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

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.