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

Author

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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.

Suggested Citation

  • 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. Wadho, Waqar & Chaudhry, Azam, 2025. "Unlocking Global Markets: The Impact of International Standards Certification on Pakistani Firms' Export Performance," GLO Discussion Paper Series 1611, Global Labor Organization (GLO).
    2. , Aisdl, 2020. "The Impact of Innovation on the Performance of Manufacturing Enterprises in Vietnam," OSF Preprints byjhc, Center for Open Science.
    3. Neda Trifkovic, 2018. "Certification and business risk," WIDER Working Paper Series 80, World Institute for Development Economic Research (UNU-WIDER).
    4. Quoc Tran-Nam & Phu Nguyen-Van & Tuyen Tiet, 2025. "Synergy in environmental compliance, innovation and export on SMEs’ growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(1), pages 138-162, January.
    5. 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.
    6. 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.
    7. Finn Tarp, 2018. "Vietnam: The dragon that rose from the ashes," WIDER Working Paper Series 126, World Institute for Development Economic Research (UNU-WIDER).
    8. 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.
    9. 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.
    10. Francisco Gatica-Neira & Mario Ramos-Maldonado & Rubén Andrés Ascua & Hernán Revale & Valentina Fernández, 2024. "Digital Technologies 4.0 in Small and Medium-Sized Manufacturing Industries: Cases of the Central Region of Argentina and the Biobio Region of Chile," SAGE Open, , vol. 14(2), pages 21582440241, May.
    11. Nam Hoang Vu & Bich Ngoc Thi Le & Thanh Le, 2025. "Impacts of FDI Linkages on the Labor Productivity of Domestic Firms: The Role of Local Business Environment," SAGE Open, , vol. 15(3), pages 21582440251, August.
    12. Neda Trifković, 2018. "Certification and business risk," WIDER Working Paper Series wp-2018-80, World Institute for Development Economic Research (UNU-WIDER).
    13. Duc-Niem Le & Van-Hoa Nguyen, 2024. "Does Quality Certification or Product Diversification Improve the Performance of Small and Medium Enterprises?," Sustainability, MDPI, vol. 16(5), pages 1-11, February.
    14. Jacques Mairesse & Pierre Mohnen & Ad Notten, 2025. "Innovation and productivity: the recent empirical literature and the state of the art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 1-27, March.
    15. Dalia Fadly, 2020. "Greening Industry in Vietnam: Environmental Management Standards and Resource Efficiency in SMEs," Sustainability, MDPI, vol. 12(18), pages 1-27, September.
    16. 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.
    17. 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).
    18. 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).
    19. Francisco Gatica-Neira & Mario Ramos-Maldonado, 2022. "Limits to the Productivity in Biobased Territorial SMEs," SAGE Open, , vol. 12(2), pages 21582440221, May.
    20. Dam Duc Le, 2023. "GTHE Impact of Technological Innovation on Labor Structure: Evidence from Vietnam SMEs," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 251-288, May.
    21. 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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