International Commercial Banking Relationshipss

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

Documents

International Commercial Banking Relationshipss