Power dynamics, cooperation, and performance in exporter-importer relationships: The moderating role of partner incompatibility and emotion regulation

Drawing on Power-Dependence theory and Emotion Regulation theory, we examine the power dynamics of the relationship between exporters and importers. Data collected from 262 Greek exporters confirmed that the exporter’s dependence on the import buyer is conducive for the latter to exercise high levels of both non-coercive power and coercive power on the former. However, at higher levels of partner incompatibility, the impact of this dependence on importer’s exercised noncoercive power was weaker, but stronger in the case of coercive power. The importer’s exercise of non-coercive power on the exporter was subsequently found to enhance inter-organizational cooperation, whereas the opposite was true when exercising coercive power. However, the exporter’s ability to regulate emotions strengthened the positive impact of noncoercive power on inter-organizational cooperation but reduced the negative effect that coercive power has on it. Finally, inter-organizational cooperation was confirmed to improve relational performance.