Testing for linear and quadratic effects between price adaptation and export performance: The impact of values and perceptions

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

The antecedents of export performance of Brazilian small and medium-sized enterprises (SMEs): the non-linear effects of customer orientation

This article examines the determinants of customer orientation and the quadratic effects of customer orientation on export performance. The relationship between customer orientation and export performance has been assumed to have a linear relationship, neglecting the possibility of non-linear relationships. While most studies have been conducted in developed countries, we test our model in Brazil, an emerging market economy. The findings suggest that technology intensity and competitive intensity are key determinants in explaining success in an export market. Our findings also indicate that the relationship between customer orientation and export performance is quadratic (U-shaped) rather than linear. The implications of these findings are discussed