Trade Finance Infrastructure for Letters of Credit: A Qualitative Phenomenological Study

Trade Finance Infrastructure for Letters of Credit: A Qualitative Phenomenological Study

Author: 
Melissa Ortega
Program of study: 
D.B.A.
Abstract: 
The purpose of this qualitative phenomenological study was to explore the lived experiences of exporters and importers denied a letter of credit because of gaps in trade finance infrastructure. The population comprised exporters and importers of merchandise for fair trade who resided in Arizona, California, and New Mexico and conduct business transactions in China, India, Japan, Mexico, and the United States. The chosen site for face-to-face interviews was the University of Phoenix learning center in Albuquerque, New Mexico, and via teleconferences with participants who could not attend an in-person interview. The study included one central research question and three subordinate questions. Data collection include 15 semi-structured face to face and over the telephone interviews. The results for this study generated five emerging themes related to traders’ perceptions and lived experience. The five prominent emerging themes were (a) administrative duties, (b) letter of credit, (c) system, (d) leadership, and (e) going concern. Analysis of the findings revealed unexplored factors explaining gaps in trade finance infrastructure that decrease the likelihood that a trader is approved for an LC at a bank. The research disclosed there are specific factor related to a traders’ denial for an LC. Implications and recommendations consisted of overcoming communication gaps by constructing collaborative infrastructure, additional strategic financial management support for traders, developing trusting relationships with traders and banking administrators, evidence-based business modules, crime prevention initiatives, and risk management strategies to increase traders understanding of an application for an LC and restore a profitable trading environment.
Dedication: 
I want to dedicate my dissertation to the caring family members, and many friends, who helped me make my dream of completing a PhD in Business Administration a reality. I want to especially thank Dolly Hoselton and Hank Ortega, my mother and father for believing in me and encouraging me on the prolonged journey of achieving my doctoral degree. You were always so proud of me, and my accomplishments. Loving thanks to my son Ryan Ortega, daughter-in-law Dianna Ortega, and my amazing grandson Kaige Ortega. Your love, support, encouragement, gave me the courage I needed to complete my dissertation. God had truly blessed me with awesome children and I am so very proud of you. I want to express my gratitude to Lawrence Barela, Jason Mitchell, Eric Ortega, and Sharon Ortega for their unwavering love and support over the years. I could not have made it without you all! I love you!
Acknowledgements: 
I want to thank my outstanding dissertation chair, Dr. Curtis Maybee for his support, encouragement, and guidance along the challenging path of completing this dissertation. Dr. Maybee, I could not have done it without your availability and commitment to my progressI want to thank my awesome committee members, Dr. Edward Coufal, and Dr. Robert Johnson for their time and effort in supervising this dissertation; I have valued your willingness to contribute your feedback and expertise to this endeavor. Your support allowed me to focus on my research study, and made my doctoral degree a reality. I would also like to thank University of Phoenix professors, counselors, and financial advisors for their support and guidance.