Antecedents of long-term buyer-seller relationships: a cross cultural integration.
Dash, Satyabhusan ; Bruning, Ed ; Guin, Kalyan Ku 等
EXECUTIVE SUMMARY
This paper reviews past literature and proposes a model to compare
the antecedents of buyer-seller long-term relationships across different
cultures. Drawing on organizational buying behavior and channel
relationship theories, a comprehensive causal model is developed of the
moderating function national culture plays in determining long-term
buyer-seller relationships. Our conceptual model is based on
Hofstede's national culture dimensions--individualism, power
distance, uncertainty avoidance and masculinity/femininity--that alter
the form of the relationship between antecedents and outcome variables.
The paper ends with concluding remarks and suggestions for future
research for enhancing the development of cross--cultural relationship
marketing theory. Our paper offers a more comprehensive understanding of
the similarities and differences in the relative importance of key
'success' variables contributing to long-term buyer-seller
relationships on a global basis.
Keywords: Commitment, communication; cooperation; interdependence;
national culture, relationship duration, satisfaction, social bonding;
structural bonding; satisfaction; trust.
**********
The growth in popularity of relationship marketing has been
explained as a response to the changed market environment, including
heightened competition, changing structure of markets and increased
sophistication of customers. We have observed firms alter their
perspectives in an attempt to gain greater competitive advantage through
relationships; firms have been shifting from adversarial interactions,
typical of the arm's length, traditional buyer-seller transaction,
to long-term relationships based on mutual advantage and survival. In
this context, a major shift from a transaction to a relationship
perspective is developing for the study of long-term buyer-seller
relationships.
Along with the emergence of the importance of relationships in
market dealings, the globalization of the world economy has made it
increasingly important for today's marketing managers to understand
how to do business in different cultural contexts. Given the increasing
importance of international business, cross-cultural research becomes
more and more relevant to marketing academics and practitioners. A
fuller understanding of consumer behavior as an academic discipline
requires that the validity of models developed in one country be
examined in other countries as well. A country's culture has long
been identified as a key environmental characteristic underlying
systematic differences in buyer-seller behavior. Cultural norms and
beliefs are powerful forces shaping people's perceptions,
dispositions, and behaviors (Aaker and Lee 2001; Markus and Kitayama,
1991). A society's culture determines the way its people interact
by establishing "appropriate" beliefs and behavioral
standards.
Taking the above-mentioned problems into account, the primary
objective of our conceptual paper is to expand the understanding of
buyer-seller relationships by developing a model that incorporates
cultural aspects. One important contribution that is introduced in our
model is the moderating effect of national culture, defined with four of
Hofstede's (2001) dimensions, on the nature of the buyer-seller
relationship. In the remaining sections of this paper we develop the
theoretical basis for the several moderating effects.
Our paper is divided into four parts. After the introductory
section, we propose our conceptual model and review the relevant
literatures related to buyer-seller relationships and several national
culture values embedded in it. Following the conceptual discussion, we
propose a number of research propositions that link national cultural
values to antecedents and outcome variables in our long-term
buyer-seller relationship model. In the paper's final section, we
discuss the model's strengths and weaknesses, and draw conclusions,
managerial implications, and suggestions for future research.
BUYER-SELLER RELATIONSHIP MODEL AND RELATED LITERATURE
The study of buyer-seller relationships is grounded on transaction
cost theory, relational contracting theory, social exchange theory,
resource dependence theory and political economy theory. In addition,
empirical models, drawing on a variety of management disciplines, have
been proposed and tested in the literature. Our review of existing works
points to a number of factors that affect buyer and seller's
long-term orientations. We identify commitment as the representative
indicator of the state of long-term buyer-seller relationships. Hence,
commitment will be treated as our main outcome, or construct. Trust and
satisfaction are proposed as two important constructs antecedent to
commitment--satisfaction is proposed to affect commitment through trust.
The remaining constructs in our model--communication, cooperation,
relationship duration, interdependence, interdependence asymmetry,
social bonding, and structural bonding--constitute the relationship
atmosphere surrounding long-term buyer-seller relationships. As the
relationship atmosphere between buyer and seller improves, the amount of
satisfaction, trust and commitment in the relationship increases. Figure
1 presents our conceptualization of our long-term buyer-seller
relationship model with the key variables moderated by national culture
factors.
[FIGURE 1 OMITTED]
As depicted in figure 1, seven antecedents impact upon three
important outcome factors in the model, while four national cultural
factors moderate the key relationships.
Communication
A customer's initial contact with a seller includes some form
of either written or oral communication. The style, tone and content of
this initial communication will likely shape the first impressions of
either or both parties and may affect the nature of the relationship
that develops (Wren and Simpson 1996, p.72). Sheth (1976) developed a
conceptual framework of communication in explaining buyer-seller
relationships. He characterized communication along two dimensions:
content and style. Content of communication represents the substantive
aspects of the purpose for which the two parties have gotten together.
Communication content is further defined in terms of five utility
dimensions: functional, social organizational, situational, emotional,
and curiosity. The second communication dimension is style, which is
sub-divided into three dimensions: task oriented, interaction oriented
and self-oriented. Sheth suggests that the determinant factors of
communication content and style are: 1) personal factors 2)
organizational factors, and 3) product-specific factors. Personal
factors drive communication style, organizational factors drive both
communication content and style, and product specific factors drive the
communication content in buyer-seller relationships (Sheth 1976). Both
communications theory and organizational theory suggest a focus on
various facets of communication: Frequency, direction, modality, and
content. Communication is an important part of any exchange
relationship, and the nature of communication that exists between
exchange partners is an important part of relationship atmosphere.
Communication content, or exchange in this study, has been defined as
"the formal as well as informal sharing of meaningful, timely and
frequent information between firms" (Anderson, Lodish, and Weitz
1987; Anderson and Narus 1990).
In the IMP Group's relationship model, communication exchange
is antecedent to both satisfaction and trust. (Hakansson 1982), and is
based on a cooperative rather than adversarial buyer-seller
relationship. Thus, focus centers on the ongoing relationship between
the parties rather than discrete purchase decisions or transactions.
According to the IMP group model, the interaction process involves
several forms of communication exchange between buyer and
seller--product, information, financial and social. Thus, outcome
factors are influenced largely by communication content, style and the
method of information exchange.
Cooperation
Cooperation, similar to communication exchange, is directly linked
to satisfaction and trust as dramatized in figure 1. The essence of the
conceptualization is that the nature of the buyer-seller relationship is
cooperative rather than adversarial (Hakansson 1982). Similarly, Wilson
(1995) views cooperation as complementary coordination of actions taken
by firms in interdependent relationships to achieve mutual outcomes that
are reciprocal. Based on social exchange theory, Anderson and Narus
(1990) constructed their buyer-seller relationship model from earlier
work by Anderson and Narus (1984) and Anderson and Weitz (1989), both of
which concurred with the thrust of the IMP Group's model linking
cooperation to enhanced relationship satisfaction and trust.
Relationship Duration
According to the extant literature, relationship duration, the
length of time the relationship has existed, is linked directly to trust
among buyers and sellers (Anderson and Narus 1990; Anderson and Weitz
1989; Hakansson 1982; Wilson 1995). Perhaps Dwyer, Schurr, and Oh's
(1987) five-phase development process model best depicts the thrust of
thinking about relationship duration and trust. As they argue, the
stages of the relationship-building process are: 1) awareness of the
feasibility of effective exchange; 2) exploration efforts, which
characterizes the search and trial phase including the development of
norms for the relationship and expectations; 3) expansion, where
increased risk taking develops due to establishment of trust in the
relationship; 4) commitment, the implicit and explicit pledge of
relational continuity; and 5) dissolution, or the possible break up of
the relationship. Dwyer et al. (1987) stressed that relationship
duration is critically important to achieve the benefits of the several
relational phases; trust directly affects commitment and thus represents
one of the most important linkages in their model.
Interdependence and Interdependence Symmetry
As shown in figure 1, interdependence and interdependence asymmetry
are both linked to the three outcome variables--satisfaction, trust and
commitment. Wilson (1995), building on the model of Dwyer et al. (1987)
and Dwyer and Walker (1981), states that power imbalance is a direct
result of the degree of one partner's dependence on the other
partner. Performance satisfaction is the partner's satisfaction
with the basic elements of the business relationship. Power imbalance is
the ability to get one party to do something it would not otherwise do.
It is directly related to the degree of dependence of one party on the
other. Relative dependence is defined as the perceived difference
between a firm's dependence and its exchange partner's
dependence on the working relationship. Relative dependence determines
the extent to which a firm will have influence over, or be influenced
by, its exchange partner. Influence over and influences by the partner
firm are constructs that reflect the extent to which a firm has applied
power to influence partner firm action. These constructs reflect the
interdependence between exchange partners.
