Cooperation in international value chains: comparing an exporter’s supplier versus customer relationships

Abstract

To cope with the rising pressure for global competitiveness, exporters are increasingly cooperating with their suppliers and customers. This research empirically examines the factors which encourage exporters to cooperate with their major trading partners in international value chains. The results suggest that while there are some differences between customer and supplier relationships, trust, relative dependence and the exporter’s competitive strategy are key variables which encourage exporters to form cooperative trading linkages. The results also suggest that an exporter’s trading relationships are interconnected: an exporter’s cooperation with customers may depend upon its cooperation with suppliers.