Medium-sized Enterprises In Vietnam Research Articles

The impact of FDI on R&D investment of small and medium-sized enterprises in Vietnam: The role of institutions

This paper investigates how the quality of the local institutional environment affects the impact of foreign direct investment (FDI) on R&D investment of domestic small and medium-sized enterprises (SMEs) in Vietnam. By analysing data of 2690 manufacturing SMEs in 2011, 2013 and 2015, we find that FDI presence hinders R&D activities of domestic SMEs, probably due to SMEs' low absorptive capacity, large technological gap, lack of economies of scale and low market power. However, institutions positively moderate the relationship, that is better institutions mitigate the negative impacts of FDI on R&D investment of domestic SMEs. When the quality of local institutions improves beyond a certain minimum level, FDI exerts positive spillovers that encourage R&D activities of domestic SMEs. Our hypothesis suggests that institutions can moderate FDI spillovers to SMEs' R&D by promoting the foreign investors' incentive and ability to create technological spillovers, mitigating FDI crowding-out effects, enhancing domestic SMEs' absorptive capacity, and facilitating interaction and knowledge sharing in the local business environment. We also find that the institutional moderating effect is less pronounced for FDI originating from countries with lower institutional quality compared to that from countries with higher institutional quality. This suggests that multinational enterprises (MNEs) in the former group may be more susceptible to institutional impacts due to their unfamiliarity with institutional obstacles in the host economy. Our study highlights the importance of institutions to researchers who explore the relationship between FDI and domestic firms’ R&D investment and to policymakers in emerging economies where FDI inflows and domestic SMEs play a pivotal role.

Constructing a resilience measurement model for small and medium-sized enterprises in Vietnam: A PLS-SEM approach

Small and medium-sized enterprises (SMEs) constitute around 97% of the total number of businesses in Vietnam, which contributes to 60% of the national growth. In a dynamic and uncertain business environment, both domestically and internationally, the resilience of SMEs has become a topic of significant interest among researchers and practitioners. Resilience, however, is a multifaceted concept that depends on the specific context in which it is applied. Therefore, this study aims to construct a measurement model for assessing the resilience of SMEs in Vietnam. Drawing from a dataset collected from 500 SMEs and employing the PLS-SEM technique. the findings of this research indicate that the resilience index is a combination of reflective and formative models. Resilience at level three is a formative construct comprising four prioritized components: agility, anticipatory capability, flexibility, and adaptability. The reflective measurement model of agility, anticipation, flexibility, and adaptability confirms its reliability and validity. These findings form the basis for the effective allocation of resources to enhance resilience within SMEs. Understanding the nuanced aspects of resilience can benefit in developing targeted strategies to bolster SMEs against the challenges posed by an ever-changing business landscape.

Optimization Combining with Digital Transformation of the Men's Shirts Processing at Small and Medium-Sized Garment Enterprises in Vietnam

Industry 4.0 has become a hype among the manufacturing industries across the globe. Recent developments require significant capital investments, but these technologies are yet to be established in developing countries such as Vietnam, especially the apparel industry. Based on a survey of the current situation at small and medium-sized enterprises in Vietnam's textile industry, the paper proposes to apply technology, test and evaluate the effectiveness of applying and coordinating digital systems in management and chain supply. Multifaceted applications have been specifically explored including automatic equipment and digital systems, spanning the domains of automation, robotics, artificial intelligence, data analytics, and the Internet of Things (IoT). These technologies are posited as catalysts for transformative improvements in production efficiency and resource utilization. Furthermore, experimental results point out the symbiotic relationship between technology adoption and effective management strategies to achieve holistic operational enhancements. As the Vietnamese textile industry strives for competitive excellence in the global arena, this research offers actionable insights for industry practitioners, policymakers, and researchers.

