The Value of Pricing Control in Export Channels: A Governance Perspective

In this article, the authors expand traditional channel control models to investigate the value of absorbing pricing decisions within an exporter's decision-making domain. From a governance perspective, pricing control is considered a structured continuum driven by factors both internal and external to the firm. More specifically, the authors investigate the organizational and environmental influences driving pricing control decisions and the impact of pricing control on both the economic and strategic performance of the firm. Using linear and moderated regression analysis, the authors find that both the strategic perspectives and the organizational characteristics of exporters significantly influence pricing control, yet in ways counterintuitive to traditional thinking. Similarly, the performance implications add new insight to the value of pricing control in dynamic overseas environments. The authors discuss managerial and research implications.

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