Vietnamese Small And Medium-sized Enterprises Research Articles

Digital platforms and SMEs’ performance: the moderating effect of intellectual capital and environmental dynamism

PurposeThis research aims to shed light on the linkage between digital platforms and small and medium-sized enterprises (SMEs) performance and consider the moderating effect of intellectual capital and environmental dynamism.Design/methodology/approachThis study applies a quantitative approach using a sample of primary data from 508 managers and directors of Vietnamese SMEs, using structural equation modeling (SEM).FindingsThe utilization of digital platforms by managers and directors has a positive impact on enhancing intellectual capital. However, under the influence of external environment changes, this trend may shift towards a negative direction. The ability to utilize digital platforms, whether directly or through information communication, positively affects the performance of businesses. Research has shown that the positive promotion of digital platform capability for intellectual capital factors such as human capital, organizational capital, and relational capital decreases when the external environment changes in the context of uncertain globalization.Originality/valueThis research focuses on SMEs operating in the technology and e-commerce sectors and it evidences that digital platforms are an effective baseline driver for promoting high-performing SMEs. By examining the connection between digital platform’s capability and IC and the significance of intellectual capital for SMEs’ performance, this study adds to the body of literature already available on the destructive regulatory potential of environmental dynamism. This study broadens the dynamic capabilities theory’s outcome audience and adds a new dimension to the impact of the digital platform’s capability (resource utilization) on the performance of SMEs.

Sustainable corporate performance through corporate social responsibility in the printing sector: The mediating role of green product innovation and green supply chain

The study investigates the impact of corporate social responsibility (CSR) on sustainable corporate performance (SCP). Specifically, the study examines the mediating role of green product innovation (GPI) and green supply chain (GSC) in this relationship. A quantitative method was employed and used Smart PLS SEM to analyse the data collected from 418 respondents from managers and senior managers in small and medium sized enterprises (SMEs) from the printing industry in Vietnam. This study shows that there is positive impact from CSR to SCP. More importantly, the study has investigated the existence of the mediating role of GPI and GSC in the mechanism of these relationships. Through the analysis, the study brings about valued implications to managers and senior managers in printing companies so as to achieve sustainable performance. This study has highlighted the contributions of CSR, GPI and GSC in sustainability in Vietnamese SMEs. The research will also help SMEs conduct their operational and strategic plans with a positive influence on the environment, society, and the economy.

SEM-neural network analysis for mobile commerce adoption in Vietnamese small and medium-sized enterprises

PurposeUnderstanding the adoption of m-commerce in small and medium-sized enterprises (SMEs) is critical for their sustainable development. This study aims to investigate the adoption of m-commerce in Vietnamese SMEs, leading to the identification of the critical determinants and their relative importance for m-commerce adoption.Design/methodology/approachAn integrated model is developed by combining the diffusion of innovation theory and the technology–organization–environment framework. Such a model is then tested and validated using structural equation modeling and artificial neural networks in analyzing the survey data.FindingsThe study indicates that perceived security is the most critical determinant for m-commerce adoption. It further shows that customer pressure, perceived compatibility, organizational innovativeness, perceived benefits, managers’ IT knowledge, government support and organizational readiness all play a critical role in the adoption of m-commerce in Vietnamese SMEs.Practical implicationsThe findings of this study can lead to the formulation of better strategies and policies for promoting the adoption of m-commerce in Vietnamese SMEs. Such findings are also of practical significance for the diffusion of m-commerce in SMEs in other developing countries.Originality/valueTo the best of the authors’ knowledge, this is the first attempt to explore the adoption of m-commerce in Vietnamese SMEs using a hybrid approach. The application of this approach can lead to better understanding of the relative importance of the critical determinants for the adoption of m-commerce in Vietnamese SMEs.

An Investigation of Antecedents and Outcomes of Accounting Information Quality: Evidence from SMEs

This article aims to scrutinize the antecedents and outcomes of accounting information quality (AIQ) of small- and medium-sized enterprises (SMEs) in the developing country of Vietnam. Based on the perspectives of agency theory and contingency theory, accounting information system quality (AISQ) has been considered as the main antecedent factor, and firm performance (FIP) is examined as the outcome in this article. We additionally examine the mediating role of AISQ in the context of information technology risks (ITR)–AIQ nexus. Furthermore, the moderating role of transformational leadership (TL) was considered in the context of the AISQ–AIQ nexus, and the AIQ–FIP nexus, respectively. Using the quantitative research methods with rigorous testing to determine the most accurate results and ensure reliability, this article concludes that the ITR have an appreciable influence on AISQ, and the AISQ has an appreciable favourable impact on AIQ. Additionally, the AIQ has an appreciable impact on FIP in the context of Vietnamese SMEs, and at the same time, AIQ positively mediates the AISQ–FIP nexus. Lastly, TL positively moderates the AIQ–FIP nexus.

