Abstract
This study examines the effects of entrepreneurial orientation, social media, and managerial ties on the business performance of small and medium-sized enterprises (SMEs) in Vietnam. In addition, the mediating effects of social media and managerial ties on the causal relationship between entrepreneurial orientation and firm performance is investigated. A total of 180 senior managers of SMEs were collected for data analysis by using partial least squares structural equation modeling. The results reveal that entrepreneurial orientation strongly enhances social media and managerial ties, which are determinants of business performance. Specifically, entrepreneurial orientation has no direct impact on firm performance; but the mediating effects were confirmed. Based on the results, our study highlights some theoretical contributions and suggests practical implications for practitioners in Vietnamese SMEs to improve firm performance effectively and efficiently.
Highlights
Small and medium-sized enterprises (SMEs) are critical components of many countries around the world
This study examines the effects of entrepreneurial orientation, social media, and managerial ties on the business performance of small and medium-sized enterprises (SMEs) in Vietnam
The results reveal that entrepreneurial orientation strongly enhances social media and managerial ties, which are determinants of business performance
Summary
Small and medium-sized enterprises (SMEs) are critical components of many countries around the world. This is due to their contribution to employment generation as well as regional growth and innovation (Wardati & Mahendrawathi, 2019). They account for around 90% of enterprises and over 50% of employment in developing nations, and they contribute up to 40% of gross domestic product (GDP) (World Bank, 2020). In terms of employment creation, sustainable economic development, resource allocation, export expansion, equal income distribution, and support for regional development, SMEs play a critical role in the economy. SMEs in Vietnam continue to encounter numerous problems that result in poor performance and slow long-term economic development. With a predominantly collectivist Eastern culture and the second largest transitional economy in Asia after China, Vietnam is one of the under-researched economies in terms of entrepreneurial performance (De Jong, Tu, & Van Ees, 2012)
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