Drivers of importer trust and commitment: Evidence from a developing country

This study investigates the interrelationships between antecedents of importers' trust and commitment to their foreign suppliers in an Asian country. This area has been under-researched in comparison to exporters' behavioral perspectives as well as in comparison to developed countries. A theoretical model is developed based on theories of transaction cost (TC) and the internationalization process (IP), and studies examined regarding the context of relationship trust and commitment. The model is tested using SEM on a sample of 238 importers in Bangladesh. The findings suggest that importer trust leads to commitment but that foreign supplier's opportunistic inclination affects both their trust and commitment. Overall, the findings indicate that cultural similarity, effective communication, knowledge and experience, opportunism and environmental uncertainty are vital antecedents of trust and commitment. The findings have important implications for academics and practitioners.