The Influence of Environmental Commitment and Innovation on Export Intensity: Firm-Level Evidence from Tunisia

This study utilizes structural equation modeling (SEM) to analyze the extent to which environmental commitment and innovation increase the export intensity of Tunisian firms. Relying on firm-level data from the World Bank Enterprise Survey conducted in 2020, we empirically test how environmental commitment increases export intensity through innovation. This study distinguishes between two types of innovation; product innovation and process innovation. We show that environmental commitment is useful in stimulating both product and process innovation. We find that environmental commitment and product innovation drive exports. Yet, process innovation does not affect exports. Moreover, our results highlight that quality certification interacts with the relationship between environmental commitment and process innovation. The results can help decision-makers understand how environmental commitment represents an important strategy for companies to be more innovative and oriented towards export