Impact of innovativeness on business performance of Japanese firms in Vietnam

Abstract

Innovativeness is usually considered to be the key to the survival and development of firms in the context of increasing competition in the global market. However, studies on the link between innovativeness and business performance of firms have not been studied much in Vietnam. Therefore, the research aims to identify and assess the impact of innovativeness on four perspectives in balanced scorecard including customers, finance, internal processes, employee learning and growth. Results from 144 responses out of 670 surveys on Japanese firms investing in Vietnam showed that innovativeness has a significant impact on business performance in both financial and non-financial aspects. Additionally, improving non-financial performance also has a positive impact on financial performance in firms. This conjointly implies that in the context of the increasingly spirited market as it is today to survive and develop in the long run, firms need to specialise in improving innovativeness to extend business performance efficiency.