Transformational leadership, wasta and workforce localisation in Saudi Arabia: a sequential mediation model

Qaisar Iqbal and Katarzyna Piwowar-Sulej

International Journal of Manpower, 2025, vol. 46, issue 6, 1129-1147

Abstract: PurposeDrawing on the social exchange and social capital theories, this study examines the sequential mediating impact of structural empowerment and positive word-of-mouth on the relationship between transformational leadership and workforce localisation. It also explores the contingent role of “wasta” in positive word-of-mouth and workforce localisation relationships.Design/methodology/approachA three-wave longitudinal study was conducted with 207 employees of multinational companies in Saudi Arabia, using a path-modelling approach, to confirm the proposed hypotheses.FindingsThe empirical evidence supports the positive and significant effects of transformational leadership on workforce localisation. The findings support a sequential mediation model wherein leaders influence workforce location through structural empowerment and positive word-of-mouth. Additionally, the study predicts the positive moderating impact of wasta on the “word-of-mouth and workforce localisation” relationship.Originality/valueThis study elaborates on the mechanisms by which transformational leaders influence workforce localisation, which have not been discussed earlier and which have implications for Saudisation and leadership training.

Keywords: International HRM; Nationalisation; Sustainable leadership; Host country nationals; Local employment; Psychological empowerment; Managerial ties; Indigenous workforce (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-04-2024-0274

DOI: 10.1108/IJM-04-2024-0274

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