The Effect Of Group-Orientation Culture On Inter-Organizational Cooperation Mechanisms

Abstract

Cooperation between exchange parties becomes a center for inter-organizational relationship. Cooperation reduces the attractiveness of opportunistic behavior that seeks short-term benefits, so it has been identified as a key factor for inter-organizational cooperation. Although several factors affecting cooperative relationship have been studied, the majority of inter-organizational studies are conducted on the basis of an individualistic perspective view of Western culture. This study introduces group-orientation culture and tries to enhance the understanding the effect of group-orientation culture on inter-organizational cooperation in the relationship between exchange parties. This study suggests that group-orientation culture influences the generation of informal cooperation between exchange parties. When a party expects harmonious relationship with its partner, the party develops the relational norm through accepting short-term disadvantages that are expected to be balanced out by longer-term advantages. However, exchange parties with a low group-orientation culture do not rely on formal cooperation mechanisms.