Determinants of the performance of small and medium-sized enterprises in emerging markets

Abstract

PurposeThe aim of this article is to investigate the determinants of the performance of small and medium-sized enterprises in emerging markets: evidence from Vietnam.Design/methodology/approachThis article relies on the resource-based view to examine the factors affecting the performance of small and medium-sized enterprises in emerging markets. The method employed in the research is the generalized method of moments for testing hypotheses of data collected from the General Statistics Office of Vietnam in the period of 2013–2016.FindingsThe results show that factors such as the intensity of capital investment, age and size of the firm, labor productivity, foreign ownership, location, cost management effectiveness and export activities have a positive effect on the performance of Vietnamese small and medium-sized enterprises, while revenue growth rate, fixed assets and financial leverage tend to hinder their performance. This has brought important messages that the input markets and the business environment in emerging markets like Vietnam have not yet stimulated well-economic activities.Originality/valueThis study sheds light on a topic that has not been fully explored in small and medium-sized enterprises in emerging markets in general, and Vietnam in particular. Specifically, small and medium-sized enterprises in emerging markets reconfigure available resources and strengthen internal capabilities to overcome barriers of the shortages of strategic, rare and irreplaceable resources in order to improve their performance. This is a unique contribution to the existing literature and highlights the original value of this article.

Board diversity on firm performance from resource-based view perspective: new evidence from Pakistan

“…Therefore, we applied GMM to overcome the limitations identified in earlier empirical studies and support our random effects regression analysis results. Previous studies on corporate governance and firm performance also used GMM (Bin Khidmat et al ., 2020; Fernandez-Temprano and Tejerina-Gaite, 2020; Ali et al ., 2021; Huynh, 2022). In addition, several post-diagnostic tests are performed to validate our estimated model.…”

“…Additionally, the previous studies used a set of control variables that significantly affect a firm's performance. Following the literature, we used board size, board independence, firm size, firm age, leverage and audit credibility as control variables (Fernandez-Temprano and Tejerina-Gaite, 2020; Arnaboldi et al ., 2020; Mohammadi et al ., 2020; Huynh, 2022) as shown in Table 1. To understand the specific year effect and industry effects, we also control for fixed-year effects and industry types (see Table 1).…”

Determinants of wine firms’ performance: the Iberian case using panel data

“…Besides, large firms can generate asset gains and borrow debts at more favorable rates than small firms (Ibhagui and Olokoyo, 2018). Also, for Neves et al (2020b); Pantea et al (2014), Serrano et al (2018); Serrasqueiro and Nunes (2008), Ullah (2020); or Huynh (2021) the firm size positively influences the performance of organizations. Also, Ko et al (2019) conclude that larger firms demonstrate better operating performance.…”

Inventory management systems of small and medium enterprises in Bangladesh

“…(2021). Sometimes, they faced financial crises and liquid money in buying or managing inventories (Deloof, 2003) which also impacted on the production and business profit (Huynh, 2021).…”

“…Sometimes, the shortage of raw materials impacts excessive cost and profit generation Hasbullah et al (2021), Shao et al (2021). Sometimes, they faced financial crises and liquid money in buying or managing inventories (Deloof, 2003) which also impacted on the production and business profit (Huynh, 2021).…”