Factors influencing innovation and operating performance in power distribution companies

Abstract

In the Vietnam economy, power distribution companies play a very important role and are responsible for distributing electricity to all consumers in Vietnam. This research analysed factors influencing management innovation and operating performance in this type of company. In this study, we tested 14 hypotheses using data collected from 130 top managers and other key personnel from power distribution companies in Vietnam. The data had been analysed using the exploratory factor analysis and PLS-SEM approach. The results confirm that organisational learning, workforce capability, and network involvement have positive influences on management innovation. Among these factors, network involvement has the highest impact. The study also shows the important roles of intra-organisational antecedents to mediate the relationships between top management support, network involvement and management innovation. A surprising result is that management innovation does not have a direct impact on operating performance, but shows an indirect influence through technological innovation.