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A relational model of export performance

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Abstract

Export performance models anchored in the industrial organization and resource-based theories have previously been developed and tested. Thus far there have been no empirically tested export performance models that have reflected the core tenets of the relational, or behavioral, paradigm. Drawing from relational exchange theory, a model that includes reciprocal perceptions that relate to both past and future exchanges is developed. This model is tested with dyadic data from 125 West–East (Australia–Thailand) exporter–importer partnerships, reflecting the increasing importance of West–East exchange relationships. Results support the theory's contention that commitment (to future exchanges) is associated with export performance, and is itself driven by a reciprocal cycle of each partner's perception of the other's commitment, relationship-specific investments and dependence. This cycle of commitment is in turn influenced by each partner's trust in the other (from past exchanges), with different types of trust linked to different types of commitment. Trust and commitment are then found to be related both to interpersonal factors (i.e., effective communication, cultural sensitivity and likeability of partner) and to firm factors (reputation and competencies of partner).

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Acknowledgements

The authors gratefully acknowledge the assistance of the Australian Trade Commission (Austrade) and the Australian Research Council for financial assistance for this research. Three JIBS reviewers and the Departmental Editor, Professor G. Tomas M. Hult, are also thanked for their constructive reviews and advice.

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Authors and Affiliations

  1. Faculty of Economics and Business, The University of Sydney, NSW, Australia

    Chris Styles

  2. School of Marketing, University of NSW, Sydney, Australia

    Paul G Patterson

  3. School of Marketing, University of Western Sydney, Penrith South, Australia

    Farid Ahmed

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  1. Chris Styles
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  2. Paul G Patterson
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  3. Farid Ahmed
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Corresponding author

Correspondence to Chris Styles.

Additional information

Accepted by G. Tomas M. Hult, Departmental Editor, 13 June 2007. This paper has been with the authors for two revisions.

Appendices

Appendix A

Constructs and Items

Affective Commitment

(1=strongly disagree to 7=strongly agree)

  • It is pleasant working with this importer; that is why we continue the relationship.

  • Our decision to remain this importer's supplier is based on our attraction to the things this importer stands for as a company.

  • Strong social bonds exist between this importer and us.

  • We have a strong sense of loyalty with this importer.

  • We are patient with this importer when they make mistakes that cause us problems.

(Australia: α 0.82, AVE 0.70; Thailand: α 0.85, AVE 0.77)

Calculative Commitment

(1=strongly disagree to 7=strongly agree)

  • It would be hard for us to transfer the investments we have made in support of this Thai importer to another Thai importer, so we continue to deal with them.

  • If another importer offered us a better market coverage we would consider taking them on, even if it meant dropping this importer.

  • It is too difficult to switch to another importer because of the lack of good alternatives; otherwise, we would consider leaving.

  • We are continually on the lookout for another importer in Thailand.

(Australia: α=0.77, AVE=0.65; Thailand: α=0.74, AVE=0.62)

Goodwill Trust

(1=strongly disagree to 7=strongly agree)

  • This importer has made sacrifices for us in the past.

  • This importer cares about us.

  • This importer is like a friend.

  • This Thai importer would go out of its way to make sure that our firm is not damaged or harmed in this relationship.

  • This importer always looks out for our interests in this relationship.

  • Though circumstances change, we believe that the importer will be ready and willing to offer us assistance and support.

  • When we have our problems with this importer, we know that they will respond with understanding.

(Australia: α=0.95, AVE=0.89; Thailand: α=0.89, AVE=0.80)

Contractual Trust

(1=strongly disagree to 7=strongly agree)

  • Even when the importer gives us a rather unlikely explanation, we are confident that they are telling the truth.

  • We find it necessary to be cautious with this importer.

  • The importer usually keeps the promises they make to our firm.

  • Our firm can count on this importer to be sincere.

  • Our firm and the importer generally trust that each will stay within the terms of the contract.

(Australia: α=0.84, AVE=0.73; Thailand: α=0.85, AVE=0.79)

Competence Trust

(1=strongly disagree to 7=strongly agree)

  • Promises made by this importer are reliable.

  • This importer is very knowledgeable regarding their products.

  • This importer sometimes has problems answering our questions.

  • We can always rely on this importer to “play their part” in this relationship.

  • This importer is very dependable.

  • We know that this importer is capable and competent.

(Australia: α=0.86, AVE=0.60; Thailand: α=0.82, AVE=0.65)

Communication

(1=strongly disagree to 7=strongly agree)

  • We keep this importer well informed about what is going on in this relationship.

  • We hesitate to give this importer too much information.

  • This importer seeks our advice and guidance concerning their marketing efforts.

  • This importer communicates well their expectations for our firm's performance.

  • Our relationship with this importer is like an open book.

  • This importer lets our firm know as soon as possible of any unexpected problems with things such as lead times, shipments, product quality, etc.

  • There is frequent communication between the two firms (such as visits to each other's firms, meetings, written and telephone communications).

  • Exchange of information with this importer takes place informally.

(Australia: α=0.82, AVE=0.75; Thailand: α=0.88, AVE=0.81)

Likeability of Partner

(1=strongly disagree to 7=strongly agree)

  • People from this Thai importer firm are friendly.

  • People from this importer are always nice to us.

  • People from this importer are someone we like to have around.

(Australia: α=0.89, AVE=0.86; Thailand: α=0.87, AVE=0.82)

Reputation

(1=strongly disagree to 7=strongly agree)

  • This importer has a reputation for being honest.

  • This importer is known to be concerned about their partners.

  • This importer has a reputation for fairness in dealing with its suppliers.

