Distribution Channel Relationships in Diverse Cultures

One of the main functions of culture is division of labour among various actors in society. Since the global environment is characterised by diverse and deep‐rooted cultural norms and value systems, the nature of this division of labour across cultures should exhibit systematic differences. Channels of distribution are primarily designed to facilitate division of labour, and channel relationships should therefore reflect the underlying cultural tenets of society. Using Hofstede′s schemata to classify various national cultures, a series of propositions is generated on how distribution channel relationships will vary across countries based on their positions on Hofstede′s four dimensions of culture.