The moderating effect of power distance on perceived interdependence and relationship quality in commercial banking

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.

A meta-analysis of satisfaction with complaint handling in services

“…Cultures scoring high on power distance value obedience and authority, and display tolerance for the lack of autonomy. As a result of their tolerance, in high power distance cultures, customers' expectations of a symmetric relationship will be comparatively lower than customers' expectations in lower power distance cultures (Dash et al 2006). Huang et al (1996) posit that the larger the power distance in a country, the more likely are the consumers to perceive unsatisfactory services as a fact of life, and are less prone to complain.…”

Relationship Value and Relationship Quality: An Exploration of Its Antecedents on Customer Loyalty

“…Relational value emerged through customers assessment of the benefits and effectiveness of the relationships (Ulaga, 2003). Scholars have provided different perspectives on relational value construct and they classified it as intimacy (Kim and Trail, 2011), image (Lapierre, 2000), reputation (Hansen, Samuelsen and Silseth, 2008), conflict (Rusbult, Farrell, Rogers andMainous, 1988, Lapierre, 2000), solidarity (Heide and John, 1992;Lapierre, 2000), interdependence (Dash, Bruning and Guin, 2006), length or duration of relationship (Roslin and Melewar, 2004) and trust (Lapierre, 2000). Past studies have explored the dimensions of relationship value and even tested on relationship quality construct and also linked to consumer behavioural outcomes.…”

“…Ndubisi and Wah (2005) affirm that conflicts played an important role in building consumer trust and relationship quality. Relationship value is built upon interdependence in relational exchange and it has causal link to the achievement of relationship quality (Dash et al, 2006). A service provider that have achieved a level of customer intimacy with specific customer segment, the value sharing will evolve the relationship to longer term partnership.…”

Managing supplier–retailer relationships: From institutional and task environment perspectives

“…Håkansson (1982) states that the power of organization A over B is directly related to the dependence of B on A. It means that if A has power over B, A can get B to do something that B would not otherwise do (Dash & Bruning, 2006). Imposition mechanisms may influence the distribution of authorized power in an exchange relationship.…”