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The traders' dilemma: The adverse consequences of superior performance in mediated exchanges

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  • Ellis, Paul D.

Abstract

Manufacturers entering new foreign markets may opt to outsource their exporting activities to a specialist intermediary. In this study, evidence is provided establishing that the link between manufacturers' perceptions of intermediary performance and the likelihood of their terminating the arrangement is U-shaped. In doing so, this study demonstrates the existence of the so-called 'traders' dilemma' which refers to the increased risk of termination arising from superior intermediary performance. Based on data collected from manufacturer-clients, the findings reveal that the traders' dilemma is robust under varying conditions of exchange uncertainty, cultural distance and relationship age when intermediary performance is measured in terms of stimulating demand.

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  • Ellis, Paul D., 2005. "The traders' dilemma: The adverse consequences of superior performance in mediated exchanges," International Business Review, Elsevier, vol. 14(4), pages 375-396, August.
    • Handle: RePEc:eee:iburev:v:14:y:2005:i:4:p:375-396
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    2. Yuzhakov, Vladimir Nikolaevich (Южаков, Владимир Николаевич) & Talapina, E. V. (Талапина, Э. В.) & Alexandrov, Oleg (Александров, Олег) & Tikhomirov, Y. A. (Тихомиров, Ю. А.) & Dobrolyubova, Elena (До, 2015. "The Concept of the Federal Law on Public Administration in the Russian Federation [Концепция Федерального Закона О Государственном Управлении В Российской Федерации]," Published Papers om30, Russian Presidential Academy of National Economy and Public Administration.
    3. White, George O. & Hadjimarcou, John & Fainshmidt, Stav & Posthuma, Richard A., 2013. "MNE home country cultural norms and conflict strategy fit in transnational business contract disputes," International Business Review, Elsevier, vol. 22(3), pages 554-567.
    4. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    5. Ellis, Paul D., 2010. "International trade intermediaries and the transfer of marketing knowledge in transition economies," International Business Review, Elsevier, vol. 19(1), pages 16-33, February.

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