Abstract or Keywords
This research investigates how indigenous socio-cultural (ISC) practices within informal networks, such as guanxi and wasta provide benefits beyond mere access. Specifically, we explore their global impact on B2B relationships, focusing on reciprocity. A multi-regional sample extends research on ISC practices in B2B relationships by examining contingency effects of informal network ties. We surveyed 404 buyers in two developed (Hong Kong and Portugal) and two emerging economies (Kuwait and Colombia), also categorized by strong and weak informal network ties. Using SEM, we examined a relationship marketing (RM) model from a typology (Clubs, Sociocracies, Clans, and Compadres) for assessing contingency effects. The study reveals that in developed economies with strong formal institutions, negative aspects of FRN intensify unless informal networks are driven by strict socio-moral obligations. This supports research indicating that contractual governance competes rather than complements relational governance. Moreover, trust-building processes are crucial in regions with low uncertainty tolerance to mitigate adverse effects. Suppliers from developed nations need more than cultural communication insights when engaging in business in emerging markets. Buyers may expect adherence to reciprocity rules embedded in the ISC practices of their informal networks. This study pioneers a typology of social structures to analyze ISC practices across buyers with varying formal institutional strength and informal network ties. It sheds light on institutional dynamics, trust-building processes, and nuances surrounding both positive and negative aspects of reciprocity practices. Furthermore, it broadens the scope of RM to Asia, Europe, Latin America, and the Middle East.