Impact of Overall Country Image and Product Country Image on International Supplier Performance

Abstract

Extant COO studies have not yet investigated impact of multiple COO cues on supplier performance from the perspective of B2B buyers. Purchasing managers’ international procurement decisions are likely to be based on multiple country criteria. This study seeks to understand the relative impact of overall country image and product country image on international suppliers’ performance from B2B perspective. Data were collected using a web-based structured questionnaire. Conceptual model was developed with the constructs taken from the extant COO literature. Structural equation modeling was used as the data analysis technique. Statistical analysis found that overall country image is a valid second order construct. Study results show that overall country image influences product country image and higher product country image leads to higher international supplier performance. This study revealed that superior supplier image directly depends on product country image but indirectly depends on country’s development level.