Dynamic Competitiveness, Firm Performance and the Regulatory Role of Government Policies in Industry 5.0

Abstract

Industry 5.0 poses many challenges for insurance companies. This article explores the impact of sustainable competitive advantage on firm performance under the regulatory effect of government policies in Vietnamese insurance companies. The study surveyed 248 leaders at insurance companies and used the PLS-SEM method to analyze the data in two steps. The research results show that sustainable competitive advantage is positively influenced by infrastructure capacity, digital orientation, market orientation, and innovation capacity. Sustainable competitive advantage has a strong effect on firm performance. The results also confirm the mediating role of sustainable competitive advantage and the regulatory role of government policy. From there, the implication of a solution for insurance companies has been proposed. This study provides further empirical evidence from the insurance industry for dynamic resource theory and stakeholder theory. Furthermore, the results are also the basis for managers to plan sustainable business strategies.