Empirical Study of Sustainable E-Commerce Adoption by Small and Medium-Sized Enterprises in Vietnam

E-commerce has been adopted by businesses and consumers in Vietnam for consumption activities, profit-seeking, buying and selling goods, conducting business, competing, and expanding markets. Businesses have chosen e-commerce due to its benefits, the trend of applying digital technology, and the ongoing modern business environment. Many previous studies have identified factors influencing the acceptance of e-commerce, but only some studies have approached sustainable e-commerce. Developing sustainable e-commerce requires businesses to invest more money and technology in business processes, which consumers may only sometimes accept. This article applies the TOE framework to identify factors influencing the acceptance of sustainable e-commerce by measuring the importance coefficient of these factors. The research results reflect changes in the factors affecting the acceptance of sustainable e-commerce. The study also provides recommendations for stakeholders involved in developing sustainable e-commerce.

An Administrative Support System for Digital Transformation of Small and Medium-Sized Enterprises in Vietnam

Abstract Digital transformation (DX) is complex with many automated parts, underlying integrations and processes that need to fit all together. Tools to support the management of DX activities are, therefore, crucial for every business. However, there are just a few of such tools available these days that can help businesses with the DX management both effectively and comprehensively, but none of them was designed particularly for small- and medium-size enterprises (SMEs) of Vietnam. In this study, we will conduct an overview of recent studies on DX, methods and models for SMEs, and relevant research works regarding information support systems for the management of DX for SMEs. We then propose a novel administrative support system that not only addresses the shortcomings of the current state-of-the-art DX management systems but also meets the requirements of DX for SMEs in Vietnam. In addition to the system design and development, we also implement and benchmark the software product at 11 SMEs in Vietnam (and some results if any).

Determinants of employee digital transformation readiness and job performance: A case of SMEs in Vietnam

The subject of stimulating employees toward digital transformation has always been one of the most significant topics, attracting the interests of scientists and decision-makers. This study analyzes the impact of critical factors, including self-efficacy, attitude, leadership, and employee characteristics on employee readiness for digital transformation and job performance. The variables were selected based on the extended theory of planned behavior and personal resource adaption models. To achieve the research objective, partial least squares structural equation modeling was employed. Data were collected from a survey of 302 employees of SMEs in Vietnam. Research findings showed that employees attitude (β = 0.1148; p < 0.05), self-efficacy (β = 0.3737; p < 0.05), and characteristics (β = 0.3328; p < 0.05) affected their readiness for digital transformation. Employees self-efficacy and characteristics also demonstrated direct impacts on job performance. Meanwhile, leadership showed no direct impact (p = 0.6430) but an indirect impact on job performance through readiness (β = 0.1360, p < 0.05). Additionally, among the factors, employee readiness is the most substantial predictor of job performance (β = 0.5152). The findings can benefit Vietnamese SME managers and policymakers, as they can better understand employees and develop effective strategies and measures to promote employee readiness and job performance in a digital transformation context. AcknowledgmentThis article is a scientific product of the ministry-level project “Research on factors affecting digital transformation of small and medium-sized enterprises in Vietnam”, code B2022-BKA-22, funded by the Ministry of Education and Training of Vietnam.

A strategy tripod perspective on digitalization for sustainable development: a case of micro, small, and medium-sized enterprises in Vietnam

In the ever-changing global environment, Micro, Small, and Medium Enterprises (MSMEs) face unique and formidable challenges, particularly in the wake of the pandemic. With their dependence on personal interactions and limited resources, along with a lack of digitalization, technology adoption, and online presence, MSMEs are at a high risk of survival. To overcome these operational and supply chain obstacles, MSMEs must embrace digitalization. However, weak institutional foundations, industry-specific issues, and resource-based costs in developing countries, particularly Vietnam, have hindered their adoption. This research study aims to examine the intricate relationship between strategy tripods, digitalization, and firm performance in the context of Vietnamese MSMEs. This study employs structural equation modeling to rigorously test the proposed hypotheses, drawing upon a researcher-designed survey administered to 382 MSMEs. The findings provide valuable insights into the barriers that hinder digitalization adoption in developing countries, emphasizing the crucial roles of government support, knowledge creation and absorption, and competitive intensity. Moreover, the study uncovers the positive impact of firm engagement in digitalization on post-digitalization performance. By contributing to a deeper understanding of the implications of strategy tripods and digitalization for MSME performance in Vietnam, this research offers actionable insights for policymakers and facilitates the development of effective training programs tailored towards digitalization, ultimately fostering sustainable outcomes.

