Cross-national buyer-seller relationship, Long-term orientation culture, Contracts
This study assesses the effects of Long-Term Orientation culture on inter-organizational trust and conflict. This research examines the role of one important cultural factor, namely long-term orientation, as it relates to contractual relationships between manufacturers and their suppliers. As LTO cultures have become accepted as a crucial factor for describing nations, this study should prove invaluable to our understanding of inter-organizational relationships affected by differing levels of long-term orientation. The authors investigate the effects of LTO in the relationship between a manufacturer and its supplier. These results reveal that, LTO culture significantly affects the relationships between channel members. In particular, high LTO culture positively affects the generation of trust. Whereas high LTO culture suppresses the conflict between channel members, low LTO cultures do not suppress conflict between channel members.