Investigating Factors Influencing on Export Relationship Continuity of Iranian Companies of Medicine Exporter
Subject Areas : medical documentssepideh Ataei 1 , Mohammad Javad Taghipourian 2
1 - M.Sc in Business Management, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 - Assistant Professor, Department of Public Administration, Chalus Branch, Islamic Azad University, Chalus, Iran
Keywords: Satisfaction from Export, Strategic Orientation, Strategic Performance, Financial Performance, Export Relationship quality,
Abstract :
Introduction: Despite Iran's capability in the field of medicine, a small share of the international market holds and given the importance of exports in a country's economy, the purpose of this study was to investigate affect Factors on Export Relationship Continuity of Iranian companies of medicine exporter Such as strategic orientation, export performance, satisfaction of exports and export quality relationship Methods: Based on the three models of Scalorad, 2015, Liu and Fu, 2011 and Theodeso et al., 2012, gathered the views of managers and experts in the business of pharmaceutical companies. A total of 202 questionnaires were collected for analysis. Validity test was used for confirmatory factor analysis and AVE, and for reliability of Cronbach's alpha and combined reliability, the results confirm confirmation. Results: The study by using SEM via Smart PLS software showed that the effect of relationship quality on export financial (0/166). Among the highest impacts, exporters' satisfaction on the expectation of continuity of import-export relationship was 0.174, while the lowest impact had a strategic orientation on export financial performance with 0.085. Conclusion: the study shown strategic orientation through export performance (financial-strategic) and export satisfaction affect the expectation of continuity of relationship in Iranian companies of medicine exporter. These results can be of great help to industry executives in the development of exports.
1- Bermer Sh, Sorayyani A, Investigating the Effect of Organizational Innovation on Export Performance (Case Study: Small and Medium Enterprises Exporting Mazandaran Province). Second International R & D Conference in the Humanities. Management and economics. Brussels-Belgium, September 16; 2017.
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3- Matanda MJ & Freeman S. Effect of perceived environmental uncertainty on exporter-importer inter-organizational relationships and export performance improvement. International Business Review, 2009: 18(1): 89–107.
4- Somarathna KYJ. Strategic Orientation and Organizational Performance. Department of Entrepreneurship; 2016; University of Sri Jayewardenepura.
5- Lonial SE & Carter RE. The Impact of Organizational Orientations on Medium and small Firm Performance:A Resource-Based Perspective. Journal of Small Business Management, 2013; 20 (2): 1-20.
6- Karedza G & Govender KK. Enhancing the export performance of the SMEs in the manufacturing sector in Zimbabwe. Academy of Marketing Studies Journal, 2017; 21(2), 1-19.
7- Gnizy I, Cadogan JW, Oliveira JS & Nizam A. The empirical link between export dispersion and export performance: A contingency-based approach. International Business Review, 2017; 26(2), 239-249.
8- Cooper R, Hartley K & Harvey CRM. Export performance and the pressure of demand: a study of firms. Routledg; 2018.
9- Hambrick DC & Crossland C. A Strategy for Behavioral Strategy: Appraisal of Small, Midsize, and Large Tent Conceptions of This Embryonic Community. In Behavioral Strategy in Perspective, 2018; 3: 23-39.
10- Hao S & Song M. Technology-driven strategy and firm performance: Are strategic capabilities missing links? Journal of Business Research, 2017; 69(2): 751-759.
11- Mu J, Thomas E, Peng G & Di Benedetto A. Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management, 2017; 64: 187-201.
12- Rahimnia F, Sadeghiyan SH. Strategic Orientation and success of exporting companies. Quarterly of researches on Humanity Resource Management, 2011; 1: 34-49. [In Persian]
13- Theodosiou M, Kehagias J & Katsikea E. Strategic orientations, marketing
capabilities and firm performance: An empirical investigation in the context of frontline
managers in service organizations. Industrial Marketing Management, 2012; 41: 1058–1070.
