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The effects of technology and innovation adoption on firm performance among small and medium enterprises: Evidence from Vietnam’s logistics sector

Author

Listed:
  • Nguyen Thanh Tuan

    (LAMIH, LARSH (CRISS), Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Bekrar Abdelghani

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Le Thi Muoi

    (LARSH (CRISS), Université Polytechnique Hauts-de-France, Les Tertiales, 59313, Valenciennes, France)

  • Artiba Abdelhakim

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Chargui Tarik

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Vo Thi Le Hoa

    (CNRS, UMR 6211, Université de Rennes, F-3500 Rennes, France)

  • Trinh Thi Thu Huong

    (School of Economics and International Business, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Ha Noi City, Vietnam)

Abstract

In Industry 4.0, technology and innovation constitute a driver for enhancing firms’ performance, particularly for small and medium-sized enterprises (SMEs). Our study aims to examine whether that statement is correct for SMEs in a developing country. We developed a generic model and employed multiple regression techniques, including ordinary least-squares, robust standard errors and weighted least squares, to test this hypothesis and address heteroskedasticity. Using a micro-level dataset including 11,630 SMEs in Vietnam’s logistics sector, an emerging logistics market in a developing country, our results reveals that the effects of technology on firm performance may differ depending on particular metrics of this performance. Furthermore, not all forms of innovation significantly affect SME performance. Control variables such as “firm’s age”, “firm’s size”, “state ownership”, “education of the manager” and “foreign activities” also play a significant role in SME performance, underscoring the importance of both internal capabilities and external technological elements.

Suggested Citation

  • Nguyen Thanh Tuan & Bekrar Abdelghani & Le Thi Muoi & Artiba Abdelhakim & Chargui Tarik & Vo Thi Le Hoa & Trinh Thi Thu Huong, 2024. "The effects of technology and innovation adoption on firm performance among small and medium enterprises: Evidence from Vietnam’s logistics sector," Economics and Business Review, Sciendo, vol. 10(4), pages 129-164.
    • Handle: RePEc:vrs:ecobur:v:10:y:2024:i:4:p:129-164:n:1001
    DOI: 10.18559/ebr.2024.4.1123
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    References listed on IDEAS

    as
    1. Engin Deniz Eris & Omur Neczan Timurcanday Ozmen, 2012. "The Effect of Market Orientation, Learning Orientation and Innovativeness on Firm Performance: A Research from Turkish Logistics Sector," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 5(1), pages 77-108, April.
    2. Jan De Loecker, 2013. "Detecting Learning by Exporting," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 1-21, August.
    3. Joseph Dery Nyeadi, 2023. "Foreign Direct Investment and Firm Value: Evidence from Selected Countries in Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 260-279, April.
    4. Michael Wang, 2016. "The Role Of Innovation Capability In The Australian Courier Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-18, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    firm performance; innovation; logistics; supply chain; technology;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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