International Marketing Review

Distribution Channel Relationships in Diverse Cultures

Sudhir H. Kale Roger P. McIntyre

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Sudhir H. Kale Roger P. McIntyre, (1991),"Distribution Channel Relationships in Diverse Cultures",
International Marketing Review, Vol. 8 Iss 3 pp.
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Distribution Channel
Relationships in Diverse
Cultures
Sudhir H. Kale

Distribution
Channel
Relationships

31

Arizona State University, USA, and

Roger P. McIntyre
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East Carolina University, USA

Introduction
Several scholars in the area of distribution channels claim that cultural differences
would have considerable impact on marketing channels as they exist and operate
in various countries (Frazier, et al., 1989; Kale, 1986). With regard to behavioural
relationships within distribution channels, a general consensus exists among
researchers that a generalisable theory of the exchange processes within
channels can be achieved only by conducting studies in different countries,
cultures and industries (Deshpande and Webster, 1989; Frazier et al., 1989;
Kale, 1986). However, to date the possible influences of culture on marketing
channel relationships remain largely unexplored and unspecified.
The objective of this article is to build a conceptual framework to expand
our understanding of how channel relationships are likely to vary across national
cultures. This article identifies some of the key behavioural constructs within
distribution channels for cross-national comparison based largely on the way
channel relationships are initiated, implemented, and reviewed in various cultures
(Frazier, 1983). A conceptual schema for cross-cultural comparison of the
interrelationships between these constructs based on the work of Hofstede
(1980; 1983; 1984a; 1984b) is then proposed. Propositions postulating the nature
of channel relationships at the initiation, implementation and review stages in
culturally diverse contexts are generated.
Informal and largely unstructured personal interviews with 60 manufacturer
personnel from five countries were used as input in the development of the
conceptual framework presented herein. These interviews were conducted
during different periods in time; ten sales managers in the tungsten-carbide
tool industry in India were surveyed in 1984, 18 sales representatives in the
trade-book publishing business in the United States in 1986, 12 sales managers
from the electronic component industry in Singapore in 1986, and ten sales
officers each from the mainframe computer industry in West Germany and
Malaysia in 1989.
A large variety of constructs besides culture will undoubtedly influence the
nature of channel relationships in various countries (e.g. nature of product
category, demand-supply situation, the competitive environment, personalities

International Marketing Review,

Vol. 8 No. 3, 1991. pp. 31-45.
MCB University Press 0265-1335

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of the actors in the dyadic relationship). In this sense, the framework developed
in this article is limited. However, from a marketing standpoint, a cultural
framework explaining channel relationships seems fundamental. As Duesenberry
observed over four decades ago, all the activities in which people engage are
culturally determined, and nearly all purchases and economic exchanges are
undertaken either to provide physical comfort or to implement the activities
that make up the life of a culture (Duesenberry, 1949).
Culture and Channel Relationships
While previous studies in the channels area have contributed substantially to
our understanding of the behavioural dimensions within distribution channel
relationships, most have not taken into account either the cultural or the
economic context within which these interactions occur (Brown and Day, 1981;
Etgar, 1976; Frazier, 1983; Hunt and Nevin, 1974). Research in sociology (Aldrich,
1979), organisational behaviour (Hofstede, 1983; Schneider, 1988), economics
(Duesenberry, 1949), and marketing (Deshpande and Webster, 1989; Frazier
et al., 1989) support the view that the cultural domain is likely to have a significant
impact on the existence and functioning of exchange relationships.
Cultural Dimensions
Culture has been defined in different ways. Kroeber and Kluckhohn (1952)
gathered 164 different definitions of culture, ranging in scope from very restrictive
to all-inclusive. In an attempt to bridge the gap between academic and business
perspectives on culture, Terpstra and David (1985, p. 5) offer the following
definition:
Culture is a learned, shared, compelling, interrelated set of symbols, whose meanings provide
a set of orientations for members of a society. These orientations, taken together, provide
solutions to problems that all societies must solve, if they are to remain viable.