Do innovation and proactiveness impact the business performance of women-owned small and medium-scale enterprises in Vietnam? A study using the PLS-SEM approach

Purpose: This study aims to identify and evaluate the relationship between factors and the business performance of women-owned small and medium enterprises (SMEs) in Vietnam focusing on the dimensions of entrepreneurial orientation factors such as innovation, risk-taking and proactiveness.
 Design/Methodology/Approach: Data were obtained from 350 female entrepreneurs of SMEs in Vietnam using a structured questionnaire. The partial least squares structural equation modeling method (PLS-SEM) was applied to find the cause-and-effect relationship between exogenous and endogenous variables.
 Findings: The results show that the business capacity of business owners, the quality of human resources, access to finance, social capital, entrepreneurial orientation and government policies positively impact the enterprise's business performance. The relationship between the three dimensions of entrepreneurial orientation and business performance is examined. In detail, proactiveness and innovation have a positive relationship while risk-taking negatively affects the business performance of women-owned SMEs.
 Conclusion: The study has shown the factors affecting the business performance of women-owned small and medium-sized enterprises in Vietnam and at the same time proved that EO is a multidimensional concept when the dimensions of EO tend to have different effects on business performance.
 Research Limitations and Implications: The research may lack a comparison in the field of SMEs to deeply understand the cause-and-effect relationship between exogenous and endogenous variables. Therefore, researchers are encouraged to test the proposed propositions further.
 Practical Implications: Research results provide insight for businesses, state management agencies, credit institutions and associations on policy-making and appropriate solutions to support and develop the enterprise.
 Contribution to Literature: The important impact of proactiveness and innovation on SMEs' business performance opens a new door to more research in business orientation.

Technological Readiness, Innovation, Entrepreneurship: Three Key Elements of Increasing the Competitiveness of Small and Medium-Sized Enterprises in Vietnam

"The purpose of the research is to analyze the factors and features that influence the development of the business environment in Vietnam, taking into account the technological readiness of higher educational institutions. The following methods were used to achieve research goals: descriptive, survey, comparative. The results of the paper determined that entrepreneurship training lies not only in improving the abilities and characteristics of students, forming the structure of the training program, communication system, startup and entrepreneurial ecosystem, but also in forming the structure of the technological readiness of the business. Technological readiness, innovation and entrepreneurship are the three key pillars of increasing the competitiveness of enterprises, which must necessarily be initiated by universities. It was determined that in the conditions of low innovation speed of the economy, the considered aspects of increasing the competitiveness of experts in the subject area require, first of all, the joint participation of the state and local authorities to accelerate innovative elements. The Vietnamese government needs to properly balance the modern trends of enterprises and the state as a whole in order to rationally organize the management of small and medium-sized enterprises, starting with higher educational institutions."

On the revision of detecting learning-by-exporting: empirical evidence from the small- and medium-sized enterprises in Vietnam

This study aims to identify the role of exports in improving the productivity of small- and medium-sized enterprises (SMEs) in Vietnam. We exploit the firm-level panel dataset from the Vietnam SME Survey between 2009 and 2014. This remarkable period occurred two years after Vietnam’s accession to the World Trade Organization. Hence, for the first time, the learning-by-exporting hypothesis was tested for a case study of SMEs in developing countries in the context of international trade integration, such as Vietnam. By applying the propensity score matching method, our results are as follows. First, we find strong evidence that SMEs in Vietnam could improve their productivity when exporting during the studied period. Second, exports have a significant impact on the productivity of SMEs in non-municipal areas of Vietnam. Based on these findings, policy recommendations are suggested for stimulating the productivity of SMEs in developing countries. In particular, SMEs in non-municipal provinces might need more favorable policies to boost export activities.

