Importer Behavior: the neglected Counterpart of International Exchange
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Loyola College
ArvindParkhe**
Indiana University
Abstract.Internationalexchangeis a two-sidedcoin,involving exporters and importers.However,a systematicsearch of the academic literature reveals a strikingimbalance:while exporterbehavior has beenextensively studied,importerbehaviorremains a largely neglectedarea of study, eventhoughimportersare playingan ever moreimportant(often dominant)role in consummatingtrade transactions.In this article, we assert that this neglect stems from two critical - but flawed - assump-
tions.The first is that exportersare thedrivingforcebehind international trade transactions,and the second is that importersfollow the neoclassicaleconomicstheoryof "rationalchoice"in internationalsourcing. We offer an integratedexporterlimporter decisionframework,a critical review and synthesis of extant studies of importer behavior, and suggestionsfor future research directions. Evidence showsthat much internationalexchange is better conceptualizedas buyer-coordinated importingrather thanproducer-initiated exporting.Furthermore,the revealed behavior of whatcan be expected of importersis different from them from the rationalchoice paradigm,and is messier thanwhat is commonlyassumed of themin the exportmanagementliterature. From a cognitive perspective, our study also suggests that there may exist a fundamental behavioral difference betweendomestic and IB decisionmaking.
*Neng Liang is an Associate Professor of InternationalBusiness in the Department of Strategicand OrganizationalStudies, The SellingerSchool of Business and Management, Loyola College in Maryland. His researchis interdisciplinary,dealing with export-related issues on both the macro and micro levels. **ArvindParkheis an Associate Professorof InternationalBusinessin the Department of School of Business,IndianaUniversity(Bloomington).His research Management, Graduate focuses on the formation, structuringand management of strategic alliances and internationaljoint ventures. An early version of this paper was presented at the Academy of International Business Annual Conference, November 16, 1995, Seoul, Korea. We wish to acknowledge Drs. Jean Boddywyn, Bruce Kogut and the anonymous reviewers of JIBS for the valuable comments that have led to significant improvement of the paper. Received: June 1996; Revised: January & April 1997; Accepted: April 1997. 495
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JOURNAL OF INTERNATIONALBUSINESS STUDIES, THIRD QUARTER 1997
INTRODUCTION The foundation of international business is international exchange (IE), which is a joint act of at least two actors in different countries [Toyne 1989]. Thus, one form of IE simultaneously involves exporters' selling decisions and importers' buying decisions;1 one cannot exist without the other. Despite its manifest importance, however, the importer side of the IE equation has received little rigorous attention. Our search of the Social Science Citat
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