One of the critical functions of culture is the division of labour among various
members of a society (Terpstra and David, 1985). Since distribution channel
relationships are primarily based on role-task specialisation or the division of
labour (Frazier, 1983), culture should have a direct and vital impact on channel
arrangements. Differences between societies on key cultural dimensions should,
therefore, manifest into differences in the way members of a distribution channel
within these societies relate to one another.
Scholars in social sciences have developed different classification systems
to uncover certain universal categories of culture (Inkeles and Levinson, 1969;
Parsons and Shils, 1951). However, these systems do not meet the criteria of
quantifiability, empirical verification, and independence of dimensions. It was
the lack of such a classification system that severely impeded empirical research
on cultures and on the impact of cultural constructs on marketing exchanges.
The work of Geert Hofstede seems to offer tremendous potential in terms
of a generalisable and quantifiable framework with which to study cultural
impacts. Hofstede performed research across 40 countries (later expanded to

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50) in an attempt to develop a commonly acceptable, well-defined, and

empirically-based terminology to describe and categorise the cultures in different
countries. Hofstede developed four dimensions of culture, largely independent
of one another. These dimensions subsume most of the dimensions discussed
in earlier literature and allow for the measurement of a society's culture as
well. Hofstede argues that his four dimensions of culture largely account for
cross-cultural differences in people's belief systems and behaviour patterns
around the globe. These dimensions consist of: (1) individualism; (2) power
distance; (3) uncertainty avoidance; and (4) masculinity. Characteristics pertaining
to each of the four dimensions have been discussed in earlier literature (Hofstede,
1984a; Kale, 1991) and are summarised in Figure 1.

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Cultural dimensions
IDV
" I " consciousness versus "We" consciousness
Attitudes towards autonomy, variety and
pleasure
Belief in individual versus group decisions
Source of identity
Tolerance of private life and opinion, etc.

UAI
Attitude towards uncertainty in life
Level and sources of stress in life
Degree of tolerance towards deviance
Attitudes towards younger people
Need for formal rules and regulations,
etc.

PDI
Level of Inequality in society
Attitudes towards superiors and subordinates
Privileges of power-holders
Attitudes towards conflict and co-operation
Means of achieving changes in relationship
structures, etc.

MAS
Boles of men and women
Level of inequality between sexes
Attitude towards work
Attitude towards achievement
Attitude towards confrontation, etc.

Aggregate cultural domain of channel participants

Initiation process
Why and how firms begin channel relationships
with other business firms

Implementation process
How personnel of firms attempt to manage and coordinate
on-going channel relationships with other business firms

Review process
How personnel of firms evaluate the rewards or losses achieved
from channel relationships with other business firms

Figure 1.
A Framework of
Cultural Consequences
on Channel Interactions

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Variations in Cultural Impacts

Hofstede (1984a) identifies several consequences of each of the four dimensions
covering society at large, religious/philosophical/ideological aspects, and
organisations. A thorough review of his work uncovers the possibility of applying
this framework to the context of dyadic channel relationships one of the most
neglected areas in international marketing.
Interorganisational literature in the human resource management area suggests
that culture of a society should definitely impact on how firms in a dyadic situation
interact with one another (Redding, 1987; Schneider, 1988). A critical assessment
of Hofstede's cultural framework suggests the application of his paradigm in
studying channel behaviours in culturally diverse settings. There seems to be
a consensus emerging that the four-dimension approach to culture advocated
by Hofstede is superior to many of the other approaches previously discussed
(Redding, 1987; Riddle, 1986).
With adequate caution and after ascertaining the validity of the four dimensions,
it may be possible to use Hofstede's typology in designing a theory of
comparative channels behaviour. The first step in this endeavour is to formulate
illustrative propositions on how Hofstede's four dimensions of culture impact
on dyadic channel interactions.
Channel Behaviour
A number of frameworks have been formulated to explain channel interaction
processes (Bucklin, 1973; Frazier, 1983; Stern and Reve, 1980). Based on these
frameworks, it is clear that three interfirm processes are of primary relevance.
First, a channel relationship must be agreed to by the parties involved. Search,
evaluation, and bargaining behaviours are of relevance here. This is called the
"initiation process". Then the channel relationship is put into motion with
exchanges of products, information, and services occurring between the firms.
The firms must carry out assigned or assumed responsibilities. Attempts at
interfirm influence will be made by each firm. This is reflected by the
"implementation process". Finally, managers in each firm will periodically
evaluate the benefits of the relationship versus the costs incurred in maintaining
it. This is the "review process" of channels interactions (Frazier, 1983).
This study considers how firms are likely to initiate, implement, and review
channel relationships based on the society's position on Hofstede's cultural
dimensions. It is explicitly recognised herein that the four dimensions of culture
exist in a continuum. The conceptual framework that follows is based on a
comparison of each of these four dimensions as they exist at each end of the
continuum. Figure 1 presents a conceptual framework that integrates Hofstede's
cultural dimensions with the three stages of channel interactions.
Culture is not a characteristic of individuals; it encompasses a number of people
who are conditioned by similar education, social institutions, norms, and life
experiences. This shared psychologicalfieldfacilitates the sharing of information,
values, goods, and services. The culture or "collective mental programming"
of actors in a channel dyad is shaped by a society's position on the dimensions
of individualism, power distance, uncertainty avoidance, and masculinity.

