The Relationship of Export Intensity and Innovation Performance: Testing Moderating Effect of MNCs

Abstract

Innovation is a crucial factor that increasing firm performance and generating competitive advantage. However, previous studies are limited attention to investigating the relationship between exporting intensity and innovation performance, from a multinational company perspective. This study aims to testing how moderator effect on the relationship between export intensity and innovation performance. The population in this study is multinational company in nine industrial sectors (Processing Food, Textile, Garment, Auto Parts, Electronics, Electrical Appliances, Rubber and Plastic, Furniture, Machinery and Equipment sectors) in Thailand.. Multiple linear regression is used for data analysis. The empirical results of this study increase the understanding that the relationship between export intensity and innovation performance. I found that a positive relationship between export intensity and innovation performance is more likely to occur if firms have embeddedness (longevity of foreign businesses with a specific market) and presence of MNCs.