Dynamic capabilities and digitalization as antecedents of innovation and sustainable performance: empirical evidence from Vietnamese SMEs

PurposeThis study aims to investigate the relationship between dynamic capabilities and sustainable business performance in Vietnamese small- and medium-sized enterprises (SMEs), focusing on the mediating role of digitalization strategies. Specifically, the authors seek to explore whether and how the three critical characteristics of dynamic capabilities (DCs) – sensing, seizing and transforming capabilities – are linked to business model innovation (BMI) or sustained performance and what dimensions contribute to their development and adoption in digitalization strategies.Design/methodology/approachThe authors analyse a sample of 596 Vietnamese SMEs using a validated measurement framework to explore the three clusters of DCs activities and their contributions to digitalization strategies, BMI and sustainable business performance across economic, social and environmental dimensions.FindingsThe study highlights the pivotal role of sensing, seizing and transforming capabilities in the adoption of digitalization strategies, BMI, as well as in promoting sustainable business performance. Firstly, sensing capability profoundly influences product digitalization strategy, whereas seizing capability has the greatest impact on process digitalization strategy. Secondly, sensing and transforming capabilities significantly contribute to BMI. Thirdly, both process and product digitalization strategies exert a significant positive influence on sustainable business performance, especially the environmental dimension. Finally, the study exhibits the indirect impacts of seizing and sensing capabilities on sustainable business performance through product and process digitization strategies.Originality/valueThis study extends recent research by investigating the DCs underlying a firm’s digitalization strategies and contribute to ongoing calls for further investigation in the DCs literature. This research design, which draws from a validated measurement framework, responds to recent calls to broaden the toolkit used in DCs research. The practical implications of this study can benefit SMEs in Vietnam and beyond as they seek to enhance their digitalization strategies and achieve sustainable competitive advantage.

Understanding and application of SMES on sustainable management: A case study in Vietnam

This study investigates the integration and impact of sustainable management practices within Small and Medium-sized Enterprises (SMEs) in Vietnam. SMEs play a crucial role in Vietnam's economy, contributing significantly to employment, GDP, and societal well-being. The research explores the challenges and incentives influencing SMEs' adoption of sustainability practices, drawing on theoretical frameworks, empirical data, and insights from existing literature. Key barriers include financial constraints, limited awareness of sustainability benefits, and regulatory shortcomings. Conversely, drivers include cost savings, enhanced brand image, and increased customer loyalty. Actionable strategies for fostering sustainability in SMEs, including governmental support, education programs, and stakeholder engagement, are proposed. By addressing these challenges and leveraging opportunities, Vietnamese SMEs can contribute to sustainable development and economic resilience.

Enhancing the Vietnamese SMEs' Adaptation to Climate Change Through Human Resources: The Mediating Effect of Adaptability Culture

Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study delves into the multifaceted issue of climate change adaptation within Small and Medium-sized enterprises (SMEs) operating in Vietnam. Beyond merely mitigating vulnerability, these enterprises are actively seeking out avenues for green innovation, using adaptive diversification strategies to navigate the challenges posed by a changing climate. Adaptation to climate change has emerged as a significant priority for policy and research efforts. This study focuses on the adaptation strategies of SMEs in Vietnam in response to climate change. It not only aims to mitigate vulnerability but also explores green innovation opportunities through adaptive diversification. The research investigates the influence of human resources on the ability to adapt to diversification, with organizational adaptive culture acting as a mediating variable within the theoretical framework of the Resource-Based View (RBV). Through an analysis of survey data from 280 SMEs in Vietnam using Structural Equation Modeling (SEM) in SmartPLS4, the study reveals that both human resources and adaptive culture positively impact SMEs' adaptation to climate change. These findings provide valuable insights for management and policy, underscoring the importance of investing in human resources and nurturing adaptability culture within SMEs to effectively tackle climate change challenges.

