Vietnamese Manufacturing Research Articles

Enhancing Employee Job Performance Through Supportive Leadership, Diversity Management, and Employee Commitment: The Mediating Role of Affective Commitment

This study examines the impact of supportive leadership and diversity management on employee job performance within Vietnam’s manufacturing sector. The study specifically investigates the mediating effect of affective commitment in this relationship. A survey incorporating targeted scales to measure the variables of interest was completed by 406 workers. The collected data underwent analysis using structural equation modeling techniques. The findings of this research suggest that when organizations implement diversity management strategies and foster supportive leadership, there is a significant and positive effect on both the affective commitment and job performance of their workforce. These results highlight the importance of these organizational practices in enhancing employee outcomes in the Vietnamese manufacturing context.

How Productivity and Trade Liberalization Can Affect the Economies of Developing Nations is Illustrated by the Vietnamese Manufacturing Sectors Case

How Productivity and Trade Liberalization Can Affect the Economies of Developing Nations is Illustrated by the Vietnamese Manufacturing Sectors Case

The impact of innovation on exports of Vietnamese manufacturing and processing enterprises: the moderating role of environmental uncertainty

The impact of innovation on exports of Vietnamese manufacturing and processing enterprises: the moderating role of environmental uncertainty

COVID-19 pandemic and manufacturing sector: An evaluation of coping strategies

This study investigates the adoption and impact of coping strategies within the manufacturing sector in the context of pandemic disruptions. Utilizing the multinomial endogenous treatment effects model, we accounted for potential selection biases in our analysis of a comprehensive dataset comprising 29,443 Vietnamese manufacturing firms. The most prevalent coping strategy was the pursuit of new markets, adopted by approximately 27.9 percent of the firms surveyed. Notably, a significant proportion of firms had not yet implemented any coping strategies to mitigate the effects of the pandemic. Our findings indicate a varied degree of effectiveness among the coping strategies in enhancing revenue outcomes. Strategies such as the promotion of e-commerce and the exploration of new output markets yielded positive impacts on firm performance, with increases of 7.82 percent and 0.16 percent, respectively. Conversely, other strategies demonstrated relatively lower effectiveness. This underscores the necessity for additional research to elucidate the role of government support programs and policies in facilitating the adoption of effective coping strategies (Huang et al., 2021), thereby enabling manufacturing firms to maintain operational resilience in the face of potential future disruptions.

Customer pressure and environmental stewardship: The moderator role of perceived benefit by managers.

Nowadays, environmental issues and cleaner products are interest to many customers, considering whether to buy or continue using a product. This will affect the perception, attitude of upper managers in the process of strategic choices and operational management behavior. This study is based on the Upper Echelon Theory, research under the influence of customer pressure to attitude toward the environmental, decision choices for cleaner production strategies, implementation of environmental management accounting towards achieving green competitive advantage of Vietnamese manufacturing enterprises. In addition, the role of two moderator variables: (1) perceived benefit of cleaner production strategies and (2) perceived benefit of environmental management accounting in the research model is also considered. This study surveyed 234 CEOs of Vietnamese manufacturing enterprises. This study employed PLS-SEM, version 3 for data analysis. Results have shown that all relationships are statistically significant. Moderator variables have a statistically significant and positive impact in relationships in which they play a moderator role. This study helps CEOs realize the importance of producing products that are customer-oriented, environmentally friendly, and the implementation of environmental management accounting will have a strong impact on achieving a sustainable competitive advantage.