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Communication within a dyadic relationship is also deeply rooted in a society's

culture. As Barnlund (1989, p. 190) eloquently observes, "Communication...
is a multichanneled and multidimensional process for handling meanings.
Meanings are implicit not only in the words one utters but also in to whom
one speaks, how they are approached, what one talks about, how one manages
time and space, how differences are regarded, and a myriad other bits and pieces
of behavior." Thus culture would affect not only the beliefs, attitudes, and norms
of an exchange relationship; it would shape communication within a channel
dyad as well.
Initiation Process
The initiation process focuses on why and how firms begin channel relationships
with other firms. Key components include the need and motive for exchange,
perceptions of deserved rewards, formulation of expected rewards, the search
phase, and the negotiation phase.
The initiation process begins when members of a firm perceive a need and
have a motive to form an exchange relationship. Several factors can trigger the
initiation processreplacing an unsatisfactory partner, adding an additional
partner with promising potential, starting a new business, or moving into a new
geographical area.
Uncertainty avoidance (UAI) of channel members should have a considerable
impact on how firms operate in the initiation stage. People in strong UAI societies
generally feel a need to avoid risk and create security. This connotes placing
a relatively high value on predictability and stability in relationships with channel
partners. It therefore follows that firms in strong UAI societies would be less
tolerant of variability in channel partner performance compared with firms in
weak UAI societies. Thus, in strong UAI societies, firms would strongly favour
attributes such as proven past performance or "track record," performance
guarantees, and reputation in their choice of a channel partner. Firms operating
in a society with weak UAI would be more willing to deal with firms inexperienced
with the product line in question, allow a relationship to mature before seeking
performance guarantees, and be relatively informal in their approach towards
initiating a channel relationship:
P1: The selection process of a channel partner in strong UAI societies will
be relatively more conscientious and deliberate compared with firms in
a society depicting weak UAI. The initiation process for firms in strong
UAI societies will exhibit a relatively strong bias towards partners who
have a solid, established reputation and can offer written performance
guarantees.
Hofstede found that people in weak UAI societies exhibit greater flexibility in
a number of work-related situations and show relatively higher levels of
willingness to compromise with opponents. Another consequence of a weak
UAI orientation is a lack of rigidity in procedures. Strong UAI societies typically
use rigidity in their attempt to reduce uncertainty and risk. Generalising these
traits to interfirm relationships leads to the following proposition:

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P2: Compared with strong uncertainty avoidance societies, firms in weak