The topic of interdependence between channel members has received
substantial research attention in the last three decades. Marketing
scholars have conceptualized total interdependence as the sum of both
firm's dependence (i.e., the extent to which a firm needs to
maintain a channel relationship to achieve its desired goals) of channel
members, and interdependence asymmetry, the difference between
firm's dependence between channel members. Kumar, Scheer, and
Steenkamp (1995) examined the effects of channel interdependence on
inter-firm conflict, trust and commitment. Their analysis indicated that
conflict is greater when interdependence is lower and interdependence
asymmetry is higher. Trust and commitment were higher when
interdependence is greater and interdependence asymmetry is lower.
Structural and Social Bonding
Bonding is defined as the dimension of a business relationship that
results in two parties (customer and supplier) act in a unified manner
towards a desired goal. Various bonds exist between parties that
indicate different levels of a relationship (Callaghan, Jannelle, and
Yau 1994). Bonding has been successful in explaining within country
buyer-seller relationships (IMP Group 1982; Wilson and Moller 1988).
Bonds, or ties, between business firms are an important aspect of
exchange relationships in the network theory In the literature, bonds
are classified under two broad categories: structural and social
bonding. Structural bonding is the task orientation between buyer and
seller. Structural bonds are those forces that create impediments to
termination of the relationship. It is the "degree to which certain
ties link and hold a buyer and seller together in a relationship as a
result of some mutually beneficial economic, strategic, technological,
or organizational objective" (Williams, Han, and Qualls 1998).
Social bonding is the bonding that takes place between individuals
(i.e., the buyer and seller), and is reflective of the degree of mutual
personal friendship and liking shared by buyer and seller (Wilson 1995).
During social bonding, individuals are bonded together via the
organizational members' personal and social relationship with their
counterparts in a particular firm. Personal factors, such as trust or
satisfaction with the relationship partner, play an important role in
developing social bonding (Williams et al. 1998). Bonds reflect and
cause commitment in business relationships (Hakansson and Snehota 1995).
While studying members of the Purchasing Management Association of
Canada, Smith (1998) discovered that social, functional, and structural
bonds provide the context from which relational outcomes, such as trust,
satisfaction and commitment, are evaluated. Furthermore, he argues that
communication, cooperation, and relationship investment are important
predictors of social bonding, while relationship investment predicts
structural bonding. Williams et al. (1998) assert that both social and
structural bonding is positively related to commitment, although
structural bonding has a greater effect on commitment than social
bonding. In sum, based on the bonding research, we propose that
structural and social bonding is positively related to commitment.
Satisfaction, Trust and Commitment
In his meta-analysis, Mishra (2000) identified satisfaction and
trust as antecedent constructs to relationship commitment. According to
Tees (1994), satisfaction alone may not be sufficient to indicate the
quality of a relationship, because it can focus too much on present
satisfaction experiences. Both researchers suggest that trust and
commitment, among other factors, are more appropriate to measure
relationship quality. Consistent with several previous studies, we
conceptualize satisfaction, trust and commitment as representative
indicators of buyer-seller relationship quality.
Trust, defined as "one party's belief that its needs will
be fulfilled in the future by actions undertaken by the other
party", is similar to the notion used by Anderson and Narus (1990).
Trust is a fundamental relationship building block, and has been widely
studied in many buyer-seller relationship models, particularly as a
crucial factor in the shift from discrete market transactions to
continuous exchange relationships (Dwyer et al. 1987; Ganeson 1994).
Relationship marketing scholars acknowledge that trust is the pivotal
factor in evaluating buyer-seller relationships, and that it therefore
deserves priority attention. They note that when business relationships
entail both buyers and sellers expending resources to develop
relationships over an extended period of time, one expects trust to be a
key aspect in defining the emotional aspect of the relationship for both
parties.
Relationship commitment, as defined by Moorman, Zaltman, and
Deshpande (1992), is an "enduring desire to maintain a valued
relationship". As per the authors, a "valued
relationship" exits when the relationship is considered important.
Similarly, their "enduring desire to maintain" basically means
that a committed partner wants the relationship to endure indefinitely and is willingly to work at maintaining it. Morgan and Hunt (1994)
define commitment as "an exchange partner believing that an ongoing
relationship with another is so important as to warrant maximum effort
to maintain it" (Morgan and Hunt 1994 pg. 23). They view
relationship commitment as central to all relational exchanges between
buyers and sellers. In the services relationship marketing, Berry and
Parasuraman (1991) make mention of the fact that "relationships are
built on the foundation of mutual commitment". Similarly, the
process through which consumers become committed to specific brands has
been widely discussed. Initially, loyalty was viewed as simply repeat
buying. However, as the field of consumer behavior matured researchers
came to realize that repurchase is not sufficient evidence of brand
loyalty. Assael (1969) defines brand loyalty as a commitment to a
certain brand. Firms see brand loyalty as one of their main assets and
make efforts to build and nurture it. In the marketing context,
commitment is considered a key component of long-term relationships.
Ganeson (1994) advocates the view that the quality of the
relationship determines the probability of continued exchange between
buyers and sellers. Although there is no consensus about what constructs
make up relationship quality (Kumar et al. 1995), it is generally
conceptualized as being concerned with the extent to which buyer and
seller are satisfied with the relationship, trust each other, and are
committed to its long-term maintenance. Morgan and Hunt (1994)
demonstrate that a strong buyer-seller relationship is a product of high
levels of trust and commitment present in the relationship. Their
findings indicate that both trust and commitment are "key mediating
variables" in the establishment of such a relationship.
Relationship commitment has recently emerged in the marketing
literature as a critically important element for maintaining long-term
relationships. Commitment can be viewed as dedication to the
continuation of a relationship (Dwyer et al. 1987). Our interest in this
variable stems from the fact that it represents the continued stability
of a relationship, and its operationalization serves as a surrogate measure of the long-term connection between two or more parties.
Commitment, according to Dwyer et al. (1987), refers to "an
implicit or explicit pledge of relational continuity between exchange
partners", and they consider commitment to be the most advanced
phase of the buyer-seller exchange relationship. Commitment connotes a
"future orientation", and it is the most representative
variable in the sense that it refers to both the stability of the
relationship (Johnson 1982) as well as the relationship's quality
and durability.
In the foregoing sections, we have reviewed several of the
important and complementary approaches used to describe buyer-seller
exchange relationships. The IMP group's (Hakansson 1982)
interaction approach resulted in an inductive model, and suggested that
relationship atmosphere (i.e., communication, cooperation, relationship
duration and interdependence) is an important determinant of long-term
partner attractiveness within exchange relationships. The antecedent
factors presented in our model are primarily based on the pioneering
study of IMP group (Hakansson 1982) and the integrated buyer-seller
relationship model proposed by Wilson (1995). Research in social
exchange theory, channels and the emerging literature in relationship
marketing provided the basis for the antecedent factors affecting
long-term buyer-seller relationships employed in our model described
below.
BUYER-SELLER RELATIONSHIP MODEL AND NATIONAL CULTURE
The concept of national culture is widely interpreted. Nearly 54
years ago, Kroeber and Kluckhohn (1952) identified more than 160 ways
culture can be defined. Kluckhohn (1962) defined culture as the part of
human make up "which is learned by people as the result of
belonging to a particular group, and is that part of learned behavior
that is shared by others. It is our social legacy, as contrasted to our
organic heredity". National culture has been used in marketing
research as general theory (Clark 1990) to explain differences in
marketing management decision-making (Tse, Lee, Vertinsky, and Wehrung
1988) and market orientation. It has also been shown to influence buyer
behavior across international markets in industrial (Money et al. 1998)
and consumer settings (Aaker and Maheswaran 1997).
To study national culture between two countries we turn to the
seminal work of Hofstede (1980, 1991, 2001), who defines culture as the
"collective programming of the mind which distinguishes the members
of one group or category of people from those of another" (Hofstede
1991, p. 5). In the most exhaustive cross-cultural study to date, based
on questionnaire data from 117,000 IBM employees in 66 countries across
seven occupations, Hofstede (1980) established four dimensions of
national culture. His typology is one of the major frameworks for
understanding culture. Hofstede and Bond (1988) added the fifth
dimension--long-term versus short-term orientation, otherwise known as
Confucian dynamism--using a survey instrument developed with Chinese
employees and managers. Hofstede (1980) found differences in cultural
values between the employees representing different countries within one
organization. Of the five dimensions, we have elected to investigate the
relationship between four we believe possess theoretical support for our
relationship model--Individualism, Power Distance, Uncertainty Avoidance
and Masculinity/Femininity.
