Safeguarding export and import transactions through relationships and networking

Abstract

This paper provides insight into some notable factors in safeguarding business transactions. Firms in the Sunnmøre region of Norway use a variety of governance forms to secure and safeguard international business transactions. These governance forms impact on the quality of international buyer-supplier relationships and export performance. Institutionally embedded governance forms should take into consideration: the export market condition; product characteristics; documentation requirements/payment methods; and type of customer and the destination of exported goods. The choice of governance form(s) depend on these underlying factors due to the uncertainty/complexity of international trade and the investment in specific assets. Multiple case examples elicit the commonality of themes despite differences in firms’ products, strategies and business models. Though findings of this study cannot be generalised due to the limited case examples and explorative nature of the study, it may be possible to transfer some of the general statements across industries and regions. Keywords: international buyer-supplier relationship; networking; contracts; trust-based relational contracting; export-import relationships; securing; safeguarding; governance.