Abstract
The appearance of relationship quality paradigm in the field of international business has resulted in growing need to manage, develop and evaluate relationships amongst the exporters and importers besides influencing the profitability of the firm in the long-run. In the same light, the current study attempts to empirically examine the impact of relationship quality on firm's export profitability and increase the exporting firms understanding about the concept's utility in handling foreign market operations. Drawing data from small and medium sized exporting firms operational in Gujarat, the study reveals that relational dimensions of information sharing, longterm orientation and satisfaction with the relationship are statistically significant in impacting the firm's export profitability.
Highlights
Exporting is an important business activity impacting costs, sales, risk, and competitiveness of the exporting firms
The results of this study show that while three relational dimensions of information sharing, long-term relationship orientation and satisfaction with the relationship are statistically significant and positive for the criterion variable export profitability; the relational dimension of communication proved insignificant
The relationship quality of exporter with importer is an integral part of firm's export overall marketing strategy and have an impact on its profitability
Summary
Exporting is an important business activity impacting costs, sales, risk, and competitiveness of the exporting firms It plays a significant role in achieving sustainable competitive advantages by firms operating in turbulent markets because of the progress in financial position, increased capacity utilization, higher technological standards, and attainment of a desired performance (Leonidou and Katsikeas, 1996)[1]. Growing liberalization, integration and global competition which are in turn responsible for the increasing engagement of firms in exporting activities In this increasingly competitive era, exporting firms need to invest in relationships with their importers to ensure effective and profitable actions. The present study attempts to examine empirically the effect of relationship quality on the export performance of firms It aims to throw light on the exporting firms' awareness regarding relationship quality, along with increasing their understanding about the concept's utility in handling foreign market operations
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