IDEAS home Printed from https://ideas.repec.org/a/eme/rauspp/rausp-03-2022-0094.html
   My bibliography  Save this article

Competition and firm performance: evidence from Vietnam

Author

Listed:
  • Nguyen Le Hoa Tuyet
  • Le Khuong Ninh

Abstract

Purpose - This paper aims to examine the impact of competition on firm performance using a data set of 352 firms listed on Vietnam’s stock exchanges from 2015 to 2019. Design/methodology/approach - The two-step system generalized method of moments is used to estimate this impact. Findings - The findings reveal an inverted U-shaped relationship between competition and firm performance. Competition improves firm performance if its intensity is moderate. However, if the competition intensity exceeds the optimal level, the performance deteriorates accordingly. Research limitations/implications - The authors only studied Vietnamese firms due to the limited ability in data collection. It would be better to validate the findings using data from other transition economies. Practical implications - The non-linear relationship between competition and performance implies that government should pay more attention to retaining competition at an appropriate level. Social implications - Firms contribute a lot to the prosperity of Vietnam. Therefore, the findings have a meaningful implication for Vietnam’s government to moderate competition to improve its firms’ performance. Originality/value - This paper contributes to the extant literature by providing firsthand evidence of the impact of competition on firm performance in Vietnam – a transition economy.

Suggested Citation

  • Nguyen Le Hoa Tuyet & Le Khuong Ninh, 2023. "Competition and firm performance: evidence from Vietnam," RAUSP Management Journal, Emerald Group Publishing Limited, vol. 58(2), pages 111-124, April.
    • Handle: RePEc:eme:rauspp:rausp-03-2022-0094
    DOI: 10.1108/RAUSP-03-2022-0094
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/RAUSP-03-2022-0094/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://www.emerald.com/insight/content/doi/10.1108/RAUSP-03-2022-0094/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: no
    File URL: https://libkey.io/10.1108/RAUSP-03-2022-0094?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:rauspp:rausp-03-2022-0094. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.