The paper “ On Importer Trust and Commitment - Comparative Study of Two Developing Countries” is a thrilling variant of the assignment on business. The authors note that there have been extensive levels of research conducted pertaining to the export marketing of companies and countries at the expense of the import side of international exchange processes. Considering the fact that the importers are the direct counterparts of exporters, their respective capacity to engage in purchasing their contribution is really important especially since the success of exporters would definitely rely on the immediate behaviors of their foreign-based importers.
From practice, prior studies have engaged in finding out such notable attributes related to importers as import stimuli; motivation, and relationship performance. Little attention has been directed towards ascertaining the importance of trust and commitment in the exchange relationship hence the study focuses on the statement problem to provide pertinent information related to this new development. Question 3The general problem statement has been narrowed down to aspects related to the cultural similarity of both the importer and foreign supplier within a given exchange process.
It has been ascertained that aspects related to transaction-specific investment and supplier opportunism have a direct influence on the importer level of trust and commitment to foreign suppliers within a given context. Notably, the statement has been narrowed down to only focus on the effects of importer trust and commitment on bringing about positive correlation on only three factors that include; relationship quality; satisfaction as well as the overall performance of the entire international exchange process. Some of the restrictions put forth by the now specific statement problem lie in its overlook on such other important attributes affected by the positive correlation of both trust and commitment to such other factors like ease of task complexities; high-risk levels and contractual limitations that might exist in the process.
Certainly, the research paper has made stringent efforts to limit the definition of both trust and commitment to the context of perceived relationship outcomes in developing countries or partners for that matter. Question 4The research paper identifies three theories that are used for developing the problem statement. These theories include; transaction cost economics: TCE, which is entirely related to both human and environmental factors that are able to influence a company’ s level of transaction costs as well as the relationship that emanates from transacting partners within a given international exchange process.
Consequently, it also adopts the internalization process (IP) theory that is focused on improving a company’ s commitment to foreign markets while ensuring to adopt aspects related to integration; imminent acquisition process and, also the utilization of pertinent knowledge regarding foreign markets. Resource-based view theory perceives companies in relation to the unique set of resources they enjoy that assist them in attaining and sustaining a competitive advantage over their immediate rivals within a given transaction context. Question 5The literature survey first provides a set of theories; RBV, IP, and TCE, and how they affect attributes related to trust and commitment of an international exchange process between importers and foreign suppliers.
Consequently, the conceptual framework is focused on the antecedents and outcomes of both importer trust and commitment to such variables as supplier resource competency; cultural similarity; importer relationship performance; supplier opportunism; importer knowledge, and experience; transaction-specific investment. The relationships between these variables are fairly-laid out using a set of hypotheses. Question 6On general scale, the literature review argues that these theories can also be used in developing countries' situations given that the macroeconomic environment, as well as business practices of a developing economy, might not be similar in nature.
On a specific note, the literature review ascertains that although different economies or countries can have significant differences in terms of the language and religion; they all have a similar need for value-added imports as well as import demand for its domestic consumption.
The review justifies the possibility of this contribution by asserting that despite major differences between developing countries; they still have a need for value-added imports especially for purposes of local consumption. Question 7The results of the literature review are presented using tables. For instance, Table II has been used to provide pertinent information related to standard deviations, means, and bivariate Pearsons correlations of constructs. Markedly, the results are presented using a bootstrap approximation process. Question 8The literature of importer‘ s trust and commitment is tested against the different hypotheses on whether there exists a positive or negative correlation.
The linkage between the literature review and conclusions is similar to that of the one discussed above. In its connection with the contributions finally claimed, it is asserted that the literature review focuses on pinpointing specific challenges that importers experience in the course of managing their immediate relationships with foreign suppliers for purposes of attaining a better performance. Question 9Variables identified as being relevant include; Importer commitment; that is measured using a six-item scale. These measurement items are formulated from theory pertaining to Coote et al.
(2003), Skarmeas et al. (2002), and Zineldin and Jonsson (2000). Importers’ trust; also uses a six-item scale. These items are derived from theories put forward by Mavondo and Rodrigo (2001), Coote et al. (2003), and Wilson and Vlosky (1997). Cultural similarity; is measured using a distinctive cultural index and is derived from theories derived from Swift (1999) and Sim and Ali (1998). Importer knowledge and experience; is an item that describes the importer’ s view of their underlying knowledge and experiences in regards to both foreign and local markets, comprehension of the market's immediate needs; taking into consideration the supplier’ s preferred procedures and technical efficiency in the evaluation of a given product.
These definitions are derived from theories put forward by Celly and Frazier (1996) and Ozanne et al. (1992). Supplier Consistency; is a variable that is defined in terms of the foreign supplier’ s competitive quality, prices, and warranties as proposed by Karande et al. (1999) and Cavusgil and Yavas(1987)Question 10(a)The research design for the study tests a proposed model while using data from both Chile and Bangladesh as the overall hypotheses are further tested using structural equation modeling (SEM).
This is linked to the purpose of the study of testing antecedents and outcome of importer trust and commitment in the two aforementioned developing countriesQuestion 10(b)For the study, the unit of analysis lies in the specific relationship that exists between an importer and foreigner supplier in relation to the certain importing process. Question 11For this research paper, variables are measured using a scale-item depending on the number of definitions put forth each of them. For instance, importer commitment and importers’ trust uses a six-item scale; as cultural similarity uses a five-scale item measurement model, and so on.
The justification for this measurement and definitions are based on the different prior theories set forth in previous studies. Question 12The information collected was used to come up with data sets of Bangladesh (n=232) and Chile (n=204) that were later analyzed using descriptive statistics for all retained cases. most of the variables were then subjected to CFA using the AMOS-16 model and the results were then compiled to answer how each of the variables was affected in relation to the independent attributes of importer trust and commitment. Question 13The conclusion affirms that importer’ s trust and commitment are fundamental to relationship performances for both of the developing countries in the analysis.
Following this line of argument, it is concluded that import mangers from both developing and developed countries should put much emphasis on long-term commitment in order to ensure that there is a relationship efficiency that can improve on overall relationship performance. All of these stipulations are linked to theories that were previously conducted in regards to the study at hand.
The paper uses the managerial implication section to even justify the value of the findings of the research. Question 14How many references are in the bibliography? 129How many are related toLiterature review 78Theory 3Descriptive studies 1Practitioner studies 10Methodology 30Question 14 BIntroduction 2/32*100%= 6.3%Research Framework; 2/32*100%=6.3%Hypothesis development: 4.5/32*100%= 14.1%Research Methodology: 7.5/32*100%= 23.4%Data analysis and Findings: 3.5/32*100%=11%Discussion and Findings: 3.5/32*100%= 11%References: 7/32*100%= 22%Question 14 CYes, both the title and abstract clearly indicate that the study is related to attributes related to importer trust and commitment of two developing countries. In fact, the abstract provides an overview of the entire study that includes the statement of the problem under discussion. Question 14 DYes. The writing style is appropriate for academic publication to give that the tense used is the third person with a passive voice. Question 15I think that the study covered most, if not all, of the necessary elements needed in coming up with an academic publication.
The article has been written in accordance with the minimum requirements set for all academic papers.
Bianchi, C & Saleh, A. 2008. On importer trust and commitment: A comparative study of two developing countries. International Marketing Review, vol.27.no.1, pp: 55-86