Applying e-commerce by Vietnamese SMEs: A critical analysis

Small and medium-sized enterprises (SMEs) play a crucial role in many countries’ economic growth and development, particularly in Vietnam. Vietnamese SMEs have been instrumental in creating job opportunities, especially for low-skilled laborers, and are increasingly contributing to the stability and progress of the national economy. However, the rise of globalization and the integration of economies at the international and regional levels have exposed SMEs to severe local and global competition. To sustain and develop their essential role in the face of rising competition, SMEs must innovate and adopt new technologies, with e-commerce being one of the essential solutions. The integration of e-commerce within Vietnamese Small and medium-sized enterprises (SMEs) has posed a significant challenge, making it crucial to identify the key factors that impact its implementation. A quantitative method was used to determine the four factors (Technology, Organizational, Environmental, and Management) influencing the adoption of e-commerce by Vietnamese SMEs. The study found that technology has the most significant impact on the adoption of e-commerce by Vietnamese SMEs, followed by organizational, management, and environmental factors. Technology is considered the most critical factor because e-commerce is primarily a technological solution, and SMEs need to invest in advanced technologies to keep up with their competitors.

Factors influencing the decision to outsource logistics services of SMEs in Vietnam

This study examines the factors influencing the decision to outsource logistics services of small- and medium-sized enterprises (SMEs). The Cronbach’s Alpha test, exploratory factor analysis, confirmatory factor analysis, and structural equation modeling were employed to analyze data collected from 204 Vietnamese SMEs in the export of agricultural products, seafood, and textile industries. The results show that the motivation to reduce costs and the characteristics of service providers have the most significant impact on these enterprises’ decisions to outsource logistics services. Moreover, outsourcing strategy also affects logistics outsourcing decisions. Based on the results, this study provides recommendations for logistics service providers to attract customers and advise SMEs on the decision-making process to outsource or operate logistics activities themselves.

Intellectual Property Management: Case Studies of Vietnamese SMEs

Intellectual property is increasingly recognized as key contributor to business success. Meanwhile, in Vietnam, there exists a lack of evidence on how firms are managing their intellectual property strategically. With that being said, this paper aims to provide a systematic analysis of successful intellectual property management practices of Vietnamese small and medium-sized enterprises (SMEs). The authors redesign Intellectual Creation Cycle by Japan Patent Office, taking into account the unique management scenario among Vietnamese businesses. Then, we demonstrate patent and trademark management of six representative SMEs each in four steps: Creation, Registration, Utilisation and Protection. Data collection is based on in-depth interviews with directors of the selected companies. One of the most important findings is that it highlights collaboration between universities/public research institutions and businesses in an effort to develop high value-added products. Also, from the policy-making perspective, a number of lessons have also been drawn out: first, universities and public research institutions should be promoted to commercialise their research outputs; second, enhancement of finance scheme by the industry plays an important role in the IP commercialisation process. This paper thus provides strategic guidelines for Vietnamese SMEs in corporate IP management. It also proposes some practical insights for policy makers with respect to the promotion of IP among businesses, in particular SMEs for the purpose of economic growth.

A two-phased decision-making based grey theory framework for the best choice of payment methods in international trade

This study aims to propose a two-staged Analytic Hierarchy Process and COmplex PRoportional ASsessment model-based Grey Theory (AHP-G and COPRAS-G) to explore critical elements affecting international payment method selection in the case of import-export Small and Medium-Sized Enterprises (SMEs) from emerging countries. First, the AHP-G model is applied to determine the relative weights of essential factors. Second, the COPRAS- G approach prioritizes international payment method alternatives. From the literature review and experts' opinions, five main criteria were established, including: “relationship between the two parties” (RE), “type of goods” (GO), “political-economic framework factor” (MA), “characteristics of payment method” (PA); “opinions and requirements of external parties” (EX) and four international payment methods are considered as frequent payment alternatives. A real-world case study from Vietnamese SMEs in the import-export industry is presented to exemplify the applicability and robustness of the proposed approach. The weighting results indicated that (PA) had the most significant impact on international payment method selection, followed by (MA) and (RE). Letter of credit (L/C) is considered the most reliable payment method for SMEs. Furthermore, a comparative analysis was performed to examine the validity of the proposed model. The proposed approach would assist stakeholders in import-export SMEs and other industries in effectively selecting suitable payment methods in international trade.

SMES survival and knowledge in emerging economies: evidence from Vietnam

This paper evaluates how knowledge affecting the survival of new private small and medium sized enterprises (SMEs) in an emerging economy like Vietnam. The panel data extracted from the national surveys allow for comprehensive analysis during the period 2005–2011 with the semi-parametric Cox proportional hazard model. The study examines knowledge factors under controlling firm-specific and industrial factors. The findings express strong evidence that Vietnamese SMEs benefit strongly from knowledge development. The findings suggest firms to foster labor productivity, value added, and computerization. There is evidence of market selection, based on efficiency of investment. Besides, firms should improve return on sales, especially in growing market. Start-up SMEs should prepare sufficient total assets, not basing on leverage to enter the market. Start-up in industries with high growth, especially at the early stages of the life cycle will require more government support. These findings provide the evidence for policy improvement to help SMEs in the development of knowledge economy.

