Differential Effects of Bilateral Norms on SMEs’ Export Relationships: A Dynamic Perspective

Abstract

Prior research has established the pivotal role of bilateral norms in relationship marketing, identifying them as effective relational governance mechanisms that firms can use to manage their international alliances with overseas intermediaries. Unfortunately, few studies have examined differential effects of specific norms on positive and negative behaviors, let alone norms’ effectiveness in the harsh export context of resource-constrained small and medium-sized enterprises (SMEs). To address these gaps, the authors explicate the effects of three norms (continuity expectations, equity, and cooperation) on both dysfunctional and productive behaviors of foreign distributors. Using two consecutive data collections, the results indicate that norms curb importer opportunism and help improve importer role performance and that continuity expectations and cooperation increase the chances of the survival of export ventures. The study further scrutinizes relational norms’ effects on opportunism in the context of exporting SMEs’ realities and tests relevant moderating effects. The findings indicate that while exporter dependence reduces the shielding effect of norms against opportunism, psychic distance and competitive intensity strengthen the protecting effect of relational norms. The results of this study underscore the heterogeneous nature of relational norms and suggest that norms such as continuity expectations play a leading role in structuring the ideology of a business dyad.