The link between export relationship quality, performance and expectation of continuing the relationship

Abstract

Purpose – The purpose of this study is threefold: to investigate how relationship quality affects export performance; to see if and to what extent export performance affects exporter satisfaction; and to determine whether exporter satisfaction ultimately affects the expectation of continuing the export-import relationship in an emerging market. Design/methodology/approach – The paper reports the findings of a survey of 185 respondents from the ready-made garments industry in Bangladesh chosen from a convenience sample. The responding exporters were located in Dhaka city or nearby areas. The data were analyzed using the partial least squares technique. Findings – The results support four out of five hypotheses, indicating that there is a significant relationship between exporter relationship quality and financial and strategic export performance. Additionally, a positive relationship between financial export performance and exporter satisfaction and between exporter satisfaction and the expectation of continuing the relationship are shown. No significant relationship between strategic export performance and exporter satisfaction is found. Practical implications – The findings have practical implications for managers and policy-makers interested in developing effective strategies for building and maintaining high quality export-import relationships, especially in the context of an emerging market. Originality/value – In order to accomplish the research goal, the main constructs from two influential streams of literature – social exchange theory and the disconfirmation of expectation theory – are utilized. This is new in the context of an emerging economy perspective.