The adoption of pricing from an organizational perspective and its impact on relative firm performance

Liozu, Stephan M.

doi:10.1057/s41272-021-00303-4

Cited by 6 publications

(5 citation statements)

References 57 publications

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“…Startups have, in their human capital, the crucial element so that the proposed dynamic capacities can become a reality in the face of a constantly changing market. Startups with pricing ability usually tend to gain a competitive advantage through this ability to offer products with prices that buyers are inclined to pay [93,108] since pricing indirectly influences the competitive advantage of small companies [109,110]. Among the indicators used to measure competitive advantage is the competitive price, startups can adjust the price of their goods to offer in the market [111,112].…”

Section: Relationship Of Competitive Skills With the Business Perform...mentioning

confidence: 99%

“…Products or services that present lower prices without diminishing quality, influence the interest of consumers, allowing them to be perceived them as unique products [116]. Therefore, presenting a price adoption improves the firm's performance [110,117], and the authors propose the following hypothesis: Hypothesis 3. Pricing capabilities capability has a positive influence on competitive advantage.…”

Section: Relationship Of Competitive Skills With the Business Perform...mentioning

confidence: 99%

“…Another hypothesis proposed in the study was the capability of the market, where startups can research the foreign market to know, analyze and adapt the discoveries about the unmet demands and needs of consumers to turn them into something positive for customers [98,132], which allows them to acquire competitive advantages and, therefore, better international performance [100]. The last one is pricing capability startups; the differentiation allows them to determine the prices based on the differentiation of new products launched [145,146], causing an increase in consumer confidence when acquiring the product or service of a startup [110,147].…”

Section: Theoretical Implicationsmentioning

confidence: 99%

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Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru

et al. 2022

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Since the COVID-19 pandemic arrived, various options have been created to export products, with the creation and development of startups becoming a viable and significant option. Previous research has described the influence of competitive business advantage on international performance. However, the novelty of the current research was to evaluate the influence of the company’s capabilities, through the competitive advantage of the company as a mediator in international performance. The study was based on the responses of 200 active startups in Peru. The PLS-SEM technique was utilized with the company’s capabilities linked to internationalization processes as independent variables, as well as market intelligence, product innovation, and pricing. The mediating variable was competitive advantage, and the dependent variable was international performance. It was found that all three capabilities influenced competitive advantage and, ultimately, international performance. It was concluded that competitive advantage does not act as a mediator between pricing capabilities and the international performance of startups. Moreover, it was determined that competitive advantage acts as a mediator between two of the three assessed capabilities: market intelligence capabilities and product innovation capabilities. The results were supported by the reflective and formative evaluation of the results obtained through the applied technique. These results could help create better programs to promote startups interested in internationalizing and exporting products.

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Section: Relationship Of Competitive Skills With the Business Perform...mentioning

confidence: 99%

Section: Relationship Of Competitive Skills With the Business Perform...mentioning

confidence: 99%

Section: Theoretical Implicationsmentioning

confidence: 99%

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Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru

et al. 2022

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“…These activities tend to highlight the need for SMEs engaging in continuous learning behavior to generate new pricing knowledge, procedures and skills (Ranjan and Nayak, 2022). As Weerawardena (2003, p. 409) stated that “organizational learning processes are key determinants of capabilities.” As price-setting activities focus on external information and internal skills (Hinterhuber and Liozu, 2017; Liozu, 2021), MBOL is expected to assist in the PC development through the collection of market information and adaptation of learned information. Prior studies suggest that, unlike other static resources, PC is challenging to acquire and must therefore be developed and embedded through time in the firms’ internal process (Johansson et al , 2015; Liozu, 2016).…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Market-based organizational learning, pricing capability and business performance: the moderating effects of coordination mechanism and environmental dynamism

Ranjan

Nayak

2023

JBIM

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Purpose This study aims to present a conceptual framework for understanding the dual orientations of market-based organizational learning (MBOL), namely, market orientation (MO) and learning orientation (LO), in the development of pricing capability (PC) with the goal of improving business performance (BP). This framework further explores the moderating effects of coordination mechanism (CM) and environmental dynamism (ED) on the PC–BP link and the mediating role of PC on the relationship between MBOL and BP. Design/methodology/approach This study applied the partial least squares structural equation modeling on survey data from 298 Indian small- and medium-sized enterprises (SMEs) operating in manufacturing and service sectors. Findings The findings indicate that MBOL significantly contributes to PC development, which in turn improves BP. Interestingly, PC acts as a partial mediator in the MO–BP link, as well as LO–BP link. Moreover, CM and ED strengthen the effect of PC on BP. Finally, MO and LO have substantial and distinct effects on PC and BP. Research limitations/implications This study examines only one market-related capability, i.e. PC, considers multi-industry SMEs rather than specific large industries and uses cross-sectional instead of longitudinal data. Practical implications These findings are crucial from managerial standpoints because SMEs need to understand the MBOL dimensions, including MO and LO, and their significance in improving PC and BP. Originality/value Understanding how MBOL adoption contributes to superior performance is critical, but research in the SMEs context is still lacking. This study addresses a research gap by examining the impact of MBOL on BP, both directly and indirectly, through PC in the context of SMEs.

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“…Recent research among global Fortune 500 companies finds that only about 20% of companies have a pricing organization with 20 or more dedicated pricing professionals, a low number given that the average global Fortune 500 company has 140,000 employees and $66bn in sales (Liozu, 2019). Companies with centralized, formalized and specialized pricing teams experience tangible performance improvements, both in pricing process efficiency and overall profit performance (Liozu, 2021). The key insight is: a dedicated pricing organization is a competitive differentiator that improves performance.…”

Section: Number 3: Create a Pricing Function In Charge Of Improving P...mentioning

confidence: 99%

What every manager should know about pricing

Hinterhuber

2023

JBS

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Purpose The purpose of this paper is to provide a theoretically rigorous and practically relevant summary of research findings that enables managers to drive sustainable profits improvements via pricing. It showcases multiple case studies that demonstrate how companies can achieve higher-than-average profitability by implementing intelligent pricing strategies and tactics. Design/methodology/approach Over the past 20 years, this writer has conducted dozens of academic surveys with managers exploring the antecedents, moderators and consequences of pricing practices for existing and new products. The writer has analyzed all pricing research published in leading academic journals over the past decades. Finally, as equity partner of Hinterhuber & Partners, a pricing consultancy (www.hinterhuber.com), this writer – through collaborations with companies and workshops conducted with practicing managers – has collected data and insights on best practices in managing pricing as a strategic activity. Findings Pricing is the most powerful driver of superior profits, yet managers view pricing as relevant only in the context of innovation. This narrow view prevents companies from realizing their full potential. Best practice examples of pricing as well as rigorous academic research suggest that pricing based on solid scientific principles helps average companies to achieve above-average results. This paper presents a review of recent research and summarizes the fundamental principles that managers must master so that pricing becomes an enabler of lasting superior performance. Research limitations/implications Academic research in pricing surpasses managerial practice. Managers often rely on outdated concepts when it comes to pricing strategy and tactics. Practical implications The paper presents a framework that allows managers to implement pricing strategies that improve performance. Social implications Effective pricing strategies benefit companies, customers and other stakeholders. Originality/value The paper provides a comprehensive overview of the latest research on pricing and thus documents that pricing based on solid, scientific principles is an enable of lasting, above-average profitability.

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The adoption of pricing from an organizational perspective and its impact on relative firm performance

Cited by 6 publications

References 57 publications

Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru

Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru

Market-based organizational learning, pricing capability and business performance: the moderating effects of coordination mechanism and environmental dynamism

What every manager should know about pricing

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