Business model innovation and international performance of emerging market international businesses

This article is set to examine the effects of foreign market conditions – i.e. foreign market customer demandingness and foreign market stakeholder engagement – on business model innovation of emerging market international businesses (EMIBs) during the COVID-19 pandemic. First, it examines the impact of foreign market customer demandingness and foreign market stakeholder engagement on business model innovation of EMIBs. Second, it tests the moderating roles of international marketing agility and entrepreneurial bricolage on these relationships and third, it looks into the (direct and indirect) impact of business model innovation on EMIBs' international performance. We use the COVID-19 pandemic as a context and the dynamic capabilities view to formulate and test our hypotheses using longitudinal survey data between March and December 2020, on 211 Vietnamese manufacturing businesses engaged in cross-border activities. The results provide robust empirical support for all our hypotheses. Our findings suggest that foreign customer demandingness and foreign market stakeholder engagement can determine the adoption of new business models by EMIBs'. We also provide evidence on the mediating role of EMIBs' business model innovation in the relationship between foreign market conditions and international performance during the COVID-19 pandemic. Additionally, while international marketing agility can moderate positively the relationship between local market exposure and business model innovation by international businesses, entrepreneurial bricolage was found to moderate negatively this relationship. Our findings have important theoretical and practical implications for both international businesses and EMIBs.

Does transformational leadership influence organisational culture and organisational performance: Empirical evidence from an emerging country

This study examines the relationship between transformational leadership and organisational culture, and the joint effect of both on organisational performance. Using structural equation modelling with data from 903 employees from the Vietnamese manufacturing sector, the results show that transformational leadership influences organisational performance and culture, with differing effects based on context. The study shows that organisational culture directly influences performance and partially mediates the contribution of transformational leadership to organisational performance. The findings provide theoretical and practical implications for firms seeking to improve organisational performance through changes in leadership type and culture.

The impact of productivity on export transitions: revisited evidence from the Vietnamese manufacturing sectors

The effect of total factor productivity (TFP) on exports particularly interests policy-makers and economists, but empirical evidence is ambiguous. This paper uses the 6-wave panel data in 2010-2015 to investigate the impact of TFP on export transitions at the firm level. We distinguish different types of export transitions, namely start, stop, continuity, fluctuation, and striving, and different phases of export transition. The Generalised Method of Moments (GMM) estimation is applied to control for endogeneity and unobserved time-invariant specific components. The results reveal that (i) the effect of productivity on export (the self-selection hypothesis) is heterogeneous, depending on specific sectors and types and phases of export transitions; (ii) productivity growth does not necessarily result in positive effects on and lead to participation in types and phases of export transitions. Our results also reveal strong evidence of favourable sunk cost in long-run export striving in nearly all sectors, and unlike previous studies, empirical results show a negative effect of sunk cost in some manufacturing sectors. Policy-makers should create dynamic comparative advantages and favourable environments for new exporters, focus the relevant policies on productivity stimulus, and strengthen the likelihood of survival for the domestic firms in the competitive global markets.

Contribution of Information Sharing to Supply Chain Performance in Developing Country: Empirical Evidence from Manufacturing Plants in Vietnam

Purpose: This study empirically investigates effect of information technology (IT) link on supply chain performance through information sharing, supplier development, and knowledge absorption from customers. Methodology/Approach: The data sample including 135 Vietnamese manufacturing plants was collected through a paper-based questionnaire survey. Statistical techniques such as correlation and regression analysis are applied for hypotheses testing. Findings: It was shown that supply chain performs better when focal firms invest in supplier development and knowledge absorption. Those activities are strengthened by developing IT link and information sharing with suppliers and by customers. Research Limitation/Implication: Sample size is relatively small due to limited time and resources; subjective measurement of constructs are limitations that can be addressed in future research. Originality/Value of paper: This paper fills the gap in literature related with application of supply chain information in developing countries. It indicated that IT links should be regarded as the platform for information sharing among supply chain partners which lead to higher supply chain performance.