14- Davari A, and Rezazadeh A. modeling the structural equations by applying PLS software (2nd ED.). Tehran: Academic Jihad Publication Organization; 2013. [In Persian]
15-Nunnally JC. Psychometric theory(2nd ED.), New York: McGraw-Hill; 1978.
16- Vinzi VE; Chin WW; Henseler J and H. Wang. Handbook of Partial Least Squares: Concepts, Methods, and Applications. Vol. II of Computational Statistics, Dordrecht: Springer; 2010.
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18- Hair JF, Sarstedt M, Pieper TM & Ringle CM. The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long Range Planning, 2012; 45(5), 320–340.
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20- Shamsuddoha A. and Ali MY. Mediated effects of export promotion programs on firm export performance, Asia Pacific Journal of Marketing and Logistics, 2006; 18(2): 93-110.
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22- Morgan R & Strong C. Market orientation and dimensions of strategic orientation.
European journal of marketing, 2006; 32: 1051-1073.
23- Athanasopoulou P. Relationship quality: a critical literature review and research agenda”, European Journal of Marketing, 2009; 43(5/6): 583-610.
24- Altindag E & Zehir C. Back to the past: re-measuring the levels of strategic orientations and their effects on firm performance in Turkish family firms: an updated empirical study. Procedia-Social and Behavioral Sciences, 2012; 41: 288–295.
25- Hulland J. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 1999; 20(2): 195–204.
26- Ahamed AJ & Skallerud K. The link between export relationship quality, performance and expectation of continuing the relationship: a South Asia exporters’ perspective. International Journal of Emerging Markets, 2015; 10(1): 16-31.
27- Ali Abdolvand M & Bigdeli A. Investigation the Effect of Relationship Quality, Performance and Exporter Satisfaction on Continuing Export-Import Relationship. European Online Journal of Natural and Social Sciences: Proceedings, 2016; 4(1 (s)): 1733.
28- Erdil S. The Role of Foreign Intermediary Relationship Quality on Export Performance: A Survey on Turkish Firms. Procedia - Social and Behavioral Sciences, 2014; 150(15): 600-608.
29- Leonidou LC, Talias MA & Leonidou CN. Exercised power as a driver of trust and commitment in cross-border industrial buyer–seller relationships. Industrial Marketing Management, 2008; 37(1): 92-103.
30- Azimipanah A. Influential factors on the exporting strategies choice in food companies, Tehran: Social Sciences and Economics Faculty; 2011. [In Persian]
31- Alteren G & Tudoran AA. Enhancing export performance: Betting on customer orientation, behavioral commitment, and communication. International Business Review, 2016; 25(1): 370-381.
32- Zheng W, Yang B & McLean GN. Linking Organizational Culture, Structure, Strategy and Organizational Effectiveness .Business Research, 2010; 21 (3): 221-299.
33- Mosleh AM, Bahraini-Zadeh M & Ghahfarrokhi SK. The Effect of Strategic Orientation on Export Performance of Exporting Companies in Bushehr Province; 2017. [In Persian]
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35- Venkatraman N. Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management science, 1989; 35(8): 942-962.
36- Wang G and Olsen JE. “Knowledge, performance, and exporter satisfaction”, Journal of Global Marketing, 2002; 15(3/4): 39-64.
37- Madsen TK. Executive insights: managerial judgment of export performance. Journal of International Marketing, 1998: 6(3): 82-93.
38- Godwin Ahimbisibwe M & Abaho E. Export entrepreneurial orientation and export performance of SMEs in Uganda. Global Advanced Research Journal of Management and Business Studies, 2013; 2(1), 056-062.
39- Patterson PG, Cicic M & Shoham A. A temporal sequence model of satisfaction and export intentions of service firms. Journal of Global Marketing, 1997; 10(4): 23-43.
40- Hernandez-Espallardo M, Arcas-Lario N & Tantius PH. Farmers’ satisfaction and intention to continue as members of agricultural marketing co-operatives: a test of the neoclassical and transaction costs theories. European Association of Agricultural Economists, Chania, Crete, 2009; September 3-6.
