Central European Business Review 2017, 6(3):41-50 | DOI: 10.18267/j.cebr.185

International Pricing Strategies for Born-Global Firms

Michael Neubert

Michael Neubert, Chair of the Strategic Management Committee, Core faculty member, ISM International School of Management, 17, boulevard Raspail, 75007, Paris, France, michael.neubert@faculty.ism.edu

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

JEL classification: M00, M10, M31

Received: June 14, 2017; Revised: August 5, 2017; Published: September 30, 2017  Show citation