EXPLORING THE COMPLEMENTARY EFFECT INNOVATION STRATEGIES ON FIRM’S EXPORT PERFORMANCE

Abstract

Innovation is an important requisite for firm growth. It
provides competitive advantage to firms in both domestic market and
in international market. Past studies have examined the effect of
different types of innovation and their pair-wise combination on
exports. However, the role of all types on innovation may have more
complementary effects on exports of firms. The purpose of this study
is to analyze the role of quadruple-complementarity among different
innovative strategies in promoting exports of firms using the data of
World Bank Innovation surveys and different World Bank Enterprise
surveys of year 2013 for Pakistan, Bangladesh, and of year 2014 for
India. Estimation is carried out using logistic regression. The finding
indicates that existence of quadruple complementarity among
different innovation strategies in innovation-export relationship,
suggesting that, export’s sales of firm will be greater by
simultaneously adopting all innovation strategies compared to
adoption of either strategy. This study help in accessing integrated
effect of different types of innovation strategies on exports of firm