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8/7/2019 International Commercial Banking Relationshipss
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Submitted by:-
Sumit kr. SharmaNidhi bajpai
Submitted to:-
Prof. Subhanshu gupta
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The case tells about the importance of
maintaining long term buyer-seller
relationships for success.The focus is away from how to acquire
new customers to how to develop,
enhance, maintain and terminate
relationship.Cross cultural marketing research has
been given importance.
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Acomprehensive causal model was
developed depicting link between
perceived cooperation and relationshipcommitment has been developed and
examined.
This case envisages a comparison
between two countries India and Canada.For this various hypothesis were tested.
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Sampling done on the basis of stratified random
sampling.
1000 companies each in India and Canada were
contacted for participation. The final sample consisted of 126 Canadian and 156
Indian companies.
All variables were measured using multiple item
scale. Questionnaires scaled on 7-point Likert type
scale were used to gather data from respondents.
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Cooperation:The extent to which parties in a
working relationship help one another and coordinate
their actions.
Trust: The perceived credibility and benevolence of
target of trust.
Commitment: An implicit or explicit pledge of
relational continuity between exchange partners.
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Power Distance: The extent to which the less
powerful members of organizations within a country
expect and accept that power is distributed unequally.Indian power distance index value is 77 as compared
to Canada's which is 39.
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H1:The greater the trust in the bank, the stronger thecommitment in the relationship in both the countries.
H2: the stronger the perceived cooperation, thestronger the trust in the relationship in both thecountries.
H3: Cooperation as an antecedent of trust will be
given comparatively higher importance by Canadiancorporate customers compared to their counterpartIndian corporate customer.
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H4: power distance cultural value negatively
moderates the relationship between cooperation and
trust.
H5: Trust mediates the positive effect of cooperation
on commitment in corporate customers bank
relationship.
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State whether power distance cultural value
moderates the relationship between
cooperation and trust, if yes what is the natureof such moderation?
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Power Distance: The extent to which the less
powerful members of organizations within a
country expect and accept that power isdistributed unequally.
High power distance country India (77)
Low power distance country- Canada(39)
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Regression
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Hence, H1 is acccepted.
The significant increment in R squarefrom p
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State whether trust mediates, the effect of
cooperation and commitment, if yes then what
is the indirect effect of cooperation oncommitment?
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Here we compare the H2 and H3.
In H2 the predicted that stronger the
perceived cooperation, the stronger thetrust in the relationship in both countries.
H3 predicted that cooperation as an
antecedent of trust will be givencomparatively higher importance byCanadian corporate customer compares toIndian
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Result is that the effect of coorperation on
trust is much more higher than in candian
than the in indian sample.T
hereforeH3
issupported.
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What is the managerial implication of the
findings on moderating role of power distance
in the cooperation, commitment link inmaintaining banking relationship in cross
national cultural context.
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There is significant role of power distance in the cooperationcommitment link in maintaining banking relationship.
In corporate customer bank relationships, one would expect
that corporate customers in large power distancesocieties(e.g. India) are more likely to tolerate lower level ofcooperation from relatively powerful bank.
On the other hand in small power distance
culture(e.g.Canada),the socially sanctioned power differencebetween corporate customer and bank is small.
When power distance cultural value increases, the effects ofcooperation on trust decreases.
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Is there any managerial implication of the
study on finding of mediating role of trust in
the cooperation , commitment link in
maintaining banking relationship in cross
national cultural context?
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From the test that we have conducted, it shows
significant difference when trust was combined
with cooperation and commitment.
cooperation
trust
commitment
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Thank you
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