Individualism
Individualism focuses on the degree the society reinforces
individual or collective, achievement and interpersonal relationships. A
high individualism ranking indicates that individuality and individual
rights are paramount within the society. Individuals in these societies
may tend to form a larger number of looser relationships. A low
individualism ranking typifies societies of a more collectivist nature
with close ties between individuals. These cultures reinforce extended
families and collectives where everyone takes responsibility for fellow
members of their group.
Power Distance
Power distance focuses on the degree of equality, or inequality,
between people in the country's society. A high power distance
ranking indicates that inequalities of power and wealth have been
allowed to grow within the society. These societies are more likely to
follow a caste system that does not allow significant upward mobility of
its citizens. A low power distance ranking indicates the society
de-emphasizes the differences between citizen's power and wealth.
In these societies equality and opportunity for everyone is stressed;
the key issue is the extent to which members of a society accept that
power is unequally distributed. In high power distance countries there
is a hierarchy in relationships such as parent-child, teacher-student,
and superior-subordinate. The one superior in rank or status cannot be
argued with and must be respected. Status symbols are more frequently
used in large power distance cultures, such as in India and several
other Asian societies. According to Hofstede (1983), all societies are
unequal but some are more unequal than others. The degree of inequality
is measured by Hofstede's power distance scale.
Uncertainty Avoidance
Uncertainty avoidance focuses on the level of tolerance for
uncertainty and ambiguity within the society - i.e. unstructured
situations. A high uncertainty avoidance ranking indicates the country
has a low tolerance for uncertainty and ambiguity. This creates a
rule-oriented society that institutes laws, rules, regulations, and
controls in order to reduce the amount of uncertainty. A low uncertainty
avoidance ranking indicates the country has less concern about ambiguity
and uncertainty and has more tolerance for a variety of opinions. This
is reflected in a society that is less rule-oriented, more readily
accepts change, and takes more and greater risks.
Masculinity/Femininity
Masculinity/Femininity focuses on the degree the society
reinforces, or does not reinforce, the traditional masculine work role
model of male achievement, control, and power. A high masculinity ranking indicates the country experiences a high degree of gender
differentiation. In these cultures, males dominate a significant portion
of the society and power structure, with females being controlled by
male domination. A low masculinity ranking indicates the country has a
low level of differentiation and discrimination between genders. In
these cultures, females are treated equally to males in all aspects of
the society. Masculine cultures have been viewed as "doing and
acquiring rather than thinking and observing" (Newman and Nollen
1996), whereas feminine cultures exhibit a greater pattern of nurturing.
Companies in masculine cultures tend to be performance driven (Kale and
McIntyre 1991). The motive for commitment may be grounded in calculative
factors for firms from masculine societies. The relationship is
sustained after calculating the perceived cost and benefits of an
endeavor. Conversely, companies from feminine societies (which believe
in achieving greater harmony) may have an increased tendency to develop
commitment based on positive or "goodwill" factors that result
in a more affective form of commitment (Gesykens et al. 1996).
RESEARCH PROPOSITIONS
Trust, Commitment and National Cultural Values
Trust is a key construct in most models of long-term business as
well as personal relationships (Morgan and Hunt 1994). Based on the
literature reviewed in the earlier section, we propose the following
propositions pertaining to trust and commitment (note: propositions are
depicted in Figure 1 for each key variable (e.g., P1, P2, et cetera)):
P1 Greater trust between buyer and seller results in stronger
commitment to the relationship.
Doney, Cannon, and Mullen (1998) conceptualized the effect of
national culture on the trust building process of international
buyer-seller relationships, and Doney and Cannon (1997) envisioned five
cognitive trust building processes that affect the development and
maintenance of cross-cultural relationships. Their research suggests
that cultures exhibiting a high degree of individualism and low power
distance will determine trust by analytical means (calculative and
capability processes). In contrast, trust is built more on
internationality and transference in collectivist and high power
distance cultures.
Individualist societies are characterized by a self-orientated and
"loose" interpersonal relationship culture. On the other hand,
collectivist societies are characterized by a group-oriented and
"tight" interpersonal relationship culture. A buyer's
trust in a sales person is likely to be a driver of commitment and
long-term orientation only in cultures which emphasize greater
importance on interaction and group-oriented relationships. Less
relationship-oriented cultures are more likely to choose a seller
primarily based on objective performance criteria. Conversely, buyers in
more relationship-oriented cultures are more likely to prefer dealing
with firms and sales people whom they can trust.
Perceived risk is defined as the uncertainty that the customers
face when they cannot foresee the consequences of their purchase
decisions. Both risk (high probability of failure of an event) and
ambiguity (unknown probability of occurrence of an event) create
uncertainty with which buyers feel uncomfortable at the start of
relationships with sellers. People from high uncertainty avoidance
cultures feel uncomfortable when facing unknown situations. They
actively avoid uncertainty through careful planning and risk aversion,
whereas low uncertainty avoidance customers are more accepting of
uncertainty and embrace risk. Customers from high uncertainty avoidance
cultures, on the contrary, are very cautious when establishing
relationships with sellers. Dash and Saji (2007) provide empirical
evidence indicating that increased levels of trust will have a negative
effect on perceived risk associated with online shopping. Because of
careful planning, customers from high uncertainty avoidance cultures are
likely place more emphasis on seller trustworthiness when developing
lasting relationships. Seller trustworthiness provides the buyer with
visible evidence about the seller that aids her in making decisions by
lowering perceived risk. In buyer seller relationships, uncertainty and
ambiguity are reduced by trust. Conversely, buyers from low uncertainty
avoidance cultures are quite capable of surviving uncertain situations,
and will not place great importance on seller trustworthiness for
developing commitment.
Masculine cultures differ from feminine cultures in terms of the
relationship between trust and commitment. Firms from feminine societies
may have a greater propensity to build relationships characterized by
higher degrees of trusting relationships compared to their counterpart
masculine societies due to an increased attempt to create harmony and
goodwill within the relationship (Pressey and Salassie 2003). However
customers in masculine cultures place more importance on competitiveness
and measures of objective performance.
In summary, customers from low individualistic, high uncertainty
avoidance cultures will consider trust as a more important factor for
commitment compared to customers in high individualistic and low
uncertainty avoidance cultures. Customers from feminist cultures will
place greater importance in the trust-commitment linkage. Thus, we offer
the following propositions:
P2 Individualism negatively moderates the relationship between
trust and commitment.
P3 Trust, as an antecedent of commitment, will be given higher
importance by low individualist compared to their counterpart high
individualist buyers.
P4 Uncertainty avoidance positively moderates the relationship
between trust and commitment.
P5 Trust, as an antecedent of commitment, will be given higher
importance by high uncertainty avoidance compared to their counterpart
low uncertainty avoidance buyers.
P6 Masculinity negatively moderates the relationship between trust
and commitment.
P7 Trust, as an antecedent of commitment, will be given more
importance in feminine societies than in masculine societies.
Satisfaction and National Cultural Values
Satisfaction includes all the characteristics of the relationship
that a firm considers to be, on the one hand, rewarding and profitable,
and, on the other, costly and frustrating. In our model, satisfaction is
defined as "a positive affective state resulting from the appraisal
of all aspects of a firm's working relationship with another
firm" (Anderson and Narus 1984, p. 66). As interaction proceeds,
the parties assess their ongoing relationships and determine the degree
of satisfaction or dissatisfaction each experiences. Selnes (1998)
considered satisfaction as a strong antecedent of trust. The feeling of
satisfaction about the relationship enables the customer to build trust.
Absent satisfying experiences, it is unlikely that trust will develop
and the relationship continue. Trust is built upon the accumulation of
satisfaction in past interactions. For the purpose of cross-cultural
comparisons, Cheng (1994) argues there may be "context
excluded" or "context embedded" relationships between
model constructs across different cultural contexts. In his
conceptualization, the linkage between satisfaction and trust, as well
as relationship duration and trust, is assumed to be unaffected by
cross-cultural differences since they are "context-excluded"
relationships. We assume that satisfaction's positive effect upon
trust is robust across different cultural contexts. Thus, we propose:
P8 Greater satisfaction between buyers and sellers results in
stronger trust in their relationship.
