Performance In Vietnam Research Articles

Exploring the impact of social capital on business performance: The role of dynamic capabilities, open innovation and government support

This study examines the relationships between social capital (encompassing structural, cognitive, and relational dimensions), dynamic capabilities, open innovation (both inbound and outbound), government support, and business performance in Vietnam. Using a quantitative approach, data were collected from 289 respondents and analyzed using Partial Least Squares Structural Equation Modeling. The findings show that social capital positively influences both dynamic capabilities and open innovation. While dynamic capabilities have a significant impact on business performance, open innovation enhances government support but does not directly affect business performance. Additionally, dynamic capabilities mediate the relationship between social capital and business performance, and government support partially mediates the relationship between open innovation and business performance. These results underscore the importance of government support and dynamic capabilities in leveraging social capital for enhanced business performance, while also highlighting the need for further investigation into the direct impacts of open innovation on performance.

ENHANCING DIGITAL SKILL TRAINING’S QUALITY AT UNIVERSITIES TO IMPROVE EMPLOYEE JOB PERFORMANCES IN VIETNAM’S INSURANCE COMPANIES

The worldwide digital transformation has greatly driven the insurance industry to change the way of working to gain a competitive edge. Many insurance companies have focused on providing key skills needed for employees to meet the changing requirements of the labor force. Employees should be equipped with not only professional knowledge, career qualities, and soft skills but also digital capacities to serve customers with the best insurance products. This study aims to identify the impacts of training quality on employee job performance in Vietnam's insurance companies regarding digital skills to meet the digital economy's demands. To achieve the study's objectives, the online survey questionnaire was used to gather data on the impacts of training quality on employees' job performances regarding digital skills with the participation of 240 respondents from 3 insurance companies and three universities in Vietnam. The findings demonstrate a positive correlation between digital skills training and insurance employee’s job performances. The study findings will be helpful for universities training occupational insurance in Vietnam to enhance higher education quality and produce a digital workforce for insurance companies in digital transformation and international integration.

The Moderating Effect of Competition on The Leverage-Performance Relation: Evidence from Vietnam

This paper examines the moderating effect of competition on the relationship between financial leverage and firm performance in Vietnam. Using a dataset created out of 352 firms listed on Vietnam’s stock exchanges in 2015–2019, this paper estimates both the leverage-performance relation and the dependence of this nexus on market competition. The two-step system generalised method of moments is used to tackle the endogeneity, unobserved heterogeneity, and autocorrelation problems in our model estimation. The findings reveal a negative leverage-performance nexus, and increased competition hurts this relationship. In highly competitive markets, debts become more expensive, thus leading to increased financial pressures on leveraged firms. The fiercer competition also creates a risky business environment, so leveraged firms may fail when operating inefficiently and failing to satisfy their debt obligations. Given the results, this paper proposes recommendations on using financial leverage to improve firm performance.

Moderator effect of industrial park on knowledge spillover from sectoral innovation to firm performance in Vietnam

Moderator effect of industrial park on knowledge spillover from sectoral innovation to firm performance in Vietnam

Corporate governance and firm performance in Vietnam: The moderating role of digital transformation

This study examines the interplay between corporate governance mechanisms and firm performance in the Vietnamese context, with a particular focus on the moderating role of digital transformation. Utilizing a sample of 150 Vietnamese firms in 2023, the study employs a GMM approach to analyze the relationship between board characteristics (size, independence, duality, gender diversity, meeting frequency, and nationality diversity), digital transformation, and firm performance, proxied by ROA, ROE, and EPS. The findings reveal that board size and CEO duality positively influence firm performance. Notably, the positive impact of gender diversity on performance is amplified by digital transformation. While digital transformation exhibits a standalone positive effect on performance, its moderating role on other governance mechanisms is mixed. These results underscore the importance of effective corporate governance practices, particularly in the context of digital transformation, for enhancing firm performance in the Vietnamese market.

State ownership and SMEs’ performance in Vietnam

The debate on the impact of state ownership on firm performance has drawn considerable interest from both scholars and professionals in the field of corporate finance. However, prior research has primarily focused on listed firms, whose characteristics differ from those of small- and medium-sized enterprises (SMEs). Hence, this paper investigates how state ownership influences SMEs’ performance. The sample includes 5,092 firm-years from over 2,000 SMEs with state ownership in Vietnam from 2013 to 2019. The model was estimated using three regression methods, including fixed effects, random effects, and pooled ordinary least squares. The results show that state ownership is positively associated with SMEs’ performance. This finding implies that state ownership creates competitive advantages for SMEs rather than reducing their performance. Therefore, policymakers should consider the advantages and disadvantages of privatizing state-owned SMEs or reducing state ownership in these enterprises. Moreover, investors should divert their capital to state-owned SMEs and increase their value.

