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Article
Publication date: 16 January 2014

Explaining industrial importers' commitment from an emerging market perspective: theoretical and managerial insights

M. Abu Saleh, M. Yunus Ali and Syed Saad Andaleeb

This study seeks to provide insights concerning the predictors of industrial importers' commitment to their foreign suppliers in a relationship paradigm involving an…

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Abstract

Purpose

This study seeks to provide insights concerning the predictors of industrial importers' commitment to their foreign suppliers in a relationship paradigm involving an emerging market.

Design/methodology/approach

Integrating a review of the relevant importer-exporter and distributor-supplier relationship literature, a model of importer commitment was developed. Based on survey data obtained from industrial importers for an emerging market, CFA and SEM were employed to test the proposed theoretical model.

Findings

The findings significantly support the theoretical framework and most of the hypothesized path relationships in the model. Predictors such as importers' knowledge significantly and positively influenced commitment through the intermediation of trust, supplier opportunism had a significant and negative effect on importer commitment, again through the intermediation of trust, and transaction-specific investment had a direct effect on industrial importers' commitment. Supplier's opportunistic inclinations did not have a significant direct effect on the commitment of the importers.

Research limitations/implications

This research only considers the views of industrial importers that limits generalization. The sample size, constrained by the total number of industrial importers in the country examined, was also somewhat of a limiting factor concerning SEM modeling.

Practical implications

This study suggests the factors that export managers need to consider in maintaining long-term relationship with their foreign buyers, while contributing to building the relationship through knowledge sharing and curbing opportunistic inclinations.

Originality/value

This paper examines the antecedents of trust and commitment in industrial importer and foreign supplier relationships in the context of an emerging market. Based on the earlier literature on B2B exchanges, the role of importers' knowledge in driving commitment through the intermediation of trust offers new insights. This is particularly important because the importers are experiencing unprecedented growth opportunities. Considering their need to make decisions quickly and gain advantages from suppliers, will they remain committed to a particular supplier? Or will their commitment be strengthened by gaining knowledge of the supplier? The tested model offers unique insights.

Details

Journal of Business & Industrial Marketing, vol. 29 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-09-2011-0116
ISSN: 0885-8624

Keywords

  • Commitment
  • Trust
  • Business-to-business marketing
  • Cross-cultural management
  • Buyer-seller relationships

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Article
Publication date: 23 February 2010

On importer trust and commitment: a comparative study of two developing countries

Constanza Bianchi and Abu Saleh

Relationship trust and commitment are two key dimensions of international exchanges. Both have been extensively investigated from an exporter (as opposed to importer…

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Abstract

Purpose

Relationship trust and commitment are two key dimensions of international exchanges. Both have been extensively investigated from an exporter (as opposed to importer) perspective in developed country (as opposed to developing country) contexts. To address these gaps, this paper aims to develop a model of antecedents and outcomes of importer trust and commitment in two developing countries.

Design/methodology/approach

The paper tests the proposed model using data from Chile and Bangladesh. Hypotheses are tested using structural equation modeling (SEM).

Findings

SEM analysis reveals that most of the hypotheses are supported in both the Bangladeshi and Chilean context. The findings of this paper also suggest that the effects of importer transaction‐specific investments on importer commitment are distinct in the Bangladeshi context.

Practical implications

Practically, these results show that trust and commitment are essential for enhancing importer relationship performance in developing countries. Importer trust in a foreign supplier is effective when suppliers are competent and provide relatively superior facilities, as opposed to opportunistic proclivity. Importer commitment to a foreign supplier is stronger when importers perceive that the foreign supplier is not opportunistic, but is knowledgeable and experienced with the importer market, and they perceive that it is an advantage importing from that supplier. Cultural similarity between importers and foreign suppliers improves importer trust in both countries. However, importer commitment in Chile increases with importer transaction‐specific investment, but this is not found to be the case in Bangladesh.

Originality/value

This paper contributes to the importer‐exporter exchange relationship literature by testing a model of antecedents and outcomes of importer trust and commitment. The tested model is one of few that considers developing country contexts and incorporates two novel antecedents of trust and commitment: importer knowledge and experience, and supplier resource competency.

Details

International Marketing Review, vol. 27 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/02651331011020401
ISSN: 0265-1335

Keywords

  • Imports
  • Supplier relations
  • Trust
  • Chile
  • Bangladesh

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Article
Publication date: 30 April 2019

Buyer-supplier relational paradigm in internationalization process: An Asian emerging country perspective

Md Abu Saleh, M. Yunus Ali, Ali Quazi and Deborah Blackman

The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors…

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Abstract

Purpose

The purpose of this paper is to explore international buyer–supplier relationships in an emerging developing country context. The study examines a number of factors derived from internationalization process (IP) theory and their impacts in a novel research setting. The relational variables of trust and commitment, and their drivers, are integrated into a model examining importers’ perspectives of their supplier relationships.

