Authors:

• Claude Obadia, ESCE International Business School, Paris
• Irena Vida, University of Ljubljana, School of Economics and Business

Keywords:

Dependence | Exporter-importer relationship | Information asymmetry | Incentives | Opportunism | Psychic distance | Trust

Abstract:

This study examines importer dependence and challenges the dominant view that firm dependence primarily yields beneficial outcomes in exporter–importer relationships. Using identity theory and bilateral deterrence theory, we show that in the presence of information asymmetry, psychic distance, high import market growth, and exporter trust, the expected beneficial effects of importer dependence morph into importer opportunism. We also investigate the potential mitigating effect of low-powered incentives. To support a shift in the importer dependence paradigm, we analyze three primary data sets (cross-sectional, temporal and dyadic) along with archival data with PROCESS. Moreover, we show how the interactions studied can lead to the termination of export relationships.

The Sustainable Development Goals (SDGs) addressed in the article are:

• SDG 8 – Decent work and economic growth
• SDG 10 – Reduced inequality
• SDG 17 – Partnerships for the goals

The article is published in:
Management international review (Springer)

The content is freely accessible at:

Context Effects on Importer Dependence in Export Business Relationships: The Fire Smolders Under the Ice