Communication and National Cultural Values
Researchers have not agreed on the direction of the causal
relationship between communication and trust. Dwyer et al. (1987) argued
that trust leads to communication. Anderson, et al. (1987), on the other
hand, believe that communication is positively associated with trust. In
an empirical study of this hypothesis, Anderson and Narus (1990) found
empirical support for communication leading to trust contention. In a
similar finding, Moorman, Zaltman, and Despande (1993) state that timely
communication fosters trust by assisting in resolving disputes and
aligning perceptions and expectations. Therefore, based on the extant
literature, we offer following proposition:
P9 The stronger the perceived communications exchange, the greater
the (a) satisfaction and (b) trust in the relationship.
Donthu and Yoo (1998) argue service providers have power over
customers due to expertise, professional knowledge and other skills.
Furthermore, they argue that differences between providers and customers
are visible across societies in terms of social class status, education
levels, and occupations. The authors argue that customers of high power
distance cultures would tend to respect and defer to service providers.
Weak customers in high power distance cultures are treated as very much
nonexistence by powerful service providers, and are very much dependent
on them due to their own power disadvantage. Therefore, in comparison to
strong customers, weak customers are more likely to tolerate failure
from more powerful service providers.
Under conditions of symmetrical power, a high frequency of
communication occurs and information flows both up and down the
inter-organization hierarchy. As power is dispersed, however, the volume
of communication increases. Conversely, for asymmetrical power
conditions, communication flows will be from the more powerful member to
weaker members (Bacharch and Aiken 1977; Jablin 1987; Mohr and Nevin
1990). On the other hand, in low power distance cultures, consultative
and participative decision-making is more common between powerful and
weaker parties. Similarly, within participative (i.e., low power
distance situations) organizations, there exists a natural sharing of
power and higher worker participation in management decisions (Kale and
McIntyre 1991).
Timely and frequent communication exchange facilitates consultative
and participative decision making in buyer-seller relationship. In lower
power distance cultures, the distribution of power tends to be more
symmetric and greater recognition is made of timely and frequent
information exchange between sellers and buyers. Buyers would not
tolerate poor quality of communication exchange from sellers due to
sellers' relative power advantage. On the other hand, buyers in
large power distance culture, as a result of their tolerance of
accepting inequalities in power, would likely expect comparatively lower
levels of timely and frequent communication exchanges from sellers. They
would tolerate and accept poor communication exchange from sellers
because of the seller's relative power advantage position in the
relationship. Therefore, we suggest that the link between communication
exchange and buyer attitudes is highly dependent on the degree of power
distance. That is, when power distance increases, the expectation of
frequent and timely two-way communication exchange towards establishing
satisfaction and trust decreases. Thus, we offer following propositions:
P10 Power distance negatively moderates the relationship between
communication exchange and (a) satisfaction and (b) trust.
P11 Frequent and timely two-way communication exchange as an
antecedent of (a) satisfaction and (b) trust will be of greater
importance to low power distance buyers compared to their counterpart
high power distance buyers.
Regarding style of communication, Miles, Arnold, and Nash (1990)
connected the communication style dimension of Sheth (1976) with the
stages of buyer seller relationship development of Dwyer et al. (1987).
They suggested that task oriented buyers will expect a task oriented
sales adaptation at all stages of the relationship, while the
interaction oriented buyer will expect an interaction style of
communication in the early stages of the relationship (i.e. awareness
and exploration development) and a combination of interaction style and
task style communication in the latter stages (i.e., expansion and
commitment). Kale and Barnes (1992) proposed that buyers from
collectivist cultures preferred sales behavior to be more cooperative,
integrative, and interaction oriented in comparison to buyers from
individualistic cultures. Hofstede's individualism/collectivism
dimension concerns the "relationship between the individual and the
collective in a given society". The core values associated with
individualism/collectivism reflect the way people interact, such as the
importance of unilateral versus group goals, and the strength of
interpersonal ties. Individualist cultures are characterized by high
degrees of self-orientation and "loose" interpersonal ties.
They give low priority to personal relationships and find it difficult
to invest time needed to develop a substantial relationship before
addressing the task at hand. Therefore, individualists prefer a
task-oriented style of communication to interaction-oriented
communication.
Conversely, collectivist cultures are characterized as extremely
group oriented. Because collectivists value social relationships, they
will prefer to establish strong personal relationships in their business
dealings as well. People in these societies foster the security of
belonging with each other. Therefore, an interaction oriented
communication style will be preferred by collectivist societies.
Therefore we propose:
P12 Individualism moderates the relationship between communication
style and (a) satisfaction and (b) trust.
P13 Interaction oriented communication style as an antecedent of
(a) satisfaction and (b) trust will be of greater importance to buyers
in collectivist societies compared to individualist societies.
P14 Task oriented communication style as an antecedent of (a)
satisfaction and (b) trust will be of greater importance to
Individualist societies compared to collectivist societies.
Cooperation and National Cultural Values
Cooperation refers to the extent to which parties in a working
relationship help one another and coordinate their actions (Anderson and
Narus 1990). Dwyer et al. (1987) found that cooperation and satisfaction
are correlated. Anderson and Narus (1990) found a strong, indirect,
positive relationship between cooperation and satisfaction: cooperation
is linked to satisfaction through trust. Anderson and Narus (1990)
hypothesized that as trust increased in a relationship, cooperation
would increase as well. Our model specifies that cooperation will lead
to greater satisfaction and trust, a statement that is consistent with
prior relationship research. The following proposition addresses this
point:
P15 The stronger the perceived cooperation, the stronger the (a)
satisfaction and (b) trust in the buyer-seller relationship across
national cultures.
As mentioned earlier, the balance of power in the buyer-seller
relationship lies with the seller. Weak buyers are dependent on more
powerful sellers. Members having lower power in higher power distance
societies would expect that power be unequally distributed. Extending
this logic to buyer-seller relationships, one would expect that buyers
in higher power distance societies are more likely to tolerate lower
levels of cooperation, and, therefore, form lower expectations regarding
cooperative behavior expectations when interacting with relatively
powerful sellers. On the other hand, in lower power distance cultures,
the socially sanctioned power difference between sellers and buyer is
relatively low. As a consequence, buyers would not tolerate poor
cooperation from sellers. Hence, we can conclude that the linkage
between cooperation and customer attitude is highly dependent upon the
degree of power distance across cultural contexts. Thus, we propose:
P16 Power distance negatively moderates the relationship between
cooperation and (a) satisfaction and (b) trust.
P17 Cooperation, as an antecedent of (a) satisfaction and (b)
trust, will be given comparatively lower importance by high power
distance buyers compared to their counterpart low power distance buyers.
Relationship Duration and National Cultural Values
Kao's (1998) dynamic model implies that interpersonal trust
grows over time. Similarly, Lewicki and Bunker (1996) posit three stages
of trust development in professional relationships: calculus-based
trust, knowledge-based trust, and identification-based trust. Their
three trust-types are very similar to Koa's dynamic model of
interpersonal trust. In both models, interpersonal trust develops
gradually as the parties move from one stage to another (Lewicki and
Bunker 1996). Trust begins to develop as calculus-based trust develops,
and as parties get to know one another better the relationship moves to
knowledge-based trust, and then to identification-based trust, although
trust can decline as well as develop over time (Lewicki and Bunker
1996). The longer the duration of the relationship, the more trust
buyers and sellers build with one another. We would expect that as
relationship duration increases, so would the level of trust in the
relationship. Based on Cheng's (1994) results, we assume that the
positive effect of relationship duration in enhancing customer's
trust is robust across different cultural contexts. Therefore, we
propose:
P18 Trust increases as the duration of the relationship between
corporate buyer and seller Increases.
Bonding and National Cultural Values
Bonding is defined as the dimension of a business relationship that
results in two parties (buyer and seller) acting in a unified manner
towards a desired goal. In the marketing literature, bonds are
classified under two broad categories: structural and social. Structural
bonding is the "degree to which certain ties link and hold a buyer
and seller together in a relationship as a result of some mutually
beneficial economic, strategic, technological, or organizational
objective" (Williams, Han, and Qualls 1998). Social bonding is the
measure of the degree to which close personal relationships have
developed between buyers and sellers that have had a working
relationship for some time. During social bonding, individuals are
pulled together via the organizational members' personal and social
relationships with their counterparts in a particular firm (Williams et
al. 1998). Hence, we propose the following:
P19 The stronger the perceived social bonding, the greater will be
commitment to the relationship.
P20 The stronger the perceived structural bonding, the greater will
be commitment to the relationship.
