The Effects of Collectivism on Trust, Commitment and Strategic Performance of Manufacturers and Distributors in Korea, the United States and Japan

Abstract

Purpose The purpose of this study was to determine the effects of collectivism on trust, commitment and strategic performance of manufacturers in Korea, the United States and Japan. Since manufacturers and distributors have limited resources, they may not readily respond to a rapidly changing distribution environment without mutual cooperation. Therefore, it is essential to establish a relationship by trust and commitment for them to survive in a fiercely competitive environment. Design/Methodology/Approach The proposed model was proven by the structural equation modeling which utilized data gathered from 105 manufacturing firms in Korea, 103 manufacturing firms in the U.S., and 89 manufacturing firms in Japan. The effectiveness of strategic performance in distributors and manufacturers will be different according to the cultural environment of each country to which the manufacture and distributor belong. Thus, this study is crucial to research methods of trust and commitment according to the collectivism among differing cultural environments. Findings - In all three countries, it was confirmed that the higher the collectivism, the higher the commitment. Also, the higher the trust, the higher the commitment. Research Implications This study is consistent with the latest trend of academic investigations on cultural environment and has practical applications in terms of trust and commitment.