Abstract

Under the context of globalization and international economic integration today, Vietnam enterprises’ existence and development depends on competitive advantage. Technological innovation capabilities (TICs) are the fundamental supports and decisive factors of competitive advantage, the modern enterprise's existence and development depend on the knowledge and technology's innovation and application. Researchers widely recognized that TICs are still limited in Vietnam. Hence, enterprises are required to invest TICs in order to survive and achieve a goal for global market. However, while many assume that the relationship between investment capability and TICs is not clear how investment capability affects TICs, or how to what this relationship affect competitive performance of firm. Therefore, the main of objective of this present study is to understand the way in which investment capability (IT) of the industry on TICs at the level of its firm, affects the efficiency and the potential of Vietnam enterprises that have to gain their competitive advantage. Based on a survey of manufacturing firms in Vietnam, the study identified that Vietnam enterprise are required to invest to enhance seven dimensions of TICs - learning, R&D, resource allocation, manufacturing, market, organizational, and strategic planning capabilities. Moreover, the research utilizes a regression analysis to demonstrate that investment capability can lead directly competitive performance through TICs.

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