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ABSTRACT
The authors analyze data from two cross-national studies to explore differences in organizational buyers’ normative
expectations of supplier performance. These normative expectations encompass what buyers perceive as business stan-
dards or norms, regardless of product/service, supplier, or industry. The first study (four countries) pinpoints the norma-
tive expectations that help explain why managers across countries may evaluate the same supplier performance differ-
ently. The second study provides an illustrative example of these differences in a separate sample drawn from the same
four countries. The inclusion of such normative expectations of supplier performance has the potential to add explana-
tory power to models of performance evaluation in international business-to-business relationships. The findings sug-
gest that if differences in normative expectations of supplier performance are not taken into account, performance rat-
ings may be distorted indicators of actual performance.
n business-to-business (B2B) marketing, the most dards of business conduct (e.g., Cooper, Doucet, and
H0: Σ(1) = Σ(2) = … Σ(4) and μ(1) = μ(2) = … μ(4) 408.38 105 .65 .73 .66
(Invariance of covariance matrices and mean vectors)
H0: One factor fits all groups 114.99 56 .94 .90 .93
(Configural invariance)
Table 3. Parameter Estimates and Fit Indexes for Best-Fitting Model of Full Metric and Partial Scalar Invariance
(H0: Λ(1) = Λ(2) = … Λ(4), Τ5(1) = Τ5(2) = … Τ5(4), and Τ7(1) = Τ7(2) = … Τ7(4))
Item 1
Λ 1.00a
τ 3.21 2.50 2.85 3.00
Θδ 1.40 1.13 .67 .78
Item 2
Λ .92
τ 2.77 3.06 2.47 2.73
Θδ 1.22 .87 .85 1.31
Item 3
Λ 1.09
τ 3.67 3.37 3.62 3.37
Θδ .68 .62 .42 .72
Item 4
Λ .96
τ 3.39 2.16 2.78 2.97
Θδ .91 .96 .83 .93
Item 5
Λ 1.00
τ 3.83 3.83 3.83 3.83
Θδ .69 .49 .34 .41
Item 6
Λ .70
τ 3.20 3.00 3.65 3.09
Θδ .68 .68 .58 .62
Item 7
Λ .91
τ 3.81 3.81 3.81 3.81
Θδ .67 .65 .33 .34
Fit Indexes
χ2 = 160.33
d.f. = 77
NNFI = .90
CFI = .91
IFI = .91
Item 1
Λ 1.00a
τ 8.58 8.58 8.58 8.58
Θδ .56 1.84 .66 .53
Item 2
Λ 1.11
τ 8.60 9.43 8.65 8.66
Θδ .32 .33 .60 .46
Item 3
Λ 1.05
τ 8.44 9.01 8.55 8.48
Θδ .55 .84 .57 .46
Item 4
Λ .92
τ 8.04 8.04 8.04 8.04
Θδ 1.56 1.70 2.49 1.57
Fit Indexes
χ2 = 85.61
d.f. = 20
NNFI = .98
CFI = .98
IFI = .98
aItem is fixed for identification.
cross-national business markets. The results also point tern of results, providing strong support for normative
to challenges that arise when assessing performance in expectations of supplier performance as a key source of
situations in which normative expectations are not between-country variation in buyers’ evaluation of sup-
addressed. plier performance. Thus, this conceptualization and
empirical examination of normative expectations of
GENERAL DISCUSSION supplier performance represents a step toward a more
comprehensive explanation of the variance in supplier
Using a theoretical foundation drawn from the discon- performance ratings across countries. In addition, this
firmation paradigm, role theory, and institutional research extends the literature on normative expecta-
theory, this research empirically establishes the existence tions toward uncovering cross-national differences in
of differences in normative expectations of supplier per- the way buyers expect suppliers to perform. Globaliza-
formance across buyers from four different countries. tion and the increased pace of change have increased the
Specifically, we found that buyers in the United States complexity and difficulty of environmental scanning for
had lower normative expectations of supplier perform- international marketing managers. A keen understand-
ance than buyers in Germany, Japan, and the United ing of cross-national differences has never been more
Kingdom. Two separate studies produced the same pat- valuable or necessary for establishing and maintaining
This research demonstrates the need for managers to This research has implications for global account manager
explicitly measure and understand what buyers in differ- training. First, global account managers must be made
ent countries expect from those in the role of supplier. aware of the multiple contextual sources of buyer expec-
The ramifications of not fully understanding expec- tations. Training that focuses only on product/service
tations, a key variable underlying buyer satisfaction, expectations will result in an incomplete understanding of
can be substantial. A firm’s current assessments of per- buyers’ motivations and perceptions. Second, role-based
formance might provide conflicting evidence, not training may allow employees of the supplier firm to mas-
because of the measures themselves, but because of fun- ter new role scripts adapted to each market. International
damental differences in buyers’ normative expectations managers should become cognizant of the underlying
of supplier performance. If such differences are found, nation-based expectations of supplier conduct, which will
one solution to this problem is to track changes in key aid in interpreting performance evaluations and creating
variables of interest within a country across time and more successful buyer–supplier relationships.