Internal controls driven by mindfulness toward enhanced ethical behaviors: Empirical evidence from Vietnam

This study develops and tests a moderated mediation model regarding the effectiveness of internal control structure on organizational ethical behaviors via the mediating role of internal control effectiveness and the moderating role of organizational mindfulness in the relationship between internal control structure and internal control effectiveness. The proposed model and its hypotheses were tested using partial least squares structural equation modeling (PLS-SEM) in SmartPLS3 with survey data from 540 large Vietnamese manufacturing and service firms. This study found the following: (1) The internal control structure positively affects internal control effectiveness, which in turn promotes ethical organizational behaviors; and (2) The effect of internal control structure on internal control effectiveness is amplified by strengthening organizational mindfulness. The findings demonstrate that combining internal control systems and organizational mindfulness contributes to the ethical business practices of firms in an emerging market. Our study bridges the gap in the literature on internal control and mindfulness by providing empirical evidence on how the interaction between organizational mindfulness and internal control systems can promote ethical business practices. Additionally, our study advances the current understanding of how internal control systems can interact with organizational mindfulness to influence ethical business practices in the context of an emerging market.

Factors Affecting Responsibility Accounting: Evidence from Vietnamese Manufacturing Enterprises

Purpose: This study aims to examine (i) the number of product lines and steps in the manufacturing process affect the responsibility cost center in a responsibility accounting system (ii) the level of technology application, the qualification of managers at all levels affect the budgetary control system integrated to the responsibility accounting system in Vietnamese manufacturing enterprises. Theoretical framework: The research identifies and examined the impacts of the number of product lines, the number of steps in the manufacturing process on the number of responsibility cost centers, and the impacts of the level of technology application, the qualification of managers at all levels on the budgetary control system to contribute the responsibility accounting system theory. Design/methodology/approach: A quantitative approach was applied with a sample of 108 Vietnamese manufacturing enterprises that is listed on the Vietnamese financial securities markets in 2020. OLS regression is applied to give a further analysis. Findings: The regression findings support the significant positive impacts of the number of product lines and the number of steps in the manufacturing process on the number of cost centers as well as the significant positive correlation between the level of technology application and the effective budgetary control system, however, the effect of the qualification of managers at all levels is insignificant. Research, Practical & Social implications: This study provides factors impacting the number of cost centers and the budgetary control system. The results of this study support the contingency theory. Originality/value: These findings can be useful for Vietnamese manufacturing enterprises to take measures to strengthen cost control through the responsibility accounting system, thereby improving business efficiency.

Trade and employment in Vietnam: how firms' trade matters

This paper aims to analyse how employment and wages change when a firm's trade status is altered. Using a detailed firm‐level dataset of Vietnamese manufacturing enterprises, the study finds that how firms trade matters for firm employment and wages in Vietnam. The average effect of one‐way trading (exporting or importing) is positive for both firms' total employment and female employment. Direct trading activities are associated with a higher level of employment than indirect trading activities by firms. The female employment effect of direct exports is nearly three times higher than direct imports. Indirect imports hurt firms' total employment and female employment. Both direct and indirect two‐way traders experience higher growth in firm employment than direct‐only traders. However, it is interesting to note that indirect two‐way trading activities have a positive impact on female employment. Furthermore, the commencement of direct import is also associated with greater labour cost advantage.

Artificial intelligence-driven supply chain resilience in Vietnamese manufacturing small- and medium-sized enterprises

Despite the exponential growth of artificial intelligence (AI) research in operations, supply chain, and productions management literature, empirical insights on how organisational behavioural mechanisms at the human–technology interface will facilitate AI adoption in small- and medium-sized enterprises (SMEs), and subsequent impact of the adoption on sustainable practices and supply chain resilience (SCR) is under-researched. To bridge these gaps, we integrate resource orchestration and knowledge-based view theoretical perspectives to develop a novel structural model examining antecedents to SCR and AI adoption, considering AI adoption as a pivot for facilitating SCR. The structural equation modelling technique was employed on the data collected from 280 Vietnamese manufacturing SMEs’ operations managers. Our results demonstrate that leadership will drive AI adoption by creating a data-driven, digital and conducive culture, and strengthening employee skills and competencies. Furthermore, AI adoption positively influences CE practices, SC agility and risk management, which will help to achieve SCR. For managers, the importance of internal organisational employee-centric mechanisms to create value from AI adoption without impeding business value is highlighted. We reveal the enablers that will help in transforming SMEs to become resilient by deriving appropriate responses to unprecedented disruptions through data-driven decision-making leveraging AI adoption.

