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

• Main Authors: MONTGOMERY, David B., Lages, Luis Filipe
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Marketing
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1627; https://doi.org/10.1108/03090560510601752
• Institution: Singapore Management University

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. Structural equation modeling with WLS estimation is used to test the direct and indirect influences of the variables on short-term export performance. 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. The findings also indicate that both export assistance and short-term export performance improve with management international experience and export market competition.