Skip to main content

Advertisement

Log in

Collectivist values for learning in organizational relationships in China: the role of trust and vertical coordination

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

Partners must engage in integrative interaction in order to combine diverse expertise and experiences into effective learning. Results from 103 pairs of customer and supplier organizations in China indicate that trust and vertical coordination are useful ways to characterize this integrative interaction and together they promote learning. Structural equation analysis suggests that collectivist but not individualist values are important foundations for integrative interaction between partners that result in learning. These findings were interpreted as reaffirming the value of effective relationships for coordination between partners and suggesting that collectivist values can be a source of effective organizational relationships.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1
Fig. 2

Similar content being viewed by others

References

  • Anderson, J. C. 1987. An approach for confirmatory measurement and structural equation modeling of organizational properties. Management Science, 33: 525–541.

    Google Scholar 

  • Arygris, C. & Schon, D. A. 1996. Organizational learning. II. Theory, method, and practice. Reading, Massachusetts: Addison-Wesley.

    Google Scholar 

  • Bastos, P. 2001. Inter-firm collaboration and learning: the case of the Japanese automobile industry. Asia Pacific Journal of Management, 18: 423–442.

    Article  Google Scholar 

  • Beckman, C. M. & Haunschild, P. R. 2002. Network learning: the effects of partners' heterogeneity of experience on corporate acquisitions. Administrative Science Quarterly, 47: 92–124.

    Article  Google Scholar 

  • Bentler, P. M. & Bonnett, D. G. 1980. Significance tests and goodness of fit in the analysis of covariance structure. Psychological Bulletin, 88: 588–606.

    Article  Google Scholar 

  • Bond, M. H. 2003. Cross-cultural social psychology and the real world of culturally diverse teams and dyads. In D. Tjosvold, & K. Leung (Eds.). Cross-cultural foundations: Traditions for managing in a cross-cultural world. Aldershot, Hampshire, UK: Ashgate.

    Google Scholar 

  • Bond, M. H., Wan, K. C., Leung, K., & Giacalone, R. A. 1985. How are responses to verbal insult related to cultural collectivism and power distance? Journal of Cross-Cultural Psychology, 16: 111–127.

    Article  Google Scholar 

  • Buvik, A. & Andersen, O. 2002. The impact of vertical coordination on ex post transaction costs in domestic and international buyer–seller relationships. Journal of International Marketing, 10: 1–24.

    Article  Google Scholar 

  • Buvik, A. & John, G. 2000. When does vertical coordination improve industrial purchasing relationships? Journal of Marketing, 64: 52–64.

    Article  Google Scholar 

  • Carter, S. M. & West, M. A. 1998. Reflexivity, effectiveness, and mental health in BBC-TV production teams. Small Group Research, 29: 583–601.

    Article  Google Scholar 

  • Cohen, W. M. & Levinthal, D. A. 1990. Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35: 128–152.

    Article  Google Scholar 

  • Crossan, M. M., Lane, H. W., & White, R. E. 1999. An organizational learning framework: from intuition to institution. Academy of Management Review, 24: 522–537.

    Article  Google Scholar 

  • Cyert, R. M., & March, J. G. 1963. A behavioral theory of the firm. Englewood Cliffs, New Jersey: Prentice-Hall.

    Google Scholar 

  • Dahlstrom, R., & Nygaard, A. 1999. An empirical investigation of ex post transaction costs in franchised distribution channels. Journal of Marketing Research, 36: 160–170.

    Article  Google Scholar 

  • Deal, T. E., & Kennedy, A. A. 1982. Corporate culture: the rites and rituals of corporate life. Reading, Massachusetts: Addison-Wesley.

    Google Scholar 

  • Deutsch, M. 1973. The resolution of conflict. New Haven, Connecticut: Yale University Press.

    Google Scholar 

  • Dirks, K. T. 1999. The effects of interpersonal trust on work group performance. Journal of Applied Psychology, 84: 445–455.

    Article  Google Scholar 

  • Dunn, S. C., Seaker, R. F., & Waller, M. A. 1994. Latent variables in business logistics research: scale development and validation. Journal of Business Logistics, 15: 145–172.

    Google Scholar 

  • Eisenhardt, K. M., & Martin, J. A. 2000. Dynamic capabilities: what are they? Strategic Management Journal, 21: 1105–1122.

    Article  Google Scholar 

  • Fisher, S. R., & White, M. A. 2000. Downsizing in a learning organization: are there hidden costs? Academy of Management Review, 25: 244–251.