High-involvement HRM practices stimulate incremental and radical innovation: The roles of knowledge sharing and market turbulence

There is a lack of study examining the relationship between high-involvement HRM practice and innovation capability as mediated by knowledge sharing. So, the motivation of this paper is to study and explore potential intermediating roles of explicit and tacit knowledge sharing in linking high-involvement HRM practice and innovation capability under the possible moderator of market turbulence. Analysis of Moment Structures was used to measure validation and test the structural model based on the questionnaire surveys of 333 participators in 119 Vietnamese manufacturing and service enterprises from May to July 2021. The collected data were inspected and analyzed using SPSS and AMOS software version 22. The result advocates the proposed hypotheses relating to the intermediating role of KS in the HRM practices-innovation relationship. It spotlights the crucial character of market turbulence in driving the domination of high-involvement HRM practice on incremental and radical innovation. This paper remarkably increases the insights of the precursor role of high-involvement HRM practice, intermediating mechanism of KS activities, and the regulating influence of market turbulence in predicting and fostering radical and incremental innovation, thereby pushing forward the theory of HRM and innovation management.

Accounting going green: The move toward environmental sustainability in Vietnamese manufacturing firms

AbstractThis study investigates how environmental management accounting (EMA) usage mediates the impact of green dynamic capabilities on environmental performance. Furthermore, the moderating effects of green mindfulness on the relationship between green dynamic capabilities and EMA usage are investigated. The proposed model and its hypotheses are evaluated using partial least squares structural equation modeling (PLS‐SEM) with survey data from 394 large Vietnamese manufacturing firms. The study's findings are as follows: (1) green dynamic capabilities positively affect EMA usage, which, in turn, affects environmental performance; (2) when green mindfulness is strong, the effect of green dynamic capabilities on EMA usage is amplified. These findings demonstrate how the interaction between green dynamic capabilities and green mindfulness can contribute to the success of manufacturing firms that use EMA systems in emerging markets. Additionally, the current study elucidates the mechanism by which green dynamic capabilities influence EMA usage, and it aims to contribute to green dynamic capabilities research in accounting by introducing green mindfulness as a boundary condition.

Financial Constraints and Firm Productivity in Vietnamese Manufacturing Industries

ABSTRACT Financial constraint is detrimental to firm productivity but has been less explored in the literature. In this empirical study, I fill this gap by using a rich Vietnamese firm-level dataset for manufacturing firms over the period of 2010 to 2015 to estimate a total factor productivity (TFP) model augmented with financial factors. The estimation results indicate that sufficient internal financing and the development of the financial sector boost firm productivity, whereas the leverage ratio has a negative impact on firm productivity. I also provide the heterogeneous impact of financial development on firm productivity across different firm sizes as well as different trade modes.

Knowledge and New Firm Survival in Emerging Countries: Evidence from Vietnamese Manufacturing Sector

Knowledge and New Firm Survival in Emerging Countries: Evidence from Vietnamese Manufacturing Sector

Exploring the Challenges to Adopt Green Initiatives to Supply Chain Management for Manufacturing Industries

