Performance and Continuing of Exporter-Importer Relationship: A Case Study of Pakistan’s Exporters

Abstract

The main objective of this study is to explore whether the quality relationship influences the export business, which leads to the exporter’s satisfaction and determines the long-term and sustainable exporter business. The study conducted a survey and collected data from 434 firms involved in the export business based on a convenience sampling approach. The companies were contacted from all over Pakistan. The study employed the partial least squares technique for the data analysis. The estimation results support all three hypotheses. The study finds a significant relationship between "relationship quality" variables and Firms’ financial and strategic performance. Further, there is a significant positive relationship between firms’ financial and strategic performance and exporters’ satisfaction and a significant positive link between exporters’ satisfaction and the continuity of the business. Based on results, practical implications for firms’ management and government policymakers were found, suggesting that companies should focus on maintaining the quality relationship, and government trade incentives should be firm-specific. A model is developed where relationship quality variables, Commitment, Satisfaction, and Trust, are factors that impact export performance. This model explains how variables interact, especially in the business relationship. This model is the first attempt to investigate sustainable exports from Pakistan.