The influence of psychological contracts on exporter–distributor relationships and export venture performance: the conditional role of institutional distance

Abstract

PurposeThis study explores the influence of informal “psychological contracts” (PCs), (as opposed to formal contractual relationships) on exporter–distributor relationships.Design/methodology/approachData were obtained from a sample of 127 exporting small and medium-sized enterprises (SMEs) in New Zealand. The authors employed partial least squares structural equation modeling (PLS-SEM) for analyzing the measurement and structural models.FindingsPsychological contract fulfillment (PCF) enhances affective commitment and calculative commitment. Moreover, affective and calculative commitments mediate the relationship between PCF and export venture performance (EVP). The authors also find that institutional distance (ID) weakens the relationship between PCF and both affective and calculative commitment. Additionally, ID moderates the strength of the mediating mechanism for affective commitment; thus, the authors present a moderated-mediation model.Originality/valueTo date, international relationship marketing (IRM) literature has focused on PC breach, and business-to-business (B2B) marketing literature has focused on the effects of PCs on affective/relational commitment. This study offers novel insights by demonstrating the positive indirect effect of PCF on EVP via the mediating variables – affective and calculative commitment. The authors' findings also present a conditioning role of ID on the micro-level relationships of PCs.