| 2025/34 | LEM Working Paper Series | ||||||||||||||||
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Unbundling the effect of E-I relationship termination on export performance: The moderating role of export experience |
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Alfredo D'Angelo, Marco Grazzi, Le Li and Daniele Moschella |
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| Keywords | |||||||||||||||||
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Exporter-Importer (E-I) relationship termination; Critical event; Export experience; Export performance.
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| JEL Classifications | |||||||||||||||||
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D21, D22, F23
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| Abstract | |||||||||||||||||
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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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