Bonding has been successful in explaining within country
buyer-seller relationships (IMP Group 1982). Williams et al. (1998)
related levels of individualism to social and structural bonding. They
characterized individualistic national cultures as those with less
interpersonal orientation (i.e. structural bonding), while collectivist
national cultures are more interpersonally oriented (i.e., high social
bonding). Conversely, buyers from highly individualistic countries had
the strongest desire for structural bonding. In a similar finding,
Adler, Gehrke, and Graham (1987) discovered that relationships were more
important to Mexican negotiators (collectivists) than to negotiators
from the United States (individualists). Malhotra, Ulgado, Agarwal, and
Baalbaki (1994) opined that customers in developing countries give more
importance to social interaction and personal connectivity than do their
counterparts from developed countries. A buyer's social closeness
with a sales person is likely to be a driver of commitment only in
cultures emphasizing greater importance on interpersonal and social
relationships. When the relationship is evaluated on the basis of
economic criteria, short-term gains (such as good pricing and
organizational relationship) are given greater importance. Less
relationship-oriented cultures are more likely to choose a seller
primarily based on objective performance criteria. Conversely, buyers in
more relationship-oriented cultures are more likely to prefer dealing
with the sales people with whom they can establish personal and social
relationships.
Based on the literature, individualism is viewed as a negative
moderator for the social bonding-commitment relationship and positive
moderator for the structural bonding-commitment relation. Therefore, our
model specifies that the link between bonding and commitment is
dependent upon the degree of individualism across different national
cultures. The following propositions address this point:
P21 Individualism negatively moderates the relationship between
social bonding and commitment.
P22 Individualism positively moderates the relationship between
structural bonding and commitment.
P23 Social bonding, as an antecedent of commitment, will be given
higher importance by low individualist buyers compared to their
counterpart high individualist buyers.
P24 Structural bonding, as an antecedent of commitment, will be
given higher importance by high individualist buyers compared to their
counterpart low individualist buyers.
Interdependence, Interdependence Asymmetry and National Cultural
Values
Dependence, or the extent to which it is necessary to maintain
specific channel relationships to achieve desired goals, is arguably the
most important construct in understanding distributor channel
relationship, because channel members are dependent on each other
(Hakansson 1982). Buyers and sellers are dependent on each other to some
extent, and, obviously, this dependence will vary greatly among
relationships. High seller dependence on buyers would likely lead the
buyer to obtain superior performance results, as the seller has only
limited options at his avail. A seller with large buyer dependence will
often be in a situation of lock-in, as it is unable to dispose of the
buyer, unless at an excessive cost. Dependence, therefore, has a
significant impact on the long-term relationship between buyers and
sellers.
The interdependence structure of a dyadic buyer-seller relationship
encompasses each party's relative dependence. Recently, the concept
of dependence has been elevated to the dyadic level interdependence with
the recognition that a firm's dependence on another firm is
relative to the other firm's dependence on it (Buchanan 1992; Kumar
et al. 1995). Total interdependence is the sum of both party's
dependence, whereas interdependence asymmetry is the difference between
firm's dependence on its partner, and its partner's dependence
on the firm (Emerson 1962). Symmetric interdependence exists when the
firm and its partner are equally dependent on each other. In such a
situation, both parties will have equal access to resources that are
valued by their partner.
Because one firm's dependence on a partner is a source of
power for that partner (Emerson 1962), total interdependence and
interdependence asymmetry are equivalent to the total power and power
asymmetry derived from the firms' dependence. Ties of total
interdependence provide each party in the relationship with the
opportunity to facilitate the other's goal attainment.
When there is high total interdependence between channel
participants, the interests of both parties will converge and both
parties face relatively high exit barriers. In such a situation,
positive attitudes, such as satisfaction, trust and commitment, will
likely emerge. Several researchers have demonstrated that greater total
interdependence leads to higher trust, relationship commitment (e.g.,
Dash, et al. 2006; Geysken et al. 1996; Kumar, et al. 1995) and
satisfaction (Kim 2003). In case of a power imbalance, the high power
party will attempt to exploit its advantage and the low power party will
become dissatisfied with the relationship and, consequently, will be
less motivated to continue the relationship for affective reasons
(Anderson and Narus 1984; Anderson and Weitz 1989; Ganeson 1994;
Varadarajan and Cunningham 1995). Dwyer and Walker (1981) and Roering
(1977) provide empirical evidence to dramatize that, the greater the
power of a firm, the more likely that firm is to use coercive means of
influencing in another firm in its channel of distribution. Previous
studies have suggested that asymmetry of dependence, regardless of
direction of asymmetry, is related negatively to distributor attitudes
(e.g., satisfaction, trust and commitment) because of the exploitation
opportunities that are caused by the imbalance in dependence (Anderson
and Weitz 1989; Kuma, et al. 1995). Hence, we propose the following
hypotheses linking interdependence structure and corporate
customer's attitudes:
P25 The greater the perceived total interdependence, the greater
the (a) satisfaction, (b) trust and (c) commitment.
P26 As the interdependence asymmetry between buyers and sellers
increases, (a) satisfaction, (b) trust and (c) commitment will decrease.
As discussed earlier, in large power distance cultures, an
asymmetric balance of power exists between the relatively powerful and
relatively weak partners. Extending this logic to total interdependence
and buyer attitudes, we propose that, in large power distance cultures,
as a result of their characteristics of tolerance in accepting
inequalities in power, buyers' expectations of a symmetric
interdependence relationship from a powerful seller will be
comparatively lower than from a small power distance cultures.
Consequently, buyers in high power distance societies are likely to set
a low level of interdependence expectation in the relationship. On the
other hand, in small power distance cultures the socially sanctioned
small power distance between buyer and seller will encourage the buyer
to maintain a balance of interdependence in the relationship with the
seller. High total interdependence in this context is necessary, as the
buyers will not expect and accept any type of unequal distribution of
power in their relationship. Kale and McIntyre (1991) argue that small
power distance societies encourage participative decision-making and
value relationships based on comparable dependence. Dash et al. (2006),
in their bank relationship study, provided empirical evidence that power
distance is a negative moderator of the interdependence commitment link.
They showed that the effect of interdependence on trust and commitment
is much higher in a small power distance society (Canada) than in a
higher power distance society (India). Thus, power distance is actually
a negative moderator for the interdependence-commitment relationship. We
suggest that the link between interdependence relationship and customer
attitudes is highly dependent on the extent of power distance prevailing
in the societal context. Thus, we propose:
P27 Power distance negatively moderates the relationship between
interdependence and (a) satisfaction, (b) trust and (c) commitment.
P28 Interdependence, as an antecedent of (a) satisfaction, (b)
trust and (c) commitment, will be given higher importance by low power
distance buyers compared to their counterpart high power distance
buyers.
DISCUSSION, LIMITATIONS AND FUTURE RESEARCH DIRECTIONS
Discussion of the Conceptual Model
Given the recent business trend to seek and conscientiously develop
long-term relationships, a better understanding of these relationships
among partners from different cultures would help the efforts of
practitioners in their pursuit of such relationships. Despite their
obvious importance, the antecedent conditions and processes of
buyer-seller long-term relationship development have not been
systematically studied cross-culturally. The present study begins the
task of filling this gap.
Our purpose in writing this paper was to expand current
understanding of buyer-seller long-term relationships by developing a
model incorporating antecedent factors of business relationships between
buyers and their sellers in a cross cultural context. Several
Hofstede's national culture value dimensions--individualism, power
distance, uncertainty avoidance and masculinity/femininity cultural
values were employed as moderating factors in our model that integrates
features of traditional buyer-seller models. Our literature review
revealed that some of the most significant determinants of trust are (1)
satisfaction, (2) communication, (3) cooperation, (4) relationship
duration, (5) interdependence, and (6) interdependence asymmetry.
Similarly, the most significant determinants of satisfaction were (1)
communication, (2) cooperation, (3) total interdependence, and (4)
interdependence asymmetry. The most important determinants of commitment
were (1) trust, (2) social bonding, (3) structural bonding, (4)
interdependence, and (5) interdependence asymmetry. A series of research
propositions about these antecedent variables were developed from the
existing literature as well as from our conceptualization. Additionally,
we proposed propositions concerning the moderating effects of national
cultural values. We believe individualism impacts the linkage between
trust and commitment, and between social bonding, structural bonding and
commitment. Power distance is believed to exert an influence on the
relationships between several antecedents (i.e., communication,
cooperation, and interdependence) and the three outcome variables (i.e.,
satisfaction, trust and commitment). Power distance also is expected to
exert a negative influence on the linkage between interdependence
asymmetry and satisfaction, trust and commitment. Finally, we propose
that uncertainty avoidance and masculinity/femininity moderate the
relationship between trust and commitment.
