A comparison of European and Chinese supplier and customer functions and the impact of connected relations

Purpose – This paper sets out to consider the scale and scope of the value relationship functions of trading partners and of their connected relationships created in a cross‐cultural framework. Design/methodology/approach – Using a previously‐developed framework of relationship and network functions the paper presents the findings from a database of connected relationships. The perceived importance of relationship functions are compared for buyers and sellers from Europe and China. Findings – It was found that direct functions are more important than indirect functions. There are some differences in perceived importance of functions for buyers and sellers. There are also cross‐national differences in ratings across a range of functions. It is speculated that differences are driven by cultural differences, differing degrees of internationalisation, length of relationships and nature of home market mechanisms. Research limitations/implications – Further research is needed to explain how desired and actual relationship functions vary under different market and relationship circumstances and the implications of discrepancies between what suppliers and customers perceive their important functions are and what their counterparts perceive and desire. Future research should also consider the dysfunctions of relationships. Research comparing different parts of China, arguably more diverse than many European countries, should also be undertaken. Practical implications – The differences between the Chinese and European samples are less than expected. This indicates that business models of relationship functions developed for Western business may be more applicable to China than originally thought and there may be more common ground in international business than has been previously indicated. Originality/value – The paper simultaneously considers the cultural and role differences of relational functioning. The findings are highly generalizable. This enables application of the findings to a diverse range of international business relationships and the possibility for managers to re‐evaluate their international relationship management strategies.