The performance implications of collaborative activities in international buyer–seller exchanges: a contingency approach

Abstract

PurposeThe study aims to investigate how the collaborative activities of joint action and knowledge-sharing between cross-border buyers and sellers influence the affect-state of buyers and eventually develop their strategic performance under the contingent condition of psychic distance.Design/methodology/approachSurvey data collected from 235 Taiwanese importers were analyzed using partial least squares to test the proposed conceptual framework.FindingsJoint action and knowledge-sharing are found to increase buyer’s engagement and affective commitment. Psychic distance is found to weaken the effect of collaborative activities on engagement and affective commitment. Both engagement and affective commitment are found to increase strategic performance, and the findings confirm their intervening role in the collaborative activities-strategic performance relationship.Originality/valueThe study offers insights into the under researched areas of collaborative activities and strategic performance in international exchanges and highlights the role of psychic distance in the success or failure of relational exchanges in international environments. The study introduces the concept of engagement and advances the theoretical understanding of the concept’s significance and application in international buyer–seller exchanges.