Organizational design and pricing capabilities for superior firm performance
Abstract
Purpose
The purpose of this paper is to test the relationship between organizational antecedents, pricing capabilities, and firm performance.
Design/methodology/approach
Quantitative survey of 748 managers from mostly large companies globally.
Findings
It was found that the following five key organizational resources (the 5 Cs) – center-led price management, organizational confidence, championing behaviors, organizational change capacity, and pricing capabilities – positively influence firm performance. Furthermore, it was found that center-led price management, organizational change capacity, and championing behaviors act as important antecedents to pricing capabilities and, except for the former, to organizational confidence. The authors also examine interaction and mediation effects.
Originality/value
The results thus suggest that generic organizational factors – namely center-led price management – as well as highly idiosyncratic firm, specific capabilities – namely organizational confidence, championing behaviors by top management, organizational change capacity, and pricing capabilities – are key requirements to increase firm performance via pricing.
Keywords
Acknowledgements
The authors thank Kevin Mitchell, Julie Martin and Fabricio Lopez, all from the Professional Pricing Society, for their support for this research project.
Citation
Liozu, S., Hinterhuber, A. and Somers, T. (2014), "Organizational design and pricing capabilities for superior firm performance", Management Decision, Vol. 52 No. 1, pp. 54-78. https://doi.org/10.1108/MD-05-2013-0279
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited