Unveiling the Nexus: Foreign Ownership, Innovation Dynamics, and Firm Performance through a Resource-Based Lens in Vietnam
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 10
Abstract
This study investigates the complex relationships between firm resources, innovation, foreign ownership, and firm performance in the context of Vietnam's emerging market. Using a comprehensive dataset of 17,430 firm-year observations from 1,245 manufacturing firms across Vietnam for the period 2010 to 2023, we employ system GMM estimation to address potential endogeneity concerns. Our findings reveal non-linear effects of firm resources and foreign ownership on performance, measured by both ROA and Tobin's Q. Specifically, we observe inverted U-shape relationships for human capital and foreign ownership, diminishing returns for physical capital, and a positive squared term for R&D intensity. Moreover, we find that foreign ownership positively moderates the effects of firm resources on performance. These results are robust to alternative measures and subgroup analyses. Our study contributes to the literature by providing a nuanced understanding of firm performance drivers in Vietnam's unique institutional context, extending the applicability of resource-based and knowledge-based views to this emerging market. The findings offer valuable insights for managers and policymakers in Vietnam, highlighting the importance of balanced resource allocation, strategic innovation investments, and the potential benefits of foreign ownership in enhancing firm performance.
Authors and Affiliations
Hai Phong NGUYEN
Keywords
Related Articles
- EP ID EP749633
- DOI 10.47191/jefms/v7-i10-37
- Views 36
- Downloads 0
Implementation of Risk Management in Asset Management of Kendari City Regional Government
The purpose of this study is to analyze the implementation of risk management in the management of assets of the Kendari City Regional Government. The study population includes all employees at the Kendari City Regional...
Internationalization of SMES Sarong Samarinda in the Industrial Revolution Era 4.0
The existence of SMEs Sarong Samarinda has become one of the pillars of the economy of some Samarinda people. From raw material suppliers, weavers, business owners, and souvenir shops to online store activists, all are i...
Analysis of the Influence of Motivation and Work Environment on Employee Performance and Job Satisfaction as Intervening Variables
Performance is the result of work achieved by employees in carrying out their duties in accordance with the responsibilities assigned to employees. The Bank uses various strategies, such as incentives and fostering a pos...
The Role of Good Corporate Governance and Financial Reporting in Disclosure of Sustainability Report
This study to know and analyzes good corporate governance and financial performance's role in sustainability reports. The method used in this research is Qualitative analysis, library research, previous research research...
Non-Tariff Barriers and Their Effect on Export: Evidence from 5 Asean Countries
Protection or trade restriction in a country comes at an economic cost to domestic consumers and short run benefit to producers of the country. Tariff and non-tariff barriers (NTBs) are government policies to protect d...