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Cross-Border Relational Exchange in SMEs: The Impact of Flexibility-Based Trust on Export Performance

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  • Bodlaj, Mateja
  • Povše, Helena
  • Vida, Irena

Abstract

In light of the scant empirical evidence on cross-border exchanges in the context of small and medium-sized enterprises (SMEs), the purpose of this study is to examine the relationship between the flexibility-trust mechanism, psychic distance, satisfaction with export venture, and export economic performance of 175 exporting SMEs. Data from firms operating in various industries were analysed via structural equation modelling. The results indicate that flexibility both directly and indirectly enhances trust in cross-border relationships by mitigating the negative impact of psychic distance on trust. Flexibility-based trust is positively related to satisfaction with export venture, which in turn positively affects export economic performance.

Suggested Citation

  • Bodlaj, Mateja & Povše, Helena & Vida, Irena, 2017. "Cross-Border Relational Exchange in SMEs: The Impact of Flexibility-Based Trust on Export Performance," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 22(2), pages 199-220.
    • Handle: RePEc:nms:joeems:10.5771/0949-6181-2017-2-199
    DOI: 10.5771/0949-6181-2017-2-199
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