Impacting corporate culture on business efficiency of small and medium enterprises: A case study in Vietnam

Small and medium enterprises (SMEs) are essential for job creation and economic growth, reducing poverty and improving workers' incomes. SMEs are also a source of innovation in business and serve as a bridge to bring scientific and technological research results into practical life. Therefore, the study's purpose is to measure the impact of critical factors on business efficiency using a structural equation modeling (SEM) approach. The authors proposed actionable policy recommendations to help managers enhance business efficiency. The methodology applied a structural equation model based on data collected from 500 managers of 500 SMEs in five provinces of Vietnam. The study's findings showed that five critical factors positively impact business efficiency, including the macro environment (ME), quality of human resources of the enterprise (HR), corporate culture (CC), digital transformation (DT), and creative innovation (CI). In addition, the conclusion of the explored corporate culture is a new factor with a strong impact. Finally, the practical implications proposed policy recommendations to help managers and policymakers improve business efficiency due to influences from external and internal factors contributing to business development.