Innovation and export: evidence from manufacturing SMEs in a developing economy
International Journal of Development Issues
ISSN: 1446-8956
Article publication date: 26 May 2023
Issue publication date: 1 June 2023
Abstract
Purpose
Innovation allows firms to gain or maintain their competitive advantages in both domestic and international markets. However, the findings on the association between innovation and export vary depending on countries, samples, time, variables and methods used for empirical analysis. The purpose of this study is to examine the influence of different types of innovation on export in small- and medium-sized enterprises (SMEs) in a developing economy in the context of global integration.
Design/methodology/approach
For empirical analysis, the authors use a sample of manufacturing SMEs in Vietnam in 2013 and 2015. Because the firms do not engage in innovation at random in the research sample, the authors use propensity score matching to account for self-selection bias. The authors also use different matching estimators to ensure robust results.
Findings
Innovation activities are found to be positively associated with the probability of engaging in export activities. The effects are mainly contributed by the adoption of new technology or process.
Practical implications
This research underscores the importance of public interventions and policies designed to promote innovation and export in the SMEs.
Originality/value
To the best of the authors’ knowledge, this research is one of the early attempts to examine the association between different types of innovation and export in SMEs in a developing economy.
Keywords
Acknowledgements
Funding: This research is funded by Vietnam National Foundation for Science and Technology Development (NAFOSTED) under grant number 502.01-2019.334.
Disclosure statement: No potential conflict of interest was reported by the authors.
Data Availability Statement: The data that support the findings of this study are available from the corresponding author upon reasonable request.
Citation
Duc Tran, C., Tien Thanh, P. and The Duy, D. (2023), "Innovation and export: evidence from manufacturing SMEs in a developing economy", International Journal of Development Issues, Vol. 22 No. 2, pp. 278-297. https://doi.org/10.1108/IJDI-02-2023-0051
Publisher
:Emerald Publishing Limited
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