Management of risks and firm performance in international trade

Several economic, political, technological, cultural, and social transformations around the world have completely changed commercial rules. These developments have led to rapid changes in many commercial elements such as trade, logistics and payment systems. However, with every change, there are new risks and conveniences. Therefore, with the changes experienced, the conditions in which companies operate have become much more complex. These conditions force companies to act more cautiously in the uncertain environment that they are in. At this point, the importance of strategic risk management emerges. This study aims to measure the effectiveness of risk management in international trade and the international business knowledge of management aims performance. In addition, another aim of the research is measuring the mediating effect of risk management in international trade on the effect of managers' international business knowledge on firm performance. However, since we did not find a scale for the management of risks in international trade in the literature review, it is planned to develop a scale to fill this gap in the literature. In this context, firstly, interviews were held with the managers of companies engaged in international trade in the Gaziantep Organized Industrial Zone. Within the scope of the interview, data were collected on which risks the companies are most frequently exposed to in international trade and how they manage these risks. Afterwards, a literature review was scanned, and an item pool was created for the scale. The items determined for the scale were discussed with academicians who are experts in their fields. A questionnaire form was prepared in consultation. A pilot study was conducted by applying the prepared questionnaire to 85 foreign trade companies operating in Gaziantep Organized Industrial Zone. As a result of the pilot study, it was determined that the scales were suitable in terms of validity and reliability and the main study was started. The universe of the main study consists of companies that are included in Turkey's 1000 largest industrial enterprises determined by the Istanbul Chamber of Industry. According to the results obtained from the analysis of the study, the management of risks in international trade and the international business knowledge of the managers affect the firm's performance in a significant and positive way. In addition, it has been concluded that the management of risks in international trade has a mediating role in the effect of managers' international business knowledge on firm performance. It is thought that these results are important and original and will make important contributions to the literature.