Nonlinear Effects of Dynamic Export Pricing on Export Sales: A Longitudinal Investigation

Abstract

Little is known in the literature about dynamic export pricing, and particularly how the external environment interacts with a firm’s export pricing decisions and its long-term effect on export sales. Therefore, this study develops a longitudinal framework to examine the quadratic effect of dynamic export pricing and its interaction with customer/competitive turbulence on export sales. By employing product-level longitudinal data, the authors also estimate the lagged effect from past dynamic export pricing and export sales while simultaneously controlling for endogeneity and unknown firm heterogeneity. The results indicate that dynamic export pricing appears to have inverted quadratic effects on export sales; this quadratic relationship is moderated by customer turbulence and competitive turbulence. The authors also focus on the changes of the curve and shifts of the turning point and delineate the fit lines that pinpoint the optimal dynamic export pricing in different export markets. Finally, previous actions and outcomes significantly influence the following year’s export sales, which explains the long-term relationships.

The Impact of Exploitation and Exploration on Export Sales Growth: The Moderating Role of Domestic and International Collaborations

“…This study adds to the literature in two ways. First, it investigates the influence of exploitation and exploration on firms’ export outcomes in term of export sales growth, which is an indicator of the health of a firm’s export operations, conceptualized and operationalized as the percentage change in export sales over time (Assadinia et al 2019; Chen, Sousa, and He 2019). Although exploitation and exploration have drawn growing attention in management and marketing research, this knowledge in the international marketing context is relatively limited (Pinho and Prange 2016; Sharma, Nguyen, and Crick 2018).…”

“…First, we examine the impact of exploitation and exploration on export sales growth. Here, we capture export performance as firms’ export sales growth, defined as the percentage of change in export sales over time (Assadinia et al 2019; Chen, Sousa, and He 2019; Morgan, Kaleka, and Katsikeas 2004), which is indicative of the health of a firm’s export operations. Moreover, considering that exploitation and exploration have distinctive short- and long-term implications as the former is more short-term oriented and the latter is more long-term oriented (Auh and Menguc 2005; Lisboa, Skarmeas, and Lages 2013), we use different time lags for exploitation and exploration.…”

“…First, we examine the impact of exploitation and exploration on export sales growth. Here, we capture export performance as firms' export sales growth, defined as the percentage of change in export sales over time (Assadinia et al 2019;Chen, Sousa, and He 2019;Morgan, Kaleka, and Katsikeas 2004), which is indicative of the health of a firm's export operations.…”

The relevance of international marketing strategy to emerging-market exporting firms: from a systematic review towards a conceptual framework

“…Samiee and Chirapanda, 2019), and the moderating roles of customer and competitor turbulence in the relationship between dynamic export pricing and export sales were also attempted to be explained in light of contingency theory (e.g. Chen et al , 2019a).…”

“…Hultman et al , 2011; Lages et al , 2009; Zeriti et al , 2014), while emerging markets as a context has attracted a burgeoning interest among scholars in the pertinent literature (e.g. Chen et al , 2019a; He et al , 2018; Mallick and Marques, 2017).…”