The Value of Pricing Control in Export Channels: A Governance Perspective

Abstract

In this article, the authors expand traditional channel control models to investigate the value of absorbing pricing decisions within an exporter's decision-making domain. From a governance perspective, pricing control is considered a structured continuum driven by factors both internal and external to the firm. More specifically, the authors investigate the organizational and environmental influences driving pricing control decisions and the impact of pricing control on both the economic and strategic performance of the firm. Using linear and moderated regression analysis, the authors find that both the strategic perspectives and the organizational characteristics of exporters significantly influence pricing control, yet in ways counterintuitive to traditional thinking. Similarly, the performance implications add new insight to the value of pricing control in dynamic overseas environments. The authors discuss managerial and research implications.

The influence of distributor support and price adaptation on the export performance of small and medium-sized enterprises

“…Theodosiou and Katsikeas, 2001). It is generally acknowledged that the macroenvironment (e.g., economic environment) and the micro-environment (e.g., competition intensity) in the foreign market will have a significant influence on the firms' strategies (Chung and Wang, 2007;Myers and Harvey, 2001). Two environmental market factors, namely competitive intensity and environmental characteristics, have been identified as significant influences on strategic decisions (Cavusgil and Zou, 1994).…”

Pricing to manage export channel relationships

“…Previous research in exporting (Cavusgil, Chan, & Zhang, 2003;Lages & Montgomery, 2005;Myers & Harvey, 2001;Solberg, Stöttinger, & Yaprak, 2006;Sousa & Bradley, 2008; for a comprehensive review, see Tan & Sousa, 2011;Tzokas, Hart, Argouslidis, & Saren, 2000) has focused on export price setting and international price adaptation/standardization. To achieve adequate performance in foreign markets, existing research has highlighted among other influencing factors on export prices, the level of competition in the foreign market (e.g., Cavusgil & Zou, 1994;Lages & Montgomery, 2005;Myers, Cavusgil, & Diamantopoulos, 2002).…”

Diaspora and trade facilitation: The case of ethnic Chinese in Australia

“…Three, only economic performance was measured in this analysis. Prior research has suggested the inclusion of non-economic measures as well, such as whether the selected FME mode has (a) met strategic objectives, (b) attained success in developing relationships with overseas marketing intermediaries, (c) responded effectively to competitive pressures, and (d) gained footholds in the target markets (Cavusgil & Zou, 1994;Myers & Harvey, 2001). The use of both economic and non-economic measures can provide a better gauge of a firm's overall performance in the target market.…”