Design/methodology/approach

This study applied a sequential methodological approach. Initially, a conceptual framework was developed from qualitative research and then quantitatively validated using structural equation modeling (SEM). The data for this study were collected conducting in-depth interviews and survey questionnaires. For empirical validation, the SEM technique was applied to assess the proposed model.

Findings

Importing firm managers perceived that the commitment of their suppliers bolstered their trust in the relationship, this contrasts with the conventional contention of a reverse relationship. The findings confirm cultural similarity facilitates communication, leading to increased knowledge and experience of importers, thereby contributing to an enhanced commitment to build trust in the relationship.

Practical implications

The conceptual framework developed in this study provides a direction to manage and enhance understanding of IP and relationship outcome. The findings have strategic implications for practicing managers in developing and supporting their importer–foreign supplier relationships.

Originality/value

This study is unique in assessing as well as validating key constructs of IP theory in an international exchange (importer–supplier) relationship. The study offers completely a new insight in relation to applying IP theory’s relational perspectives.

Details

Journal of Enterprise Information Management, vol. 32 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JEIM-08-2018-0184
ISSN: 1741-0398

Keywords

  • Cultural similarity
  • Internationalization process
  • Communication
  • Importer–supplier
  • Knowledge and experience

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Article
Publication date: 6 June 2016

Overseas exporter fairness and Korean importer’s commitment

Chang-Bum Choi

Importer commitment is important to the improvement of exporter performance. More committed importers contribute more to the exporters’ performance than do less committed…

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Abstract

Purpose

Importer commitment is important to the improvement of exporter performance. More committed importers contribute more to the exporters’ performance than do less committed importers. The purpose of this paper is to examine one of the factors that motivate importers to be committed to their overseas exporters: exporter fairness. Specifically, this study examines the role of exporter fairness in developing importer commitment. Fairness is conceptualized as three dimensions: distributive justice, procedural justice, and interactional justice.

Design/methodology/approach

The relationship between the three dimensions of exporter fairness and importer commitment is empirically examined using data collected from 120 Korean importers. Partial least squares technique was employed to test the hypotheses.

Findings

It was found that importers’ perceptions of distributive, procedural, and interactional justice contribute to increasing or decreasing importer commitment. Furthermore, when a sample of Korean importers was split into two groups, the three dimensions of justice were positively related to commitment for importers facing a highly volatile business environment, while only interactional justice significantly affected commitment for importers facing a low-volatile environment. These findings indicate that importers facing a highly volatile environment are much more sensitive to exporter fairness than are those facing a low-volatile environment.

Originality/value

The study demonstrates that importer commitment can be developed, particularly in highly volatile environments, if vulnerable importers are treated fairly by their more powerful exporters. Volatile environments offer more opportunity for overseas exporter opportunism than stable environments do, aking importers vulnerable to the opportunistic behaviors of overseas exporters. Such importers are likely to respond sensitively to exporter fairness in the form of increased or decreased importer commitment.

Details

Journal of Korea Trade, vol. 20 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JKT-04-2016-0011
ISSN: 1229-828X

Keywords

  • Interactional justice
  • Distributive justice
  • Procedural justice
  • Importer commitment
  • Exporter fairness

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Article
Publication date: 2 November 2010

Benefits‐based drivers of exporters' attitudinal commitment toward their foreign distributors: A longitudinal study

Claude Obadia

This study seeks to investigate the benefits that trigger exporters' attitudinal commitment and examines their effects by taking into account the temporal dynamics of…

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Abstract

Purpose

This study seeks to investigate the benefits that trigger exporters' attitudinal commitment and examines their effects by taking into account the temporal dynamics of cross‐border interfirm relationships.

Design/methodology/approach

A qualitative field study led to the generation of hypotheses that were subsequently tested with structural equations modeling using data collected during two consecutive surveys of exporters.

Findings

The economic benefits that foster exporter's commitment include importer's specific investments, importer role performance, and exporter economic performance.

Practical implications

Importers can secure their foreign suppliers' commitment by investing in their business relationships and improving their distributive performance. They also need to monitor exporters' economic performance. The study highlights the importance of exporters' perceptions in building their commitment. Thus, importers need to communicate intensively about their actions to promote exporters' brands.

