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This study aims to examine the Arab practice of wasta (personal networks) and its potential interface with relationship marketing to enable firms to optimize their recruitment and retention of customers in societies where personal ties drive business relationships. It explores whether relationship marketing influences customer retention when a personal contact leaves.

Empirical data were gathered from 305 customers introduced to Egyptian small and medium-sized enterprises via wasta. Multiple-item scales were adopted, drawn from previous empirical studies. Quantitative analysis was used, including confirmatory factor analysis. Structural equation modeling was used to test the hypothesized relationships posited.

Wasta plays a significant role in attracting customers, nurturing early relationships and enhancing relationship quality, but does not influence the retention of …