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Management of Exporter-Overseas Channel Intermediary Relationships

Author

Listed:
  • Amal R. Karunaratna

    (PhD from University of Sydney. Adjunct Associate Professor at University of Adelaide, University of Adelaide, Australia,)

  • Lester W. Johnson

    (Professor, Department of Marketing, Tourism and Social Impact, Swinburne Business School, Swinburne University of Technology, Australia,)

Abstract

The relationship between an exporter and its overseas channel intermediary (an agent or direct importer) needs to be carefully managed by the exporter. Research from relationship marketing and agency theory suggest that the performance of an exporter/foreign channel intermediary relationship can be explained by a combination of relationship and control influences. Relational factors in the form of commitment and the development of trust are positive influences on the relationship, and commitment increases along with international experience. Agency theory suggests that the presence of opportunistic behaviour has a negative influence on performance. We test these assertions using data from a sample of Australian exporters using structural equation modelling. We find that goal congruence and experience both have direct effects on perceived relationship performance, and that commitment and trust have an indirect impact on perceived performance through their impacts on monitoring activity and goal congruence.

Suggested Citation

  • Amal R. Karunaratna & Lester W. Johnson, 2015. "Management of Exporter-Overseas Channel Intermediary Relationships," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(1), pages 33-46, January.
    • Handle: RePEc:mir:mirbus:v:5:y:2015:i:1:p:33-46
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    References listed on IDEAS

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    More about this item

    Keywords

    Agency theory; foreign channel intermediaries; structural equation modelling.;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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