Firms In Vietnam Research Articles

COVID-19-related disclosures by listed firms in Vietnam

Purpose This paper aims to measure the COVID-19-related disclosure extent of listed firms in Vietnam and its associated factors. Design/methodology/approach The authors apply a previously developed reporting framework to evaluate the disclosures of 100 listed firms with the largest market capitalization on the Hanoi and Ho Chi Minh stock exchanges as of 31 December 2021. The disclosures were from integrated reports, annual reports, corporate governance reports and financial statements. The authors then used a regression model to examine the factors that influenced the disclosures, such as corporate governance, ownership concentration and firm profiles. Findings The research results reveal that the extent of COVID-19-related disclosure in Vietnam is relatively low. It also finds that the audit committee, firm size, age and industry are positively associated with the extent of COVID-19-related disclosure. Originality/value To the best of the authors’ knowledge, this study is the first to examine COVID-19-related disclosures of listed companies in Vietnam and their determinants. It contributes significantly to the empirical evidence in this field. The findings of this study can help corporate managers and policymakers to improve information disclosure practices during future financial crises.

Female CEOs and investment efficiency in the Vietnamese market

This paper proposes female CEOs’ overconfidence and risky behavior stem from gender stereotype threats. Using two subsamples from Vietnam—firms in the Northern and Southern regions—we empirically show that female CEOs in the North, where there is less gender stereotyping, tend to overinvest relative to male CEOs. However, in the South, they are indifferent. Additional analysis reinforces the main finding that female CEOs in the North tend to take more risks even when dealing with market volatility and uncertainty (e.g., the COVID-19 pandemic). Such risky behaviors do not deteriorate firm value but, instead, possibly improve firm performance.

Innovative Firm Performance Management Using a Recommendation System Based on Fuzzy Association Rules: The Case of Vietnam’s Apparel Small and Medium Enterprises

Purpose: This study aims to apply a classification algorithm based-on fuzzy association rules (FARs) to improve the effectiveness of firms' performance prediction problem. Particularly, this study investigates potential FARs exists between inputs and outputs of firms' performance management process. These extracted FARs could be used to help firm’s managers make better dicision to improve firm’s performance.
 
 Theoretical framework: Private enterprise development has been identified as key to Vietnam's economy that was commonly depended on state enterprise. For that, understanding and improving firms' performance and productivity is one of the most important tasks, from both macro and micro perspectives. There have been many studies on Vietnam's firm performance, but mostly relying on econometric methods that limit the understanding with structural equations. This study, instead, attempts to utilize new achievements of Artificial Intelligence (AI) for this task. Among AI techniques, fuzzy association rule is able to address the relationship between input factors and firm performance indicators. For each company, the finding FARs can be used to predict its performance and then change the business plan or react to improve weekness of organization.
 
 Design/Methodology/Approach: The proposal model is applied on data of small and medium-sized enterprises (SMEs) of the apparel industry in Vietnam in the period 2010-2015. The sample consist of a total of 23637 observation of Vietnam firms in apparel and textile industry and contains 16 main criterias for those firms.
 
 Finding: A recommendation system (RS) is constructed from disclosed FARs and is a key factor in a novel innovative firms' performance management process. The percentage of classified instances using the mining FARs is not quite high (about 82%), but it is not always the case. Vietnam’s apparel dataset includes rare classes of ROA, therefore applying only frequent FARs is not enough. This issue can be fixed by using both frequent and infrequent FARs. 
 
 Research, practical & social implications: The proposed model has a great opportunity to use not only in the small and medium-sized enterprises (SMEs) of the apparel industry but other industrial sectors. FARs support the well-understand of firm performance to firm’s manager and help them better to react. Besides, FARs could be used to create RSs that makes alerts about risk automatically.
 
 Originality/Value: The fact, our current study is the first to inspect the ability of FARs on SMEs of the apparel industry in Vietnam. This study provides theoritical potential knowledge and empirical evidence in the application of FARs technology in innovative firm’s management.

Does foreign direct investment benefit local firms? Evidence from a natural experiment study

AbstractWe examine the spillover effect of foreign direct investment (FDI) on domestic firms in Vietnam. We use distance between each district center and the 17th parallel north latitude as an instrumental variable for FDI firm density at the district level. The rationale for this instrument is that districts which are closer to the 17th parallel north latitude, are more likely to suffer from unexploded ordnance (UXO) from the Indochina wars and therefore attract fewer FDI firms. We find that 1% increase in FDI firm density leads to 0.2% increase in revenue and profit per employee of domestic firms. The main mechanism for this positive effect does not take place through technology spillovers but through backward linkages where domestic firms in districts with a higher FDI firm density have more FDI customers. Our study also shows the long‐term effect of war on the efficacy of domestic firms. In particular, 1% increase in the proportion of UXO‐contaminated areas reduces revenue and profit per employee of domestic firms by 0.28% and 0.29%, respectively.

Digitalization, inter-organizational collaboration, and technology transfer

In this study, we explore the impact of business process digitalization on technology transfer intensity through the mediating mechanism of inter-organizational collaboration. Using data collected from 211 firms in Vietnam, we find that: (1) digitalization positively influences inter-organizational collaboration, (2) inter-organization collaboration positively affects technology transfer intensity, (3) the effect of inter-organizational collaboration on technology transfer intensity is amplified when technology commercialization potential is high, and (4) the effect of digitalization on technology transfer intensity is mediated by inter-organizational collaboration. These findings suggest that technology commercialization potential is a critical moderating factor that needs to be considered in the context of technology transfer, and its interaction with inter-organizational collaboration should be carefully managed to maximize the benefits of technology transfer. The study provides practical implications for technology firms seeking to enhance their technology transfer outcomes.

Determinants of intangible capital investment in Vietnam: A firm‐level analysis

AbstractIntangible capital is an important growth driver in the modern knowledge‐based and innovation‐driven economy. While there seems to be sufficient support for the role of intangible capital from developed economies, evidence from fast‐growing developing countries is much more limited. This paper explores the heterogeneous pattern and potential determinants of firm‐level intangible capital investment in Vietnam. We found that firm size, human capital, and information and communication technology increase the likelihood to invest in intangible capital. Additionally, an inverted‐U shaped relation is identified between market competition and intangible capital investment: Moderate levels of market competition induce firms in Vietnam to invest more in innovative activities, but the effect of stronger competition diminishes.

Market risk, financial distress and firm performance in Vietnam.

In 2021, when the Covid-19 pandemic had a severe impact on the economy, a significant number of enterprises in Vietnam temporarily suspended doing business. Previous studies have focused on either model for predicting bankruptcy and financial distress or measuring market risk during extreme events. The effects of market risk and financial distress on a firm's performance have largely been ignored in the literature, particularly in Vietnam. This study examines the effects of market risk, measured using the conditional value-at-risk technique and financial distress proxied by the interest coverage ratio (ICR) on firm performance for 500 nonfinancial listed firms in Vietnam from 2012 to 2021. We also estimate the optimal ICR for Vietnam's listed firms. Two estimation techniques are used: dynamic panel models (two-step difference-and system-generalized method of moments) and panel threshold regression. We find that increased market risk reduces firm performance. However, a higher ICR (lower financial distress) also improves a firm's performance. With increased market risk, the financial performance of firms with a high ICR deteriorates significantly.

Innovation and the Sustainable Competitive Advantage of Young Firms: A Strategy Implementation Approach

This study examines the impact of innovation at the strategy level on innovation at the process and system levels, which are considered to be forms of function-level innovation, based on the strategy implantation approach. The study also reveals the effect of process and system innovation on the sustainable competitive advantage (SCA) of young firms in Vietnam. The research used primary data from a survey of 289 young firms’ leaders in Vietnam. PLS-SEM using SmartPLS software was employed to assess the ability of the measurement model and structural model to test hypotheses. The findings indicated that the four hypotheses about the effects of strategy innovation on process and system innovation and the effects of process and system innovation on the SCA of young firms in Vietnam were all confirmed. These crucial results fill the research gap of innovation in young firms, especially the gap in the context of developing countries. The current study addresses an important implication for the use of innovation practices in young firms to sustain the firm’s SCA. Accordingly, young firms are able to significantly strengthen their sustainable competitive advantage through innovation practices at both strategy and function levels.

