IDEAS home Printed from https://ideas.repec.org/a/mig/tmjrnl/v3y2015i2p81-111.html
   My bibliography  Save this article

Determinants and consequences of price-leadership strategy: Evidence from Chinese manufacturer exporters

Author

Listed:
  • Xuenan Ju

    (Marketing Department, School of Economics and Management, Tsinghua University, People’s Republic of China)

  • Yuan Cheng

    (Department of Innovation, Entrepreneurship and Strategy, School of Economics and Management, Tsinghua University, People’s Republic of China)

  • Zuohao Hu

    (School of Economics and Management, Tsinghua University, People’s Republic of China)

  • Mengyuan Lv

    (China Agri-Industries Holdings, People’s Republic of China)

  • Xi Chen

    (School of Business, China University of Political Science and Law, People’s Republic of China)

Abstract

This research investigates the antecedents of the price-leadership strategy (PLS), and its impacts on export performance with the moderating role of export target markets. Drawing from the contingency theory and strategy management framework, the authors adopt structural equation modelling (SEM) to analyse the survey data collected from 155 Chinese manufacturer exporters. The empirical results suggest that the PLS negatively affects export performance. Firms are more likely to adopt the PLS when competitive intensity and technological intensity are high but less likely to adopt the PLS when product popularity is high. The negative impact of the PLS on export performance is stronger when firms export to other emerging (vs. developed) markets. With the unique perspective from emerging markets, the authors theoretically discuss and empirically examine the antecedents-PLS-performance link. This research suggests that emerging-market firms rationally adopt the PLS and actively cultivate technology and innovation capability, product popularity and international marketing competence on export businesses.

Suggested Citation

  • Xuenan Ju & Yuan Cheng & Zuohao Hu & Mengyuan Lv & Xi Chen, 2015. "Determinants and consequences of price-leadership strategy: Evidence from Chinese manufacturer exporters," Transnational Marketing Journal, Oxbridge Publishing House, UK, vol. 3(2), pages 81-111, October.
    • Handle: RePEc:mig:tmjrnl:v:3:y:2015:i:2:p:81-111
    as

