The effects of strategy and market orientation on the performance of Vietnamese startups

Hoang Van Hai,Pham Thi Thu Hien,Truong Duc Thao,Nguyen Duc Xuan

doi:10.5267/j.msl.2020.11.004

Hoang Van Hai, Pham Thi Thu Hien + Show 2 more

Open Access

https://doi.org/10.5267/j.msl.2020.11.004

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Abstract

This study is based on the results of a survey of 518 start-ups in Vietnam during the period of establishment from 2016 to 2018. Data collection lasted from November 2019 to May 2020, interrupted by Covid-19 translation and collected data were processed on SPSS20 and AMOS24 software, model estimation and hypothesis testing using linear structural equations (SEM). The research results show that business strategy and market-oriented factors had positive impacts on the performance of Vietnamese startups. However, no regulatory relationship of business strategy has been found that affects the impact relationship of market orientation with business performance. In addition, the study also found that, in current context, startups pursuing defensive strategies have more success than firms pursuing pioneering strategies and startups in the field. Trade / services are more likely to succeed than in agriculture and industry.

Highlights

According to the General Statistics Office of Vietnam, in 2017 there were a total of 561,064 enterprises, of which more than 90% were SMEs, positively impacting the startup movement launched by the Government of Vietnam, among 5 in the first month of 2018, there were 52,322 newly established enterprises, with the registered capital of 516,859 billion VND, the number of enterprises returning to operation was 13,267 enterprises
The impact of the business strategy, market orientation on the performance of Vietnamese startups has the model's estimated results for R2 = 0.709, which means 70.9% of the change the performance of Vietnamese start-ups is influenced by the business strategy and market orientation of the business
From the estimation results of the research subject, we give the following comments: First, Market orientation has a positive impact on the performance of Vietnamese startups, in which the strongest impact is customer orientation with a standardized Beta of 0.512 and at significance over 99% (P_value = 0.000); second is competitor orientation with standardized Beta of 0.170 and over 99% significance level (P_value = 0.000); and the third is the crossfunctional collaboration with standardized Beta of 0.143 and at significance level above 99% (P_value = 0.000)

Summary

Introduction

According to the General Statistics Office of Vietnam, in 2017 there were a total of 561,064 enterprises, of which more than 90% were SMEs, positively impacting the startup movement launched by the Government of Vietnam, among 5 in the first month of 2018, there were 52,322 newly established enterprises, with the registered capital of 516,859 billion VND, the number of enterprises returning to operation was 13,267 enterprises This is a great effort of the business community and society; the number of enterprises that registered to suspend operations for a definite period was 15,974 and enterprises that suspended operations without registration or awaiting dissolution were 17,425 enterprises (National Business Registration Portal). This study is conducted to examine the impact of business strategy and market orientation on the success or failure of Vietnamese startups

Results

Discussion

Conclusion