Beneath the surface of social interactions: how informal networking fuels undercurrent conflict in Middle Eastern MNCs

Purpose This study investigates how wasta (i.e. informal networking) drives latent workplace conflict within MNCs operating in Jordan, highlighting challenges for HRM in culturally complex environments. Design/methodology/approach The study adopts an inductive qualitative approach grounded in institutional theory. Data were collected through 31 semi-structured interviews with managers and employees in MNCs operating in Jordan, focusing on experiences with performance appraisal and workplace conflict. Findings The study reveals that wasta fosters an undercurrent of latent conflict, as managers prioritize informal social obligations over meritocratic HRM practices. This dynamic undermines fairness, weakens formal HRM systems and sustains ongoing but unspoken tensions among employees. Research limitations/implications The findings highlight the need for MNCs operating in Jordan and other similar emerging markets to implement conflict management mechanisms that mitigate the influence of informal networks. Recommendations include integrating conflict resolution into managerial performance evaluations and establishing neutral HR oversight to ensure fairness and reduce inequities. Originality/value This study offers novel insights into managing conflict and HRM in culturally diverse environments, focusing on MNCs operating in Jordan. It highlights how informal institutions shape conflict and undermine formal HRM practices in emerging markets.