The moderating role of trust in influencing the effectiveness of export incentives of exporters in the ASEAN

Abstract

Purpose This study aims to determine the moderating role of trust on the influence of export incentives over importer role performance. The mediating role of importer role performance and the impact of export incentives on exporter performance have also been investigated. Design/methodology/approach This study used survey as the main data collection method to obtain data from 105 executives of exporting firms. An official database of export firms was provided to this study by the Department of Export Promotion, Ministry of Commerce of Thailand. Findings Significant partial moderation effect of trust on the impact of export incentives over importer role performance has been seen. Also, this study found a partial mediating role of the importer role performance in mediating the association of export incentives and exporter performance. In addition, export incentives in the form of credible channel policies and price and financial incentives have been found to have a significant positive effect on importer role performance. Practical implications This study will be of practical value for practitioners or managers of export firms because it is essential to enhance trust with importers and select the appropriate export incentives for importers. This could enhance competitiveness of the export firms. Originality/value This is an original attempt to investigate the role of trust as moderator in influencing the impact of export incentives on importer role performance. Also, this study initially ascertains the mediating effect of importer role performance in mediating the effectiveness of both monetary and non-monetary incentives on exporter performance.