Why Do Business Partners Divorce? The Role of Cultural Distance in Inter-Firm Conflict Behaviour

T.I. Vaaland, S.A. Haugland, Sharon Purchase

Research output: Contribution to journalArticle

Abstract

This research discusses reasons for dissolution of business relationships. By means of a case study of a dispute that ended in a lengthy court battle, an exploration of one predisposing factor that existed before the unfortunate relationship was established is undertaken. Factors addressed are cultural distance in terms of different degree of relative uncertainty avoidance and power distance. Conclusions indicated that, under certain circumstances, cultural distance is so wide that the relationship should never have been established in the first place. The aim is to increase manager's awareness when selecting new business partners, and to improve strategies for recovering faltering relationships. The article ends by discussing managerial implications.
Original languageEnglish
Pages (from-to)1-19
JournalJournal of Business-to-Business Marketing
Volume11
Issue number4
Publication statusPublished - 2004

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