Enhancing Trade Compliance to Benefit Small and Medium-Sized Enterprises (SMEs) in Trade Facilitation Agreement (TFA) Implementation in Vietnam

Vietnam ratified the Trade Facilitation Agreement (TFA) of the World Trade Organization in 2017. Following the core principles of the World Trade Organization (WTO), the TFA does not discriminate between large business and small and medium-sized enterprises (SMEs) in gaining trade facilitation benefits. This study aims at identifying similarities and differences in trade compliance behaviours between Vietnamese Authorised Economic Operators (AEO) as the biggest economic operators, and SMEs, which are differentiated by AEO criteria and trade facilitation grants. The study is based on a national survey of 399 respondents from Vietnamese import and export enterprises in 2019. The study determines that Vietnamese SMEs face many obstacles in improving trade compliance to gain the benefits of trade facilitation measures. Lastly, it provides some policy implications to enhance trade compliance and facilitation for Vietnamese SMEs in the context of Vietnam’s accession to the new-generation FTAs.

The effects of entrepreneurial orientation, social media, managerial ties on firm performance: Evidence from Vietnamese SMEs

This study examines the effects of entrepreneurial orientation, social media, and managerial ties on the business performance of small and medium-sized enterprises (SMEs) in Vietnam. In addition, the mediating effects of social media and managerial ties on the causal relationship between entrepreneurial orientation and firm performance is investigated. A total of 180 senior managers of SMEs were collected for data analysis by using partial least squares structural equation modeling. The results reveal that entrepreneurial orientation strongly enhances social media and managerial ties, which are determinants of business performance. Specifically, entrepreneurial orientation has no direct impact on firm performance; but the mediating effects were confirmed. Based on the results, our study highlights some theoretical contributions and suggests practical implications for practitioners in Vietnamese SMEs to improve firm performance effectively and efficiently.

Female Managers and Corruption in SMEs: A Comparison Between Family and Nonfamily SMEs in Vietnam

Empirical evidence, regarding the impacts of female leadership on firm’s corrupt level, is lack of studies in various research context. The objective of this study is to assess whether female managers impact negatively or positively on the corrupt behavior of family SMEs (household business) and nonfamily SMEs (Small and Medium-sized Enterprises). To do that, this paper used regressions, taken from a sample of 1,720 Vietnamese SMEs (based on the survey data of UNU-WIDER), to compare the impact of female percentage in management board in family and nonfamily businesses in reducing the level of corruption of the firms for the period 2011 to 2015.The findings indicated that first, drawing on socioemotional wealth theory and Vietnam context, family SMEs (household businesses) are more likely to engage in corruption. Second, we also found that female participant in management team can promote firms to be less involved in unethical practices such as bribe. However, the positive role of female managers in reducing corruption engagement is moderated by family control. We used upper echelon theory to suggest that female managers tend to have less managerial discretion in family-controlled organizations. This study has practical contributions, especially for policymakers and owners of household businesses.

Two-Stage PLS-SEM and Fuzzy AHP Approach to Investigate Vietnamese SMEs’ Export Competitiveness

Vietnam is paying great to the seafood exporting sector, offering various significant production advantages, concluding that it is critical to understand the competitiveness of the target market and implement effective strategies. However, due to COVID 19, the value of Vietnamese pangasius exports resulted in low and unpredictable profits for pangasius farmers. It is obvious to recognize competitiveness as Multi-Criteria Decision Making (MCDM) problem in the uncertain business environment. Therefore, this study is the first to propose a two-staged Partial Least Squares-Structural Equation Modeling (PLS-SEM) and Fuzzy Analytic Hierarchy Process (FAHP) analysis to identify potential criteria and comprehensively investigate the competitiveness of Vietnamese pangasius export Small and Medium-sized Enterprises (SMEs) in the context of China market. First, a dataset of 186 valid respondents from seafood export SMEs was collected through an online survey from June to December 2020. The PLS-SEM approach was applied to ascertain the positive impact of the proposed criteria contributing to the competitiveness of Vietnamese pangasius against China market. The PLS-SEM results showed that all criteria strongly correlated with the pangasius exporting competitiveness. Then, the FAHP method is employed to rank the subjective weights of mentioned criteria based on 12 experts’ judgments. Knowledge infrastructure (C3) has the highest rank of competitiveness criteria with the highest weight, followed by Product (C4). In contrast, Prices (C6) was indicated as the lowest rank at 0.107 regarding FAHP results. Furthermore, this study provides insights into stakeholders seeking to improve competitiveness performance.

