A Cross National Study Of The Effect Of Group Orientation Culture On Inter-Organizational Relationship

Abstract

Exchange parties from diverse cultures need to maintain good quality relationships with their partners. Based on the existing literature, however, it remains unclear as to how culture affects the quality of relationships. The principal contention of this study is that an exchange party’s adoption of a group orientation culture will improve relationship quality. The results of a survey research effort fielded among manufacturing companies in Korea and the USA demonstrate that group orientation culture positively influences the continuation of interfirm relationships and commitments. Specifically, manufacturers that adopt group orientation cultures can expect continued relationships with their suppliers, and they are also more likely to want to maintain these relationships, due to the presence of positive emotional bonds with their partners.