A cross-national study of manufacturer's power structures and control mechanisms: The moderating effect of group orientation culture

Interfirm control mechanisms have been identified as key factors for coordinating the inter-organizational relationship. Although companies reflect their cultural patterns as they transact business, previous literature has not investigated the influence of culture on interfirm control mechanisms. This study introduces group orientation culture, and investigates the effect of group orientation culture on control mechanisms. The results of a survey research fielded among manufacturing companies in Korea and USA show that group orientation culture moderates the effect of manufacturer's power advantage over its supplier on the use of unilateral control. Specifically, the US manufacturers with power advantage tend to unilaterally control their suppliers, while Korean manufacturers with the same advantage do not rely on unilateral control.Figure optionsDownload full-size imageDownload as PowerPoint slide