Green Transformational Leadership and Green Mindfulness as Contributors to Green Innovation and Environmental Performance: Evidence From Manufacturing Firms in Vietnam

This paper explores whether green mindfulness is the motivation behind green innovation and whether this relationship is moderated by green transformational leadership. The paper also investigates the indirect influence of green mindfulness on environmental performance through the mediating mechanism of green innovation. The above goals are necessary to find solutions that meet environmental goals, especially in emerging countries such as Vietnam. Data was collected from an online survey of 278 managers in manufacturing firms in Vietnam and analyzed using SmartPLS software with the partial least squares structural equation modeling (PLS-SEM). The results showed that green mindfulness directly affects green innovation, which in turn, contributes positively to environmental performance. Green mindfulness also increases environmental performance through the mediating role of green innovation. Moreover, green transformational leadership moderates the effects of green mindfulness on green innovation. These results contribute to the ability to achieve environmental goals in manufacturing firms. The study shows the role of green mindfulness and green transformational leadership in promoting green innovation and environmental performance in manufacturing firms in emerging market contexts.

The effect of the relationship between integrating information systems and total quality management on company organizational performance in Vietnam

International competition has increased the importance of quality in the corporate world. The business world is more competitive than ever, with problems and pressure growing daily. Firms face challenges in maintaining and improving Organizational Performance (OP) as they strive to maintain competitive advantage. This difficulty could be convened using complete quality management principles (TQM). Numerous organizations have successfully implemented Total Quality Management using Information Systems (IS) (TQM). Many businesses have provided higher-quality goods and services because of information technology. Combining IS, and TQM is vital in increasing a company’s organizational performance. This study investigated the relationship between total quality management activities and information systems to improve organizational performance. Using 340 sample data from firms in Vietnam, the research model was constructed and evaluated to fit the Structural Equation Model analysis. The survey was carried out between March 1 and April 30, 2021. That is confirmed by the research, establishing future directions and consequences for theorists and practitioners. Quality management, information system, and organizational performance are key terms.

The Moderating Effects of State Ownership and Duality on the Relationship between Internationalisation and Firm Performance: A Case Study of Listed Firms in Vietnam

This study was aimed at assessing the moderating effects of state ownership and chief executive officer (CEO) duality on the relationship between internationalisation and the performance of listed firms in the Hanoi Stock Exchange (HNX). A detailed panel data set of listed firms between 2009 and 2018 was analysed and the ordinary least squares (OLS) results revealed that the performance of high internationalising firms with high state ownership was higher than that of those with low or non-state ownership. In contrast, the performance of high internationalising firms governed by CEO duality was lower than that of those without duality. The findings integrate the arguments of the resource-based view and the Uppsala model applied in the transition economy that suggest internationalising listed firms acquire certain benefits from the state, and the separation of the highest two positions in such firms facilitates the exact anticipation of uncertainties and risks in making business decisions.

Linking investment decisions-based on firm performance and open innovation practices in Vietnam’s wire and cable market using data envelopment analysis models

The wire and cable market has experienced a significant upsurge in demand, driven by its integration with industries such as electronics, telecommunications, infrastructure construction, and electronic equipment manufacturing. This study aims to investigate the linkages between investment decisions, open innovation practices, and firm performance in Vietnam's wire and cable market. In this study, Data Envelopment Analysis (DEA) models, specifically the super-slacks-based measures (Super-SBM) and the Malmquist index, were applied to evaluate the profitable efficiency, position, technical innovation, and technological innovation of the top ten wire and cable firms in Vietnam from 2017 to 2020. The main results revealed that EC-07 emerged as the most efficient firm in terms of overall efficiency, while EC-04 and EC-05 exhibited substantial potential for development. Moreover, the key findings identified a critical gap in the area of technical and technological innovation, which hampers the continuous advancement of technical capabilities and overall productivity improvement in this industry. Therefore, the outcomes of this study have practical implications for enterprises in Vietnam's wire and cable market, offering insights to improve their innovative skills, cost reduction efforts, and overall profitability. The study underscores the importance of integrating open innovation practices into investment decisions as a means to enhance business performance, including the enhancement of innovative capabilities, cost reduction, and profit maximization. Furthermore, the findings of this study provide valuable insights for policymakers and regulators, offering a deeper understanding of the influence of open innovation and investment decisions on Vietnam's economic development, particularly leveraging these insights to support the growth and development of Vietnam's wire and cable industry.

