scores on four dimensions of national culture (power distance,

individualism/collectivism, masculinity/femineity, and uncertainty avoidance) have

been used by some researchers (Batonda and Perry, 2003; Kogut and Singh, 1988; Li
and Guisinger, 1991) to examine the cultural distance between countries. While
Hofstede’s (1980) value scores are readily available for 50 countries these scores are
based on work-related value only rather than evaluating relationship. Also these
scores are very dated (based on 1960s data) and not even available for many of the
countries including China. However, taking Johanson and Vahlne’s (1977) assertions
of cross cultural relationship, Swift (1999) used 20 cultural elements to assess
managers’ perceived cultural closeness with overseas suppliers and reported mean
scores to identify the cultural affinity and closeness. Four questionnaire items were
adopted from Swift’s (1999) study for their relevance to the construct measure for
this study. One additional item was adopted from Ali’s (1995) dissertation which was
utilised in measuring psychic distance between international joint venture partners in
a developing country context. This measurement was one of the challenging ones, and
so may contribute to producing a reliable score in CFA. Questionnaire items for this
measure are listed below.
Md._Abu_Saleh_Thesis 2006
1. The styles of our greeting/address/introductions are similar to those of our
major supplier
2. Our business practices (such as keeping appointments and meeting on
time) are similar to those of our major supplier
3. Our legal formalities that influence business negotiations are similar to
those of our major supplier
4. Our standards of ethics and morals in business are similar to that of the
supplier
5. The uses of contracts and agreements in our business are similar to those
of our major supplier’s business practice

Supplier’s competencies – This measure captures importers’ perceptions of firms’

relative competencies derived from the specific supplier capabilities and resources.
Suppliers’ competitive quality, warranty, prices, payment terms, technical ability and
knowledge, knowledgeable salespeople, and frequency in delivery services may
provide competencies from the specific supplier relative to other suppliers.
Researchers have used these tangible and intangible capabilities of the supplier to
develop the measure. Initially, supplier selection criteria were employed in Cavusgil
and Yavas’s (1987) study and that measure was adapted in two follow-up studies
(Karande et al., 1999; Shahadat, 2003). For the domain specification, seven items of

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