Investigating SME’s credit constraints: a trinary approach

This study aims to provide an understanding of factors that might affect three-level credit constraints of small and medium-sized enterprises (SMEs) in Vietnam, using data from the Vietnam’s Manufacturing SME Survey database. We apply a random-effects generalised ordered probit model to accommodate two types of heterogeneity: unobserved individual heterogeneity and the heterogeneous effect of independent variables across three constraint categories. Results show that several firm and owner characteristics are in play. Several of these are indeed heterogeneous, such as varying across constraint categories, a new finding in the literature. A key contribution of this study is the use of a trinary rather than the usual binary approach to measure and more fully understand determinants of credit constraints in the case of small and medium-sized enterprises in Vietnam.

Towards an economic recovery after the COVID-19 pandemic: empirical study on electronic commerce adoption by small and medium-sized enterprises in Vietnam

Abstract The COVID-19 outbreak has created a severe crisis for the general economic situation. Despite the short duration of the pandemic, many innovations are implemented for organizational survival and recovery in the competitive market environment of digital age. This paper aims to find out significant factors and how they impact on E-commerce adoption by small and medium-sized enterprises in Vietnam, especially during the epidemic. The results reveal that technology perceived compatibility has the greatest effect on E-commerce adoption, followed by management support and external pressure. Moreover, external support only has minor impact on E-commerce adoption during the Covid-19. Meaningfully, this study makes a contribution to both innovation literature and practical management with new insight of current Vietnamese situation for small and medium-sized organizations.

The impact of financing role and organizational culture in small and medium enterprises: Developing business strategies for economic recovery

This study’s objective is to observe and assess the relationship between the performance of small and medium enterprises and total quality management. In particular, it examines whether the effectiveness link between total quality management and SMEs is impacted by organizational culture. The owners and managers of small and medium-sized enterprises in Vietnam’s South-West area were surveyed using a self-administered questionnaire. Measurable findings contribute to the literature by indicating that total quality management and organizational culture directly influence the performance of small and medium enterprises. And also a crucial and positive anomalous impact on small and medium-scale enterprises’ performance via total quality management. The statistical cross-sectional research design examined a case study of a small business that had been put together. As a follow-up study, extra data might be examined using subjective or methodological approaches. The investigation’s findings shed light on small and medium enterprises’ owners–managers in today’s unique industrial environment, focusing on total quality management to increase productivity. Small and medium-sized enterprises may benefit from the findings by receiving guidance on organizational culture, which has an influence on the efficient implementation of total quality management, hence increasing performance.

Impact of Organisational Factors on the Circular Economy Practices and Sustainable Performance of Small and Medium-sized Enterprises in Vietnam

Internal organisational factors have been identified as barriers to adopt circular economy (CE) practices in prior research. However, empirical evidence is limited to support this claim. Additionally, their impact on sustainable business performance, especially for the emerging economies and within the small and medium sized enterprises (SMEs) have not been studied adequately. This research bridges these knowledge gaps drawing on from CE, human resource management, innovation and sustainability literature to develop and validate a theoretical model that examines the relationships between organisational factors (leadership, innovation, culture, and skills) and their impact on adopting CE practices to enhance sustainable performance of SMEs. A survey was conducted among 205 SMEs’ employees in Vietnam, and responses were analysed using employing Structural Equation Modelling. Our findings reveal that organisational leadership will facilitate developing the culture and innovation capability to adopt CE practices through a ‘hub and spoke’ strategy for enhancing sustainable performance among the SMEs in Vietnam. In this vein, we recommend creating knowledge sharing strategies, collaborative and cooperative CE working groups within and between SMEs, and information systems capabilities to build sustainable business organisations.

Do business linkages play a role in upgrading workers’ skills among small and medium-sized enterprises in Vietnam?

