SENSITIVITY TO NATIONAL BUSINESS CULTURE - EFFECTS ON US-MEXICAN CHANNEL RELATIONSHIP PERFORMANCE

The need to be sensitive to foreign cultures is often stated axiomatic ally in the international marketing management literature despite litt le empirical research on its nature and consequences. To partially fil l this void, this field investigation addresses empirically the questi on of the effects of sensitivity to national business culture on commu nication, conflict, and performance in cross-national channel relation ships. Data collected from 142 U.S. manufacturers, 104 Mexican manufac turers, and 96 Mexican distributors reveal that the sensitivity axiom can be supported empirically. Specifically, partner sensitivity to nat ional business culture is shown to increase communication and decrease conflict, both of which in turn influence relationship performance. I mplications for cross-national channel relationships are discussed.