Executive Insights: Building Successful Export Business Relationships: A Behavioral Perspective

Abstract

Although the United States has been one of the leading actors in international trade, limited evidence exists as to individual U.S. company relationships with overseas customers. On the basis of a sample of 201 U.S. exporting manufacturers, the authors draw a comparison between harmonious and problematic foreign business relationships. The findings reveal that, as opposed to problematic cases, firms with harmonious relationships are more experienced, employ more people, and exhibit more active behavior toward conducting their foreign business. Such firms sell to a greater number of export markets, deal with more foreign customers, and obtain more orders. The study also shows that harmonious relationships with overseas customers are distinguished by greater dependence, trust, understanding, commitment, communication, and cooperation but less distance, uncertainty, and conflict between the parties. The article provides export management with a set of guidelines for establishing, developing, and sustaining successful export business relationships.

Trust, Commitment and Competitive Advantage in SMEs Export Performance

“…Styles et al (2008) emphasize the model for relationship exchanges and its usefulness in understanding matters related to exporting, particularly the central constructs, namely: Trust and Commitment. Other studies have demonstrated a similar observation (Leonidou et al 2002, Ambler et al 1999. Given these findings, the present study seeks to answer the following question "How do trust and commitment affect small businesses and consequently increase their competitiveness and performance in export markets?…”

“…Nes et al (2007) contend that trust is the foundation of any business relationship, particularly when the relationship is sustained over the long term (Kumar et al 1995). Leonidou et al (2002) define trust as the belief of one party in a working relationship that the behavior of the other party is honest, sincere, and fair. Trust benefits exporters in terms of knowledge transfer and in counterbalancing the potential harmful effects of cultural differences.…”

Analyzing stage and duration of Anglo-Chinese business-to-business relationships

“…Cooperation stresses the joint efforts, team spirit and collaboration which is required from both exchange parties for achieving both inter-organizational and intraorganizational goals (Cannon & Perrault, 1997;Leonidou, Katsikeas & Hadjimarcou, 2002). Coordination involves the synchronization of activities and flows between parties and refers to situations in which parties work together to achieve mutual goals (Mohr & Nevin, 1990;Anderson & Narus, 1990).…”

Enhancing export performance: Betting on customer orientation, behavioral commitment, and communication

“…Researchers associated with the Industrial Marketing and Purchasing Group developed the interaction approach, which also emphasizes the importance of developing and maintaining a close and long-term relationship in a buyer-seller context (e.g. Håkansson, 1982;Leonidas, Katsikeas, & Hadjimarcou, 2002;Styles & Ambler, 1994). This study, which focuses on ongoing business relationships in an exporting context, is rooted in the theoretical perspectives claiming that longterm business relationships benefit the independent partners involved in the business relationship.…”