Investigating the impact of the quality of communication between exporting companies and foreign buyers on the export performance of companies

Dissertation for M.A.

Treatment: International Business

Abstract:

During the last two decades, exports have been recognized as one of the activities that accelerate economic growth. Export plays the role of a key factor in achieving a competitive advantage in today's turbulent market for companies. On the other hand, the relationship between export activities and performance has become a very important issue in formulating and implementing strategies as well as the field of international trade for companies. In fact, the degree or scale that the company has achieved its export goals is called its export performance. One of the main tools that measure export performance is considering the strategic results of exports. The main point of this method is that most companies have sets of strategic goals regarding export. In this view, achieving strategic goals such as: improving the competitive situation and increasing the market share should be considered as an important part of export performance. On the other hand, among the factors that affect the export performance of companies, is the relationship between companies and foreign customers, and among them, the quality of communication has a very important place, because it determines the intensity and strength of a relationship. In terms of export, the quality of communication refers to the fact that communication is developed beyond the borders of nations. The quality of communication shows the willingness to share information, long-term relational attitude and satisfaction with the relationship between the exporter and its foreign customers. The dimensions of communication quality are: information sharing, long-term communication and satisfaction with communication. This research aims to investigate the effect of the quality of communication with customers on the export performance of companies. The statistical population of this study is the employees and managers of production and export companies in Ardabil province, whose number is 1100 people, and a sample of 243 people was selected from among them to distribute the questionnaire. Sampling is random. The current research method is descriptive-analytical, the field data collection method and the data collection tool in that questionnaire. Data analysis has been done in two descriptive and inferential methods. Hypotheses were tested through the regression test method and using spss 18 software. The results of the investigations show that the quality of communication with customers has had a significant impact on the export performance of the manufacturing and export companies of Ardabil province. Among the dimensions of communication quality, the variable of communication satisfaction has the greatest effect on export performance. Keywords: communication quality, information sharing, long-term relationships, communication satisfaction, export performance. Introduction Today, the increase in competition on a global scale has led to an increase in the number of companies that seek opportunities in international markets in order to achieve their goals and maintain their market position and survival (Da'ai and Hosseini Rabat, 1389, p. 62). Globalization is a step-by-step process of development of international trade whereby a company is increasingly involved in international trade operations through specific products in selected markets (Kalofsky [1], 2009, p. 48). Meanwhile, export can be considered a starting point for globalization (Rahimnia and Sadeghian, 2010, p. 121). Export is defined as communication and working with professional markets and market professionals on the other side of the borders (Kalofsky, 2009, p. 48) and during the last two decades, along with the growth of the global economy, it has been considered as one of the economic activities that grow more than other activities. In fact, export is considered as an essential commercial activity for the national economy. Exporting at the company level is also seen as a possibility for more sales, more profitability, using economies of scale to reduce product development costs, increase the standard of living for customers, and improve the quality of work life for employees (Lee and Hebte-Georgis [2], 2004, p. 101). Exporting increases the levels of employment, industrial development and national welfare. It also improves the performance of companies, increases profitability, increases sales volume and expands market share for them (Koksal [3], 2008, p. 417).

International trade relations include various dimensions that affect the effectiveness of companies in the international market, especially the export market. Due to the complex market conditions and subject to constant and successive changes, quick acquisition of information about the market and customers is often the key to success in international markets. Under turbulent conditions, there is a greater possibility that the company's products do not fit the needs of customers and competitors' products, and as a result, the effectiveness of the company's actions decreases (Dea'ei and Hosseini Rabat, 2019, p. 62). Researches show that today the main concern of international companies is to improve export performance (Qasmi et al., 2018, p. 76).

1-2) statement of the problem

During the last two decades, export has been recognized as one of the activities that accelerate economic growth. Export plays the role of a key factor in achieving a competitive advantage in today's turbulent market for companies, and these advantages are created as a result of improving the financial position, increasing the use of production capacities, using superior technologies and achieving the desired and expected performance (Ural[4], 2009, p. 140).

The motivations or benefits of exporting have always been the focus of economists. Stuart Mill's theory about the benefits of export, despite the fact that it was mentioned in the 19th century, still maintains its novelty. Stuart Mill, quoting Ricardo, states that a country can import goods that it is unable to produce through exports. Resources and facilities are used in places and sectors that have more efficiency and productivity, more suitable production methods are used and productivity increases, and as a result global production develops to its maximum extent. Therefore, exporting increases income and employment, and by providing the possibility of benefiting from economies of scale, using advanced technologies, the possibility of optimal allocation of resources and increasing competition in the production of products, it can increase productivity. In fact, export provides the possibility of using global facilities for the growth of domestic production, and in this way, it is freed from the limitations of the domestic market, and with the development of the scale of production in order to export more to foreign markets, it provides a basis for achieving economic growth and development. (Taibi et al., 2017, p. 87)

Due to the increasing importance of exports in today's turbulent world, most companies have thought of exporting their goods outside of the domestic markets, and the relationship between export activities and performance has become a very important issue in the formulation and implementation of strategies, as well as the field of international trade for companies. (Ural, 2009, p. 146) In fact, the degree or scale by which a company has achieved its export goals is called its export performance, which includes: the amount and volume of sales, profits from exports, sales growth and entry into new markets (Wazife Doost and Zarinnegar, 2017, p. 8). On the other hand, among the factors that affect the export performance of companies, the relationship between companies and their foreign customers is The integration of the philosophy of communication and marketing in the modern marketing attitude clearly defines the increasing importance of communication in the marketing process. In order to achieve successful business and marketing, communication management, development and evaluation is very necessary. In the literature related to communication, the opposition and mutuality of the motivation for communication is one of the most important factors affecting how to communicate (Crosby[5] et al., 1990, p. 68) and the quality of these communications indicates a type of evaluation of the intensity and type of relationship, the needs and expectations of the parties involved in the communication from each other, which evaluation will be based on previous successful and unsuccessful encounters and events (Larson and Lagers[6], 1998, p. 2). The topic of communication quality has a very important position, because it determines the intensity and strength of a relationship. Unlike communication in a domestic market, the development of relationships in foreign markets is affected by many factors, including heterogeneous culture, different economic factors, and other major environmental factors. Determining the relationship between exporters and their foreign buyers is very necessary because commercial activities are created by establishing communication between the two sides of the transaction (Ural, 2009, p. 146).

This study tries to show the importance of how people involved in a commercial relationship (exporters and foreign buyer companies) act in communication between them.