher needed a visa for his daughter so she could come into Dubai. He asked my brother for help because he knew my father could help. These things I could not do. Everyone knows this" (Bailey, 2012: 7). Interestingly, the study distinguishes participants with low and with (indirectly) high wasta ties. The ones with lower wasta perceived it as illegal and unfair; while the ones with a more well-off wasta ties perceived themselves as positively powerful and supporting their families.

The study findings indicate that wasta intersects with gender and class as a social construction that reinforces patriarchal and class privilege. On the other hand, in a recent study by Alsarhan et al. (2021), the authors put forth that women professionals in the Middle East regard themselves to be largely excluded from wasta. They further offered insights into the causes of this exclusion, stating the prevalent masculine nature of Arabic society, which entails social limitations related to the traditional role of women. One woman who participated in the interviews explained: "The Jordanian society is a masculine society like other Middle Eastern societies, due to the fact that men are more advanced in social consideration in those societies which is wrong. Therefore, for me, men use wasta more than women" (Alsarhan et al. , 2021: 138). Moreover, professional determinants (not wasta specific), such as gendered job segregation and variance in qualifications also affect men's and women's access to wasta. Much more pronounced when compared to yongo in Korea, wasta ties are strongly male dominated. Social norms do not allow women to use wasta ties directly; indirectly, i.e., through men (fathers; brothers; husbands; uncles; and cousins) wasta can be used by females, but always within the framework of the general limitations facing women professionals in the Middle East.

Implication and outlook

These two network examples imply that from a theoretical point of view, there is a need to extend social exclusion theory by including the network dimension, specifically in terms of network access, since informal networks act as gatekeepers for women to enter the job market and make a career. Informal networks also play a role as brokers of social inclusion; hence they are an important factor for democracies as well as for societies to develop. However, the need for more research in this area is necessary, because informal networks need to be seen as context-specific constructs that are rather heterogeneous, i.e., dependent of the respective context they are embedded in. Some networks may discriminate and exclude genders, others may be more inclusive. In China, for instance, guanxi networks are employed by all sexes and were even found to narrow the gender earnings gap (Bedford, 2015; Shen & Kogan, 2017). In Russia, especially during Soviet Union times, women were mainly involved in informal networking (blat/svyazi) as a necessity of house-keeping and organizing daily supplies (Ledeneva, 2003). Whether it is still the case in post-Soviet Russia or how this has transformed to other spheres of life remains to be researched. Future research should analyze the micro-foundations in order to understand their causes better. Understanding the working mechanisms of informal networks including their cultural intertwinements better is a precondition for corporations to design effective diversity and inclusion policies and for policy makers to draft legislation that works in a given cultural environment.

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