The need to be sensitive to foreign cultures is often stated axiomatically in the international marketing management literature despite little empirical research on its nature and consequences. To partially fill this void, this field investigation addresses empirically the question of the effects of sensitivity to national business culture on communication, conflict, and performance in cross-national channel relationships. Data collected from 142 U.S. manufacturers, 104 Mexican manufacturers, and 96 Mexican distributors reveal that the sensitivity axiom can be supported empirically. Specifically, partner sensitivity to national business culture is shown to increase communication and decrease conflict, both of which in turn influence relationship performance. Implications for cross-national channel relationships are discussed.