High-performance work system based on the AMO model, knowledge sharing, and employee performance in Vietnam’s private firms

This study investigates the relationship between knowledge sharing and high-performance work systems (HPWS) using the ability, motivation, and opportunity (AMO) framework. It is presumed that AMO-enhancing practices encourage knowledge sharing among staff members. Additionally, this research focuses on the impact of knowledge sharing on employee performance. The data were obtained from 260 employees and 79 line managers in 26 private Vietnamese companies. Exploratory and confirmatory factor analyses were conducted to verify the data, and structural equation modeling was used to evaluate the hypotheses. The results show that the HPWS is positively related to knowledge sharing. Opportunity-enhancing practices have the greatest impact on employees’ knowledge sharing, whereas motivation-enhancing practices have the least effect. These findings provide a strong basis for improving employee performance by stimulating knowledge sharing among organizational employees. This study also contributes to the literature by employing knowledge sharing to explore the connection between HPWS and employee performance in the private sector.

Economic and Environmental Impacts of Land Consolidation on Rice Farm Performance in Vietnam

Economic and Environmental Impacts of Land Consolidation on Rice Farm Performance in Vietnam

Investigating a connectedness between green innovation and ocean health performance in Vietnam

The blue economy (BE) development has recently grown in importance, but scholars have kept silent on their determinants, especially in developing countries. This article focuses on the role of green innovation (EI). Utilizing the R2 decomposed linkage method, our investigation aims to delineate connections, particularly differentiating between contemporaneous and lagged linkages. This innovative approach is employed to examine the return transmission mechanism among the Ocean Health Index (OHI), green innovation (EI), nonrenewable energy (NONRENEW), and CO2 emissions (CO2). The dynamic total linkage, subject to temporal variation, is contingent on economic events. Our findings emphasize the heightened influence of lagged linkage prevailing over contemporaneous linkage for all four variables. As observed before 2019, ocean health was acknowledged for its prominent role as a net receiver. Subsequently, ocean health was recognized as a net receiver in contemporaneous dynamics, while its significant impact as a net transmitter in lagged linkage persisted. The results have important policy implications for governments in promoting the use of green innovation to enhance blue health performance in Vietnam.

Mergers and Acquisitions: Strategic Fit and Post-Merger Performance in Vietnam

Purpose: The aim of the study was to investigate the mergers and acquisitions: strategic fit and post-merger performance in Vietnam. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Strategic fit, encompassing alignment in organizational culture, business goals, and operational synergies, emerges as a key determinant of M&A success. However, challenges such as cultural integration issues, regulatory complexities, and managerial resistance can impede integration efforts and undermine anticipated synergies. Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV), agency theory & transaction cost economics (TCE) may be used to anchor future studies on the mergers and acquisitions: strategic fit and post-merger performance in Vietnam. Encourage organizations to enhance due diligence processes by integrating comprehensive assessments of cultural compatibility, strategic alignment, and operational capabilities. Policymakers should streamline regulatory frameworks to facilitate cross-border M&A activities while ensuring compliance with local laws and regulations

Enhancing Public Organizational Performance in Vietnam: The Role of Top Management Support, Performance Measurement Systems, and Financial Autonomy

By drawing on institutional theory and new public management (NPM) theory, this study examines the intervening roles of performance measurement systems (PMS) and financial autonomy on the relationship between top management support (TMS) and the performance of public organizations in an emerging market. The research model and hypotheses have been tested using partial least squares structural equation modeling (PLS-SEM) with 219 survey responses from accountants and managers working in public sector organizations (PSOs) in Vietnam. Results support both direct and indirect relationships between TMS and performance through PMS. Analysis shows that financial autonomy is the moderating variable for the relationship (1) between TMS and PMS, and (2) between PMS and organizational performance. From these findings, this study proposes theoretical and managerial implications to improve TMS and PMS to enhance performance in Vietnam’s public organizations. This paper especially suggests that policymakers in developing countries reform financial autonomy and the market principle.

Unlocking digital transformation in Industry 4.0: exploring organizational readiness, innovation and firm performance in Vietnam

Unlocking digital transformation in Industry 4.0: exploring organizational readiness, innovation and firm performance in Vietnam

The Early Stage of Applying Environmental, Social, and Governance in an Asian Emerging Economy

Purpose: This article aims to clarify the current situation and the factors influencing the early stages of applying environmental, social, and governance (ESG) in the Vietnamese economy. Design/methodology/approach: We employed a large-scale survey with 130 responses from November 2023 to January 2024 and statistics analysis using SPSS 26.0. Findings: We found that awareness of leaders, accountants' levels, pressure on ESG, state guidance, management process, information base, and women on boards, respectively, influence the early stages of applying environmental, social, and governance in Vietnamese enterprises. Research, Practical & Social Implications: This study illuminates the factors that influence the early stages of ESG performance in Vietnam, an emerging Asian economy. The findings highlight the crucial role of leaders' awareness and accountants’ levels in this process. This understanding can guide the country's leaders and policymakers in formulating strategies to promote ESG adoption for the sustainable development of the whole economy. Originality/value: This study stands out for its originality. It comprehensively analyzes the early period of ESG adoption in an emerging Asian country, particularly Vietnam. Its findings offer objective evidence to understand the situation and impacted factors on ESG application, aiding governments and related parties in formulating appropriate policies for sustainable development with ESG.