  • We think that this importer only looks out for itself.

(Australia: α=0.79, AVE=0.70; Thailand: α=0.75, AVE=0.60)

Marketing Competencies

(Compared with other exporters/importers that you deal with, how would you rate the Australia/Thai exporter/importer on the following? 1=somewhat worse to 7=much better)

  • Market coverage.

  • Channel support.

  • The importer's distribution performance (order fill rates, order cycle times, etc.)

  • After sales service provided to customers.

  • Ability to achieve growth in market share.

(Australia: α=0.91, AVE=0.79; Thailand: α=0.88, AVE=0.75)

Dependence on the Partner

(1=strongly disagree to 7=strongly agree)

  • Finding a replacement for this importer would be difficult for us.

  • We can easily switch to another importer in Thailand, if we want to.

  • This importer is important to our future business in the Thai market.

  • We are quite dependent on this importer.

  • If our relationship were discontinued with this importer, we would have difficulty in making up the sales volume in this market.

  • This importer has excellent contacts in the Thai market.

(Australia: α=0.82, AVE=0.75; Thailand: α=0.79, AVE=0.70)

Investments by the Partner

(1=strongly disagree to 7=strongly agree)

  • This Thai importer has made significant investments in training and servicing our customers.

  • This importer has gone out of its way to link us with their business.

  • It would be difficult for this importer to recoup its investments in us if they switched to a new exporter.

  • This importer does a lot to help us become a more effective exporter, such as providing training and service to the customers.

  • This importer has invested substantially in personnel dedicated to this relationship.

  • The importer has put in a good deal of effort to get to know our firm and people.

(Australia: α=0.81, AVE=0.77; Thailand: α=0.82, AVE=0.73)

Perception of Dependence by the Partner

(1=strongly disagree to 7=strongly agree)

  • The importer knows that we are a major exporter for them in the Thai market.

  • If the Thai importer switched to another exporter, it might be difficult for them to get a brand as well known as ours.

  • The importer knows that, if we discontinued supplying them, they would have difficulty making up the sales volume in this market.

  • The importer can easily switch to another exporter, if it wants to.

  • The importer knows that finding a replacement for us will be difficult for them.

  • The importer is quite dependent on us.

  • The importer knows that we are important to their future business in the Thai market.

(Australia: α=0.88, AVE=0.78; Thailand: α=0.84, AVE=0.75)

Cultural Sensitivity

(1=strongly disagree to 7=strongly agree)

  • The importer is aware of the difference in doing business in this country.

  • The importer always tries to show their willingness to adapt to our way of doing business.

  • The importer is aware that the norms for business communications are different in our culture.

  • The importer has worked very hard to familiarize themselves with our legal and economic environment.

  • The importer appreciates the nature of our decision-making and management techniques.

  • The importer has made an effort to understand some of the cultural values in our country.

  • The importer is fully aware and understands that, compared with them, we need to have much more lengthy and detailed discussions before we are comfortable committing to a course of action.

  • The importer seems to know a lot about our culture and our way of doing business.

(Australia: α=0.91, AVE=0.85; Thailand: α=0.89, AVE=0.83)

Perceptions of Affective Commitment of the Partner

(1=strongly disagree to 7=strongly agree)

  • The importer feels that it is pleasant working with us; that is why they continue the relationship.

  • The importer's decision to remain our importer is based on their attraction to the things that we stand for as a company.

  • The importer feels a strong social bond between us and them.

  • The importer has a strong sense of loyalty to us.

  • The importer is patient with us when we make mistakes that cause them trouble.

(Australia: α 0.86, AVE 0.82; Thailand: α 0.79, AVE 0.64)

Perceptions of Calculative Commitment of the Partner

(1=strongly disagree to 7=strongly agree)

  • The importer believes that there is too much time, energy and expense involved in switching to another exporter, that is why they stay with us.

  • The importer believers that it would be hard for them to transfer the investments they have made in support of us to another exporter, so they continue to represent us.

  • The importer feels that it is too difficult for them to switch to another exporter because of the lack of good alternatives; otherwise they would consider leaving us.

  • The importer stays with us because our brand is so well known in Thailand.

  • The importer is continually on the lookout for another exporter.

  • The importer would most certainly take another exporter on if another exporter offered them a better product, even if it meant dropping us.

  • The importer knows that they would have trouble getting another brand as good as ours if they switched to represent another exporter.

(Australia: α=0.79, AVE=0.67; Thailand: α=0.80, AVE=0.63)

Venture Satisfaction

(1=strongly disagree to 7=strongly agree)

  • Overall, I am very satisfied with our decision to export to Thailand.

  • If we had to do all over again we would still export to Thailand.

  • Our decision to export to Thailand was a wise one.

  • We have achieved our objectives over the past 1–3 years in exporting to Thailand.

(Australia: α=0.88, AVE=0.65; Thailand: α=0.87, AVE=0.73)

Venture Performance

(1=much worse than expected to 7=much better than expected)

  • Sales growth of this product or service.

  • Profitability of this export business.

  • Market share in the Thai market from this export business.

  • Strategic gains in the Thai market from this export venture.

  • Overall export performance in Thailand.

(Australia: α=0.92, AVE=0.85; Thailand: α=0.94, AVE=0.83)

Appendix B

Table B1

Table a1 Correlation matrix of Australian and Thai samples
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Appendix C

Table C1

Table a2 Mean and standard deviation of constructs (Australian and Thai sample)
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Styles, C., Patterson, P. & Ahmed, F. A relational model of export performance. J Int Bus Stud 39, 880–900 (2008). https://doi.org/10.1057/palgrave.jibs.8400385

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