Originality/value

Unlike previous research, which has focused mostly on behavioral antecedents of commitment, this study depicts the exporting context using the exporter perspective and highlights the importance of economic benefits in shaping their attitudes. A mixed design involving both qualitative and quantitative methodologies facilitates this approach. Relational exchange theory's temporal assumptions about business relationships are reflected by the use of longitudinal data.

Details

International Marketing Review, vol. 27 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/02651331011088254
ISSN: 0265-1335

Keywords

  • Exports
  • Imports
  • Buyer‐seller relationships

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Article
Publication date: 16 March 2015

A critical appraisal of the relational management paradigm in an international setting: A future research agenda

Md Abu Saleh, M Yunus Ali, Ali Quazi and Rumintha Wickramasekera

In the mainstream relationship management literature, critical appraisal of the relationship paradigm in an international setting is virtually non-existent. The extant…

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Abstract

Purpose

In the mainstream relationship management literature, critical appraisal of the relationship paradigm in an international setting is virtually non-existent. The extant literature reveals a gap in terms of linking relationship management theories with international management. Furthermore, little research attention has been paid to synthesise the existing theories in a cohesive manner towards developing a theoretical paradigm in the interface of the importer-supplier relationship dyad. Thus, the purpose of this paper is to strengthen the theoretical grounds of relationship marketing in an international setting in an importer-exporter relationship context.

Design/methodology/approach

The paper follows a comprehensive review approach and applies the fundamental theory of trust and commitment to identify the relational factors. More precisely, the paper identifies and applies other relevant theories such as internationalisation process theory, resource-based theory of the firm, dependence theory and transaction cost theory in developing an innovative theoretical paradigm.

Findings

Based on the integration of extant theories, this paper proposes a new direction in the theoretical realm of the trust and commitment building process within an importer and supplier relationship management paradigm. The research concludes that trust and commitment are the focal factors within the international relational paradigm.

Research limitations/implications

The proposed research direction suggests an emerging framework integrating mainstream theoretical variables of trust and commitment in importer and foreign-supplier context. This novel framework has the potential for use in further research.

Originality/value

This paper advances a grounded theoretical exploration within an international management domain in the context of importers and foreign-suppliers.

Details

Management Decision, vol. 53 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/MD-02-2014-0097
ISSN: 0025-1747

Keywords

  • International relationship management
  • Internationalisation process theory
  • Resource-based theory of the firm
  • Transaction cost theory
  • Trust and commitment theory

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Article
Publication date: 6 November 2007

Benevolence in the importer‐exporter relationship: Moderating role of value similarity and cultural familiarity

Dong‐Jin Lee, Moonkyu Lee and Jaebeom Suh

This research aims to test a model that proposes potential antecedents and consequences of an importer's benevolence towards its foreign export supplier. The model posits…

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Abstract

Purpose

This research aims to test a model that proposes potential antecedents and consequences of an importer's benevolence towards its foreign export supplier. The model posits that an importer's satisfaction with and commitment to its relationship with a foreign export supplier have a positive impact on its benevolence towards the exporter, which in turn positively influences the performance of the dyadic relationship. The model also suggests that the effect of the importer's relationship satisfaction on benevolence is moderated by value similarity and cultural familiarity.

Design/methodology/approach

The model was tested through a mail survey of US importers who bought from foreign exporters.

Findings

The results largely support the model. The findings of this study also indicate that the importer's relationship satisfaction has a significant influence on benevolence only when cultural familiarity is high.

Practical implications

Strategic implications for international marketers are discussed.

Originality/value

The model proposed has value for marketing professionals.

Details

International Marketing Review, vol. 24 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/02651330710832649
ISSN: 0265-1335

Keywords

  • Relationship marketing
  • National cultures
  • Modelling
  • Exports

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Article
Publication date: 5 March 2018

Export promotion programmes for assisting SMEs

Dafnis N. Coudounaris

This paper aims to shed light on how small- and medium-sized enterprises can use export promotion programmes (EPPs) to improve their performance. The proposed conceptual…

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Abstract

Purpose

This paper aims to shed light on how small- and medium-sized enterprises can use export promotion programmes (EPPs) to improve their performance. The proposed conceptual model focuses on the need that the mechanism of awareness and use of EPPs should play a more active strategic role in shaping the firm’s export performance.

Design/methodology/approach

A meta-analysis of the pertinent literature reveals 16 studies on EPPs.