    Article  Google Scholar 

  • Frazier, G. L., Spekman, R. E., & O'Neal, C. R. 1988. Just-in-time exchange relationships in industrial markets. Journal of Marketing, 52: 52–67.

    Article  Google Scholar 

  • Friman, M., Garling, T., Millett, B., Mattsson, J., & Johnston. 2002. An analysis of international business-to-business relationships based on the commitment-trust theory. Industrial Marketing Management, 31: 403–409.

    Article  Google Scholar 

  • Ganesan, S. 1994. Determinants of long-term orientation in buyer–seller relationships. Journal of Marketing, 58: 1–19.

    Article  Google Scholar 

  • Heide, J. B., & John, G. 1990. Alliances in industrial purchasing: the determinants of joint action in buyer–supplier relationships. Journal of Marketing Research, 27: 24–36.

    Article  Google Scholar 

  • Heuer, M., Cummings, J. L., & Hutabarat, W. 1999. Cultural stability or change among managers in Indonesia? Journal of International Business Studies, 30: 599–610.

    Article  Google Scholar 

  • Hitt, M. A., Dacin, M. T., Levitas, E., Arregle, J. L., & Borza, A. 2000. Partner selection in emerging and developed market contexts: resource-based and organizational learning perspectives. Academy of Management Journal, 43: 449–468.

    Article  Google Scholar 

  • Hitt, M. A., Lee, H. U., & Yucel, E. 2002. The importance of social capital to the management of multinational enterprises: relational networks among Asian and Western firms. Asia Pacific Journal of Management, 19: 353–372.

    Article  Google Scholar 

  • Hofstede, G. 1993. Cultural constraints in management theories. The Academy of Management Executive, 7: 81–94.

    Google Scholar 

  • Houghton, S. M., Simon, M., & Goldberg, C. B. 2000. No safety in numbers: persistence of biases and their effects on team risk perception and team decision making. Group and Organization Management, 25: 325–353.

    Article  Google Scholar 

  • Hui, C., Law, K. S. & Chen, Z. X. 1999. A structural equation model of the effects of negative affectivity, leader–member exchange, and perceived job mobility on in-role and extra-role performance: a Chinese case. Organizational Behavior and Human Decision Processes, 77: 3–21.

    Article  Google Scholar 

  • Johnson, D. W., & Johnson, R. T. 1989. Cooperation and competition: Theory and research. Edina, Minnesota: Interaction Book Company.

    Google Scholar 

  • Johnson, J. L., Cullen, J. B., Sakano, T., & Takenouchi, H. 1996. Setting the stage for trust and strategic integration in Japanese–U.S. cooperative alliances. Journal of International Business Studies, 27: 981–1004.

    Article  Google Scholar 

  • Joöreskog, K. G., & Soörbom, D. 1996. LISREL 8: user's reference guide (2nd ed.). Chicago: Scientific Software International.

    Google Scholar 

  • Kale, P., Singh, H., & Perlmutter, H. 2000. Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21: 217–237.

    Article  Google Scholar 

  • Kashima, Y., Siegel, M., Tanaka, K., & Kashima, E. S. 1992. Do people believe behaviors are consistent with attitudes? Toward a cultural psychology of attribution processes. British Journal of Social Psychology, 33: 111–124.

    Google Scholar 

  • Kasper-Fuehrer, E. C., & Ashkanasy, N. M. 2001. Communicating trustworthiness and building trust in interorgnizational virutal organizations. Journal of Management, 27: 235–254.

    Article  Google Scholar 

  • Kelloway, E. K. 1998. Using LISREL for Structural Equation Modeling, A Researcher's Guide, Sage.

  • Kim, U., Triandis, H. C., Kagitcibasi, C., Choi, S., & Yoon, G. 1994. Individualism and collectivism: theory, method and applications. Newbury Park, California: Sage.

    Google Scholar 

  • Kumar, N. 1996 (November–December). The power of trust in manufacturer–retailer relationships. Harvard Business Review, 92–106.

  • Lane, P. J., & Lubatkin, M. 1998. Relative absorptive capacity and interorganizational learning. Strategic Management Journal, 19: 461–477.

    Article  Google Scholar 

  • Leung, K. 1997. Negotiation and reward allocations across cultures. In P. C. Earley, & M. Erez (Eds.). New perspectives on international industrial/organizational psychology: 640–675. San Francisco: Jossey-Bass.

    Google Scholar 

  • Leung, K., Koch, P. T. & Lu, L. 2002. A dualisic model of harmony and is implications for conflict management in Asia. Asia Pacific Journal of Management, 19: 201–220.