The conceptual development offered in this research offers
researchers working propositions that will direct enquiry into
cross-cultural buyer-seller long-term relationships. Appendix I provides
detailed descriptions of concepts and measurement scales that future
researchers may use in attempting to empirically test the study
propositions. The items employed for assessing individualism and power
distance cultural value were drawn directly from the cultural value
scale developed by Yoo, Donthu, and Lenartowicz (2001). The advantage of
this scale over Hofstede's (1980, 1991, 2001) scale is that, the
instrument can also be applicable to general consumer situations and is
not limited to work-related situations. From their four nation's
study (i.e., South Korea, Brazil, and Poland), Yoo, Donthu, and
Lenartowicz (2001) demonstrate that the items assessing cultural value
have adequate psychometric properties.
Researchers have acknowledged that culture is relevant in business
dealings and that to ignore them poses risks businesses should not make.
The cultural influences, however, are not only nationality based--they
may be from among sub-cultures within larger national settings. Samiee
and Jeong (1994) argue that subcultures may be present within the
geographic boundaries of different countries, and that variations in
relationship expectations between sub-cultures in the same country may
exist as well. Donthu and Yoo (1998) discovered individual level
variations in service quality expectations across several countries. Au
(1999) explained why variations within a culture, or intra cultural
variation, are an important construct for international management
research. The term "culture" is not synonymous with term
"country", even though =country' has been used as a
surrogate for culture in many cross-cultural studies (e.g., Clark 1990;
Roth 1995). Panda and Gupta (2004) proposed to adopt an
evolutionary--emic approach along with an etic approach to explore
regional variation of culture within India.
To ignore the impacts of cultural differences, therefore, is to run
a risk that marketing practices may be flawed both within and outside
the country. Relationship marketing practices in one country, or
culture, or cultural sub-grouping, may be different from other countries
or cultural groups. This paper attempts to provide insights for
marketing theorists and practitioners about the relative importance of
developing marketing strategies for long-term buyer-seller relationships
in a cross-cultural context. Our theorizing supports the hypotheses that
knowledge of a country's culture(s) exerts a strong influence on
how relationships are formed, maintained, and fail. It is now a
challenge for academic researchers to take these findings and make
necessary adjustments in our models in order to advance knowledge
pertaining to buyer-seller relationships. The future belongs to
businesses that effectively manage the relationship atmosphere variables
surrounding buyer-seller relationships in cross-a cultural context.
Limitations and Directions for Future Research
While the summary of past works and the integration of several
theories derived from these works into our model are interesting and
useful, the limitations of our conceptual contribution will be
questionable in the absence of empirical findings. We encourage further
theorizing, empirical testing, replication and extensions of our work so
that greater confidence can be placed in its implications. Moderating
effects of culture on established behavioral linkages have been shown to
be substantial in past works, and, furthermore, provide real-world
guidance to managers who work in relationships spanning several
cultures.
One limitation of our model is that attention is focused primarily
on the buyer's perspective--elements that buyers consider important
in developing and maintaining relationships with companion sellers. The
buyer's view is, in itself, important, but may have to be modified
if seller's views are different. We agree with Tyler and Stanley
(1999), who noted that, in a dyadic relationship, both buyer's and
seller's observations are very much important for deriving
meaningful conclusions. For this reason, future research work on the
dyadic perspective may provide more useful insights.
Second, the study's focus is directed to only one stage of
buyer-seller relationship (i.e. maintenance stage). If the review was
expanded to include buyers at other stages of the buyer-seller
relationship (i.e., a general inquiry), then, as suggested by Wilson
(1995), there could be very different levels of importance placed on the
"success" variables in the relationship. There might also be a
difference in the type of relationship preferences of the buyer at
different stages.
Third, our research investigated one particular type of
buyer-seller relationship--the case where the seller is more powerful
than the buyer. Therefore, the propositions proposed from our model may
not be applicable to other settings where power differentials are
reversed or changing over time. Future research should investigate the
buyer-seller relationship process in varying settings (e.g., between
powerful buyers and weaker sellers, among coalitions of weak sellers and
powerful buyers, across time where the power differentials change or
even reverse between parties).
Fourth, we employed Hofstede's dimensions of national cultural
values, which differ from cultural values discussed by other
researchers. Expanding the analysis to include more cultural dimensions would provide managers and researchers more incisive insights into the
dynamics occurring between buyers and sellers. Future studies should
review the effect of other cultural dimensions on the relative
importance of relationship marketing strategies that strive to enhance
satisfaction, trust and commitment among partners. This represents a
logical extension for future research.
Finally, This study constitutes an early effort at the review of
the antecedent factors of buyer-seller long-term relationships in a
cross-cultural context. Consequently, it raises more questions than it
answers. All of these issues discussed in this section are relevant
questions that future studies on buyer-seller long-term relationships
may have to address. As the businesses become more and more global in
their strategic thinking, it behooves managers and researchers to
grapple with the complex interplay between marketing practices and
cultural values. To ignore the fact that culture influences marketing
practice is synonymous to overlooking the reality that advertising
influences consumer choices, or lower prices typically lead to higher
sales, or higher satisfaction typically leads to more committed buyers.
The challenge is apparent--culture is a factor both researchers and
managers must become cognizant of in trying to understand buyer-seller
relationships over the long term.
APPENDIX I
Measurement Items and Operationalization of Study Constructs
Constructs Definition Measurement Items References
Communication The formal Our communication is Kim and
Exchange as well as open and honest Frazier
informal (1997)
sharing of We keep each other
meaningful, informed about events Smith
timely and or changes that may (1998)
frequent affect the other.
information Dahlstrom,
between firms Exchanging McNeilly,
information, market and Speh
condition and (1996)
strategies with this
supplier.
Reviewing and
providing feedback
on each other's
performance takes
place frequently.
Interaction- Importance of The customer was William
Oriented personalization interested in and Spiro
Communication and socializing (1985)
Style socialization
for sales The customer tried to
establish a personal
relationship
This customer was
easy to talk with
This customer seemed
to be more interested
in not only as
salesperson, but as
a person
The customer likes to
talk to people
Task oriented Highly goal The customer wanted William
communication oriented and to finish the and Spiro
style purposeful. It shopping task (1985)
would be most
appropriate The customer wanted
in a to complete his
mechanistic or shopping task as
transactional effectively as
selling possible
situation.
The customer seemed
to be more interested
in himself than in
the product or what
I have to say.
Cooperation The extent to We help our seller in Smith
which parties whatever ways they (1998)
in a working ask.
relationship Anderson
help one Our seller helps out and Narus
another and our firm in whatever (1990)
coordinate ways they ask.
their actions
I believe cooperation
is a characteristic
of our relationship
Relationship The duration of About how long has Doney and
Duration relationship your company had Canon
existed between contact with this (1997)
buyer and supplier?
seller
Interdependence The extent to In our trade area, Ganesan
which it is there are other firms (1994)
necessary to that provide the
maintain seller with Kumar,
specific comparable Scheer,
channel distribution(r) and
relationships Steenkamp
to achieve In our trade area the (1995)
desired goals seller would incur
minimal costs in
replacing our firm
with another dealer.
It would be difficult
for the seller to
replace the sales and
profit our dealership
generates.
We are dependant on
this seller for sales
in this region
Satisfaction A positive Over all I believe Smith
affective state we are both quite (1998)
resulting from satisfied with our
the appraisal working relationship
of all aspects
of a firm's This is among the
relationship best supplier
with another relationships that I
firm. have experienced
I have not been happy
with this
relationship
Trust Trust is the In our relationship Kumar,
firm's belief my major seller can Scheer,
that another be counted as to do and
company will the right thing Steenkamp
perform actions (1995)
that will In our relationship
result in my major seller has Doney and
positive high integrity. Canon
actions for the (1997)
firms, as well The sales person has
as not take been frank in dealing Morgan
actions that with us. and Hunt
would result (1994)
in unexpected The salesperson is
negative not trustworthy
outcomes for
the firm. Though circumstances
change, we believe
that the seller will
be ready and willing
to offer us
assistance and
support.
While taking
important decisions,
the seller is
concerned about our
welfare
Commitment Commitment Something we are very Morgan
indicates the committed and Hunt
motivation one (1994)
possesses to Something my firm
maintain a intends to maintain
relationship. indefinitely
Deserves our firm's
maximum efforts to
maintain
Social Bonding During social In personal sense how Smith
bonding, closely you and your (1998)
individuals are partner tied
bonded together Rodriquez
via the Sharing of personal and Wilson
organizational advice and support. (1999)
members'
personal Feeling of
and social belongingness and
relationship acceptance
with their Friendship.
counterparts in
a particular
firm.
