A Study on the Impact of Relationship Performance in Trade-Based Startups

This study examines the impact of cultural factors, such as empathy and rapport formation, on the performance of Korean SMEs (small and medium-sized enterprises) in export-import relationships. For this purpose, this study divides cultural empathy into four sub-factors: empathic emotions and expressions, empathic perspective-taking, acceptance of cultural differences, and empathic recognition. Rapport is classified into two sub-factors: inter-company intimacy and personal bonds. The empirical analysis results show that among the sub-factors of cultural empathy, empathic emotions and expressions, as well as empathic recognition, positively affect both sub-factors of rapport, namely pleasant relationships and personal bonds. On the other hand, empathic perspective-taking only affects pleasant relationships, while acceptance of cultural differences only positively influences personal bonds. Furthermore, all sub-factors of rapport between exporting companies positively impact the relationship performance of exporters. The findings of this study provide practical methods for managers of trade-based startups on how to develop cultural empathy to enhance relationship performance with importers.