The Impact of Innovation on the Performance of Manufacturing Enterprises in Vietnam

Abstract

This paper examines the impact of innovation on the performance of manufacturing enterprises in Vietnam. Innovation is measured by product innovation (3 observed variables), technology innovation (8 observed variables), and organization innovation (6 observed variables) while firm performance is measured by revenue and profit. The OLS regression model was used with data collected from 806 enterprises in four industrial sectors. The results show that innovation has a positive effect on firm performance. From the results, some implications are proposed to improve the performance of manufacturing enterprises in Vietnam.