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Drivers of productivity in Vietnamese SMEs: the role of management standards and innovation

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  • Elisa Calza
  • Micheline Goedhuys
  • Neda Trifković

Abstract

Using a rich panel dataset of small and medium scale manufacturing enterprises (SMEs) active in the manufacturing sector in Viet Nam, this paper investigates the drivers of firm productivity, focusing on the role played by international management standards certification. We test the hypothesis that, accounting for technological innovation (product and process) and other variables related to technological capabilities, international standards are conducive to higher productivity, through improved management practices and business organization. In line with the requirement of continuous improvement implied by most international standards, the main findings show that the possession of an internationally recognized standard certificate leads to significant productivity premium. We further find that the effect of certification on productivity is particularly strong for firms with technological innovation, located in southern provinces, and operating in more scale-intensive industries.

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  • Elisa Calza & Micheline Goedhuys & Neda Trifković, 2019. "Drivers of productivity in Vietnamese SMEs: the role of management standards and innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(1), pages 23-44, January.
    • Handle: RePEc:taf:ecinnt:v:28:y:2019:i:1:p:23-44
    DOI: 10.1080/10438599.2018.1423765
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    Cited by:

    1. Knut Blind & Florian Ramel & Charlotte Rochell, 2022. "The influence of standards and patents on long-term economic growth," The Journal of Technology Transfer, Springer, vol. 47(4), pages 979-999, August.
    2. Emmanuel Mamatzakis & Panagiotis Pegkas & Christos Staikouras & Constantinos Tsamadias, 2023. "R&D contribution in TFP growth of Greek industry: A limited information likelihood approach," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1086-1111, October.
    3. Neda Trifković, 2018. "Certification and business risk," WIDER Working Paper Series wp-2018-80, World Institute for Development Economic Research (UNU-WIDER).
    4. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    5. Dalia Fadly, 2020. "Greening Industry in Vietnam: Environmental Management Standards and Resource Efficiency in SMEs," Sustainability, MDPI, vol. 12(18), pages 1-27, September.
    6. , Aisdl, 2020. "The Impact of Innovation on the Performance of Manufacturing Enterprises in Vietnam," OSF Preprints byjhc, Center for Open Science.
    7. Neda Trifkovic, 2018. "Certification and business risk," WIDER Working Paper Series 80, World Institute for Development Economic Research (UNU-WIDER).
    8. Ferrando, Annalisa & Rossi, Stefania P. S. & Bonanno, Graziella, 2020. "Determinants of firms’ efficiency: do innovations and finance constraints matter? The case of European SMEs," Working Paper Series 2419, European Central Bank.
    9. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series wp-2018-126, World Institute for Development Economic Research (UNU-WIDER).
    10. Phu Nguyen-Van & Tuyen Tiet & Quoc Tran-Nam, 2024. "Synergy in environmental compliance, innovation and export on SMEs' growth," EconomiX Working Papers 2024-1, University of Paris Nanterre, EconomiX.
    11. Mai, Nhat Chi, 2021. "Determinants of successful adoption of the Balanced Scorecard in Vietnamese small and medium-sized enterprises," OSF Preprints 5hx2r, Center for Open Science.
    12. Musa Abdu & Adamu Jibir & Salihu Abdullahi & Aisha Adamu Hassan, 2021. "Drivers of manufacturing firms’ productivity: a micro-perspective to industrialization in Nigeria," SN Business & Economics, Springer, vol. 1(2), pages 1-17, February.
    13. Francisco Gatica-Neira & Mario Ramos-Maldonado, 2022. "Limits to the Productivity in Biobased Territorial SMEs," SAGE Open, , vol. 12(2), pages 21582440221, May.
    14. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).
    15. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.

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