The Relationship between Innovation Capability and Firm’s Performance in Electronic Companies, Vietnam

Abstract

The study aims to investigate the determinant factors in the organisation of a firm's innovative activities, and the impact of innovation capability on firm's performance of electronic firms in Ho Chi Minh city, Vietnam. How is the performance of electronic companies after delivering an innovation project? How will innovation capability affect firm's performance in electronic companies? This study aims to seek the answer of these questions. We employ a Structural Equation Model and the PLS technique in order to validate the theoretical model proposed in this study. With observation of 374 valid firms, based on Cronbach's Alpha analysis, EFA analysis, CFA analysis and SEM analysis, this study discovers 5 groups of factors including: (i) Institution factors; (ii) Attitude of leadership factors; (iii) Marketing factors; (iv) Technological resources factors; (v) Combination factors, which have direct impact on innovation capability of firms. There are 4 groups of factors that have positive impacts on financial performance of electronic firms, with descending order of importance as follows: (1) Attitude of leadership factors; (2) Quality of human resources factors; (3) Innovation capability; (4) Marketing activities factors. Research results are important implications for Government administrative agencies for business to consult and introduce effective support policies.

A Nexus among Strategic Orientation, Social Network, Knowledge Sharing, Organizational Innovation, and MSMEs Performance

“…MSMEs businessmen are fully aware that today they are required to have a strategy that is right on track, which include resource and market aspects. This result also strengthens the prior research finding that resources orientation (Muafi et al, 2019;Obeidat, 2016;Zaied et al, 2015;Su et al, 2018;Islami et al, 2018) and market orientation (Ashrafi & Ravasan, 2018) can increase organizational innovation and organizational performance (Saunila, 2014;Aujirpongpan & Hareebin, 2020;Lee & Xuan, 2019;Huang & Ngoc, 2019).…”

“…Response toward operation environment can be categorized as the strategic orientation of each company. All of this is used as the main means to understand the actions taken by the company in achieving the increase in profitability, financial performance, or competitive advantage (Matsuno, 2015;Bodea & Dutu, 2016;Huang & Ngoc, 2019). Many types of strategic orientation are not exclusive because companies in general are involved in several approached at the same time.…”

“…In managing resource, the company has to; (1) be able to combine traditional strategy into the unique competence of the company by considering the asset capability of other heterogenic companies, (2) resource must be in accordance with the economic view of the organization, and (3) can be used to analyse research in the organization industry. It means that the company has an opportunity to utilize the resources it owned efficiently and effectively and it can be useful to implement the organization strategy by optimizing the organization research that has an impact on the company performance (Wills-Johnson, 2008;Napitupulu, et al, 2020;Huang & Ngoc, 2019). Islami et al (2018) and Napitupulu et al (2020) stated that research in the future has to include the aspect of external environment turbulence and analyze its impact toward the existence of internal resources owned by the company.…”

Impact of Leader-Member Relationship Quality on Job Satisfaction, Innovation and Operational Performance: A Case in Vietnam

“…García-Morales, Lloréns-Montes and Verdú-Jover (2008) showed that innovation is essential for improving performance, and that those organizations that focus on employee creativity are more successful in securing a larger market share and can generate high income and profits. Besides, the innovation should be the concern of managers in order to boost their operational performance (Hoang & Ngoc, 2019). Employee innovation behavior is defined as behavior that can innovate, create ideas or give recommendations for their team.…”

Economic freedom and economic growth in ASEAN countries

“…the budget balance on macroeconomic indicators(Ha & Ngoc, 2020;Ha, Ngoc, Duc, & McAleer, 2019;Hoang & Ngoc, 2019;N. H. Le, Duy, & Ngoc, 2019; Q. H Le, Ho, & Mai, 2019)…”