UAI societies will tend to compromise more in their negotiations, and
be relatively more flexible in their negotiations, in their expected
acceptable rewards, and in their investment in the relationship. In weak
UAI societies, the search process for an exchange partner will be largely
informal and, in some cases, based largely on word-of-mouth
communication.
Individualism (IDV) should also have a pronounced effect on how firms carry
out the search and negotiation processes. This dimension may show a particular
impact on the search phase by helping to determine whatfirmsare considered
likely candidates for channel relationships. People in high IDV societies tend
to focus on their own self-interest, while those in low IDV societies have a
wider focus, their in-group. A high IDV score implies a focus on "performance''
characteristics rather than "people" characteristics, and any firm with good
performance characteristics could become a candidate for a channel partnership.
We would expect firms from low IDV societies, which have come to view
a channel partner as a member of their in-group (or who chose the partner
for that reason in thefirstplace), to be more tolerant of partner performance,
and strive for the good of each member in the channel "family". This, to a
degree, would temper purely self-seeking behaviour. A low score on IDV meshes
with a focus on relationships, in-groups, or some other type of affinity. The
in-group or family orientation would most likely restrict the realm of possible
candidates in low IDV societies compared with that in high IDV societies (Wilson,
1980). Thus, while relatively objective performance-driven criteria would guide
formation of the "evoked set" of possible exchange partners in high IDV
societies, attributes like personality characteristics, the social status of interacting
personnel, and in-group orientation will very much affect the same process in
low IDV or collective societies:
P3: Firms in high IDV societies would be more inclined to choose a channel
partner based on objective performance criteria, whereas firms in low
IDV societies would prefer to deal withfirmswhose representatives they
consider as friends, or whom they perceive as possible converts to their
in-group.
The focus on self-interest associated with high IDV implies an adversarial stance
in negotiations. As each side attempts to advance and protect its own interests,
immediate short-term gains tend to become the focus of negotiations.
Conversely, societies which are less individualistic place a higher priority on
maintaining and developing harmonious, long-term relationships than on shortterm gains that may disrupt the relationship. It is this long-term orientation
that differentiates a typical Japanese distribution channel from a typical American
channel (Shimaguchi and Lazer, 1979; Wilson, 1980). Japan scored relatively
low on the IDV dimension, while the United States scored the highest of all
countries on Hofstede's list:

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P4: Firms in high IDV societies will be relatively more self-centred in the
process of negotiating a channel agreement and would be more inclined
to negotiate from an adversarial standpoint. Firms in collective societies
would pay relatively greater attention to issues such as maximising the
perceived potential for a stable relationship and the overall feasibility of
making relationship a success. Perceived short-term rewards will not
receive so much attention in low IDV societies as they would in high
IDV societies.
The above proposition needs to be qualified in the light of the relatively longterm orientation shown by US firms in recent years. We contend that this is
more a cause of the "environmental turbulence" witnessed in the last couple
of decades than an artefact of low IDV (Arndt, 1979).
We would also expect masculinity (MAS) to impact on the initiation process.
Hofstede (1984a) points to evidence from anthropology, psychology and political
science to confirm a pattern of assertiveness and aggressiveness in highly
masculine societies. Societies low on this dimension exhibit a greater pattern
of nurture. Given these tendencies, people in high MAS societies should prove
more assertive in the search and negotiation process, and display a greater focus
on purely financial rewards. Those in low MAS societies should tend towards
less aggressive and more co-operative bargaining, and towards a focus on relationships over purely financial rewards. We would expect firms in low MAS societies
to pay more attention to the perceived commitment of the other party, and to
make a concerted attempt to avoid direct confrontation on strongly divided issues.
The bargaining that goes on in the initiation stage of a channel relationship
should prove more candid, less personal, more aggressive, and more bottomline-driven in societies high on masculinity compared with less masculine
societies. We therefore offer the following propositions:
P5: Firms in high MAS cultures would be more inclined to engage in new
relationships and divorce from old ones based on performance criteria
as perceived in largely economic terms.
P6: Firms in relatively feminine cultures would tend to evaluate a new
relationship on relatively long-term-oriented criteria, such as perceived
stability of the relationship, expected harmony in the dyad, and perceived
commitment of the prospective partner to the relationship.
P7: Compared with masculine societies, initiation and dissolution of channel
relationships will be less aggressive and less frequent in feminine societies.
Power distance (PDI) can also play a role at the initiation stage. Workers in small
PDI societies see managers as using more consultative decision making, while
those in large PDI societies see managers as making decisions autocratically
and paternalistically (Hofstede 1983; 1984a). Organisations in large PDI societies
tend towards greater centralisation, and the political systems in such societies
lean towards autocratic or oligarchic governments. Combining these traits gives
a picture of "might is right", and "if you have power, use it," for large PDI
societies. (For empirical support of this notion in the Indian context, see Frazier

