The Impact of Innovation in Jordanian Chemical and Pharmaceutical Industries on Export Performance
Abstract
Innovation has long been considered an important factor for creating and maintainingthe competitiveness of the firms. Common knowledge stands that innovation is the causeof the increase of exports. However, contradicting empirical evidences are reported in theliterature on the relationship between innovation and export performance. In this researchwe examine whether innovation performed by Jordanian chemical and pharmaceuticalindustries enhances their export performance. Based on research objectives, a structuredquestionnaire was developed to collect the needed data to test the developed hypotheses. Datawere collected from twenty two companies, representing a sixty-five percent response rate.Data were analyzed and hypotheses were tested using various analytical methods. Researchfindings indicate that there is a statistical significant relationship between innovation andexport performance for the sample under study; mainly for research and development,marketing data base, management (atmosphere conductive to innovation), promotion andproduct (quality). Based on the results, several recommendations are suggested.
Metrics
##plugins.themes.bootstrap3.article.details##
export performanceinnovationmarketingquality
• Al-Sarhan, A. (2005) Marketing innovation and export performance, PhD thesis, Amman Arab University. (P 25)
• Anderton S.M. and Wraith D.C. (1998) Hierarchy in the ability of T cell epitopes to induce peripheral tolerance to antigens from myelin. Eur. J. Immunol. 28, 1251-1261.
• Anderton, S., Burkhart, C., Metzler, B. and Wraith, D. (1999). Mechanisms of central and peripheral T-cell tolerance: lessons from experimental models of multiple sclerosis. Immunol. Rev. 169, 123-137.
• Andriopoulos, C. and Dawson, P. (2009). Managing Change, Creativity, and Innovation, Sage Publications, London.
• Anh. et al. (2007). Innovation and Export of Vietnam’s SME Sector [online] Available http://mpra.ub.uni-muenchen.de/3256/
• Baldwin, R.S., Peleg-Bruckner, Z. & McClintock, A.H. (1985). Effects of topic interest and prior knowledge on reading comprehension. Reading Research Quarterly, 20(4), 497-504
• Baldwin, J. & Rafiquzzaman, M. (1998). The effect of technology and trade on wage differentials between nonproduction and production workers in Canadian manufacturing. Ottawa: Micro-Economic Analysis Division, Statistics Canada.http://www.statcan.ca/english/IPS/Data/11F0019MIE1998098.htm
• Bernard, A. B. and Jensen, J. B. (1999). Exporting and Productivity. NBER Working Papers 7135, National Bureau of Economic Research, Inc.
• Bernard, A. B., Jensen, J. B., Redding, S. J., and Schott, P. K. (2007). Firms in international trade. Journal of Economic Perspectives, 21(3), 105–130.
• Bijmolt, T. H.A and P. S. Smart, ( 1994). The Impact of Internal Factors on the Export Success of Dutch Small and Medium-Sized Firms. Journal of Small Business Management (April), 69-83.
• Bonaccorsi, A. (1992). On the relationship between firm size and export intensity. Journal of International Business Studies. 23 (4): 605-635.
• Calof, J.L. 1993 the impact of size on internationalization, Joural of small Business Management, Oct. pp 60-69
• Cao. et al. (2006). Innovation in China’s furniture industry. Forest Products Journal, Wednesday, November 1 2006. [online] Available http://www.allbusiness.com/forestproducts-journal/41104-1.html
• Carlos M. P. Sousa. (2004). Export Performance Measurement: An Evaluation of the Empirical Research in the Literature , Thursday, January 1 2004. [online] Available http://www.allbusiness.com/academy-of-marketing-science-review/3476553-1.html
• Cassiman, Bruno and E. Martínez-Ros (2007). Product Innovation and Exports: Evidence from Spanish Manufacturing, IESE Business School and CEPR, 1-37.
• Chadha, Alka (2009). "Product Cycles, Innovation and Exports: A Study of Indian Pharmaceuticals," Word Development Vol.37, 1478-1483.
• Chandler, Alfred D. (1990). The Enduring Logic of Industrial Success, Harvard Business Review (March-April), 130-140.
• Clarke, L. (1994). The Essence of Change, 1st edn, Prentice Hall Europe, Hertfordshire.
• Chetty, S. K. and Hamilton, R. T. (1993). Firm-level Determinant of Export Performance: A Meta-analysis. International Marketing Review, 10(3), 26 – 34.
• Damijan, Joze P. and C. Kostevc (2006). "Learning-by- Exporting: Continuous Productivity Improvements of Capacity Utilization Effects? Evidence from Slovenian Firms," Review World Economics, Vol. 142 (3), 599-613.
• Diana-Andreea Filipescu. (2007). Innovation and Internationalization. A focus on the spanish exporting firms. Unpublished doctoral dessirtation, Autonomous University of Barcelona.
• Dipietro, William R. and Anoruo, E. (2006). GDP per capita and its challengers as measures of happiness, International Journal of Social Economics, Vol. 33 Iss: 10, pp.698 – 709.