make compensation judgments based on the longitudi-
nal improvement/decline of buyer ratings. This exami- The implications of this study point to the trade-off
nation of differences among national buyers would be between providing a uniformly high level of service
particularly prudent when performance ratings are used across countries (standardization of marketing activi-
as a managerial reward lever for global account sales- ties) and customizing levels of service according to a
people or divisions that manage multiple customer county’s expectations of suppliers (adaptation of mar-
accounts across various countries. keting activities; Shoham et al. 2008). If globally dis-
persed buyers expect varying levels of service, compa-
The introduction of normative expectations of supplier nies must determine whether resources should be shifted
performance provides managers in international con- according to the degree of service expected. For decades,
texts with an easy-to-use diagnostic tool that can help the debate has continued over whether a company
facilitate the discovery of differences in expectations should standardize or customize services across coun-
across customer groups in different countries. Firms can tries (see Levitt 1983). The debate centers on whether
measure these expectations themselves or encourage the national context is still pertinent to global busi-
international trade organizations or industry associa- nesses. Furthermore, the international marketing litera-
tions to conduct such research. Because the normative ture has recently shown that international managers
expectations of supplier performance are not relation- have few research-based guidelines for optimizing the
ship or product based, trade associations or other mix of standardization and adaptation (Shoham et al.
broader organizations might measure these expectations 2008, p. 121): “Given the conflicting arguments, the
as a service to their members. The measurement of these impact of standardization/adaptation of the marketing
normative expectations through the seven-item scale mix on international performance becomes an empirical
offers companies a way to tease out nation-based question.” In other words—in the absence of guidelines
sources of differences that may exist among customers. or established practices—measure.
In this way, companies can improve the utility and
application of their performance measures. Given the The measure of normative expectations of supplier per-
preponderance of global studies of performance— formance offers companies a managerial metric to track
including those by multinational corporations such as the evolution of world change and aid in decisions on
IBM, international government-affiliated organizations standardization. If the normative expectations of sup-
such as the International Organizations for Standardiza- plier performance across countries converge over time, a
tion (Frate 2001), and the World Health Organization company may seek to standardize services. However, if
Second, this study does not address the will expectations 6. The people you deal with in a supplier firm change
of suppliers in an international business setting. Our about once every 2 years.
consideration was restricted to the role of more endur- 7. Your initial rejection rate of work performed by a
ing should, or normative, expectations. The difficulty of supplier is about 15%.
disentangling will expectations from prior performance
notwithstanding, further research aimed at examining Cronbach’s alpha by country:
the role of will expectations in shaping national prefer-
ence would be of value. In addition, further research is U.S. sample = .85
needed to compare the effect sizes of different types of Japan sample = .68
expectations. Third, our sample includes only four Germany sample = .70
countries. Although these countries represent regions of
U.K. sample = .76
the world that are dominant in commerce, further
research should include more countries with differing
levels of economic development and possibly consider APPENDIX B
regional areas within countries if significant regional
differences are evident. Finally, this initial work has rele- All items are anchored by 1 = “very poor” and 10 =
vance to other areas of buyer assessment of firm behav- “excellent.”
ior, such as research involving satisfaction and service
1. How would you rate the overall performance of the
quality. For example, given that expectations are funda-
supplier as a provider of printers?
mental to the formation of satisfaction assessments,
these normative expectations could be used to develop a 2. How would you rate the overall reliability of the
method of recalibrating satisfaction scores based on printer provided by the supplier?
national differences in factor means across countries.
3. How would you rate the hardware provided by the
supplier for the printer?
Evaluating the normative expectations of supplier per-
formance has the potential to strengthen models of sup- 4. How would you rate the software provided by the
plier evaluation in a variety of cross-cultural or cross- supplier for the printer?
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