41- Jahed M. Investigating the Impact of Relationship Quality between Exporting Companies and Foreign Buyers on Corporate Export Performance (Case Study: Exporting Manufacturing Companies in Ardabil Province). Master thesis. Faculty of Management and Accounting. Islamic Azad University. Rasht unit, 2013. [In Persian]
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1- Bermer Sh, Sorayyani A, Investigating the Effect of Organizational Innovation on Export Performance (Case Study: Small and Medium Enterprises Exporting Mazandaran Province). Second International R & D Conference in the Humanities. Management and economics. Brussels-Belgium, September 16; 2017.
2- Tse AC, Leo YM, Oliver HM, Jenny SY & Raymond Uncle DM. Researching market orientation and business performance. Australasian Marketing Journal, 2013; 19: 161-164.
3- Matanda MJ & Freeman S. Effect of perceived environmental uncertainty on exporter-importer inter-organizational relationships and export performance improvement. International Business Review, 2009: 18(1): 89–107.
4- Somarathna KYJ. Strategic Orientation and Organizational Performance. Department of Entrepreneurship; 2016; University of Sri Jayewardenepura.
5- Lonial SE & Carter RE. The Impact of Organizational Orientations on Medium and small Firm Performance:A Resource-Based Perspective. Journal of Small Business Management, 2013; 20 (2): 1-20.
6- Karedza G & Govender KK. Enhancing the export performance of the SMEs in the manufacturing sector in Zimbabwe. Academy of Marketing Studies Journal, 2017; 21(2), 1-19.
7- Gnizy I, Cadogan JW, Oliveira JS & Nizam A. The empirical link between export dispersion and export performance: A contingency-based approach. International Business Review, 2017; 26(2), 239-249.
8- Cooper R, Hartley K & Harvey CRM. Export performance and the pressure of demand: a study of firms. Routledg; 2018.
9- Hambrick DC & Crossland C. A Strategy for Behavioral Strategy: Appraisal of Small, Midsize, and Large Tent Conceptions of This Embryonic Community. In Behavioral Strategy in Perspective, 2018; 3: 23-39.
10- Hao S & Song M. Technology-driven strategy and firm performance: Are strategic capabilities missing links? Journal of Business Research, 2017; 69(2): 751-759.
11- Mu J, Thomas E, Peng G & Di Benedetto A. Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management, 2017; 64: 187-201.
12- Rahimnia F, Sadeghiyan SH. Strategic Orientation and success of exporting companies. Quarterly of researches on Humanity Resource Management, 2011; 1: 34-49. [In Persian]
13- Theodosiou M, Kehagias J & Katsikea E. Strategic orientations, marketing
capabilities and firm performance: An empirical investigation in the context of frontline
managers in service organizations. Industrial Marketing Management, 2012; 41: 1058–1070.
14- Davari A, and Rezazadeh A. modeling the structural equations by applying PLS software (2nd ED.). Tehran: Academic Jihad Publication Organization; 2013. [In Persian]
15-Nunnally JC. Psychometric theory(2nd ED.), New York: McGraw-Hill; 1978.
16- Vinzi VE; Chin WW; Henseler J and H. Wang. Handbook of Partial Least Squares: Concepts, Methods, and Applications. Vol. II of Computational Statistics, Dordrecht: Springer; 2010.
17- Hajizadeh E and Asghari M. methodologies and statistics analysis with respect to research method in health and bio –sciences, Tehran: Tehran University Jihad Publication; 2011. [In Persian]
18- Hair JF, Sarstedt M, Pieper TM & Ringle CM. The use of partial least squares structural equation modeling in strategic management research: a review of past practices and recommendations for future applications. Long Range Planning, 2012; 45(5), 320–340.
19- Chadee DD and Zhang BY. The impact of Guanxi on export performance, Journal of Global Marketing, 2000; 14(1/2): 129-149.
20- Shamsuddoha A. and Ali MY. Mediated effects of export promotion programs on firm export performance, Asia Pacific Journal of Marketing and Logistics, 2006; 18(2): 93-110.
