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

Authors

  • Xuenan Ju Tsinghua University
  • Yuan Cheng Tsinghua University
  • Zuohao Hu Tsinghua University
  • Mengyuan Lv China Agri-Industries Holdings
  • Xi Chen

DOI:

https://doi.org/10.33182/tmj.v3i2.403

Keywords:

Price-leadership strategy, Emerging markets, Export performance, Marketing strategy, Export pricing

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 modeling (SEM) to analyze 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.

Author Biographies

Xuenan Ju, Tsinghua University

Dr. Xuenan Ju graduated at marketing department, School of Economics and Management, Tsinghua University. She was a visiting scholar of Stern Business School, New York University from September 2012 to September 2013. Her research interests are focused on International Marketing Strategies and Customer Relationship Management from an international perspective.

Yuan Cheng, Tsinghua University

Dr. Yuan CHENG is an Associate Professor of Department of Innovation, Entrepreneurship and Strategy in Tsinghua SEM. His Research Interests focus on Management of Innovation, Technology Strategy, and New ventures, Corporate Entrepreneurship.

Zuohao Hu, Tsinghua University

Dr. Zuohao HU is a professor of marketing at school of economics and management, Tsinghua University. His main research areas are Marketing Strategies and Marketing Modeling, with special emphasis on International Marketing Strategy of Chinese Firms, Channel Design and Management, and Brand Management and Marketing Financial Services.

Mengyuan Lv, China Agri-Industries Holdings

Mengyuan Lv graduated from Tsinghua University SEM and now works at China Agri-Industries Holdings.

Xi Chen

Dr. Xi CHEN graduated from Tsinghua University SEM and now is an Associate Professor of school of business, China University of Political Science and Law. Her research areas are international marketing management and born-global firms.

Published

2015-10-08

How to Cite

Ju, X., Cheng, Y., Hu, Z., Lv, M. and Chen, X. (2015) “Determinants and consequences of price-leadership strategy: Evidence from Chinese manufacturer exporters”, Transnational Marketing Journal. London, UK, 3(2), pp. 81–111. doi: 10.33182/tmj.v3i2.403.

Issue

Section

Articles