The study of export intermediary performance determinants

Abstract

Purpose This paper aims to study the direct and indirect influence of three important intangible resources: export knowledge, negotiation skills and specialisation and trustworthiness on export intermediary performance via the competence to reduce clients’ transaction costs. Design/methodology/approach The study has been provided with the official database of export intermediary firms by the Department of Export Promotion, Ministry of Commerce, Thailand. The samples of 400 export intermediary firms were identified from the 1,486 population firms. The postal questionnaires were sent to sample firms. Ordinary least square regression analysis has been adopted to test the hypotheses of the study. Findings The results indicate that valuable resources of export knowledge, negotiation skills and specialisation and trustworthiness significantly and positively affect both export intermediary performance and the competence to reduce clients’ transaction costs. The competence to reduce clients’ transaction costs partially mediates the relationship between resources and export intermediary performance. Research limitations/implications A “cost-based” perspective needs to be supplemented in future research with a more behavioural approach. Practical implications Export intermediaries must be able to deliver “true added value” to remain a viable organisational form, hence, the intermediaries need ceaselessly to acquire, utilise and develop resources and capabilities in reducing clients’ export-related transaction costs. Social implications From a public policy perspective, gaining more knowledge about the role of export intermediaries can greatly facilitate the export promotion efforts in which most nations’ governments are involved. Originality/value This study is a first attempt to study the mediating effect of the competence to reduce transaction costs, which mediates the relationship between resources and performance of export intermediary.

Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls

“…Export activities are usually based on relationships between firms and foreign intermediaries [13] and independent export channels are the most common exporting mode [14,15]. The main advantages of this exporting mode are lower costs and investments than other modes [16], and access to knowledge about foreign markets and customers, economies of scale, negotiation skills and specialization in products/markets beyond the reach of individual exporters [17].…”

Ascertaining the competitiveness of Thai exports to PRC

“…However, the report of Thai Ministry of Industry (MOI) (2015) shows a dramatic slump in market growth for this product in the USA and the EU. The Thai Government may wish to establish a number of supporting schemes to promote Thai exporters of this product in expanding into new markets like South America and Africa, as studied by Thailand Board of Investment (Thansettakij, 2016; Suwannarat, 2016). Also, the Thai Government could support manufacturers, especially small and medium enterprises (SMEs), to develop their products to raise the standard of the product.…”

Perceived export performance: The invisible part of the iceberg

“…Third, a fruitful avenue for research would be to investigate the impact of direct vs. indirect approaches to exporting on EP assessment. Intermediaries-in both the home and target countries-play important roles in reducing export-related costs (such as search, negotiation, and monitoring) and linking firms with overseas customers, enabling even firms with little international experience to break into foreign markets (Madsen, Moen, & Hammervold, 2012;Peng & York, 2001;Suwannarat, 2016). It is reasonable to assume that the EP assessment practices among firms that are using intermediaries might differ from those that engage with export customers in a hands-on manner.…”