An Explorative Study of the Relationship of Export Intermediaries and Their Trading Partners

Abstract

Much research has been done on how export intermediaries can help producers and manufacturers penetrate international markets, reduce costs, and increase sales volume and profitability. Little research, however, has been done on the factors that affect the relations between intermediaries and their exporter clients and of either the factors that drive exporters to end their relationship with an export intermediary or impede such actions. Lack of trust was the most common reason provided by exporters for being dissatisfied with their current export intermediary. Intensive analysis of published research and an extensive industry-wide survey revealed that intermediaries can best improve their relations with exporters, and thereby increase the length of the relationship, by increasing trust through more direct and honest dialogue and more transparent operations. The study also shows that the size, sales, and experience of exporters are also significant factors when considering terminating this relationship.