Business linkages are of interests to many firms as they can have positive impacts on firms’ performance. Nevertheless, there have been few studies on possible influence of business linkages on motivation to upgrade workers’ skills among small- and medium-sized enterprises (SMEs). Applying a Probit estimation model with Fixed-Effects techniques for panel data with a sample covering more than 6,000 observations of SMEs from Vietnam, the study provides key findings. First of all, the increase in the number of business linkages helps SMEs to upgrade workers’ skills by reducing the percentage of unskilled workers. Secondly, the rise in workers’ skills increases the probability that SMEs train their existing workers, but not new workers. Finally, the increase in firm size plays an important role for SMEs in Vietnam to upgrade their workers’ skills.

Digital transformation barriers for small and medium enterprises in Vietnam today

This article studies the digital transformation barriers for small and medium enterprises (SMEs) in Vietnam today. To carry out the study, we conducts a survey on small and medium-sized enterprises in Vietnam, then uses the SEM model to analyze the collected data. Our research results show that three main resources (including IT, human resources and business strategy) have a positive impact on the digital transformation of SMEs; however, these factors are the barriers to the digital transformation of these enterprises. In addition, digital transformation has a positive impact on the business results of SMEs. From there, the article proposes some recommendations to small and medium enterprises, business associations and state agencies for the success of the digital transformation.

Local business environment, managerial expertise and tax corruption of small- and medium-sized enterprises

ABSTRACT While tax corruption is widespread in many countries with inferior business environments, it is unclear how the characteristics of taxpayers influence their tax behaviour. This study investigates the impact of manager expertise on firms’ tax corruption in a transition economy. Using a longitudinal dataset consisting of small- and medium-sized enterprises in Vietnam over the period from 2005 to 2015, we find that firms which are managed by more able managers are more likely to engage in tax corruption and are willing to offer higher amounts of bribe payments. We also find that improving the quality of the local business environment is associated with lower tax corruption. When the quality of the local business environment is improved, managers with greater knowledge of existing laws and regulations, and more working experience, engage less in tax corruption. Our findings imply that improving the quality of the local business environment is important for reducing tax corruption in transition economies.

A study on financial performance of Small and medium-sized enterprises in Vietnam

A study on financial performance of Small and medium-sized enterprises in Vietnam

Economic agglomeration and technical efficiency of small and medium-sized enterprises: evidence from Vietnam

This article invests in analyzing the impact of economic agglomeration on the technical efficiency of small and medium-sized enterprises: evidence from Vietnam. The stochastic frontier analysis and the general method of moments were employed to analyze data collected from the enterprise surveys of the General Statistics Office of Vietnam in the period 2013–2016. The research results show that technical efficiency and economic agglomeration tend to increase in Vietnamese small and medium-sized enterprises. Moreover, the economic agglomeration contributes positively to the increase in technical efficiency, while the upstream economic agglomeration has not made a clear contribution to the technical efficiency of small and medium-sized enterprises in Vietnam. At the same time, factors such as cost management effectiveness, firm age, and export activities play an active role in improving technical efficiency for Vietnamese small and medium-sized enterprises.

The role of transformational leadership in facilitating internal resources to create competitive advantage for small and medium-sized enterprises in Vietnam

Transformational leadership plays an essential role in establishing a vision and creating a favourable climate for employee innovation and enhancing competition. This paper aims to identify the role of transformational leadership in facilitating internal resources to generate a competitive advantage for small and medium-sized enterprises in Vietnam. To test the research hypotheses, structural equation modelling is applied to survey data collected from 315 managers using the snowball sampling method. The findings reveal the positive and direct influences of entrepreneurial orientation and transformational leadership on organisational learning. In addition, information technology has a direct impact on knowledge management and organisational learning with knowledge management positively influencing organisational innovation. Meanwhile, organisational learning and knowledge management facilitate organisational innovation to create competitive advantage. The results also illustrate that transformational leadership does not directly stimulate entrepreneurial orientation, knowledge management and organisational innovation but indirectly fosters organisational innovation through organisational learning. Some managerial implications for how managers can utilise internal resources to gain competitive advantage are proposed. The paper also points out some limitations and suggests directions for future research.