Abstract
In the context of markets with uncertainty, we use the stakeholder theory to explain the role and importance of destination country in the export arena. We analysed six cross-sectional Chilean case studies on exported agri-food products in three categories (fresh, frozen, and processed). Using quantitative and qualitative data, destination countries and export performance were analysed, comparing 2020 (during the COVID-19 crisis) with the previous year. Our results show that exported agri-food products maintained their main destination countries, and maintained or increased the number of destination countries. The analysis of export performance shows that export performance varies depending on both the kind of product and the category to which it belongs. The role of trade agreements confirmed the destination country as a primary stakeholder. This study thus contributes to the stakeholder theory and literature on export performance, considering the destination country as a primary stakeholder in exporting firms.
Highlights
Due to the global crisis of COVID-19, the World Trade Organization (WTO) forecasts a possible decrease in global trade volume from 13% to 32%; and notes that it can be expected to be even more negative in terms of value due to falling prices (WTO, 2020)
The present study focused on exported agri-food products from Chile, an emerging market in Latin America, with a strong emphasis on firm internationalisation and a network of 28 trade agreements, the pillars of extensive bilateral and multilateral business relations (SUBREI, 2020)
The results show that most of the exported agri-food products maintained its main destination country in terms of total export value (17), 11 products decreased their export value to these countries
Summary
Due to the global crisis of COVID-19, the World Trade Organization (WTO) forecasts a possible decrease in global trade volume from 13% to 32%; and notes that it can be expected to be even more negative in terms of value due to falling prices (WTO, 2020). As a vital sector, agricultural trade will be less affected, from 12% to 20%, in commercial value. The availability of agri-food products, according to Ker and Cardwell (2020), will depend on COVID-19 effects on health, trade, transportation, and farm’s. In this context, Hobbs (2020) stated that trust in supply chain partners could be built through collaborative relationships and flexibility in response to unexpected changes in the market. The role of government and policy makers is critical in supporting supply chains, as well as considering the agri-food businesses as essential (Hobbs, 2020)
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