Structural Structural In an economic sense Smith
Bonding bonding is to what extent does (1998)
the task your company need
orientation to have a close Rodriquez
between buyer relationship with and Wilson
and seller. It this alliance partner (1999)
is the "degree
to which Guided by formal
certain ties contracts and
link a buyer agreement
and seller
together in a Sharing of industry
relationship as or competitive
a result of information
some mutually
beneficial Electronic ties or
objective. linkages between
Organizations such
as electronics mail,
access to computer
database or support.
Exchange cards, gifts
and the like on
birthdays, holidays
or on special events.
Individualism Individualism Individuals should Yoo et al,
focuses on the sacrifice self- (2001)
degree society interest for the
reinforces group (either at
individual school or the work
achievement and place).
interpersonal
relationships. Individuals should
stick with the group
even through
difficulties.
Group welfare is
more important than
individual rewards.
Group success is more
important than
individual success.
Individuals should
only pursue their
goals after
considering the
welfare of the group.
Group loyalty should
be encouraged even if
individual goals
suffer.
Power Distance The degree People in higher Yoo et al,
of equality positions should (2001)
between people make most decisions
in the without consulting
country's people in lower
society. positions.
People in higher
positions should not
ask the opinions of
people in lower
positions too
frequently.
People in higher
positions should
avoid social
interaction with
people in lower
positions.
People in lower
positions should
not disagree with
decisions by people
in higher positions.
People in higher
positions should not
delegate important
tasks to people in
lower positions.
Masculinity Masculinity It is more important Yoo et al,
focuses on for men to have a (2001)
the degree professional career
the society than it is for women.
reinforces the
traditional Men usually solve
masculine work problems with logical
role model analysis; women
of male usually solve
achievement, problems with
control, and intuition.
power.
Solving difficult
problems usually
requires an active,
forcible approach,
which is typical of
men.
There are some jobs
that a man can always
do better than a
woman.
Uncertainty Uncertainty It is important to Yoo et al,
Avoidance Avoidance have instructions (2001)
focuses on spelled out in detail
the level of so that I always know
tolerance for what do.
uncertainty
and ambiguity It is important to
within the closely follow
society--i.e. instructions and
unstructured procedures.
situations.
Rules and regulations
are important because
they inform me of
what is expected of
me.
Standardized work
procedures are
helpful.
Instructions for
operations are
important.
REFERENCES
Aaker, Jennifer L. and Angela Y. Lee. 2001. "'I'
Seek Pleasures and 'We' Avoid Pains: The Role of
Self-Regulatory Goals in Information Processing and Persuasion."
Journal of Consumer Research 28 (June): 33-49.
Aaker, Jennifer L. and Durairai Maheswaran. 1997. "The Effect
of Cultural Orientation on Persuasion". Journal of Consumer
Research 24 (December): 315-328.
Berry, L.L. and A. Parasuraman. 1991. Marketing Services. New York:
The Free Press.
Buchanan, Lauranne. 1992. Vertical Trade Relationships: The Role of
Dependence and Symmetry in Attaining Organizational Goals." Journal
of Marketing Research 29 (February): 65-75.
Adler, Nancy J., T. S. Gehrke, and J. L. Graham. 1987.
"Business Negotiations in Canada, Mexico, and United States".
Journal of Business Research 15: 411-29.
Anderson, E., M. Leonard, and B.A. Weitz. 1987. "Resource
Allocation Behavior in Conventional Channels". Journal of Marketing
Research 24 (February): 254-62.
Anderson, James C. and B.A. Weitz. 1989. "Determinants of
Continuity in Conventional Channel Dyads". Marketing Science 8:
310-323.
Anderson, James C. and James A. Narus. 1990. "A Model of
Distributor Firm and Manufacturer Firm Working Partnerships".
Journal of Marketing 29 (1): 18-34.
Anderson, James C. and James A. Narus. 1984. "A Model of the
Distributor's Perspective of Distributor-Manufacturer Working
Partnerships". Journal of Marketing 54 (1): 42-58.
Assael, H. 1969. "The Constructive Role of
Inter-organizational Conflict". Administrative Science Quarterly 14
(December): 573-582.
Au, Kevin, Y. 1999. "Intra-cultural Variation: Evidence and
Implications for International Business". Journal of International
Business Studies 30 (4): 799-812
Bacharch, Samuel and Michael Aiken. 1977. "Communication in
Administrative Bureaucracies". Academy of Management Journal 20
(September): 365-77.
Buchanan, Lauranne. 1992. Vertical Trade Relationships: The Role of
Dependence and Symmetry in Attaining Organizational Goals." Journal
of Marketing Research 29 (February): 65-75.
Callaghan, M.B., Janelle McPhil, and O.H.M. Yau. 1994. "The
Theoretical Development of Dimensions of a Relationship Marketing
Orientation". In Asia Pacific Business in the year 2000- Conference
Proceedings. Eds. Feng Yung Cheng and Wee Chow Hou. Bejing, China:
Academy of International Business, 240-249.
Cheng, J.L.C. 1994. "On the Concept of Universal Knowledge in
Organisational Science: Implications for Cross-national Research".
Management Science 40: 1612-168.
Clark, Terry 1990. "International Marketing and National
Character: A Review and Proposal for Integrative Theory". Journal
of Marketing 54 (October): 66-79.
Dash, S., E. Bruning, and K.K. Guin. 2006. "The Moderating
Effect of Power Distance on Perceived Interdependence and Relationship
Quality in Commercial Banking: A Cross-cultural Comparison".
International Journal of Bank Marketing 24 (5): 307-326.
Dash, S.B, and K.B. Saji. 2007. "Role of Self-efficacy and
Social Presence in Customers' Adoption of B2C E-commerce: An
Empirical Study". Journal of International Consumer Marketing,
(Forthcoming).
Dahlstorm, Robert, K. McNeily, and T.W. Speh. 1996.
"Buyer-seller Relationships in the Procurement of Logistical Services". Journal of the Academy of Marketing Sciences 24 (2):
110-124.
Doney, Patricia, Joseph Cannon, and Michael Mullen. 1998.
"Understanding the Influence of National Culture on the Development
of Trust". Academy of Management Review 23 (3): 601-620.
Doney, Patricia and Joseph Cannon. 1997. "An Examination of
the Nature of Trust in Buyer-seller Relationships". Journal of
Marketing 61 (April): 35-51.
Donthu, N. and B. Yoo. 1998. "Cultural Influences on Service
Quality Expectations". Journal of Services Research 1 (2): 178-185.
Dwyer, F. R., P.H. Schurr, and S. Oh. 1987. "Developing
Buyer-seller Relationships". Journal of Marketing 51 (1): 11-27.
Dwyer, F. R. and Orville Walker. 1981. "Bargaining in an
Asymmetrical Power Structure". Journal of Marketing 37 (January):
39-47.
Emerson, Richard M. 1962. "Power-dependence Relations".
American Sociological Review 27 (February): 31-41.
Etgar, Michael. 1979. "Sources and Types of Intrachannel
Conflict". Journal of Retailing 55 (Spring): 76-78.
Ganeson, Shankar. 1994. Determination of Long-term Orientation in
Buyer-seller Relationships." Journal of Marketing 58 (April): 1-19.
Geysken, I.; J.-B.E.M. Steenkamp, L.K. Scheer, and N. Kumar. 1996.
"The effects of Trust and Interdependence on Relationship
Commitment: A Trans-Atlantic Study". International Journal of
Research in Marketing 13 (October): 303-17.
Hakansson, Hiakan, ed. (1982). International Marketing and
Purchasing of Industrial Goods: An Introduction Approach. Chichester,
UK: John Wiley and Sons.
Hakansson, Hiakan and L. Snehota. 1995. Developing Relationships in
Business Networks. London: Routledge.
Hofstede, G. 2001. Culture's Consequences: Comparing Values,
Behaviors, Institutions, and Organizations across Nations, second
edition, Thousand Oaks, CA: Sage Publications.
Hofstede G. 1991. Cultures and Organizations: Software of the Mind,
Berkshire, UK. McGraw-Hill.
Hofstede, G. and M.H. Bond. 1988. "The Confucius Connection:
From Cultural Roots to Economic Growth". Organizational Dynamics 16
(4): 4-21.
Hofstede G. 1983. "The Cultural Relativity of Organizational
Practices and Theories". Journal of International Business Studies
Fall: 75-90
Hofstede G. 1980. Cultures Consequences: International Differences
in Work Related Values. Beverly Hills, CA: Sage Publications
Jablin, Frederic. 1987. "Formal Organization Structure".
In Handbook of Organizational Communication: An Interdisciplinary
Perspective, F. Jablin et al., (eds.), Newbury Park, CA: Sage
Publications, 389-419.