21- Lages C, Lages CR and Lages LF. The RELQUAL scale: a measure of relationship quality in export market ventures, Journal of Business Research, 2005, 58(8): 1040-1048.
22- Morgan R & Strong C. Market orientation and dimensions of strategic orientation.
European journal of marketing, 2006; 32: 1051-1073.
23- Athanasopoulou P. Relationship quality: a critical literature review and research agenda”, European Journal of Marketing, 2009; 43(5/6): 583-610.
24- Altindag E & Zehir C. Back to the past: re-measuring the levels of strategic orientations and their effects on firm performance in Turkish family firms: an updated empirical study. Procedia-Social and Behavioral Sciences, 2012; 41: 288–295.
25- Hulland J. Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 1999; 20(2): 195–204.
26- Ahamed AJ & Skallerud K. The link between export relationship quality, performance and expectation of continuing the relationship: a South Asia exporters’ perspective. International Journal of Emerging Markets, 2015; 10(1): 16-31.
27- Ali Abdolvand M & Bigdeli A. Investigation the Effect of Relationship Quality, Performance and Exporter Satisfaction on Continuing Export-Import Relationship. European Online Journal of Natural and Social Sciences: Proceedings, 2016; 4(1 (s)): 1733.
28- Erdil S. The Role of Foreign Intermediary Relationship Quality on Export Performance: A Survey on Turkish Firms. Procedia - Social and Behavioral Sciences, 2014; 150(15): 600-608.
29- Leonidou LC, Talias MA & Leonidou CN. Exercised power as a driver of trust and commitment in cross-border industrial buyer–seller relationships. Industrial Marketing Management, 2008; 37(1): 92-103.
30- Azimipanah A. Influential factors on the exporting strategies choice in food companies, Tehran: Social Sciences and Economics Faculty; 2011. [In Persian]
31- Alteren G & Tudoran AA. Enhancing export performance: Betting on customer orientation, behavioral commitment, and communication. International Business Review, 2016; 25(1): 370-381.
32- Zheng W, Yang B & McLean GN. Linking Organizational Culture, Structure, Strategy and Organizational Effectiveness .Business Research, 2010; 21 (3): 221-299.
33- Mosleh AM, Bahraini-Zadeh M & Ghahfarrokhi SK. The Effect of Strategic Orientation on Export Performance of Exporting Companies in Bushehr Province; 2017. [In Persian]
34- LIU Bing LIU & Zhengping FU. Relationship between Strategic Orientation and Organizational Performance in Born Global: A Critical Review. International Journal of Business and Management, 2011; (6)3:109-115.
35- Venkatraman N. Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management science, 1989; 35(8): 942-962.
36- Wang G and Olsen JE. “Knowledge, performance, and exporter satisfaction”, Journal of Global Marketing, 2002; 15(3/4): 39-64.
37- Madsen TK. Executive insights: managerial judgment of export performance. Journal of International Marketing, 1998: 6(3): 82-93.
38- Godwin Ahimbisibwe M & Abaho E. Export entrepreneurial orientation and export performance of SMEs in Uganda. Global Advanced Research Journal of Management and Business Studies, 2013; 2(1), 056-062.
39- Patterson PG, Cicic M & Shoham A. A temporal sequence model of satisfaction and export intentions of service firms. Journal of Global Marketing, 1997; 10(4): 23-43.
40- Hernandez-Espallardo M, Arcas-Lario N & Tantius PH. Farmers’ satisfaction and intention to continue as members of agricultural marketing co-operatives: a test of the neoclassical and transaction costs theories. European Association of Agricultural Economists, Chania, Crete, 2009; September 3-6.
41- Jahed M. Investigating the Impact of Relationship Quality between Exporting Companies and Foreign Buyers on Corporate Export Performance (Case Study: Exporting Manufacturing Companies in Ardabil Province). Master thesis. Faculty of Management and Accounting. Islamic Azad University. Rasht unit, 2013. [In Persian]
42- Rezaee R. The Impact of International Marketing Strategies on Export Performance, 2017; 9(17): 55-80. [In Persian]
