Effect of Distance and Communication Climate on Export Performance: The Mediating Role of Relationship Quality

ABSTRACT

The authors explore how distance and the communication climate perceived by exporters influence export performance both directly and as mediated by relationship quality. The ready-made garments industry in Bangladesh yielded 185 responses. A mediation model was tested using structural equation modeling, applying partial least squares techniques. The results show that distance is negatively related to communication climate and relationship quality; relationship quality mediates the distance–export performance relationship, whereas communication climate is positively associated with relationship quality and export performance, and a full mediating role of relationship quality is found in the communication climate–export performance relationship. A strong positive relationship between relationship quality and export performance is also identified. The managerial implication of the study includes that with better relationship strength, it is possible to neutralize the negative impact of distance on export performance. The implications and limitations are also discussed.