Management of Exporter-Overseas Channel Intermediary Relationships

Authors

  • Amal R Karunaratna University of Adelaide
  • Lester W Johnson Swinburne University of Technology

DOI:

https://doi.org/10.18533/ijbsr.v5i1.674

Keywords:

Agency theory, foreign channel intermediaries, structural equation modelling.

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. 

Author Biographies

  • Amal R Karunaratna, University of Adelaide
    PhD from University of Sydney. Adjunct Associate Professor at University of Adelaide
  • Lester W Johnson, Swinburne University of Technology
    Professor of Marketing at Swinburne Business School

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Published

2015-01-24

Issue

Vol. 5 No. 1 (2015): January

Section

Article

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