TY - JOUR
T1 - Emerging Market Firms’ Internationalization Pricing Strategies
T2 - The Role of Country of Origin and Organizational Learning
AU - Sainam, Preethika
AU - Bahadir, S. Cem
N1 - Publisher Copyright:
© American Marketing Association 2024.
PY - 2024
Y1 - 2024
N2 - Over the last decade there has been significant interest in international expansion of emerging market firms (EMFs) due to their distinctive patterns compared with developed market firms (DMFs). In this article, the authors develop an analytical model to generate prescriptive insights for pricing strategies when EMFs enter new foreign markets. Grounded in the international marketing and organizational learning literatures, the model accounts for local and multinational competition, the influence of country-of-origin effects, and the role of organizational learning in foreign markets. The results suggest that when an EMF enters a host market with a local competitor, it could generate higher profits even when charging a lower price than the local competitor. Additionally, the authors find that DMFs enjoy greater profitability than EMFs in foreign markets as a result of positive country-of-origin effects. Finally, the authors propose and validate the use of organizational learning as a process EMFs can use to surmount the negative impact of country-of-origin effects and achieve greater profitability than DMFs.
AB - Over the last decade there has been significant interest in international expansion of emerging market firms (EMFs) due to their distinctive patterns compared with developed market firms (DMFs). In this article, the authors develop an analytical model to generate prescriptive insights for pricing strategies when EMFs enter new foreign markets. Grounded in the international marketing and organizational learning literatures, the model accounts for local and multinational competition, the influence of country-of-origin effects, and the role of organizational learning in foreign markets. The results suggest that when an EMF enters a host market with a local competitor, it could generate higher profits even when charging a lower price than the local competitor. Additionally, the authors find that DMFs enjoy greater profitability than EMFs in foreign markets as a result of positive country-of-origin effects. Finally, the authors propose and validate the use of organizational learning as a process EMFs can use to surmount the negative impact of country-of-origin effects and achieve greater profitability than DMFs.
KW - analytical models
KW - country of origin
KW - emerging market firms
KW - organizational learning
KW - pricing strategies
UR - http://www.scopus.com/inward/record.url?scp=85186468956&partnerID=8YFLogxK
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U2 - 10.1177/1069031X241226668
DO - 10.1177/1069031X241226668
M3 - Article
AN - SCOPUS:85186468956
SN - 1069-031X
JO - Journal of International Marketing
JF - Journal of International Marketing
ER -