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

Abu SALEH, M. Yunus Ali, Felix Mavondo

Research output: Contribution to journalArticle

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Abstract

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.
Original languageEnglish
Pages (from-to)2523-2530
Number of pages8
JournalJournal of Business Research
Volume67
Issue number12
DOIs
Publication statusPublished - 2014

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Importer
Developing countries
Suppliers
Asian countries
Exporters
Internationalization process
Opportunism
Interrelationship
Environmental uncertainty
Developed countries
Transaction costs
Communication
Bangladesh

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SALEH, Abu ; Yunus Ali, M. ; Mavondo, Felix. / Drivers of importer trust and commitment: Evidence from a developing country. In: Journal of Business Research. 2014 ; Vol. 67, No. 12. pp. 2523-2530.
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Drivers of importer trust and commitment: Evidence from a developing country. / SALEH, Abu; Yunus Ali, M.; Mavondo, Felix.

In: Journal of Business Research, Vol. 67, No. 12, 2014, p. 2523-2530.

Research output: Contribution to journalArticle

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AB - 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.

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