The role of intermediaries in food export: case evidence from Finland

Abstract

Purpose This paper examines the role of export intermediaries in the internationalization of small and medium sized companies in Finland. The empirical study focuses on small Finnish food companies that export to German and Chinese markets. Design/methodology/approach The research method of this study is qualitative. Data is collected through semi-structured interviews with six respondents presenting exporting companies and export consultants. Findings The paper provides an empirical contribution to the food internationalization debate. First, the paper discusses the definitions of export intermediaries and their role in export based on the literature. Second, by examining how Finnish food companies experience the role of export intermediaries, the paper contributes to the current discussion on internationalization modes. The empirical results highlight that export companies need transaction-creating services from intermediaries especially when entering physically and culturally distant markets like China. Research limitations/implications Limitations of the research generally relate to the use of a small case sample. Practical implications The paper holds a number of relevant insights for food companies seeking to enter to German and Chinese markets. Identifying the export services needed by small food companies might help export intermediaries and public policy agencies to better focus their supporting initiatives. Originality/value The findings add to the current body of knowledge on the key influence on internationalization modes within the food sector.

Cultural Similarity Effect on the Relationship Quality between Exporters and Intermediaries and Export Performance of SMEs

“…Similarly, H7 was supported; the finding shown that trust has a significantly positive relationship with export performance in the context of exporter and intermediary. The result is in tandem with previous studies which have noted that trust significantly contributes to competitiveness in foreign markets (e.g., Lehtinen et al, 2016;Hador, 2017). Also, the presence of trust is seen as being able to lower transaction costs and improve investment in relationship-specific assets and superior information sharing routines (Dyer & Chu, 2011).…”

The duration of global agri-food export competitiveness

“…The challenging issues for countries are to strengthen the determinants of the duration of comparative advantages as well as to transform disadvantages into advantages in international trade (e.g., Curzi and Olper, 2012). To achieve comparative advantages, countries and firms can use different export strategies (e.g., Ritthaisong et al, 2014;Lehtinen et al, 2016). Following the previous research on the duration of trade and comparative advantage we set the following hypotheses.…”

“…A body of literature has been developed about resource determinants of export performance across industries and countries (e.g., Beleska-Spasova et al, 2012;Lehtinen et al, 2016). A large part of agricultural production depends on endowments with natural agricultural resources (e.g., Anderson 1998;Huo 2014).…”

The importance of relationship characteristics in the export performance of food firms

“…The study of export performance attracted attention in early literature (Aulakh, Rotate, & Teegen, 2000;Kedia & Chhokar, 1986). In the food domain, a number of studies have focused on small and medium-sized enterprises from various sectors (Casey & Hamilton, 2014;Freeman, Styles, & Lawley, 2012;Maldifassi & Chacón Caorsi, 2014;Zeriti, Robson, Spyropoulou, & Leonidou, 2014), while others have focused solely on export performance related to certain food products (Alteren & Tudoran, 2016;Galdeano-Gómez, Pérez-Mesa, & Giagnocavo, 2015;Karelakis, Mattas, & Chryssochoidis, 2008;Lehtinen, Ahokangas, & Lu, 2016;Maurel, 2009;Mavrogiannis, Bourlakis, Dawson, & Ness, 2008).…”