The Moderating Effect Of Long-Term Orientation On The Relationship Between Interfirm Power Asymmetry And Interfirm Contracts: The Cases Of Korea And USA
<p class="MsoNormal" style="text-justify: inter-ideograph; text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: Times New Roman;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;">The p</span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">urpose of </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">this study </span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">is</span><span style="color: black; font-size: 10pt; mso-themecolor: text1;"> to enhance our understanding of the effects of LTO culture on the </span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">contractual </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">relationship between </span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">exchange parties under conditions in which varying levels of asymmetrical power structures exist</span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">.</span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;"> This study </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">attempt to determine the validity of projecting conclusions originating from studies conducted in low LTO cultures such as U.S. and Western Europe to contractual relationships in the high LTO cultures of Asia. Therefore, investigations into the influence of LTO may be helpful in understanding contractual relationships formed in countries with differing levels of </span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">long-term </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">orientation. <span style="mso-bidi-font-weight: bold;">Survey research was conducted to collect data from manufacturers, Structural Equation Modeling was used to purify measurement scales, and Multiple Regression was conducted to test the hypotheses. </span></span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;">The </span><span style="color: black; font-size: 10pt; mso-themecolor: text1;">findings show that LTO companies tend to prefer “soft” contracts, although they enjoy a power advantage over their suppliers; whereas low LTO partners with asymmetrical power advantages prefer “hard” contracts with explicitly detailed written requirements.</span></span><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-fareast-language: KO;"></span></p>