The effect of transaction cost antecedents on control mechanisms: Exporters’ psychic distance and economic knowledge as moderators

Sachdev, Harash J.; Bello, Daniel C.

doi:10.1016/j.ibusrev.2013.07.003

Cited by 23 publications

(16 citation statements)

References 71 publications

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“…These negative effects of relationship distance can lead to the poor coordination of activities in the relationship (Andersen, Christensen, and Damgaard 2009), hamper the proper transfer of resources between the exchange parties (Jean, Sinkovics, and Kim 2017), and make the appreciation of relational investments difficult (Leonidou et al 2011). High distance also increases both direct (e.g., transaction) and indirect (e.g., controlling) costs, with negative implications on financial outcomes (Durand, Turkina, and Robson 2016; Sachdev and Bello 2014). This discussion leads to the following hypothesis: H 4 : The lower the relational distance in the exporter–importer relationship, the higher the level of relational performance. …”

Section: Conceptual Model and Hypothesesmentioning

confidence: 99%

The Role of Exporters’ Emotional Intelligence in Building Foreign Customer Relationships

Leonidou¹,

Aykol²,

Fotiadis³

et al. 2019

Journal of International Marketing

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Despite the critical importance of emotional intelligence in effectively interacting with other people, its role has been overlooked in scholarly research on cross-border interorganizational relationships. Drawing on emotion regulation theory, the authors propose a model that conceptualizes links among exporters’ emotional intelligence, key behavioral dimensions characterizing the atmosphere of the relationship with import buyers, and the resulting relational performance. They test the model with data collected from 262 Greek exporters using structural equation modeling. The results indicate that higher levels of exporter emotional intelligence enhance communication and social bonding with the importer while diminishing distance and conflict in their working relationship. Relational performance is positively influenced by communication and social bonding but negatively affected by distance and conflict. The results also reveal the moderating effect of both opportunism and interpartner incompatibility on the association between the exporter’s emotional intelligence and the behavioral atmosphere of the relationship with import buyers.

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Section: Conceptual Model and Hypothesesmentioning

confidence: 99%

The Role of Exporters’ Emotional Intelligence in Building Foreign Customer Relationships

Leonidou¹,

Aykol²,

Fotiadis³

et al. 2019

Journal of International Marketing

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“…As such, the prevalence of high levels of distance between exporters and importers can create the preconditions in which betrayal may take place. This is because distance can: (a) restrict buyer-seller interactions and set barriers to communication, thus limiting the options of creating a sustainable relationship (Durand, Turkina, & Robson, 2016;Leonidou et al, 2006); (b) give rise to information asymmetry and reduce the possibilities of properly monitoring the foreign partner's activities (Sachdev & Bello, 2014); (c) strengthen the motivation to search for a similar or closer foreign partner, as this will reduce the uncertainty associated with his/her operations (Griffith & Dmitrova, 2014;Morrison & Robinson, 1997); and (d) encourage misinterpretation of the foreign partner's behavior (Das & Rahman, 2010;Obadia, 2013).…”

Section: H3: the Higher The Level Of Inter-partner Incompatibility Inmentioning

confidence: 99%

Betrayal in international buyer-seller relationships: Its drivers and performance implications

Leonidou

Aykol

Fotiadis

et al. 2017

Journal of World Business

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Although betrayal is a common phenomenon in inter-organizational cross-border relationships, the pertinent literature has remained relatively silent as regards its examination. However, the effects of betrayal are both long-lasting and destructive, and therefore an in-depth investigation of the factors that are driving it, as well as its performance outcomes, is considered necessary. Using a sample of 262 exporters, we confirm that betrayal in their relationships with foreign buyers is significantly and positively affected by relational uncertainty, opportunism, inter-partner incompatibility, relational distance, and conflict. The harmful effect of most of these factors on betrayal becomes stronger in the case of high foreign environmental uncertainty and high foreign market dynamism. The importer’s betrayal actions are in turn responsible for reducing relational performance. In fact, this negative association between importer’s betrayal and relational performance is more evident in relationships characterized by low dependence levels and low degrees of tolerance by the exporter

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“…Griffith and Dimitrova (2014) indicate that when export managers perceive greater business PD, they select export partners with fewer complementary capabilities. Likewise, Sachdev and Bello (2014) find that PD moderates asset specificity's effect on information sharing. There is also empirical evidence that PD enhances knowledge development in foreign customer relationships, as it is positively related to SMEs' foreign market network cooperation (Nordman and Tolstoy, 2014 Mariola Ciszewska-Mlinarič, Piotr Trąpczyński those findings are the results of Johnston et al (2012) who note that PD negatively moderates the relationship between communication facets and trust and satisfaction.…”

Section: (V) Pd and Other Managerial Challengesmentioning

confidence: 81%

The Psychic Distance Concept: A Review of 25 Years of Research (1990–2015)

Ciszewska-Mlinarič¹,

Trąpczyński²

2016

JMBACE

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Purpose: There have been numerous studies analyzing the role of psychic (and cultural) distance in the internationalization process focused on relationships between distance and market selection, entry mode, or subsidiary performance. Still, cumulative findings of this body of research are mixed and inconclusive. Thus, this review aims for a rigorous presentation of past research on psychic distance, with particular focus on the aspects of international business operations affected by psychic distance in the light of empirical studies. Methodology:This review encompasses 55 papers, both empirical and conceptual, published between 1990-2015 in top IB, international marketing, and management journals. In general, the papers under review were published in 27 journals, with the vast majority of them being published in 2005 or later. The vast majority of reviewed papers are of empirical character (47 papers), while eight are conceptual. Findings:Since 2005, the number of articles published in top academic journals that featured the term "psychic distance" in the title has quadrupled. Common research topics include not only the core domain of internationalization process and performance, but also focus on understanding the concept of psychic distance, analyzing its antecedents and coping modes. Other studies have addressed the performance implications of psychic distance in conjunction with variables like strategy adaptation to foreign markets. Research limitations/implications:While the present review is limited in the number of papers taken into account, it does provide an initial overview of the structure of the field. However, the comparability of findings of different studies is limited by factors such as firm samples or presence of multicultural nations. In terms of directions for further research, promising topics include the relationship between perceived and 'real' distances or the effectiveness of different coping modes.Originality/value: The present paper identifies key research streams related to psychic distance and its role for international business. Based on an analysis of their content, it outlines several avenues for further investigation.

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The effect of transaction cost antecedents on control mechanisms: Exporters’ psychic distance and economic knowledge as moderators

Cited by 23 publications

References 71 publications

The Role of Exporters’ Emotional Intelligence in Building Foreign Customer Relationships

The Role of Exporters’ Emotional Intelligence in Building Foreign Customer Relationships

Betrayal in international buyer-seller relationships: Its drivers and performance implications

The Psychic Distance Concept: A Review of 25 Years of Research (1990–2015)

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