The Early Stage of Applying Environmental, Social, and Governance in an Asian Emerging Economy

Purpose: This article aims to clarify the current situation and the factors influencing the early stages of applying environmental, social, and governance (ESG) in the Vietnamese economy. Design/methodology/approach: We employed a large-scale survey with 130 responses from November 2023 to January 2024 and statistics analysis using SPSS 26.0. Findings: We found that awareness of leaders, accountants' levels, pressure on ESG, state guidance, management process, information base, and women on boards, respectively, influence the early stages of applying environmental, social, and governance in Vietnamese enterprises. Research, Practical & Social Implications: This study illuminates the factors that influence the early stages of ESG performance in Vietnam, an emerging Asian economy. The findings highlight the crucial role of leaders' awareness and accountants’ levels in this process. This understanding can guide the country's leaders and policymakers in formulating strategies to promote ESG adoption for the sustainable development of the whole economy. Originality/value: This study stands out for its originality. It comprehensively analyzes the early period of ESG adoption in an emerging Asian country, particularly Vietnam. Its findings offer objective evidence to understand the situation and impacted factors on ESG application, aiding governments and related parties in formulating appropriate policies for sustainable development with ESG.

The pathways to innovative work behavior and job performance: Exploring the role of public service motivation, transformational leadership, and person-organization fit in Vietnam's public sector

This study investigates the linkages among public service motivation, transformational leadership, person-organization fit, innovative work behavior, organizational commitment, and job performance in Vietnam's public sector, drawing on the literature on psychological empowerment and social exchange theory. Analyzing data from 464 individuals at public organizations, the study employs partial least squares–structural equation model (PLS-SEM) to reveal significant positive associations between public service motivation, transformational leadership, person-organization fit, and the impact of organizational commitment on job performance. The study highlights the pivotal role of person-organization fit as a mediator in the relation between public service motivation, transformational leadership, and innovative work behavior. Additionally, innovative work behavior, organizational commitment, and psychological empowerment act as mediators in the impact of transformational leadership on job performance. This study contributes new insights to the literature by explaining the importance of psychological empowerment in cultivating innovative work behavior. Moreover, it offers practical implications on enhancing job performance, public service motivation, person-organization fit, transformational leadership, and organizational commitment, in order to help foster a culture of innovation in Vietnam's public sector.

Total factor productivity and institutional quality in Vietnam: which institutions matter most?

The roles of institutional quality’s impact on firm performance are becoming increasingly prominent in the literature. This is true in the Global North and South. Vietnam has seen less research on this topic than other developing countries, so this paper seeks to rectify this by examining whether or not institutional quality influences firm performance, as measured by total factor productivity (TFP). This paper also digs deeper into the sub-components to see which institutions are the most influential. We applied the General Method of Moments (GMM) approach to a firm-level panel dataset covering the 2010–2020 period to examine institutional quality's impact on firm TFP. Results are explored by firm size and by ownership type (domestic private, foreign and state-owned). Using rich datasets covering institutional quality at the provincial level in Vietnam and also individual firm performance from 2010 to 2020, we found that Time cost (how long it takes firms to deal with the government on various issues) and Labor policy (how easy it is to hire good quality labor) are the most important of the 10 institutions studied. Additionally, while not all institutions influence TFP, institutional quality overall (all 10 institutions combined) clearly has a positive influence on TFP. This study fills a research gap by examining the relationship between institutional quality and firm performance in Vietnam. The findings emphasize the significance of Time cost and Labor policy as influential institutions and highlight the positive overall impact of institutional quality on TFP. The policy recommendations offered provide valuable insights for the government to further enhance firm productivity through targeted measures.

