Trust, Conflicts, and Orientation Interact in Measuring Export Performance

Abstract

Dynamic environments, especially that of the global arena, force firms to operate in condensed timeframes. Such constrains call at times for specific moves and strategies. One such case is when firms, usually small and resource-constrained such as Born Globals, approach foreign markets through the use of local intermediaries (e.g. distributors). Using such entry modes enables firms to create a rapid foothold in a large number of markets, but it may also lead to conflict between the partners and eventually damage the firm’s international performance. The purpose of this study is to examine firms’ interaction orientation and type of entry mode as antecedents of trust, and their impact on conflict arising from differences of opinion. The findings support the framework presented, indicating that conflicts result from lower levels of trust between the parties and also from the absence of expressed intentions regarding collaboration and sharing.