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International Pricing Strategies for Born-Global Firms

Michael Neubert

Central European Business Review, 2017, vol. 2017, issue 3, 41-50

Abstract: This paper aims to understand how born global firms develop their international pricing strategies, practices, and models. It aims to expand the study of international entrepreneurship and born global firms by including a broader and deeper range of pricing aspects than is normally found in the international entrepreneurship and pricing literature. The paper opted for a multiple case-study research design using different sources of evidence, including four in-depth interviews with CEOs of born global firms. The case-study firms were selected using a purposive selection method. The theoretical framework of Ingenbleek, Frambach & Verhallen is used. The results suggest that successful leaders act as 'integrating forces' on two levels: by applying a structured and disciplined price-setting process with regular reviews and by mediating between corporate financial goals and the local market reality. The results support the claim that policy makers should offer insights, training and financial support to give promising born global firms the possibility to select the most efficient international pricing models and strategies. The results are relevant for entrepreneurs to understand the importance of efficient price-modelling processes and the influence of the different price strategies and price models on financial results and sales revenues.

Keywords: price model; pricing strategy; price-setting practice; born global; pay-per-use (search for similar items in EconPapers)
JEL-codes: M00 M10 M31 (search for similar items in EconPapers)
Date: 2017
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Faculty of Business Administration, University of Economics, Prague

DOI: 10.18267/j.cebr.185

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