Stakeholder theory, risk-taking and firm performance

PurposeThis study, using stakeholder approach, aims to examine the impact of corporate governance and risk-taking on the performance of the top 100 nonfinancial listed firms in Vietnam from 2015 to 2019.Design/methodology/approachThe theoretical and empirical studies are reviewed for rational hypotheses development. Firm performance is represented by return on assets, return on equity and Tobin’s Q.FindingsSpecifically, concentrated ownership structure, large workforce, being a great workplace, quick sales growth, high receivables turnover, being funded by both the state and foreigners and high-risk exposure positively affect firm performance. However, a high level of state ownership or foreign ownership, more independent members on board, large board size and chief executive officer (CEO) duality show an inverse effect. Besides, an inverted U-shaped relationship with firm performance is recognized for liquidity ratios.Originality/valueThis study uses three triangles, including governance, risk, and performance. The paper offers some evidence-based recommendations to improve firm performance in Vietnamese businesses.

Does the income of the chief executive officer affect the quality of corporate financial statements? An evidence from industrial firms in Vietnam

Research aims: This study examines the relationship between the CEOs’ income and the quality of financial statements of industrial firms listed on the Ho Chi Minh Stock Exchange (HSX) during the three years from 2018 to 2020.Design/Methodology/Approach: This study investigated the influence of CEOs’ characteristics, particularly their income, on the quality of financial statements of listed firms in the Vietnamese industry by using features of information quality proposed by the International Accounting Standards Board (IASB). Ordinary Least Squares (OLS), Random Effects model (REM), Fixed Effects model (FEM), and Feasible Generalized Least Squares (FGLS) regressions were applied for empirical examinations.Research findings: The results of this study demonstrated that a CEO’s income positively affected the quality of corporate financial statements. Additionally, the analysis results confirmed the positive correlation between the firm’s size and the quality of disclosed reports, consistent with prior studies. However, this study uncovered that Big4 auditors did not influence the quality of financial statements.Theoretical contribution/Originality: This study contributes to the literature by providing a comprehensive perspective on the assessment of corporate financial statements quality and examining its association with the CEO’s income in the context of an emerging economy.Practitioner/Policy implication: The study is useful for investors and other financial statement users to assess the quality of corporate financial statements through the CEO’s profile; it also contributes as a scientific basis for firms to adjust the compensations offered to their CEOs.Research limitation: This study was limited by looking at the mono-directional impact of the CEO’s income on the financial statement quality. The following studies need a larger sample of industries and countries to strengthen the research findings. Also, further studies can broaden their perspectives to investigate the multidimensionality of this relation.

Influencing of Enterprise Structure on Internal Control: The Case of Aquaculture Firms in Vietnam

Internal control is designed for preventing potential risks, protecting assets and corporate information. Therefore, internal control is an indispensable management tool in the enterprise. This study is conducted to provide empirical evidence on the influencing of enterprise structure on internal control of aquaculture firms in Vietnam. The research sample covers 225 participants who working for aquaculture firms in Vietnam in the period of 2022. We used fix research method (quantitative and qualitative research method) through the SPSS software to analyse. The descriptive statistics, Cronbach's Alpha, EFA and correlation analysis results suggest that enterprise structure influence on internal control of aquaculture firms in Vietnam. Based on the research findings, the study offers a number of implications for aquaculture firms in Vietnam.

Servitization and Performance in Manufacturing Firms: The Mediating Role of Radicalness

Drawing on the knowledge-based view and insights from a literature review, the author built up a conceptual framework aiming at investigating the complex relationships between three learning processes and servitization and, more importantly, the interplay between servitization, radicalness, and firm performance. This conceptual framework was tested using data gathered from senior managers of manufacturing firms in Vietnam. PLS-SEM was utilized to analyze the measurement and structural models. The results illustrate that exploitative learning has a positive impact on servitization. Additionally, servitization was found to influence firm performance through radicalness. To that end, manufacturing firms are encouraged to develop an acceptable level of exploratory learning and a significant level of exploitative learning to facilitate servitization. Particularly, servitization was found to be a promising strategy for manufacturing firms in developing countries and could help these manufacturing firms obtain substantial benefits. Given that manufacturing firms in developing countries normally lack critical resources and capabilities, servitization has an even more critical role to play in bringing about a competitive advantage. Managers in manufacturing firms should also offer a variety of integrated services because these services could bring firms novel ideas for innovations that can result in considerable competitive advantage.

