It examines the notion that FICD undermines interfirm trust.
FICD affects interfirm trust in two ways: It hampers its development, and it impedes its maintenance.
In cross-border exchanges with foreign countries, firms develop lower levels of trust because the processes that help establish trust are hampered by FICD. First, FICD impedes the appropriate categorization of the empirical cues about the trustworthiness of the foreign partner.
Thus, FICD disrupts the appropriate assessment of the empirical cues that foreign partners base their evaluations on and that generate and help maintain prorelational attitudes such as trust.
Hypothesis 1: FICD has a negative impact on exporter trust.
There is no direct causal relationship between FICD and exporter economic performance.
Hypothesis 2: Trust mediates the negative relationship between FICD and exporter economic performance.
FICD hampers the mechanisms through which trust produces its positive effect on performance.
Hypothesis 3: FICD moderates the relationship between trust and exporter economic performance.
Because FICD hampers the emergence and the maintenance of trust and is associated with low economic performance, it has a negative association with the survival of export relationships over time.
Hypothesis 4: FICD is negatively related to the survival of export relationships.
I began by developing a formative measurement instrument to assess FICD (Stages 1 and 2).