Innovation capabilities, market characteristics and export performance of EMNEs from India

Abstract

Purpose This study aims to investigate the moderating effect of market characteristics on the relationship between innovation capabilities and export performance of Indian pharmaceutical firms. Design/methodology/approach The authors test the hypotheses using generalized least square estimator with random effects, on a panel data set, for the period 2010–2016. Findings Analyses of the data show that innovation capabilities lead to superior export performance. R&D investment positively affects export performance of both developing and developed countries, whereas patent quality negatively affects the export performance of developed countries and has no significance in developing countries. Size of the firm has significant positive effect on its export performance. Originality/value This study explores the role of market characteristics in determining the relationship between innovation and export performance, which has mostly been ignored in extant literature, especially in the context of emerging market multinationals.

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