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The moderating effect of power distance on perceived interdependence and relationship quality in commercial banking: A cross‐cultural comparison

Satyabhusan Dash (Indian Institute of Management, Prabandh Nagar, Lucknow, India)
Ed Bruning (University of Manitoba, Winnipeg, Canada)
Kalyan Ku Guin (Vinod Gupta School of Management, Indian Institute of Technology, Kharagpur, India)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 1 August 2006

3568

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Keywords

Citation

Dash, S., Bruning, E. and Ku Guin, K. (2006), "The moderating effect of power distance on perceived interdependence and relationship quality in commercial banking: A cross‐cultural comparison", International Journal of Bank Marketing, Vol. 24 No. 5, pp. 307-326. https://doi.org/10.1108/02652320610681747

Publisher

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Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited

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