Green initiatives have been widely introduced and have contributed to attaining sustainability and improving performance for supply chain management. However, only a few studies focus on green supply chain management (GSCM) practices in Vietnam. Hence, this work is the first study modeling the challenges in implementing green initiatives in the Vietnamese manufacturing supply chain. The authors aim to identify the fundamental challenges and evaluate the cross-interactions among them. The Interpretive Structural Model (ISM) method has been employed, based on experts’ perspectives, to clarify which factor is the most potent challenge. Consequently, seven major challenge clusters have been identified, and they were divided into nineteen sub-challenges. Meanwhile, the authors evaluated their interrelationships based on the hierarchical structure diagram and the Matrice d’Impacts Croisés Multiplication Appliquée á un Classement (MICMAC) analysis. It is observed that the “Financial Costs” elements group is the most difficult, followed by the lack of the Vietnamese government’s green regulation and the lack of senior managers’ support. The “Information” challenges cluster is considered as the middle bridge between the strong and weak elements. At the end of the diagram, two challenges are a lack of training courses about implementing GSCM and a lack of customer awareness and pressure about GSCM. Hence, these findings will become valuable suggestions for the top managers of Vietnamese manufacturers to make blueprint decisions.

Domestic total factor productivity with trade and heterogenous foreign direct investment in developing countries: a case of Vietnamese manufacturing

PurposeThis paper aims to examine spillover effects of heterogenous foreign direct investment (FDI) enterprises (domestic vs. export-oriented) through horizontal and vertical linkages and absorptive capacity effect on domestic firms' total factor productivity (TFP). It clarifies the spillover effect on domestic firms in accordance with industrial zones, business size, technology sector and geographical agglomeration, respectively.Design/methodology/approachThe dataset used is based on Vietnamese manufacturing firms during 2011–2014, input–output (I–O) Table 2012. This paper is conducted in two steps: (1) TFP is estimated by using a semi-parametric approach developed by Levinsohn and Petrin (2003); (2) Regression with panel data for domestic firms, applying the fixed effect method.FindingsIn terms of domestic-oriented FDI (DFDI) enterprise group: TFP spillover through horizontal linkages is found negative for domestic firms but positive for those participating in export. Additionally, backward linkages have a negative impact on TFP for most domestic enterprises, except for those operating in the high-tech sector. In terms of export-oriented FDI (EFDI) enterprise group, horizontal linkages have a negative impact on domestic firms' TFP including domestic ones participating in export whereas backward linkage is an important channel with positive effects. Absorptive capacity enables firms to improve productivity through linkages with EFDI and DFDI enterprises. Exporters located in industrial zones or regions with numerous exporters can receive better impacts through backward linkages EFDI.Originality/valueComprehensively, this is the first paper to detect FDI heterogeneity in their behavior when entering a developing country like Vietnam. The added value in this study comes from the export ability of local firms which is in line with Melitz (2003) theory that they can excel in absorping the TFP spillover from competing with DFDI competitors or from supplying to EFDI enterprises. Moreover, the role of small and medium-sized enterprises (SMEs), low technology, high technology and learning by regions affecting the impact through both horizontal and vertical linkages are included for analysis.

Assessing the Barriers of Green Innovation Implementation: Evidence from the Vietnamese Manufacturing Sector

Sustainability concerns are rising as an interesting topic in both academia and industry. Many scholars revealed that green innovation is an excellent solution to enable organizations to achieve various benefits, such as enhancing their reputation and competitive advantages. Thus, this is the first study in Vietnam to consider the barriers to implementing green innovation. The research aims to identify the obstacles to green innovation practices in the Vietnamese manufacturing sector. The interpretive structural modeling (ISM) approach has been conducted to provide the interactions among the green innovation implementation barriers. The authors ground this study to bridge the theoretical and practical for green innovation practices in the Vietnam situation. Based on the experts’ perspectives, they proposed that Vietnamese manufacturers must deal with thirteen essential barriers to green innovation adoption. Further, six interaction levels and the MICMAC analysis clarified cross-relationships among challenges by evaluating the driving and dependence power. Indeed, the empirical results emphasized that financial capability constraints and lack of government support are the most decisive challenges. In contrast, market competition and uncertainty concern is the easiest obstacle to address by the Vietnamese manufacturers. Therefore, this study has provided some insightful contributions for the top managers and other scholars to consider.