Internationalization and Innovation Capabilities Determine Export Performance of Indian Auto Component Manufacturing Industry

Abstract

Purpose - This study is designed to explore whether international and innovation capabilities of auto components manufacturers has significant relationship with export performance or not. Design/methodology/approach- This study has used structured questionnaire and interview techniques with export managers of exporting firms to achieve its research objectives. It has employed descriptive research methods to assess its research framework. Linear regression analysis was uses to test the hypothesis formulated in the study. Findings- The findings revealed that, gathering export market information, capable of using export market information, role of export mode, relationships & networks, flexible to modify firm resource base, develop new service, technological up-gradation, in-house product designs, improvement in the existing products and re-align manufacturing system have found significant relationship with export performances of auto component manufacturing companies in India. Research limitations/implications - The results point out that researchers need to target more number of samples for the statistical testing to generalize findings.The study is confined to understand the export behavior of auto component manufacturing firms. Practical implications-This work has export policy implications for auto component manufacturing industry in India. Strategies are suggested for export oriented companies for contributing to export knowledge and implementing export marketing strategies in manufacturing industry. Social implications -Exporting of high-end and premium quality auto components enhances the performance of the vehicles leading to increased customer's social status, standard of living and vehicle safety in the foreign markets. Originality/value - Previous research on internationalisation and innovation capabilities and export performance have not been explored in detail. The present study adds the value with reference to export performance of auto component manufacturers with statistical evidences.