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Internationalization, Strategic Slack Resources, and Firm Performance: The Case Study of Vietnamese Enterprises

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  • Phuong V. Nguyen

    (Center for Public Administration, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Hien Thi Ngoc Huynh

    (The School of Business, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Hoa Doan Xuan Trieu

    (The School of Business, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam)

  • Khoa T. Tran

    (Center for Public Administration, International University-Vietnam National University, Ho Chi Minh City 700000, Vietnam)

Abstract

The study attempted to fill a gap in the research on international business by providing fresh evidence of the effect of the degree of internationalization on firm performance and the influence of organizational slack on this relationship. By applying a fixed-effects model to data from 569,767 Vietnamese enterprises from 2007 to 2015, a significant W-shaped linkage between internationalization and firm performance was revealed. Importantly, the results also emphasized the importance of three types of slack in the first stage of the internationalization process: absorbed slack human resources, other absorbed slack resources, and unabsorbed slack resources.

Suggested Citation

  • Phuong V. Nguyen & Hien Thi Ngoc Huynh & Hoa Doan Xuan Trieu & Khoa T. Tran, 2019. "Internationalization, Strategic Slack Resources, and Firm Performance: The Case Study of Vietnamese Enterprises," JRFM, MDPI, vol. 12(3), pages 1-24, September.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:3:p:144-:d:265951
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