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et al., 1989.) Conversely, small PDI societies seem to feel that governing
arrangements work better if they are fair to all. Based on these arguments,
the following proposition is warranted:
P8: The negotiation outcome of the initiation process in large PDI cultures
would be such that a clear imbalance of power exists in favour of the
more powerful party. Firms in cultures with a smaller power distance
will tend to be relatively more concerned about perceived equity in the
contract, reaching the final agreement through consensus, and achieving
a match between perceived rewards and perceived efforts.
Implementation Process
The implementation process refers to how firms manage and co-ordinate
continuing channel relationships. It begins when exchanges of products, services,
and information start to take place between channel partners. Other key aspects
of the exchange and interaction phase include role performance, the need for
influence, and the choice of influence strategies.
The construct of influence strategy has received some attention in studies
involving diverse cultural and economic environments (Frazier and Summers,
1986; Kale, 1986). Influence strategy involves the means and methods used
by one firm to alter the behaviour of the other during dyadic interfirm interactions.
Within organisations, management prerogatives, low worker participation in
management decisions, and the willing use of power by those who have it
characterise large PDI societies. On the other hand, societies exemplifying small
PDI accept far fewer management privileges, show much higher worker
participation in management decisions, and tend towards a natural sharing of
power.
Extending this logic to interorganisational behaviour, one would expect firms
in small PDI societies to display more willingness to consult with other firms
affected by their actions and temper their own use of power. Firms in large
PDI cultures, on the other hand, should exhibit a tendency to use any power
they possess without much regard for partner organisations, and consult in
a directive rather than a participative manner. The use of coercion should be
more pronounced in large PDI societies compared with societies displaying a
smaller PDI (Kale, 1986):
P9: Relative tofirmsin large PDI cultures, firms in small PDI societies will
communicate more often, stress face-to-face communications over written
memos, and engage in consultative decision making.
P10: Firms in large PDI cultures will usually depend on the relatively powerful
channel member for setting operating procedures and policies for the
entire channel.
P11: Powerful firms in large PDI societies would be more inclined to use
coercion in their influence attempts, while firms in small PDI societies
will typically avoid blatant coercion (e.g. the frequent use of promises
and threats) in their influence attempts with a channel partner.

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Individualism (1DV) also plays a role at this stage through its impact on the
orientation towards personal or group interests. Firms in high IDV societies
may seek arrangements that foster their own self-interest and expect their
counterparts to watch out for themselves. Some level of conflict would be seen
as natural, as evidenced by the common acceptance of adversarial roles in high
IDV societies. Low IDV societies, on the other hand, focus on their in-groups.
In the context of a distribution channel, this in-group could comprise the entire
distribution channel. As one senior executive of the Coca-Cola company in Japan
(a low IDV society) writes about his experiences with the distribution channel
system, "Once the partnership was in place, it wasn't just the Coca-Cola
company selling soft drinks in Japan; it became a family, a spirit of togetherness,
of common purpose" (Wilson, 1980).
Conflict is said to exist in a channel dyad when one party perceives the other
to be engaging in behaviours that prevent or impede the former party in the
attainment of its goals. Unilateral goal attainment of one party at the expense
of the other would not be seen as desirable in low IDV societies, and manifest
(or overt) conflict would be seen as dysfunctional to long-term relationships.
Every attempt would be made to avoid direct confrontation on strongly divided
issues:
P12: In comparison with low IDV cultures, channel interactions in high IDV
societies would be characterised by frequent conflicts, a lesser tendency
to resolve conflicts, and a greater precipitation of latent conflicts into
manifest conflicts.
In the context of industrial relations, Hofstede (1984a) observed that workers
and firms in high MAS societies tend to resort to conflict as manifest in strikes,
while those in feminine societies stress dialogue between both parties. Extending
this finding to channel relationships, we would expect firms in low MAS cultures
to keep their perceptions of perceived conflict to themselves, and continue to
further the relationship, thereby keeping the number of manifest conflicts to
a minimum. Channel interactions in high MAS societies, on the other hand,
would be characterised by a relatively higher frequency of overt conflicts:
P13: Channel relationships in high MAS cultures would evidence frequent
conflicts and relatively low co-operation among channel members.
P14: Channel climate in feminine cultures should display relatively greater
harmony owing to fewer manifest conflicts, higher co-operation, and a
relatively higher level of commitment towards building strong personal
relationships between channel members.
Uncertainty avoidance (UAI) should also influence the implementation process.
The level of role clarity, role ambiguity, and role agreement inherent in a channel
relationship will be shaped by a culture's tolerance for uncertainty. Role clarity
refers to the understanding of the activities afirmmust perform, in what manner,
and its level of autonomy. High role ambiguity results when a firm lacks adequate
information and advice adequately to perform its responsibilities. Role agreement

