LAUSR

Abstract This study advances extant cross-nation and cross-cultural business-to-business (B2B) supply chain literature by exploring the contingent effect of institutional distance in the business networking-innovation relationship. Unlike previous studies largely based on Western firms operating in the developing economies, this study focuses on Asian firms operating in the Western developed market. By examining the experiences of one hundred and sixty Asian B2B firms operating in New Zealand, this study finds that formal institutional distance positively moderates the effect of business networking on innovation whereas informal institutional distance negatively moderates the effect of business networking on innovation. This study provides new theoretical conceptualizations and perspectives to cross-national and cross-cultural B2B supply chain research.