A model for assessing the digital transformation readiness for Vietnamese SMEs

The paper aims to develop an econometric model for the routine diagnosis of enterprises' level of readiness for digital transformation (DT) on the example of small and medium-sized enterprises (SMEs) in Vietnam. The use of questionnaires allowed obtaining quantitative estimates of SMEs' level of readiness for DT in Vietnam. Factor analysis with the principal component method determines the list of factors of SMEs' readiness for DT. The ranges of the level of preparedness in Vietnam were determined, resulting in the classification of enterprises in the groups of "Newcomers," "Learners," and "Leaders" according to their use of digital technology and smart manufacturing. The integral index made it possible to quantify the impact of DT's readiness on SMEs' sustainability. The study results revealed that the nature of the impact depends on the level of SMEs' readiness for DT.

Factors affecting the adoption extent of the balanced scorecard by Vietnamese small- and medium-sized enterprises

PurposeThis study empirically examines factors affecting the extent of balanced scorecard (BSC) adoption in Vietnamese small- and medium-sized enterprises (SMEs) such as top management involvement, an innovative culture, a product innovation strategy, organisational resources, a competitive environment and business network support. This study aims to gain an improved understanding and draw important lessons on BSC adoption for SMEs.Design/methodology/approachUsing primary data obtained from a survey of top managers of SMEs that have experienced some forms of BSC adoption, the authors conduct their analysis using exploratory factor analysis and regression analysis methods.FindingsThe authors find that top management involvement, an innovative culture, organisational resources and business network support are essential factors impacting the extent of BSC adoption in Vietnamese SMEs. Besides confirming literature findings on these variables, the authors identify support of business networks as another important factor affecting the extent of BSC adoption, alongside location and business owners’ experience. However, the impacts of a product innovation strategy and a competitive environment are not significant.Research limitations/implicationsThis study adapts scales previously designed for large enterprises in developed countries to fit into the context of Vietnamese SMEs. Future research can take advantage of this new set of scales and data to obtain further research results.Practical implicationsThis study will serve as guidance for SMEs considering BSC adoption to have a clear vision of what factors are likely to affect BSC adoption, how they affect it and in what direction.Social implicationsLessons learned can be extended not only to Vietnamese SMEs that have not yet adopted the BSC but also to firms in other countries with similar economic conditions.Originality/valueThis study is among pioneering studies on BSC in SMEs and within the context of Vietnam.

Building organizational resilience, innovation through resource-based management initiatives, organizational learning and environmental dynamism

Drawing upon the resource-based and dynamic capability views (RBV and DCV, respectively), this study examines the underlying theoretical mechanism between resource-based management initiatives (RBMI) and the resilience and innovation of Vietnamese small- and medium-sized enterprises (SMEs), taking account of potential boundary conditions. Using time-lag data (three waves of data collection) from 188 SMEs, the study finds that RBMI are positively associated with organizational resilience, which in turn enhances innovation. Our results also indicate that organizational learning mediates the RBMI-organizational resilience/innovation relationships. Finally, self‐awareness of environmental dynamism significantly strengthens the relationships between organizational learning and resilience/innovation. This study is among the first to combine and incorporate the RBV and DCV as a theoretical insight to explain how organizations develop their internal resources as a capacity for resilience and innovation in the emerging market context of Vietnamese SMEs. This study makes both theoretical and contextual contributions.

Developing Financial Sources: The Case Of Small And Medium Enterprises In Vietnam

Although Vietnam's business environment has undergone fundamental changes to create favourable conditions for small and medium-sized enterprises (SMEs) to develop, SMEs are having difficulties in their existing operation and are facing constraints in accessing financial sources. This research aims to analyze the situation of financial sources and produce the relevant recommendations for small and medium enterprises in Vietnam. The authors use secondary data from government official websites of the Socialist Republic of Vietnam about Vietnam's SME survey of Ha Noi Capital in the period 2014 – 2020. By observing and analyzing the collected data, the study provides a detailed description of the findings and relevant recommendations. After examining and investigating data and current studies about Vietnamese SMEs, the authors find that, in general, main constraints in accessing financial sources of SMEs are chiefly caused by (i) macroeconomic conditions, (ii) capacity management, (iii) lack of network and (iv) collateral requirements. The findings suggest implications for Vietnamese SMEs to improve financial sources should focus on: (i) training SMEs’ leaders to tackle potential risks and crises; (ii) creating new financial products and services in environmental and social development in Ha Noi Capital; (iii) developing new credit accessibility products without collaterals for SMEs. Different from prior studies that either provide current situation and list constraints of SMEs or make suggestions without sticking to the actual situation, the authors deliver a more comprehensive analysis about SMEs in the context of a developing country like Vietnam.