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or domain consensus refers to the degree to which firms agree regarding the
activities under their respective domains, and all these concepts relate to the
level of uncertainty which a society feels is comfortable.
Societies strongly averse to risk will lay down explicit rules and chart out
precise domains when it comes to the role of each channel member. A high
UAI score should thus imply a preference for clearly specified responsibilities
and expectations, for predictable relationships. Organisations in strong UAI
societies will emphasise structuring of activities and written rules to minimise
role ambiguity. Firms within weak UAI cultures should show a relatively greater
tolerance towards role ambiguity. Channel roles and functions within these
societies should prove relatively fluid and unspecified:
P15: Firms in strong UAI cultures would stress formal exchange practices
in the flow of information and goods, and governed by clear and
unambiguous policies and procedures for each channel member. Firms
in weak UAI societies would tend to operate in a relatively flexible, ad
hoc and unstructured climate.
Review Process
The review process encompasses the evaluation of rewards and losses achieved
by each firm in a channel partnership. Key components consist of the attribution
of responsibility for rewards or losses, and evaluation of both personnel and
firm performance. We first consider the role of uncertainty avoidance.
Strong UAI societies foster a perception of control over events, whereas weak
UAI cultures instil the acceptance of events as primarily controlled by outside
and largely uncontrollable forces. If people are seen to control events, it is natural
to make people-directed attributions of responsibility for the results of those
events. If events are perceived as largely beyond control, attribution of
responsibility serves no purpose. Therefore attribution of achieved rewards
and losses to a channel partner should prove more common in strong UAI
cultures than in weak UAI cultures.
Firms in strong UAI cultures will institute elaborate systems to review and
monitor the outcomes of a channel system. Such control systems presuppose
some kind of standards, measurability of accomplishments, and capacity to
correct adverse outcomes. At the extreme, firms in very strong UAI societies
may use such systems to the point of "control overkill" (Weir, 1975).
Conversely, organisations in weak UAI cultures should exhibit a greater
tolerance of ambiguity and uncertainty, and therefore display a relatively low
level of eagerness frequently and unequivocally to evaluate channel relationships.
Interfirm evaluation will be somewhat intuitive, informal, and unstructured.
Environmental "uncontrollables" such as the state of the economy, intensity
of competition, or plain fate will frequently emerge as attribution objects in
weak uncertainty avoidance cultures:
P16: Firms in strong UAI societies would be more inclined to make frequent
and direct attributions for achieved rewards or losses to their channel
partner. In weak UAI cultures, direct attribution for achieved rewards
or losses to a channel partner would be relatively infrequent.

