Mediating effects of risk perception and management attitude toward the intention to implement trade remedies: A case study in Vietnam

Abstract

Trade defense measures are tools that governments use to balance protecting domestic industries and ensuring that trade remains fair and open. Yet, their use requires careful consideration of their potential impacts on trade relations and the broader economy. Thus, this study aims to examine the impact of trade defense measures on the intentions of import-export businesses in Vietnam with the mediating effect of managers’ risk perceptions and management attitudes in the Vietnamese market. Data were collected from 793 managers representing import-export businesses through the Vietnam Customs Department. Using the PLS-SEM model, the study finds that trade defense measures, such as anti-dumping, anti-subsidy, and safeguard measures stipulated by foreign trade laws, influence the intention of businesses to implement them. This influence is mediated by risk perception and management attitude. Contrary to expectations, the content of trade defense measures has a reverse effect on businesses’ risk perception. This suggests that, from the perspective of import-export businesses, the perception of risk is not significantly affected by these measures in their transactions. This risk perception also has a reverse impact on the attitude of business managers. Furthermore, the study shows that the content of trade defense measures has an opposing effect on the risk perception of businesses. In other words, trade defense measures in business transactions do not significantly influence risk perception. These findings have important implications for policy development to enhance Vietnam’s foreign trade management system and valuable management suggestions for import-export business managers in the future. AcknowledgmentThe authors would like to thank the Editor-in-Chief and a reviewer for their helpful comments that, in our view, have helped significantly improve the quality of the manuscript.