Sub-national institutions, firm strategies, and firm performance: A multilevel study of private manufacturing firms in Vietnam

Mickiewicz

2017

Regional Studies

This paper adopts transaction costs perspective to explain why growth of small and medium-sized enterprises (SMEs) may vary across regions of an emerging economy. Furthermore, it is argued that young and small firms gain more from improvement of local governance than old and large firms do. In addition, depending on the institutional history, SMEs will respond differently to the incentives provided by local governance. Analysing more than 300,00 SMEs in Vietnam during the 2006-2012 period, it is shown that higher quality local governance positively influences local SME revenue growth; this effect is stronger for young and small firms, and matters more where institutional history suggests less support for entrepreneurship. JEL codes: D02, H73, L25, L26

Section: Independent Variables: Local Governance Qualitymentioning

confidence: 75%

Section: Context: Business Performance and Institutions In Vietnammentioning

confidence: 99%

Local governance and business performance in Vietnam: the transaction costs’ perspective

Mickiewicz

2017

Regional Studies

Thunderbird Intl Bus Rev

“…Related work examines the challenges posed by emerging market institutions on developed country firms (Hatani, ). While this debate has extended to the level of subnational institutions (Nguyen, Le, & Bryant, ), researchers in this area have not yet examined the effect of policy on firm internationalization. By incorporating the effect of government policy, which can influence firm resource development, this research has built a holistic theory of firm internationalization that is grounded in the experience of emerging markets.…”

Section: Discussion: Internationalization As Firm‐environment Interacmentioning

confidence: 99%

Internationalization as Interaction: A Process Perspective on Internationalization from a Small Developing Country

Williams

Ridgman

Shi

et al. 2014

Despite their heavy dependence on international markets, small developing countries or small states have been underrepresented in the internationalization literature. Unlike developed or large developing countries, small states face dual constraints of relatively weak institutions and a narrow resource base along with an open market environment. A changing domestic environment in small states requires firms to adapt and a process approach was employed in order to examine sustained internationalization firms from Trinidad and Tobago (TT). Analysis of the findings indicates that changing economic circumstances result in varying domestic production and market resource availability. In response, firms from small states may engage in phased rather than staged patterns of activity that include accelerated, reverse, and inward internationalization. © 2014 Wiley Periodicals, Inc.

“…Despite recent administration reform, a number of studies have shown that firms in Vietnam are operating under high uncertainty, a weak legal system, and without developed market institution (e.g. Nguyen, Le, & Bryant, 2013;Nguyen & Rose, 2009). This type of environment could impede firm innovation by blocking flow of information, making commercialization and protection of innovation extremely difficult.…”

Section: Hypothesis 2: a Firm's Innovation Is Positively Associated Wmentioning

confidence: 99%

Knowledge Creation, Innovation and Financial Performance of Firms: Evidence from Vietnam

Phan

2016

IJBM

Self Cite

Drawing on the knowledge-based perspective and Nonaka's theory of knowledge creation, this study proposes a model linking firms' knowledge creation, innovation, and financial performance. The model is tested in a sample of 529 Vietnamese firms. The results show that firms' knowledge creation has significant impacts on three out of four types of innovation, including product innovation, organizational innovation, and marketing innovation. Product innovation is also found to contribute significantly to the firm's financial performance. The results improve our understanding of innovation at the firm level under institutional uncertainty and resource-deficiency and provide some important implications for managers and policy makers.