• Drucker, P.F. (1985), Innovation and entrepreneurship Practice and principles ( Perennial Library) NY: Harper and Row.
• Freeman C. and Soete, L. (1997) The economics of Industrial Innovation, 3 edition, Printer.
• Fruhling,A.L. and Siau,K.(2007),"Assessing organizational innovation capability and its effect on e-commerce initiatives". The Journal of Computer Information Systems, 48(1), 45-133.
• Geroski, P. (1995). Market structure, corporate performance, and innovative activity. Oxford University Press. ISBN 0-19-828855-7.
• Graetz, F., Rimmer, M., Lawrence, A. and Smith, A. (2006). Managing Organisational Change, 2nd Australasian edn, John Wiley &Sons, Australia.
• Greenhalgh, C. (1990). Innovation and Trade Performance in the United Kingdom. Economic Journal 100(1): 105–118.
• Green,S.G.,Gavin,M.B. and Aiman-Smuth,L.(1995),"Assessing a multidimensional measure of radical technological innovation". IEEE Transactions in Engineering Management, 42(3), 14-203.
• Grossman, G. and E. Helpman (1991). Innovation and Growth in the Global Economy, Cambridge.
• Gruber, William, Dileep Mehta and Raymond Vernon (1967). The R&D Factor in International Trade and International Investment of United States Industries. Journal of Political Economy 75 (1): 20-37.
• Haded S. & Al-Ghadeer H. (2003) Marketing Innovation in pharmaceutical Industry, Jordanian Journal for Applied Science, 16 101-30.
• Helfat, C. (1994). Evolutionary trajectories in petroleum firm R&D. Management Science 40:1720–1747.
• Henry, J. and Mayle, D. (eds) (2002). Managing Innovation and Change, 2nd edn, SAGE Publications, London.
• Huergo, Elena (2006). "The Role of tecnological management as a source of innovation: Evidence from Spanish manufacturing firms," Reserch Policy 35, 1347-1388
• Hsu,L.L.(2006),"The impact of industrial characteristics and organizational climate on KMS and BIP-Taiwan bioscience industry". The Journal of Computer Information System, 46(4), 8-17.
• Ito, K. and Pucik, V. (1993). R&D spending, domestic competition, and export performance of Japanese manufacturing firms, Strategic Management Journal 14, 61-75.
• Jordan Statistical Yearbook (2012) - General Statistic Department - Jordan
• Khon, T.O., (1997). Small Firms as International Players, Small Business Economics, Vol. 9, 45-51.
• King, N. and Anderson, N. 2002, Managing Innovation and Change: A Critical guide for Organizations, 2nd edn, Thomson, London.
• Lachenmaier, S. and L. Woessmann (2004). Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data. CESifo Working Paper No.1178
• Lee, Jooh and Habte-Giorgis, Berhe. (2004). Empirical Approach to the Sequential Relationships between Firm Strategy, Export Activity, and Performance in US Manufacturing Firms. International Business Review, 13: 101-129. (74)
• Leonard-Barton, D. (1992), Core capabilities and core rigidities: a paradox in managing new product development. Strategic Management Journal, Vol. 13, pp. 111-25.
• Loof, Hans (2009). Multinational Enterprises and Innovations: firms level evidence on spillover via R&D collaboration, J Evol Econ, Springer, 41-71.
• Markusen, J. (1995). The Boundaries of the Multinational Enterprises and the Theory of International Trade, Journal of Economic Perspectives, 9, 169-189.
• Moini, A.H. (1995) An inquiry into successful exporting: An empirical investigation using a three-stage model, Journal of Small Business Management, 33, 9-25.
• Montobbio F., Rampa F. (2005). The Impact of Technology and Structural Change on Export Performance in Developing Countries. World Development, April, Vol. 33, No. 4
• Mowday, R. and Sutton, R. (1993). Organizational Behaviour: Linking Individuals and Groups to Organizational Contexts, Annual Review Psychology, vol. 44, no. 1, 195-229.
• Myers, Matthew B. (1999). Incidents of Gray Market Activity Among U.S. Exporters: Occurrences, Characteris-tics, and Consequences. Journal of International Business Studies 30 (1): 105-26.
• Namiki. (1989). The impact of competitive strategy on export sales performance: an exploratory study. Mid-Atlantic Journal of Business, April 1 1989 [online] Available http://www.allbusiness.com/marketing/market-research/112901-1.html
• Narula, R. and Wakelin, k. (1998). Technological competitiveness, trade and foreign direct investment, Structural Change and Economic Dynamics, 9 (3), 373-387.
• Nicholls-Nixon C.(1995). Responding to technological change: why some firms do and others die. Journal of High Technology Management Research 6(1):103–109
• OECD (1997), Oslo Manual. Proposed Guidelines for Collecting and Interpreting Technological Innovation Data (second edition), Paris. Oslo Manual, available.