    Article  Google Scholar 

  • Lewicki, R. J., McAllister, D. J., & Bies, R. J. 1998. Trust and distrust: new relationships and realities. Academy of Management Review, 23: 438–458.

    Article  Google Scholar 

  • Lovett, S., Simmons, L. C., & Kali, R. 1999. Guanxi versus the market: ethics and efficiency. Journal of International Business Studies, 30: 231–248.

    Article  Google Scholar 

  • Luo, Y., & Peng, M. W. 1999. Learning to compete in a transition economy: experience, environment, and performance. Journal of International Business Studies, 30: 269–296.

    Article  Google Scholar 

  • Lusch, R. F., & Brown, J. R. 1996 (October). Interdependency, Contracting, and Relational Behavior in Marketing Channels. Journal of Marketing, 60: 19–33.

    Article  Google Scholar 

  • Markus, H. R., & Kitayama, S. 1991. Culture and self: implications for cognition, emotion and motivation. Psychological Review, 98: 224–253.

    Article  Google Scholar 

  • Morris, M. W., Williams, K. Y., Leung, K., Larrick, R., Mendoza, M. T., Bhatnagar, D., Li, J., Kondo, M., Luo, J. L., & Hu, J. C. 1998. Conflict management style: accounting for cross-national differences. Journal of International Business Studies, 29: 729–748.

    Article  Google Scholar 

  • Nonaka, I., & Takeuchi, H. 1995. The knowledge creating company. Oxford, England: Oxford University Press.

    Google Scholar 

  • Noordewier, T. G., John, G., & Nevin, J. R. 1990. Performance outcomes of purchasing arrangements in industrial buyer–vendor relationships. Journal of Marketing, 54: 80–93 (October).

    Article  Google Scholar 

  • Oyserman, D., Coon, H. M., & Kemmelmeier, M. 2002. Rethinking individualism and collectivism: evaluation of theoretical assumptions and meta-analyses. Psychological Bulletin, 128: 3–72.

    Article  Google Scholar 

  • Pfeffer, J. 1994. Competitive advantage through people: unleashing the power of the work force. Boston: Harvard Business School.

    Google Scholar 

  • Podsakoff, P. M. & Organ, D. W. 1986. Self-reports in organizational research: problems and prospects. Journal of Management, 12: 531–544.

    Article  Google Scholar 

  • Ralston, D. A., Egri, C. P., Stewart, S., Terpstra, R. H., & Kaicheng, Y. 1999. Doing business in the 21st century with the new generation of Chinese managers: a study of generational shifts in work values in China. Journal of International Business Studies, 30: 415–428.

    Article  Google Scholar 

  • Rao, A. N., Pearce, J. L., & Xin, K. 2005. Governments, reciprocal exchange and trust among business associates. Journal of International Business Studies, 36: 104–118.

    Article  Google Scholar 

  • Reve, T., & Stern, L. W. 1986. The relationship between interorganizational form, transaction cimate, and economic performance in vertical interfirm dyads. In P. Luigi & S. Reddy (Eds.), Marketing Channels: relationships and performance: 75–102. Lexington, Massachusetts: Lexington.

    Google Scholar 

  • Smith, P. B. 2003. Meeting the challenge of cultural difference. In D. Tjosvold, & K. Leung (Eds.). Cross-Cultural Foundations: Traditions for Managing in a Cross-Cultural World. Aldershot, Hampshire, UK: Ashgate.

    Google Scholar 

  • Spector, P. E. 1992. A consideration of the validity and meaning of self-report measures of job conditions. In C. L. Cooper & I. T. Robertson (Eds.). International Review of Industrial and Organizational Psychology: 123–151. Chichester: Wiley.

    Google Scholar 

  • Spector, P. E., & Brannick, M. T. 1995. The nature and effects of method variance in organizational research. In C. L. Cooper & I. T. Robertson (Eds.), International Review of Industrial and Organizational Psychology: 249–274. Chichester: Wiley.

    Google Scholar 

  • Steenkamp, J. B., & van Trijp, H. 1991. The Use of LISREL in Validating Marketing Constructs. International Journal of Research in Marketing, 8: 283–299.

    Article  Google Scholar 

  • Steiger, J. H. 1990. Structural model evaluation and modification: An interval estimation approach. Multivariate Behavioral Research, 25: 173–180.

    Article  Google Scholar 

  • Triandis, H. C. 1990. Cross-cultural studies of individualism and collectivism. In J. Berman (Ed.). Nebraska Symposium on Motivation 1989: 41–133. Lincoln, Nebraska: University of Nebraska.

