This study reveals how informal institutions challenge employee voice in MNCs, indicating unique dynamics influenced by social structure.
Employee voice has received considerable attention by HRM researchers over the past two decades. Developments in the field have largely focused on prevailing voice arrangements in Western contexts where individual and collective voices are safeguarded by bureaucratic management practices and democratic formal institutions. However, the existing literature falls short of illuminating the operationalization of voice practices in emerging markets, where high power distance and informal institutions dominate. This study employs an institutional logics perspective and a process methodological approach to examine the microfoundations of employee voice in MNCs operating in a Middle Eastern country, where the informal institution of wasta (i.e. leveraging informal networking) plays a central role. In such contexts, formal and informal institutions coexist, creating institutional complexity and unique challenges for employees seeking to express their voice. The paper sheds light on how informal networking divides the social structure into three distinct, mentally constructed, spheres, and each exhibiting unique voice dynamics. It further highlights the effortful accomplishment of voice for marginalized employees, challenging the prevailing assumption of silence in high power distance contexts. The findings reveal a differentiated exercise of voice among employees and varied perceptions of HRM, expanding the understanding of employee voice in high power-distance contexts.
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Melhem et al. (2025) studied this question.
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