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The dimension of individualism also impacts on the review process. A key facet
of high IDV is the focus on the individual's self-interest. Conversely, low IDV
implies a stronger focus on the group and group-interest. In low IDV societies,
events are seen as the result of the contribution of all participants rather than
of individual efforts. Therefore, in collective societies, the review process of
channel interactions will place considerable emphasis on the efficiency,
effectiveness and long-term survival of the channel system as a whole:
P17: Firms in high IDV societies would be more inclined to claim credit for
the rewards attained from a relationship, and more apt to blame their
partner for achieved losses. Firms in low IDV cultures would interpret
both the achieved losses and achieved rewards as a consequence of joint
effort.
Masculinity shapes the review process as well. Values stressed in masculine
societies include making money, performing, and attaining visible achievement.
In an interorganisational setting, this would conform with an emphasis on profits
and role performance.
On the other hand, the relatively feminine societies value helping others and
putting people before money, corresponding with an emphasis on harmonious
relationships rather than purely pecuniary results. While firms in both feminine
and masculine societies would place importance on the "bottom line," firms
in feminine cultures would also place a considerable emphasis on non-monetary
factors such as the harmony within the relationship, personal friendships between
channel participants, traditional alliances within the channel, etc:
P18: Firms in MAS societies would be more stringent in their evaluation of
a relationship based on "the bottom line". Firms in feminine societies
would be relatively more inclined to continue an existing relationship even
though their expectations with regard to the "bottom line" (i.e. sales
and profits) may be unattained in the short term, but is compensated
for by psychic harmony in the relationship.
Finally, we consider how power distance may impact on the review stage. Several
scholars investigating dyadic relationships have identified a negative relationship
between the use of coercion by one firm and the extent of satisfaction derived
from the relationship by the other (Hunt and Nevin, 1974; Kale, 1986; Stern
and Reve, 1980). This finding seems invariant across cultures (Frazier and
Summers, 1984; Frazier et al., 1989).
Large PDI societies typically engage in the high exercise of power and the
frequent use of coercion. Small PDI societies idealise participative decision
making and value relationships based on mutual and comparable dependence.
Evidence in literature supports the contention that firms in small PDI cultures
consciously refrain from using coercion in their influence attempts (Frazier and
Summers, 1984; 1986). We therefore advance the following proposition:
P19: Firms with low power in large PDI societies would experience relatively
lower levels of satisfaction in a channel relationship compared with similar
firms in small PDI societies.

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Discussion and Implications

Contemplating the nature of dyadic channel interactions on the basis of each
of the four cultural dimensions identified by Hofstede provides a parsimonious
approach with which to analyse the impact of national culture on distribution
channel relationships. Once the propositions discussed in this article have been
empirically tested, the next logical step would be to look at the interactions
of these four dimensions and assess their collective impact on dyadic exchange
relationships.
Further empirical research and increasing sophistication in the level of
aggregation should enable researchers to group countries on a four-dimensional
vector space determined by each country's position on the four dimensions.
After clustering various countries in this manner, precise hypotheses of channel
behaviours for each cluster can be formulated. We would thus come one step
closer to a global, truly generalisable theory of channels behaviour stated in
comparative terms (Boddewyn, 1981). With a manageable number of country
clusters, we will be able to generate tremendous insight into channel behaviour
for each group of countries.
Hopefully, the propositions forwarded herein will persuade channels area
researchers to exercise greater caution in generalising the findings of their oneshot, one-country studies to other contexts. The generalisability issue has been
largely ignored by channels researchers, even across different types of markets
in the United States, let alone across worldwide markets.
The four dimensional, three-stage approach to cross-cultural channels research
discussed here could possibly form an umbrella under which to incorporate
empirical studies of a narrower scope, perhaps even country-specific case
studies. These individual studies should yield richer insights when they are
evaluated, not in isolation, but integrated within a comprehensive culture-based
framework. It would then be possible to assess more accurately the inherent
limitations and contributions of one-country studies. After theory construction
in this area reaches a reasonably solidified state, we will be in a position to
offer practitioners (especially multinational firms) normative advice on channel
selection, recruitment, training, and management in various cultures.
The focus of this article has been comparative marketing, but its implications
in the area of cross-national marketing are also evident. For instance, once
an individual exporter can understand the cultural domain of its overseas
distributors, it will be able better to manage its channel relationships with its
partners. As Ford et al., (1987, p. 88) correctly observe, "Export development
is a process of relationship management". While factors outside the cultural
domain also shape relationships, a cultural understanding should be a basic
determinant of all overseas relationships (Rosson, 1984). Thus efforts to develop
cross-cultural propositions and frameworks similar to the work by Campbell
et al. (1988) are indeed a step in the desired direction.
Dyadic interactions involving cross-national entities should be ideally analysed
from three perspectives: national cultures, corporate cultures, and personality
variables. Clearly, the quality and quantity of research in this vital area will
depend on the development of innovative conceptual frameworks, drawing on
various disciplines such as sociology, psychology, management, and marketing.

