The Influence of New Product Factors on Export Propensity and Performance: An Empirical Analysis

Abstract

This study investigates the unique role of new product factors in the firm's propensity to export and its performance in exporting new products. Results from a sample of Australian firms show that product advantage, proficiency of pre development activities, and international orientation of the development process have significant positive influence on the firm's propensity to export new products. Further, the new product's domestic market performance and its impact on the sales and profitability of other products of the firm are significantly related to its export performance. A noteworthy finding is that firm factors overwhelm new product factors in explaining export performance of new products. Managerial implications of the findings are explored.