Influencing of Enterprise Structure on Internal Control: The Case of Aquaculture Firms in Vietnam

Influencing of Enterprise Structure on Internal Control: The Case of Aquaculture Firms in Vietnam

How does high-performance work system influence employees' creativity? The role of critical reflection and human resource management attribution

PurposeHigh-performance work system (HPWS) is considered a solid predictor of both organizational and individual outcomes. The current study examines the impact of employees' perception of HPWS and supervisor-rated employee creativity (EC). Critical reflection is hypothesized as a mediator of the above relationship. Human resource management (HRM) attribution moderates the indirect relationship between HPWS and EC and completes a moderated mediation model.Design/methodology/approachA quantitative research design is adopted with data collected from 531 employees and their direct supervisors from 12 firms in Vietnam. Partial least square structural equation modelling is used to test the hypotheses.FindingsEmployees' perception of HPWS is significantly associated with supervisor-rated creativity. Critical reflection has been found to partially mediate the above relationship. In addition, employees' exploiting attribution of HPWS intensifies the positive relationship between HPWS and critical reflection.Research limitations/implicationsThe research suggests that HPWS can be viewed from both the bright and dark sides. The resource offered by HPWS goes hand in hand with pressure from high-performance expectations. Employees may need to engage in a resource investment decision to avoid net resource loss. In addition, attention should be paid to employees' perception of the justification for HPWS implementation.Originality/valueThis study offers an alternative way to explain the association between HPWS and employee creativity. Based on the Conservation of Resource Theory, employee creativity is viewed as a stress coping strategy with HPWS conceptualized as a stressor. In addition, the mediating role of critical reflection represents a novelty. Furthermore, the role of HRM attributions is explained.

Risk in sustainable construction supply chains: construct development and measurement validation

Although previous studies have focused on different aspects of green/sustainability risk in construction supply chains (SCs) such as identification of risks or the linkage between characteristics of stakeholders and risk assessment, research on this topic is still quite limited. One important reason for this limitation is the absence of valid and reliable measurement of risk, resulting in the impossibility to discriminate between risk constructs. Therefore, the current study is performed to develop and then validate a measurement scale of risk in sustainable construction SCs. The data are collected from a large-scale survey supported by the Japanese government to promote sustainable socioeconomic development for the ASEAN (Association of Southeast Asian Nations) region, with the participation of 283 firms in Vietnam. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) are used to test the reliability, convergent validity, and discriminant validity of the risk constructs. The results indicate that all tests strongly support the measurement scale, and seven reliable risk constructs are identified including supply, demand, internal processes, information, financial, time, and environmental risks. This study also presents opportunities for further developing research on risk management (especially the three phases: risk assessment, risk mitigation, and risk monitoring) in sustainable construction SCs.

Factors affecting applied perception and applicability of fair value accounting: The case of construction firms in Vietnam

This study determines and measures the factors affecting the perception and applicability of fair value accounting by related personnel in enterprises, including business owners, managers, accountants, and internal auditors. At the same time, it analyzes the relationship between applied perception and the applicability of fair value accounting. 808 respondents, working in 350 construction enterprises in Vietnam, participated in the survey. This study combines qualitative and quantitative methods using SPSS and AMOS 20 with different techniques and structural equation modeling. The study results show that the applied perception significantly affects the applicability of fair value accounting at construction enterprises in Vietnam. Besides, eight different factors influence the applied perception of fair value accounting. Notably, six factors positively influenced the applied perception, including usefulness, reliability, cost-benefit relationship, size of the enterprise, qualification of accountants, and independent auditors. In contrast, two factors, legal matters and tax pressure, negatively affected the applied perception. This study suggests that managers of Vietnam’s construction enterprises develop solutions to improve the applied perception and applicability of fair value accounting, thereby perfecting the system accounting and improving business performance. AcknowledgmentThis study is conducted within the framework of the doctoral project subject to Decision No. 1407/QD-ĐHDT dated May 22, 2020, Duy Tan University, Vietnam. The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.