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Title: Testing for linear and quadratic effects between price adaptation and export performance: The impact of values and perceptions
Author: Sousa, Carlos M.P.
Lengler, Jorge Francisco Bertinett
Martínez López, Francisco José
Others: Durham University
Instituto Universitario de Lisboa
Universitat Oberta de Catalunya (UOC)
Keywords: export performance
psychic distance
Issue Date: 6-Aug-2013
Publisher: Journal of Small Business Management
Citation: Sousa, C.M.P., Lengler, J. & Martínez López, F.J. (2014). Testing for Linear and Quadratic Effects between Price Adaptation and Export Performance: The Impact of Values and Perceptions. Journal of Small Business Management, 52(3), 501-520. doi: 10.1111/jsbm.12046
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Abstract: Managerial perceptions are essential in explaining strategic decisions. It is, therefore, surprising that despite the number of studies that have examined the impact of managerial characteristics in exporting, little research has been reported in the export literature that investigates the importance of managers' perceptions on strategic decisions and resultant performance outcomes. To address this gap in the literature, the authors examine the key determinants of managers' psychic distance as well as its influence on international pricing decisions, and this in turn, on the export performance of SMEs. We also examine the quadratic effects of price adaptation on export performance. This is particularly relevant since price adaptation and export performance have been assumed in the literature to have a linear relationship. The results show that managers' perceptions have a significant impact on pricing decisions and resultant performance outcomes. Our findings also indicate that price adaptation has an inverted U-shaped relationship with export performance.
Language: English
ISSN: 0047-2778MIAR
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