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The purpose of this cross‐cultural study is to examine the moderating effect of power distance on perceived interdependence and relationship quality in a bank‐corporate client relationship.

Data were collected through surveys administered to bank customers in India and Canada. Confirmatory Factor Analysis and Multiple Regression were employed to assess the relationships among model variables.

Results indicate that Power distance moderates the Interdependence and Relationship Quality Relationships.

This research was limited to only Indian and Canadian customers and their banks. Only one dimension of culture was used as a moderator of the Interdependence and Relationship Quality relationship. The study is limited to a single dimension of service banking.

Buyer‐seller relationships are dependent on the specific cultural basis of the parties. Managers must be cognizant of the cultural values of the buyer/client in order to understand the most effective means of establishing and nurturing the buyer‐seller relationship.

Given that Values, Interdependence, Interdependence Asymmetry, Trust and Commitment are critically important to the development of effective relationships, statistical data are presented supporting the fact that an element of national culture (Power Distance) moderates the degree of interdependence and the strength of the trust‐commitment linkage. To date, these relationships have not been explored in an eastern cultural context.

The purpose of this paper is to describe a cross‐cultural study which examined individualism's moderating effect on the relationship between bonding and commitment between banks and their corporate clients.

Data were collected through surveys completed by corporate customers from 126 Canadian companies and 156 Indian companies. Multiple regression analysis was used to calculate relative effects of structural and social bond on commitment across the two samples. Hierarchical moderated regression analysis was used to examine individualism's moderating effect on the bonding‐commitment relationship.

The paper's findings indicate that social and structural bonding are both antecedent to commitment, but that social bonding is given higher importance in the low individualism Indian society, while structural bonding is more important in the high individualism Canadian society. Individualism moderates the relationship between both social and structural bonding and commitment.

Bank relationships are dependent upon specific cultural contexts in which buyers and sellers interact. The type of bonding relationship (e.g. social or structural) determines the strength of commitment. Bank managers must understand the proper emphasis to place on developing social connections versus business transactional relationships with clients in individualistic versus collective cultures.

This paper dramatizes the importance of understanding ways in which bonding relates to commitment, particularly when societal values vary and thus alter the relative importance of forms of bonding that generate commitment. Through empirical analyses, the paper demonstrates the moderating effect of individualism on the social bonding‐commitment and structural bonding‐commitment linkages in the context of an important service sector. To date, these relationships have not been explored in either the Indian or Canadian context.