The Moderating Effects of Technology Adaption and Decision Authority on the Relationship between Export Performance and Innovation Performance

Abstract

Exportation plays an important role for increasing innovation performance. Firms that have clear vision will help R&D and manufacturing teams to know the way to apply technology and know-how within firms to develop product for exportation. This study aims to testing how moderator effect on the relationship between export performance and innovation performance. This research study utilizes company level data from Thailand, obtained from the “Productivity and Investment Climate Survey” (PICS), carried out by the Thai government in collaboration with the World Bank in 2007. The empirical results of this study increase the understanding that the relationship between export performance and innovation performance. I found that a positive relationship between export performance and innovation performance is more likely to occur if firms have technology adaption and decision making by MNCs.  The embeddedness of MNCs in term of technology adaption and decision making authority to local subsidiary which has operated in Thailand refer to vision, technological proficiency and launch proficiency demonstrates that it support firm strategy and direction for productivity for exportation and also support of resources for development of product and process innovation. Technology adaption from MNC enhances the understanding of new firm resources and firms can utilize these resources to success in developing innovation.

Keywords: Technology Adaption, Decision Authority, Export Performance, Innovation Performance and Multinational Company