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Limitations
It is appropriate to point out that the adequacy and comprehensiveness of
Hofstede's framework in accounting for cross-cultural differences have not
received universal acceptance. Some cross-cultural psychologists suspect that
these dimensions may represent only a fraction of all the dimensions needed
for a thorough explanation of culture (Triandis, 1982; and, for a list of potential
problems with this framework, see Kale, 1991).
Before channels area researchers embrace this framework, they should ensure
that both the dimensions themselves and the country profiles along these
dimensions, as reported by Hofstede, are stable. The investment in time and
resources required for such an undertaking is justified because, from an
applications standpoint, Hofstede's framework represents a giant leap over the
earlier classification approaches (Redding, 1987; Triandis, 1982). With due care
and rigorous empirical testing, it would benefit researchers and practitioners
to adapt this framework according to their specific needs in their
conceptualisation of the global marketplace.
Another issue worthy of consideration involves the interaction of national
cultures and corporate cultures. Corporate culture may accentuate or minimise
behavioural tendencies stemming from national cultures (Schneider, 1988;
Triandis, 1982). The degree to which corporate and national cultures supplement
or neutralise each other would depend on situation-specific factors. Any culturebased explanation of channels behaviour should incorporate both national and
corporate cultures. It is therefore feasible that some of the propositions discussed
in this article may prove invalid in situations where a strong corporate culture
runs counter to the national culture of channel actors.
This leads to another intriguing scenario. Some companies (such as Siemens
and Unilever) spend a considerable amount of time and money all over the world
to acculturate their employees to the corporate cultures. Their corporate cultures
seem largely to be a derivative of their parent company's national culture. Thus,
when an Indian representative of Siemens India Ltd interacts with its Indian
distributors, the cultural environment may in fact be a composite of two cultures
German and Indian. Previous research on the activities of multinationals
in developing countries does in fact attest to culture-based differences in
operation (Negandhi and Prasad, 1976).
We must also emphasise that cultural conditioning occurs at several levels,
the level of country being the broadest. The family environment, the geographical
region, the social group, and the professional environment would all modify
national culture to some extent. Thus, while cultural assessment at the national
level is a convenient starting-point, a total understanding of the cultural domain
of channel interactions should, in future, consider cultural programming at
relatively micro-levels as well.
Conclusion
National cultures have a systematic impact on behavioural relationships within
a distribution channel. Empirical testing of propositions developed in this article
should further enrich our understanding of one of the most neglected facets

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of the marketing channels environment. While this study focuses exclusively

on national cultures, it offers a convenient starting-point from which to study
culture's effects on channel relationships.
We hope that this study will serve to stimulate empirical research on the
propositions developed herein. This represents no small task, as data collection
in a multicountry, multicultural environment is fraught with logistics and
methodological problems, and would require a serious resource commitment
in both time and money (Douglas and Craig, 1983). However, the contributions
such undertakings would offer to the marketing discipline certainly justify effort
in this direction (Graham, 1985; Kale, 1986). Empirical findings from such efforts
will serve as the basis for further improvements and refinements in channel
theories. Given the parsimony, the intuitive appeal, and the capability of
quantification of Hofstede's cultural dimensions, further refinement in his
framework from a marketing researcher's standpoint could provide both
researchers and practitioners with a sorely needed conceptual grasp of the
elusive phenomenon we call culture.
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