Understanding Perspectives of Intermediaries in Export Markets: A Cognitive Appraisal Approach

Understanding Perspectives of Intermediaries in Export Markets: A Cognitive Appraisal Approach

Purpose - This paper employs cognitive appraisal theory to investigate the relationship between exporters and intermediaries with the use of perceived fairness as the primary appraisal, self-efficacy as the secondary appraisal and long-term orientation as the response. Design/Methodology - This paper employed a survey design to establish the relationship between perceived fairness and its effect on self-efficacy, specifically in the context of the long-term orientation of distributors’. The survey used a five-point Likert scale to measure the extent of participants’ agreement with the statements. The partial least squares structural equation modeling (PLS-SEM) approach was used to analyze the proposed model to assess both the measurement model’s validity and the estimation of structural coefficients. Findings - The study highlights the mediating role of self-efficacy in the relationship between perceived fairness and long-term orientation. It also shows that the confidence of intermediaries in their abilities creates a stronger long-term orientation, meaning that perceived fairness has a positive effect on their commitment through its effects on self-efficacy. This means that when intermediaries feel that they are being treated fairly in their transactions with exporters, they build up their self-efficacy beliefs, and this makes them be more committed to the relationship. Furthermore, the results indicate that the relationship between perceived fairness and long-term orientation depends on the level of self-efficacy. Originality/value - By considering the mediating and moderating effect, exporters and intermediaries can better tailor their strategies to enhance the long-term orientation between them. Also, exporters and intermediaries can improve their strategies and interventions to develop positive and sustainable relationships.