GLOBAL BUSINESS CULTURAL ANALYSIS

Global Business Cultural Analysis: Japan and US

Abstract

While evidence suggests trust plays a fundamental role in maintaining successful buyer-seller relationships in Japan, little is known conceptually as to how foreign sellers can best develop trust in the minds of their Japanese customers. In this research, we develop and test a multi-component model of US seller actions that manifest key trust-building processes (intentionality- and capability-processes) which sellers find effective in building trust with their Japanese buyers. In this unique cultural context, theory suggests trust develops when sellers demonstrate benevolent intentions toward the buyer and exhibit a strong capability to fulfill business promises. An analysis of 181 US sellers in Japan demonstrates that a combination of trust-building efforts is recognized as being critical in seller attempts to develop and sustain trust on the part of their Japanese customers. Importantly, cultural sensitivity mediates the impact of intentionality-based practices on buyer trust, while capability-based activities directly influence trust.

Table of Contents

Abstract2

Introduction4

Discussion6

Trust's role in Japanese culture6

A conceptual model of trust-building processes in Japanese business relationships7

US sellers' sensitivity to Japanese culture8

Intentionality-based antecedents to cultural sensitivity9

Long-term orientation9

Relationship building9

Investments in Japan10

Capability-based antecedents to trust11

Product differentiation11

Product modification12

Methodology12

Sample, questionnaire development, and administration12

Measures13

Results13

Confirmatory factor analysis of the measurement model13

Theoretical model14

Mediation tests15

Comparative model tests15

Discussion, limitations, and future research15

The influence of cultural sensitivity16

Strategic importance of twin Pathways to trust16

Limitations and directions for future research17

References19

Appendix20

Table 120

Table 223

Table 324

Global Business Cultural Analysis

Introduction

Trust plays a fundamental role in developing and maintaining successful buyer-seller relationships (Kingshott, 2006 and Narayandas and Rangan, 2004). Trust has been shown to reduce conflict, enhance coordination and foster loyalty among trading partners (Krishnan, Martin, & Noorderhaven, 2006). Essentially, trust is critical because it facilitates the cooperation necessary for both buyers and sellers to achieve their performance outcomes from exchange (Palmatier, Dant, Grewal, & Evans, 2006). In terms of US-Japanese business relations, the rewards to US sellers for building trust with Japanese buyers can be substantial since Japan is the world's second largest economy and a highly attractive market for business products (Bucknall, 2006).

However, it is difficult to establish trust in relationships when there are Significant differences in the cultures of trading partners (Mehta, Larsen, Rosenbloom, & Ganitsky, 2006). In Japan, establishing trust-based relationships is especially important and most Japanese buyers spend time getting to know their sellers in order to establish a trust-based relationship (Cousins and Stanwix, 2001 and Hawrysh and Zaichkowsky, 1990). In fact, trust is the characteristic of a partner that has the most significant influence on a Japanese buyer's attitude and behavior in a relationship (Woronoff, 2000). For these reasons, US sellers need to understand the drivers of trust, in a cross-cultural marketplace, if they hope to establish successful business relationships with Japanese buyers (Elahee et al., 2002 and Sako and Helper, 1998).

The objective of this research is to understand whether and how specific business practices of US sellers in Japan can aid in building trust with Japanese buyers. Based on the extant trust literature, we develop and test a multi-component model to show that sellers can build trust in two ways, via intentionality process ...