The Relationship Between Export Assistance and Performance Improvement in Portuguese Export Ventures: An empirical Test of the Mediating Role of Pricing Strategy Adaptation.

The Relationship Between Export Assistance and Performance Improvement in Portuguese Export Ventures: An empirical Test of the Mediating Role of Pricing Strategy Adaptation.

By
Luis Filipe Lages, David Bruce Montgomery
European Journal of Marketing.
2005, Vol. 39, Issue 7, Pages 755 - 784

Purpose – The article aims to test how pricing strategy adaptation to the foreign market mediates the relationship between export assistance and annual export performance improvement. It also aims to consider the effects of management international experience and export market competition.

Design/methodology/approach – Structural equation modelling with WLS estimation is used to test the direct and indirect influences of the variables on short-term export performance.

Findings – Surprisingly, the findings reveal that the total effects of export assistance on annual export performance improvement are non-significant, because although export assistance has a direct positive impact on performance, there is a negative indirect impact through export pricing strategy adaptation.

Research limitations/implications – These surprising results suggest that future research is required to incorporate and test the intervening and indirect effects among variables.

Practical implications – The findings also indicate that both export assistance and short-term export performance improve with management international experience and export market competition.

Originality/value – Since both managers and public policy makers are often short-term oriented, it is urgent to develop research to better understand determinants of short-term performance as well as the antecedents of managerial and public policy resource allocation in the short term.