Culture matters: The role of long-term orientation and market orientation in buyer-supplier relationships in a Confucian culture

Abstract

Purpose

This study aims to examine unique cultural influences in the context of buyer-supplier relationships in a Confucian culture. The paper identifies whether and how long-term orientation (LO), an inherent value of Confucianism, is an antecedent of important factors of channel relationships, rather than a relationship outcome and whether and how market orientation mediates relations among LO and other relational factors.

Design/methodology/approach

Data were collected from retail buyers at department stores in South Korea, a country that is representative of Confucian culture. One hundred and fourteen valid cases were analysed using path analysis to assess the proposed model.

Findings

LO plays significant anteceding roles in market orientation, trust, and economic dependence, both directly and indirectly. In addition, market orientation mediates the impact of LO on trust and economic dependence.

Research limitations/implications

Testing the proposed model with both retailers' and suppliers' data will add robustness to the research findings. This research advances the understanding of cultural influence on channel relationship regarding the role of LO and market orientation. Strategic practical implications include that marketers who deal with business partners in Confucian culture need to understand the embeddedness of LO and its impact on business relationship management.

Originality/value

The current study scrutinizes unique aspects of cultural influence on the anteceding roles of LO and the direct relationship between LO and market orientation in Confucian culture. The findings on the cultural embeddedness of LO provide novel insights; they also provide managerial implications for Western marketers in how to better deal with Confucian business partners.

Citation

Hwang, J., Chung, J.-E. and Jin, B. (2013), "Culture matters: The role of long-term orientation and market orientation in buyer-supplier relationships in a Confucian culture", Asia Pacific Journal of Marketing and Logistics, Vol. 25 No. 5, pp. 721-744. https://doi.org/10.1108/APJML-10-2012-0107