    Download full text from publisher

    File URL: https://journals.tplondon.com/index.php/tmj/article/view/403/396
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kumar, Nirmalya & Scheer, Lisa & Kotler, Philip, 2000. "From market driven to market driving," European Management Journal, Elsevier, vol. 18(2), pages 129-142, April.
    2. Chryssochoidis, George & Theoharakis, Vasilis, 2004. "Attainment of competitive advantage by the exporter-importer dyad: The role of export offering and import objectives," Journal of Business Research, Elsevier, vol. 57(4), pages 329-337, April.
    3. Lance Eliot Brouthers & Kefeng Xu, 2002. "Product Stereotypes, Strategy and Performance Satisfaction: The Case of Chinese Exporters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 657-677, December.
    4. Myers, Matthew B., 2004. "Implications of pricing strategy-venture strategy congruence: an application using optimal models in an international context," Journal of Business Research, Elsevier, vol. 57(6), pages 591-600, June.
    5. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer;The Psychometric Society, vol. 16(3), pages 297-334, September.
    6. Luis Filipe Lages & Sandy D Jap & David A Griffith, 2008. "The role of past performance in export ventures: a short-term reactive approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 304-325, March.
    7. Lance Eliot Brouthers & Edward O'Donnell & John Hadjimarcou, 2005. "Generic Product Strategies for Emerging Market Exports into Triad Nation Markets: A Mimetic Isomorphism Approach," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 225-245, January.
    8. Griffith, David A. & Yalcinkaya, Goksel & Calantone, Roger J., 2010. "Do marketing capabilities consistently mediate effects of firm intangible capital on performance across institutional environments?," Journal of World Business, Elsevier, vol. 45(3), pages 217-227, July.
    9. Kiyohiko Ito & Vladimir Pucik, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 61-75, January.
    10. David A Griffith & Salih Tamer Cavusgil & Shichun Xu, 2008. "Emerging themes in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1220-1235, October.
    11. Robert G Cooper & Elko J Kleinschmidt, 1985. "The Impact of Export Strategy on Export Sales Performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 37-55, March.
    12. Griffith, David A., 2010. "Understanding multi-level institutional convergence effects on international market segments and global marketing strategy," Journal of World Business, Elsevier, vol. 45(1), pages 59-67, January.
    13. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    14. Greg Young & Ken G. Smith & Curtis M. Grimm, 1996. "“Austrian” and Industrial Organization Perspectives on Firm-level Competitive Activity and Performance," Organization Science, INFORMS, vol. 7(3), pages 243-254, June.
    15. Leonidou, Leonidas C. & Katsikeas, Constantine S. & Samiee, Saeed, 2002. "Marketing strategy determinants of export performance: a meta-analysis," Journal of Business Research, Elsevier, vol. 55(1), pages 51-67, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sousa, Carlos M.P. & Bradley, Frank, 2008. "Antecedents of international pricing adaptation and export performance," Journal of World Business, Elsevier, vol. 43(3), pages 307-320, July.
    2. Dirk Boehe & Luciano Barin Cruz, 2010. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Journal of Business Ethics, Springer, vol. 91(2), pages 325-346, February.
    3. BOEHE, Dirk Michael, 2009. "Corporate Social Responsibility, Product Differentiation Strategy and Export Performance," Insper Working Papers wpe_186, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    4. Luis Filipe Lages & Cristiana Raquel Lages & Carmen Lages, 2004. "The APEV scale: a measure of annual performance of an export venture," Nova SBE Working Paper Series wp458, Universidade Nova de Lisboa, Nova School of Business and Economics.
    5. Lages, Luis Filipe & Silva, Graça & Styles, Chris & Pereira, Zulema Lopes, 2009. "The NEP Scale: A measure of network export performance," International Business Review, Elsevier, vol. 18(4), pages 344-356, August.
    6. Mandler, Timo & Sezen, Burcu & Chen, Jieke & Özsomer, Ayşegül, 2021. "Performance consequences of marketing standardization/adaptation: A systematic literature review and future research agenda," Journal of Business Research, Elsevier, vol. 125(C), pages 416-435.
    7. Costa, Cláudia & Lages, Luis Filipe & Hortinha, Paula, 2015. "The bright and dark side of CSR in export markets: Its impact on innovation and performance," International Business Review, Elsevier, vol. 24(5), pages 749-757.
    8. repec:ipg:wpaper:2014-432 is not listed on IDEAS
    9. Ýrem Eren-Erdoðmuþ & A. Müge Yalçýn & Aichurek Bopieva, 2012. "Revisiting Relationship Marketing in Emerging Markets: The Case of Turkish Exportes," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 26(1), pages 81-101.
    10. Xuenan Ju & Lili Tong & Zuohao Hu & Baowen Sun, 2017. "Determinants and Consequences of Product Differentiation Strategy: Evidence from Chinese Indigenous Exporters," International Business Research, Canadian Center of Science and Education, vol. 10(9), pages 60-72, September.
    11. Insik Jeong & Jong-Ho Lee & Eunmi Kim, 2019. "Determinants of brand localization in international markets," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 75-100, March.
    12. Hollender, Lina & Zapkau, Florian B. & Schwens, Christian, 2017. "SME foreign market entry mode choice and foreign venture performance: The moderating effect of international experience and product adaptation," International Business Review, Elsevier, vol. 26(2), pages 250-263.
    13. Carneiro, Jorge & da Silva, Jorge Ferreira & da Rocha, Angela, 2011. "Strategic profiles of Brazilian exporters and performance implications," Journal of Business Research, Elsevier, vol. 64(3), pages 250-257, March.
    14. Luis Filipe Lages & Ana Catarina Leal, 2004. "Determinants of expected short-term export performance improvement: an empirical study of industrial exporters," Nova SBE Working Paper Series wp463, Universidade Nova de Lisboa, Nova School of Business and Economics.
    15. Luis Filipe Lages & Sandy D. Jap, 2002. "A contingency approach to marketing mix adaptation and performance in international marketing relationships," Nova SBE Working Paper Series wp411, Universidade Nova de Lisboa, Nova School of Business and Economics.
    16. Beleska-Spasova, Elena & Glaister, Keith W. & Stride, Chris, 2012. "Resource determinants of strategy and performance: The case of British exporters," Journal of World Business, Elsevier, vol. 47(4), pages 635-647.
    17. Azar, Goudarz & Ciabuschi, Francesco, 2017. "Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness," International Business Review, Elsevier, vol. 26(2), pages 324-336.
    18. Pyper, Keith & Marie Doherty, Anne & Gounaris, Spiros & Wilson, Alan, 2022. "A contingency-based approach to the nexus between international strategic brand management and export performance," Journal of Business Research, Elsevier, vol. 148(C), pages 472-488.
    19. Yoon, Junghyun & Lee, Hee Yong & Dinwoodie, John, 2015. "Competitiveness of container terminal operating companies in South Korea and the industry–university–government network," Transportation Research Part A: Policy and Practice, Elsevier, vol. 80(C), pages 1-14.
    20. Gutiérrez-Villar, Belén & Montero-Simó, María José & Araque-Padilla, Rafael Ángel & Castro-González, Pilar, 2014. "Intensidad exportadora e interacción entre fortalezas del marketing mix: un análisis basado en redes neuronales artificiales || Export Intensity and Interaction between Marketing Mix: An Analysis base," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 18(1), pages 88-111, December.
    21. Ewing, Michael T. & Napoli, Julie, 2005. "Developing and validating a multidimensional nonprofit brand orientation scale," Journal of Business Research, Elsevier, vol. 58(6), pages 841-853, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mig:tmjrnl:v:3:y:2015:i:2:p:81-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxbridge Publishing House (email available below). General contact details of provider: https://www.transnationalmarket.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.