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How Entrepreneurial Firms Profit from Pricing Capabilities: An Examination of Technology–Based Ventures

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  • Tessa Christina Flatten
  • Andreas Engelen
  • Timo Möller
  • Malte Brettel

Abstract

This study sheds light on the evolution of the specialized marketing capability, pricing. We develop an operationalization for and empirically validate the pricing–capability dimensions from the perspective of the resource–based view. Using a sample of 420 technology–based ventures, we examine the relationship between pricing capabilities and firm performance, with a particular focus on how age and uncertainty impact these relationships to determine how entrepreneurial firms can profit. We deconstruct pricing capability into four dimensions—price discrimination, dynamic orientation, performance goal orientation, and value delivery—to show, for example, that young companies should focus on their price discrimination capability to improve performance.

Suggested Citation

  • Tessa Christina Flatten & Andreas Engelen & Timo Möller & Malte Brettel, 2015. "How Entrepreneurial Firms Profit from Pricing Capabilities: An Examination of Technology–Based Ventures," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1111-1136, September.
    • Handle: RePEc:sae:entthe:v:39:y:2015:i:5:p:1111-1136
    DOI: 10.1111/etap.12098
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    Cited by:

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    2. Sophie Bacq & Kimberly A. Eddleston, 2018. "A Resource-Based View of Social Entrepreneurship: How Stewardship Culture Benefits Scale of Social Impact," Journal of Business Ethics, Springer, vol. 152(3), pages 589-611, October.
    3. Liozu, Stephan & Hinterhuber, Andreas, 2022. "Pricing as a driver of profitable growth: An agenda for CEOs and senior executives," Business Horizons, Elsevier, vol. 65(4), pages 457-467.
    4. Romina Gómez-Prado & Aldo Alvarez-Risco & Berdy Briggitte Cuya-Velásquez & Marián Arias-Meza & Nilda Campos-Dávalos & Luis Juarez-Rojas & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Ar, 2022. "Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru," Sustainability, MDPI, vol. 14(17), pages 1-21, August.

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