Corporate social responsibility and firm performance in the financial industry in Vietnam: The mediating role of digital transformation

Purpose: This study evaluated the influence of corporate social responsibility (CSR) initiatives undertaken by banks in Vietnam on their overall performance. Additionally, it sought to examine the relationship between corporate social responsibility and digital transformation efforts within the framework of the ongoing Fourth Industrial Revolution. Design/Methodology/Approach: The research uses a survey sample from Southeast Vietnam, specifically Binh Duong Province, Dong Nai Province, Tay Ninh Province, Ba RIA Vung Tau Province and Ho Chi Minh City. A total of 245 valid questionnaires were gathered from mid- and senior-level executives, senior employees and department heads who have implemented digital transformation strategies in banks. Findings: This study explores the relationship between corporate social responsibility and firm performance in Vietnam's financial industry focusing on the banking sector. The study discovered a favourable relationship between corporate social responsibility (CSR) and enterprise digital transformation as well as a good relationship between CSR and digital transformation and Vietnamese banks' business success. Conclusion: The digital economy has increasingly contributed to global economic development. Today’s digital landscape is undergoing a widespread phenomenon known as digital transformation. Hence, it is crucial to examine the impact of digital transformation on business processes. Practical Implications: The data also supports the idea that digital transformation serves as a mediator between corporate CSR and financial performance contributing to filling the gap when there is limited research in Vietnam on this relationship. Contribution to the Literature: This research aims to help banks in Vietnam enhance operational efficiency when banks actively engage in CSR and digital transformation.

Commercial banks’ capital structure and performance in Vietnam: Panel data model approach

The study delves into the factors that influence the capital structure of commercial banks in Vietnam. Capital structure, measured by the net debt-to-asset ratio, is a key indicator of bank leverage. The study uses pooled OLS, fixed effects, and random effects models to analyze the impact of factors such as net interest-earning rate, Corporate Income Tax rate, and liquidity on commercial banks’ profitability and their capital structure. Data from 26 banks during the 2010–2022 period in Vietnam was collected for the analysis. The results indicate that factors such as Tax, ROA, growth, and liquidity have significant impacts on the capital structure of the banks. Specifically, Tax has a beta coefficient of –0.05967, ROA has a beta of –0.01796, growth has a beta of 0.000509, and liquidity has a beta of –0.00045. The study found that ROA, Tax, and liquidity are negatively related to the capital structure of Vietnamese commercial banks, meaning that an increase in these factors leads to a decrease in the banks’ total debt-to-total assets and vice versa. The empirical results suggest that commercial banks can manage their capital structure through these factors to reduce their debt-to-asset ratio, resulting in reduced credit risk, improved asset quality, and increased business efficiency. However, lowering the debt-to-asset ratio may also lead to reduced profits from lending activities, particularly when interest rates are high.

Corporate restructuring and firm performance in Vietnam: The moderating role of digital transformation.

In the digital age, firms should continually innovate and adapt to remain competitive and enhance performance. Innovation and adaptation require firms to take a holistic approach to their corporate structuring to ensure efficiency and effectiveness to stay competitive. This study examines how corporate restructuring impacts firm performance in Vietnam. We then investigate the moderating role of digital transformation in the corporate restructuring-firm performance nexus. We use content analysis, with a focus on particular terms, including "digitalization," "big data," "cloud computing," "blockchain," and "information technology" for 11 years, from 2011 to 2021. The frequency index from these keywords is developed to proxy the digital transformation for the Vietnamese listed firms. A final sample includes 118 Vietnamese listed firms with sufficient data for the analysis using the generalized method of moments (GMM) approach. The results indicate that corporate restructuring, including financial, portfolio, and operational restructuring, has a negative effect on firm performance in Vietnam. Digital transformation also negatively affects firm performance. However, corporate restructuring implemented in conjunction with digital transformation improves the performance of Vietnamese listed firms. These findings largely remain unchanged across various robustness analyses.

Evaluating lecturer performance in Vietnam: An application of fuzzy AHP and fuzzy TOPSIS methods

Higher education is regarded as being of paramount importance in Vietnam and as being essential to raising the level of the country's labor force and promoting economic progress. Evaluation of lecturers is one of the institution's activities and a crucial component of managing human resources in higher education institutions. How to evaluate faculty members' overall performance using a range of criteria is one of the key evaluation-related challenges. This study presents a method that uses fuzzy analytical hierarchy process (AHP) and fuzzy technique for order performance by similarity to ideal solution (TOPSIS) to assess and rank the performance of lecturers. Specifically, the evaluation framework is developed by identifying criteria and sub-criteria based on a comprehensive review of existing literature. Following that, the fuzzy AHP approach is used to determine the weights of the criteria and sub-criteria using the pairwise comparisons. The Fuzzy TOPSIS approach is employed to assess and prioritize lecturers identified through expert evaluation. When applied in group decision-making, utilizing fuzzy AHP and fuzzy TOPSIS promotes agreement among decision-makers and diminishes uncertainty in decision-making processes. The utilization of the multiple criterion measurement approach can then be used to carry out the evaluation. The suggested framework is also demonstrated via a case study. The use of this framework can improve the evaluation's objectivity, accuracy, and scientific methodology. It is believed that this work will assist managers of higher education institutions improve their standards for educational quality.