Strategic Alliances for Small Medium-Sized Enterprises Across Vietnam: Roles of Exploration, Exploitation, and Innovation

While strategic alliances are widely recognized for enhancing firm performance, their specific impact on product innovation within small and medium-sized enterprises (SMEs)—particularly in resource-constrained contexts—remains underexplored. This study addresses this gap by investigating the mediating roles of exploration, exploitation, and innovation capabilities in the relationship between strategic alliances and new product development in the context of a developing economy. Employing a quantitative approach, data were collected from a survey of 328 senior managers from Vietnamese SMEs engaged in strategic alliances and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings confirm that strategic alliances exert a significant positive influence on a firm’s capabilities for exploration, exploitation, innovation, and new product development. Crucially, the results establish that exploration, exploitation, and innovation act as key mediators, clarifying the pathways through which strategic partnerships translate into tangible product development outcomes. This research contributes to the literature by elucidating these complex mechanisms and provides actionable insights for managers seeking to leverage collaborative partnerships for competitive advantage in emerging markets.