The role of relational exchange between exporters and importers evidence from small and medium-sized Australian exporters

Small and medium-sized Australian firms account for a significant and growing share of the country's exports. One key success factor for small and medium-sized exporting firms is to develop mutually trusting, long-term relationships with their foreign exchange partners. This study suggests that small and medium-sized exporters can develop relational exchanges with foreign importers by reducing cultural distance from the importing country and by investing in transaction-specific assets. This study also shows that establishing a relational exchange significantly improves exporting performance.