    Google Scholar 

  • Triandis, H. C. 1995. Individualism and collectivism. Boulder, Colorado: Westview.

    Google Scholar 

  • Triandis, H. C., & Gelfand, M. J. 1998. Converging measurement of horizontal and vertical individualism and collectivism. Journal of Personality and Social Psychology, 74: 118–128.

    Article  Google Scholar 

  • Triandis, H. C., McCusker, C., & Hui, C. H. 1990. Multimethod probes of individualism and collectivism. Journal of Personality and Social Psychology, 59: 1006–1020.

    Article  Google Scholar 

  • Tse, D. K., Francis, J., & Walls, J. 1994. Cultural differences in conducting intra- and inter-cultural negotiations: a Sino-Canadian comparison. Journal of International Business Studies, 24: 537–555.

    Article  Google Scholar 

  • Tung, R. 1991. Handshakes across the sea: cross-cultural negotiating for business success. Organizational Dynamics, 14: 30–40.

    Article  Google Scholar 

  • Uzzi, B. 1996. The sources and consequences of embeddedness for the economic performance of organizations: the network effect. American Sociological Review, 61: 674–698.

    Article  Google Scholar 

  • Van Knippenberg, D., Van Knippenberg, B., & Van Dijk, E. 2000. Who takes the lead in risky decision making? Effects of group members' risk preference and phototypicality. Organizational Behavior and Human Decision Processes, 83: 213–234.

    Article  Google Scholar 

  • VandeWalle, D., Brown, S. P., Cron, W. L., & Jr. Slocum, J. W. 1999. The influence of goal orientation and self-regulation tactics on sales performance: a longitudinal field test. Journal of Applied Psychology, 84: 249–259.

    Article  Google Scholar 

  • Westwood, R. I., & Posner, B. Z. 1997. Managerial values across cultures: Australia, Hong Kong and the United States. Asia Pacific Journal of Management, 14: 31–66.

    Article  Google Scholar 

  • Wheeler, L., Reis, H. T., & Bond, M. H. 1989. Collectivism–individualism in everyday social life: the Middle Kingdom and the melting pot. Journal of Personality and Social Psychology, 57: 79–86.

    Article  Google Scholar 

  • Williams, M. 2001. In whom we trust: group membership for an affective context for trust development. Academy of Management Review, 26: 377–396.

    Article  Google Scholar 

  • Zaheer, A., McEvily, B., & Perrone, V. 1998. Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization Science, 9(2): 141–159.

    Article  Google Scholar 

Download references

Ackowledgements

The authors appreciate the support of Dr. Sofia Su and the able research assistants in Shanghai, China. This work has been supported by the Research Grants Council of the Hong Kong Special Administrative Region, China, (Project No: LU3013/01H) to the second author.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Alfred Wong.

Appendices

Appendix

Customer Organization Questionnaire

Collectivist values

The well-being of each company is important to this partnership.

If our supplier were in financial difficulty, we would help within our means.

If our supplier gets a prize, we would feel proud.

The supplier and we have pleasure in working with each other.

Individualist values

The supplier and we like to do our own thing.

Being unique is important to this partnership.

The supplier and we rather depend on our own than on each other.

The supplier and we having identity independent from the other is very important to us.

The supplier and we having our own identify is very important to us.

The supplier and we enjoy being unique and different from each other.

Vertical coordination

We regularly exchange information about production costs with this supplier.

We regularly consult with this supplier about its selection of raw materials and components incorporated in the products we order.

We regularly exchange information about price development and market conditions with this supplier.

Our firm makes regular joint efforts to improve the quality of the products we order from this supplier.

We cooperate closely with this supplier on quality control of products delivered to our company.

Trust

We learn things that can help us be more effective in the future from working with the supplier.

This supplier has been frank in dealing with us.

Promises made by this supplier are reliable.

This supplier is knowledgeable regarding his products.

This supplier does not make false claims.

If problems such as shipment delays arise, the supplier is honest about the problems.

Supplier Organization Questionnaire

Learning

Our company learned or acquired some new or important information from the customer.

Our company learned or acquired some critical capability or skill from the customer.

The alliance has helped our company to enhance our existing capabilities/skills.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Wong, A., Tjosvold, D. Collectivist values for learning in organizational relationships in China: the role of trust and vertical coordination. Asia Pacific J Manage 23, 299–317 (2006). https://doi.org/10.1007/s10490-006-9000-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-006-9000-9

Keywords

Navigation