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Innovation: From Capabilities to Performance in Manufacturing Enterprises in Vietnam

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  • Bui Quang Hung, Trinh Thuy Anh and Nguyen Ngoc Thong

    (University of Economics Ho Chi Minh City, Ho Chi Minh City Open University, Vietnam)

Abstract

TThis paper examines the impact of innovation capabilities on innovation performance and firm performance of the manufacturing industry. Innovation capability as the firm's ability to reconfigure and develop its resources and organizational capabilities to innovate. Innovation capability has four components: sensing capability, combination capability, networking capability, and learning capability. The innovation performance is the achievement or success of innovation made by a firm by the target, describes the concept of the three components: internal performance, commercial performance, and social performance. Performance has three components: finance, customer, and employee. The research methods used in this study are Structural Equation Modeling (SEM) and Fuzzy-set Qualitative Comparative Analysis (fsQCA). Participants in the questionnaire include 205 directors, CEO of manufacturing enterprises in Ho Chi Minh City and Binh Duong City. SEM result shows that there is a positive effect of innovation capacity and innovation performance on firm performance. However, the result of fsQCA shows that the combination of components (innovation capability and innovation performance) constitutes sufficient conditions for the presence of the firm performance.

Suggested Citation

  • Bui Quang Hung, Trinh Thuy Anh and Nguyen Ngoc Thong, 2020. "Innovation: From Capabilities to Performance in Manufacturing Enterprises in Vietnam," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(1), pages 61-81, March.
    • Handle: RePEc:jed:journl:v:45:y:2020:i:1:p:61-81
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation Capability; Innovation Performance; Firm Performance;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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