2025/34 LEM Working Paper Series

Unbundling the effect of E-I relationship termination on export performance: The moderating role of export experience

Alfredo D'Angelo, Marco Grazzi, Le Li and Daniele Moschella
  Keywords
 
Exporter-Importer (E-I) relationship termination; Critical event; Export experience; Export performance.
  JEL Classifications
 
D21, D22, F23
  Abstract
 
The termination of an exporter-importer (E-I) relationship could challenge the company's export process. What are the consequences on the company's export performance in the foreign country? What role does export experience play in this relationship? The paper explores the overlooked phenomenon of E-I relationship termination and provides robust empirical evidence that the event has negative consequences on the firm's export performance in the foreign country. Despite this unsurprising, yet previously untested finding, our study shows a second important remark i.e., if the exporting firm has prior export experience, it is then able to cope with the negative effect of the termination event. Moreover, we find that the positive effect of prior export experience is only present in the early years of exporting. The results are based on a large longitudinal sample of French firms exporting to foreign buyers in EU countries. Findings are discussed along an in-depth case study to enhance robustness and comprehensiveness.
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