Findings

This study reveals that there are 16 relationships which are important based on the meta-analytic correlations. The analysis of these relationships shows that EPPs, export performance, strategy, knowledge, commitment, capabilities, competitive advantage and experience are the mostly used constructs.

Originality/value

This investigation supports the view that the moderating effects of the improvement of trust relationship between partners, i.e. importers to exporter and public policymakers to exporter, and the mechanism of awareness and use of EPPs accelerate the firm’s export performance. EPPs explain 31.3 per cent of the variance in export performance indicating their catalytic role in the exports’ growth.

Details

Review of International Business and Strategy, vol. 28 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/RIBS-06-2017-0050
ISSN: 2059-6014

Keywords

  • Exporters
  • Export promotion programmes (EPPs)
  • Improvement of trust relationship between parties
  • Mechanism of awareness and use of EPPs

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Article
Publication date: 6 February 2017

The influences of suppliers on buyer market competitiveness: an opportunism perspective

Yu-Xiang Yen and Shiu-Wan Hung

This paper aims to propose an integrated model based on buyer and supplier opportunism to show the mechanism through which current and competing suppliers influence buyer…

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Abstract

Purpose

This paper aims to propose an integrated model based on buyer and supplier opportunism to show the mechanism through which current and competing suppliers influence buyer market competitiveness.

Design/methodology/approach

Questionnaires were distributed to purchasing staff in listed electronics firms in Taiwan to collect empirical data. Structural equation modeling was used to analyze these data and examine the fitness of the proposed model.

Findings

The findings show that current and competing suppliers influence buyer market competitiveness through supplier opportunistic behaviors and buyer commitment. The alternative attractiveness of competing suppliers affects buyer market competitiveness through the influence of asset specificity. Supplier opportunism negatively and indirectly influences buyer market competitiveness through buyer commitment. Nevertheless, buyer opportunism does not influence buyer commitment and market competitiveness.

Research limitations/implications

The investigation focused on only one industry in one country. Future research could investigate other industries and countries to increase the generalizability of the findings.

Practical implications

The results suggest that buyers can focus on utilizing the pressure of alternative suppliers to improve market competitiveness through increased specific investments by the current supplier.

Originality/value

On the basis of buyer–supplier opportunism, this study shows the mechanism through which the asset specificity of current suppliers and alternative attractiveness influence buyer market competitiveness.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-08-2015-0151
ISSN: 0885-8624

Keywords

  • Competitiveness
  • Industrial relations
  • Relationship marketing
  • Buyer-seller relationships
  • Partnership
  • Business-to-Business marketing

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Article
Publication date: 1 August 2016

Cultural and religiosity drivers and satisfaction outcomes of consumer perceived deception in online shopping

Gomaa M. Agag and Ahmed A. El-Masry

The purpose of this paper is to develop and test a model that focuses on the cultural and religiosity drivers and satisfaction outcomes of consumer perceptions about…

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Abstract

Purpose

The purpose of this paper is to develop and test a model that focuses on the cultural and religiosity drivers and satisfaction outcomes of consumer perceptions about online retailers’ deceptive practices. It specifically investigates: the role of cultural orientation and religiosity in forming consumer ethical ideology; the link between the consumer’s ethical ideology and his/her perceptions regarding the deceptive practices of online retailers; and the effect of perceived deception on consumer satisfaction.

Design/methodology/approach

The paper is based on a quantitative survey conducted among 468 Egyptian consumers aged 18 and above. These were measured on a five-point Likert scale. To test the hypothesized relationships among the constructs of the model, structural equation modelling was employed.

Findings

The study confirmed that power distance, uncertainty avoidance, and religiosity are important in forming idealistic attitudes, while both individualism and masculinity lead to an egoistic attitude. Idealism was observed to have a positive association with consumer perceived deception, while egoism was found to negatively affect consumer perceived deception. Finally, it was revealed that the perceptions of consumer about the deceptive practices of online retailing decrease consumer satisfaction.

Originality/value

This research puts together in a single model both antecedents and outcomes of the perceptions of consumer about the deceptive practices of online retailing; concurrently examines the role of cultural orientation, religiosity, and ethical ideology of the consumer in forming ethical attitudes and responses; focuses on the instrumental role of cultural characteristics on consumer ethical perceptions from the perspective of the individual, rather than the society as a whole; and provides useful examination of the effects of perceived deception on consumer satisfaction.

Details

Internet Research, vol. 26 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/IntR-06-2015-0168
ISSN: 1066-2243

Keywords

  • Trust
  • Religiosity
  • Cultural orientation
  • Ethical ideologies
  • Importer commitment
  • Importer relationship performance

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