This study aims to investigate the moderating effect of market characteristics on the relationship between innovation capabilities and export performance of Indian pharmaceutical firms.
The authors test the hypotheses using generalized least square estimator with random effects, on a panel data set, for the period 2010–2016.
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.
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.
