The threshold of absorptive capacity: The case of Vietnamese manufacturing firms

Duong, Vu Hoang

doi:10.1016/j.inteco.2020.04.005

Cited by 8 publications

(6 citation statements)

References 39 publications

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“…Many authors have investigated the impact of foreign direct investment on the performance of the domestic industry in Vietnam, including Anwar and Nguyen (2010), Duong (2020), Le (2008), Le andPomfret (2011), andVu andLe (2017). However, the literature presents mixed results for Vietnam.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Spillovers may occur when foreign direct investment firms have their presence in host countries, but the level of impact is likely to be dependent on the domestic industry's ability to absorb them. Duong (2020) argues that the spillover effects cannot automatically convert to benefits for domestic firms. It needs a bridge of absorptive capacity.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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Impact of FDI absorptive capacity on labor productivity in Vietnam

Hung,

Binh,

Trang

et al. 2024

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This study examines the impact of Foreign Direct Investment (FDI) absorptive capacity on labor productivity in Vietnam's vibrant and dynamic context. Using panel data analysis of firm-level data from the Vietnam Enterprise Survey for 2008-2018, which was collected by the General Statistics Office of Vietnam, the authors find out that capacity is essential in enhancing labor productivity in Vietnamese firms. The study takes a strong and thorough approach, using panel data analysis to find out the many aspects of firm-level absorptive capacity and what these aspects mean for improving labor productivity in Vietnamese businesses. Specifically, firms with higher absorptive capacity tend to have higher labor productivity levels than those with lower absorptive capacity. Our findings suggest that policy makers in Vietnam and other developing countries must develop their absorptive capacity to benefit from FDI and fully improve productivity. In order to fully benefit from foreign direct investment (FDI), host nations must place a high priority on building their capacity to absorb FDI through wise expenditures in infrastructure, innovation, education, and training, as well as intellectual property rights protection. The study also shows how important absorptive capacity is in the relationship between FDI and productivity by adding to the existing research and finding the specific absorptive capacity indicators that are most useful for increasing labor productivity in Vietnamese businesses.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Impact of FDI absorptive capacity on labor productivity in Vietnam

Hung,

Binh,

Trang

et al. 2024

View full text Add to dashboard Cite

show abstract

“…Although the literature points to the benefits of vertical spillovers, the relationship between horizontal spillovers and the regional economy is controversial and often considered negative (Duong, 2020). This negative relationship may be related to the protection of corporate information (Mariotti, Mutinelli, Nicolini, & Piscitello, 2015), the mobility of skilled labor towards multinational enterprises (MNEs) (Lu, Tao & Zhu, 2017) and increased sectoral competition (Fons-Rosen, Kalemli-Özcan, Sorensen, Villegas-Sanchez & Volosovych, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Absorptive capacity refers to a company's ability to assimilate and use external knowledge. It is considered a prerequisite for the development of national companies through the exploitation of spillovers (Duong, 2020). Thus, if companies in the host region do not have sufficient absorptive capacity, they will not be able to take advantage of the positive externalities of MNEs.…”

Section: Introductionmentioning

confidence: 99%

Productivity and foreign direct investment in the services sector: an econometric analysis

Lopes Coimbra,

Gandra de Carvalho,

Polloni Silva

et al. 2023

GEPROS

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Purpose: Our study seeks to measure the impact of Foreign Direct Investments (FDI) in the services sector on the productivity of municipalities in the state of São Paulo. Theoretical framework: FDI in the services sector has become increasingly important for emerging economies due to the spillover effects, which can boost regional economic development. Methodology/Approach: This study uses econometric modeling to measure the impact of services FDI at the municipal level in the state of São Paulo, the most FDI-intensive region in Brazil. To do so, this study employs an unbalanced panel of data that includes all FDI-receiving municipalities in the state between 2010 and 2016. Findings: Our results point to a positive relationship between FDI in services sectors and municipal productivity. Research, practical & social implications: This study outcomes offer valuable perspectives for the formulation of public policies aimed at attracting foreign investments. They also have important implications for the service sector and could be a reference for future studies on the subject. Originality/ Value: This study addresses FDI in emerging countries, an important discussion given the impact of this type of investment on economic development and social indicators. In addition, this paper expands the FDI literature beyond the manufacturing sector. Keywords: Foreign Direct Investment; Foreign Direct Investment in Services; Spillovers; Productivity.

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“…Research in absorptive capacity have been widely conducted in various industries, such as in manufacturing (Duong 2020;Horvat et al, 2019); innovation and new product development (Liang et al, 2018;Strøm-Andersen, 2020); information technology and multimedia (Braojosa et al 2020;van den Bosch et al, 1999), knowledge management and organisational learning (Liang et al, 2018;Ali et al, 2020). Research and studies mentioned above only focus on large organisations in high technology sectors with structured research and development (R&D) plans, framework and/or strategies.…”

Section: Introductionmentioning

confidence: 99%

Absorptive capacity of Malaysian SME construction organisations

Kamal

Lou

Yusof

et al. 2021

Architectural Engineering and Design Management

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Absorptive capacity has been acknowledged as a critical component for organisations to sustain, compete and excel in the marketplace. With the current volatile environment, there are increased demand for new knowledge, skills and implementation of new technologies. Every organisation must have the ability to be able to absorb and leverage from new technologies. This research aims to identify the absorptive capacity of Malaysian small and medium enterprise (SME) construction organisations. The research design adapted was based on qualitative approach. 12 semi-structured interviews were conducted with SMEs operating in six different states in Malaysia. Data was analysed using NVivo 12 Pro software and thematic approach was used to categorize the data. This research found 29 main indicators of how construction SMEs develop their absorptive capacity and 10 factors influenced their absorptive capacity. Owners and employees with higher education background and with more industry experience tend to be more receptive to absorb new knowledge. In addition, human resource departments and formal office communications were found to have positive impacts on SMEs absorptive capacity. Suppliers and manufacturers were also identified as important external factors. This research provides clear indicators of how SME construction organisations can develop their absorptive capacity and further improve their productivity. It also provides indication for Construction Industry Development Board on how they can assist the SME construction organisations to absorb and apply new technology in construction processes.

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The threshold of absorptive capacity: The case of Vietnamese manufacturing firms

Cited by 8 publications

References 39 publications

Impact of FDI absorptive capacity on labor productivity in Vietnam

Impact of FDI absorptive capacity on labor productivity in Vietnam

Productivity and foreign direct investment in the services sector: an econometric analysis

Absorptive capacity of Malaysian SME construction organisations

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