The Effects of Dynamic Capabilities on Value-Based Pricing and Export Performance

Abstract

In this study, we examine the influence of different components of dynamic capabilities on value-based pricing and export performance. We develop a research model investigating the three component factors of dynamic capabilities, that is, adaptive capability, absorptive capability, and innovative capability, and their respective influence on value-based pricing and export performance. Furthermore, we hypothesize a relationship between value-based pricing and export performance. Building upon a sample of 172 Austrian CEOs and marketing managers, we test our hypotheses through structural equation modeling using partial least squares. The results reveal that a firm’s adaptive capability and innovative capability both positively influence value-based pricing. Furthermore, our results show that adaptive capability has a positive influence on export performance. The relationship between value-based pricing and export performance could not be supported. Hence, we conclude that a firm’s adaptive capability plays a central role in international pricing and leads to enhanced export performance.

Citation

Hofer, K.M., Niehoff, L.M. and Wuehrer, G.A. (2015), "The Effects of Dynamic Capabilities on Value-Based Pricing and Export Performance", Entrepreneurship in International Marketing (Advances in International Marketing, Vol. 25), Emerald Group Publishing Limited, Leeds, pp. 109-127. https://doi.org/10.1108/S1474-797920140000025005