• OECD (2005). Proposed Guidelines for Collecting and Interpreting Technological Innovation available. Oslo Manual, available at http://www.oecd.org/document/1/0,2340,en_2649_201185_33847553_1_1_1_1,00.html.
• Olsen, J., Lee, BC and Hodgkinson, A. (2006) Innovation in Small and Medium-Sized Enterprises: A Study of Businesses in New South Wales, Australia, Working Paper 06-04, Department of Economics, University of Wollongong.
• Olszewki, Krzysztof (2008). International Trade and Endogenous Growth – A survey on the Grossman and Helpman models and a recent extension, University of Southampton, Department of Economics, Working Paper, July, 1-14.
• Ong, C.H. and Pearson, (1984) The Impact of Technical Characteristics on Export Activity: A Study of Small and Medium-sized UK Electronic Firms, R&D Management, 12, 189- 196.
• Ong, C.H. and Pearson, A.W., (1982). The Impact of Technical Characteristics on Export Activity: A Study of Small and Medium-sized UK Electronic Firms, R&D Management, 12 No. 4, pp. 189-96.
• Ozçelik, Emre and Erol Taymaz (2004). Does Innovativeness matter for international competitiveness in developing countries? The Case of Turkish Manufacturing Industries, Research Policy 33, 409-424
• Paton, R. and McCalman, J. (2001). Change Management: A guide to effective implementation, 2nd edn, SAGE Publications, London.
• Peter Drucker (1985) instead of 1983 P 76 Baldwin J... 1998 instead of 1994 (P 90) Calof, J.L.1993 The impact of size on internationalization, Journal of Small Business Management, Oct. pp 60-69 (p95)
• Phapruke Ussahawanitchakit. (2007). Innovation capability and export performance: an empirical study of textile businesses in Thailand. International Journal of Business Strategy, Jan, 2007 [online] Available http://findarticles.com/p/articles/mi_6766?tag=artBody;col1
• Radu Chiru. (2003). Innovativeness and export orientation among establishments in Knowledge-Intensive Business Services (KIBS) [online] Available http://www.statcan.ca
• Reid, S. D., (1986). Is Technology Linked with Export Performance in Small Firms? in Hubner (ed.), The Art and Science of Innovation Management, Amsterdam: Elsevier Science Publishers, pp. 273-283.
• Romer, P. (1986). Increasing Returns and Long-Run Growth, Journal of Political Economy, 94, 1002-1037.
• Roper, Stephen and James Love (2002). Innovation and Export performance: Evidence from UK and German Manufacturing Plants. Research Policy 31, 1087-1101
• Schumpeter JA (1939). Business Cycles. McGraw-Hill Books Co. New York. 87-88.
• Sekaran ,U. (1992). Research Methods for Business: A skill Building Approach ,Second Edtion , alynow university press, USA; 285-301.
• Senior, B. (2002). Organisational change, 2nd edn, Pearson Education Limited, England.
• Soete, and Luc L.G. (1981). A General Test of Technological Gap Trade Theory. Weltwirtschaftliches Archiv 117 (4): 639-659.
• Soete, L. (1987) The impact of technological on international trade patterns, the evidence reconsidered research policy, 16, 101-30
• Sriram, D. , Logcher, R.D. , Groleau, N. and Cherneff, J. (1989) DICE: An Object Oriented Programming Environment For Cooperative Engineering Design. Technical Report No: IESL-89-03, Mass. Institute of Technology, Cambridge, MA.
• Tidd, J. Bessand and J. and Pavitt, K (1997). Managing Innovation: Integrating Technological, Market and Organizational Change, John Wiley & Sons, New York.
• Verspagen, B and Wakelin, k. (1997). Trade and Technology from a Schumpeterian Perspective, International Review of Applied Economics, Taylor and Francis Journals, vol. 11(2), pages 181-194.
• Vernon, R. (1966) International Investment and International trade in Product cycle m Quarterly, Journal of Economics May pp 199-207 (98)
• Wakelin, K. (1998). Innovation and export behaviour at the firm level. Research Policy, 26: 829–841.
• Wagner, J., (1995). Exports, Firm Size and Firm Dynamics. Small Business Economics 7, 29-39.
• Weick, K., E. and Quinn, r., E. (1999). Organizational Change and Development, Annual Review Psychology, vol. 50, 361-386.
• West, M.A. and Altink, W.M.M. (1996). Innovation at Work: Individual, Group, Organizational, and Socio-historical Perspectives, European Journal of Work and Organizational Psychology, vol. 5, no. 1, 3-11.
• Wilkinson T. G., Kedar G.C. , Lee C. , Guzma E. C., Smith D. W. and. Zyskind. J. W. (2006). The Synchrony Phenotype Persists after Elimination of Multiple
• Weerawardena,J.(2003),"Exploring the role of market learning capability in competitive strategy". European Journal of Marketing, 37(3/4), 30-407
• Wolter, F. (1977). Factor Proportions, Technology and West German Industry’s International Trade Patterns, Weltwirtschaftliches Archiv 113, 250-267.