NEXUS OF SUSTAINABILITY, INNOVATION AND EXPORT PERFORMANCE: A STUDY OF BOI INDUSTRIAL EXPORTING FIRMS IN SRI LANKA

Abstract

Increasingly, market mechanism is employed in promoting sustainable development in most of the contexts, including in international trade. Main objective of this study is to examine the relationship between sustainability practices, innovation, and export performance among Sri Lankan industrial exporters operating in Export Processing Zones (EPZ). Employing a mixed-methods approach, data were collected from 80 industrial exporters in four key EPZ zones through structured interviews with a questionnaire while data were analyzed using descriptive and regression techniques. The results revealed a significantly positive relationship between overall sustainability and export performance as well as innovation, with economic sustainability practices demonstrating the most significant influence among each dimension of the sustainability to boost export performance while social sustainability practices enhance innovation at firm level. Findings provide valuable insights for policy makers as well as exporters to boost export performance by understanding the relationship among sustainability, innovation and export performance at firm level.