Determinants and consequences of price-leadership strategy: Evidence from Chinese manufacturer exporters
China Agri-Industries Holdings
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.