Johnson, M.P. 1982. "Social and Cognitive Features of the
Dissolution of Commitment to Relationships". In Personal
Relationships 4: Dissolving Personal Relationships. S. Duck, (Ed.),
London: Academic Press, 51-73.
Kale, Sudhir H., and Roger P. McIntyre. 1991. "Distribution
Channel Relationships in Diverse Cultures". International Marketing
Review 8 (3): 31-45.
Kale, Sudhir H. and John W. Barnes. 1992. "Understanding the
Domain of Cross-national Buyer-seller Interactions". Journal of
International Business Studies 23 (1): 101-132.
Kao, A.C. 1998. Trust and Agency: The Patient-Physician
Relationship in the Era of Managed Care. Dissertation. University of
Michigan, Ann Arbor, MI: University Microfilms International.
Kim, K. and G.L. Frazier. 1997. "On Distributor Commitment in
Industrial Channels of Distribution: A Multicomponent Approach".
Psychology and Marketing 14 (8): 847-877.
Kim, S.K. 2003. "A Cross-national Study of Interdependence
Structure and Distributor Attitudes: The Moderating Effect of Group
Orientation". International Journal of Research in Marketing 20:
193-214.
Kluckhohn, Richard, (ed.) (1962). Culture and Behavior: Collected
Essays of Clyde Kluckhohn. New York: Free Press of Glencoe/Macmillan.
Kroeber, Alfred L. and C. Kluckhohn. 1952. Culture: A Critical
Review of Concepts and Definitions." Paper of the Peabody Museum of
American Archaeology and Ethnology. 47 (1). Cambridge, MA: Harvard
University.
Kumar, Nirmalya, L.K. Scheer, and J.-B.E.M. Steenkamp. 1995.
"The Effects of Perceived Interdependence on Dealer
Attitudes". Journal of Marketing Research 22 (August): 348-356.
Lewicki, R.J. and B.B. Bunker. 1996. "Developing and
Maintaining Trust in Working Relationships". In R.M. Kramer and
T.R. Tyler (Eds.), Trust in Organizations: Frontiers of Theory and
Research, Thousand Oaks, CA: Sage Publications, 114-139.
Malhotra, N.K., F.M. Ulgado, J. Agarwal, and I.B. Baalbaki. 1994.
"A Comparative Evaluation of Dimensions of Service Quality Between
Developed and Developing Countries". International Marketing Review
11 (2): 5-15.
Markus, H.R. and S. Kitayama. 1991. "Culture and Self:
Implications for Cognition, Emotion, and Motivation". Psychological
Review 98 (2): 224-53.
Miles, M.P., D.R. Arnold, and H.W. Nash. 1990. "Adaptive
Communications: The Adaptation of the Seller's Interpersonal Style
to the Stages of the Dyad's Relationship and the Buyer's
Communication Style". Journal of Personal Selling and Sales
Management 10 (Feb): 231-27.
Mishra, Ranadhir. 2000. "A Generalized Model for the Structure
of Business Relationship: A Meta-analysis of Relationship
Literature". In J. Sheth et al., (Eds.), Customer Relationship
Management: Emerging Concepts, Tools and Applications, Tata: McGraw-Hill
Publication Company Ltd., New Delhi, India.
Mohr, Jakki and J.R. Nevin. 1990. 'Communication Strategies in
Marketing Channels: A Theoretical Perspective". Journal of
Marketing 54 (October): 36-51.
Moorman, C., G. Zaltman, and R. Despande. 1993. "Factors
Affecting Trust in Market Research Relationship". Journal of
Marketing 57: 81-101.
Money, R. Bruce, M.C. Gilly, and J.L. Graham. 1999.
"Exploration of National Culture and Word-of-Mouth Referral
Behavior in the Purchase of Industrial Services in the United States and
Japan". Journal of Marketing 62 (4): 76-87.
Morgan, R.M. and S.D. Hunt. 1994. "The Commitment-Trust Theory
of Relationship Marketing". Journal of Marketing 58 (3): 20-38.
Newman, K.L. and S.D. Nollen. 1996. "Culture and Congruencies:
The Fit between Management Practices and National Culture". Journal
of International Business Studies IV: 753-78.
Panda, A. and R.K. Gupta. 2004. "Mapping Cultural Diversity
within India: A Meta Analysis of Some Recent Studies". Global
Business Review 5 (1): 27-49.
Pressey, A.D. and D. Salassie. 2003. "Are Cultural Differences
Overrated? Examining the Influence of National Culture". Journal of
Consumer Behavior 2 (4): 354-374.
Rodriquez, Carlos M. and D.T. Wilson. 1999. Relationship Bonding
and Trust as Foundations for Commitment in International Strategic
Alliances, USA-Mexico: A Latent Variable Structural Modeling Approach.
ISBM Report no-21-1999, Pennsylvania State University.
Roering, Kenneth. 1977. "Bargaining in Distribution
Channels". Journal of Business Research 5 (March): 15-26.
Roth, M.S. 1995. "The Effect of Culture and Socioeconomic on
the Performance of Global Brand Image Strategies". Journal of
Marketing Research 32 (May): 163-175.
Samiee, S. and J. Jeong. 1994. "Cross-cultural Research in
Advertising: An Assessment of Methodologies". Journal of the
Academy of Marketing Science 22 (3): 205-17.
Selnes, F. 1998. Antecedents and Consequences of Trust and
Satisfaction in Buyer-seller Relationships." European Journal of
Marketing 32 (3/4): 305-322.
Sheth, Jagdish. 1976. Organizational Buying Behavior: Past
Performance and Future Expectations." Journal of Business and
Industrial Marketing 11 (3/4): 7-24.
Smith, Brock. 1998. "Buyer-seller Relationships: Bonds,
Relationship Management, and Sex-type". Canadian Journal of
Administrative Science 15 (1): 76-92.
Teas, R. 1994. "Expectations as a Comparison Standard in
Measuring Service Quality: An Assessment of a Reassessment".
Journal of Marketing 56 (3): 132-139.
Tse, David K., Kam-Hon Lee, I. Vertinsky, and D.A. Wehrung. 1988.
"Does Culture Matter? A Cross-cultural Study of Executives'
Choice, Decisiveness, and Risk Adjustment in International
Marketing". Journal of Marketing 52 (10): 81-95.
Tyler, Katherine and Edmund Stanley. 1999. Marketing Financial
Services to Businesses: A Critical Review and Research Agenda."
International Journal of Bank Marketing 17 (3): 98-115.
Varadarajan, P.R. and M.H. Cunningham. 1995. "Strategic
Alliances: A Synthesis of Conceptual Foundations". Journal of the
Academy of Marketing Science 23 (4): 282-296.
William, Kaylene C. and Rosann Spiro. 1985. "Communication
Style in Salesperson Customer Dyad". Journal of Marketing Research
22 (Nov): 434-442.
Williams, Jerome D., Sang-Lin Han, and William J. Qualls. 1998. A
Conceptual Model and Study of Cross-cultural Business
Relationships." Journal of Business Research 42 (1): 135-143.
Wilson, David, T. 1995. "An Integrated Model of Buyer-seller
Relationship". Journal of the Academy of Marketing Science 23 (4):
335-345.
Wilson, D.T. and K.K. Moller. 1988. Buyer-seller Relationships:
Alternative Conceptualizations. (Working Paper No-10-1988), University
Park: Pennsylvania State University, Institute for the Study of Business
Markets).
Wren, Brent M. and James T. Simpson. 1996. "A Dyadic Model of
Relationships in Organizational Buying: A Synthesis of Research
Results". Journal of Business and Industrial Marketing 11 (3/4):
63-79.
Yoo, Boonghee, Naveen Donthu, and Lenartowicz Tomasz. 2001.
"Measuring Cultural Values: Development and Validation of
CVSCALE," Working paper, Georgia State University.
Satyabhusan Dash
Indian Institute of Management
Ed Bruning
University of Manitoba
Kalyan Ku Guin
Indian Institute of Technology
Professor Dash is Assistant Professor, Indian Institute of
Management, Lucknow 226013, India, 91-522-273-6628, e-mail:
satya@iiml.ac.in
Ed Bruning is Professor of Marketing, I.H. Asper School of
Business, University of Manitoba. Winnipeg, MB R3T 0C3, 204474-8347,
e-mail: ebrunng@cc.umanitoba.ca
Kalyan Ku Guin is Professor, Vinod Gupta School of Management,
Indian Institute of Technology Kharagpur, India, 721302, 91-3222-283870,
e-mail: kalyan@vgsom.iitkgp.ernetin