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Material Sourcing Characteristics and Firm Performance: An Empirical Study in Vietnam

Author

Listed:
  • Phi-Hung Nguyen

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam
    Department of Business Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Lin Hsu-Hao

    (Department of Banking and Finance, Monash University, Melbourne, VIC 3800, Australia)

  • Hong-Anh Pham

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Huong Le Thi

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Quynh Mai Do

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Dieu Huong Nguyen

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Thu-Ha Nguyen

    (Faculty of Business, FPT University, Hanoi 100000, Vietnam)

Abstract

With the evolution of today’s economy, supply chain management for raw materials is a complex task, but it can be simplified with the appropriate strategies. Thus, relationships between firms and suppliers have become critical for enterprise success and country development. This study investigates the effects of raw materials sources, including domestic and international ones, on small and medium enterprises (SMEs) performance. Supporting this research, all the regression models are conducted on Stata version 16.0 software with the dataset of 3485 manufacturing SMEs, utilizing longitudinal data derived from bi-annually repeated surveys of randomly selected SMEs in ten provinces in Vietnam over the period of 2011–2015. Additionally, the results of this study indicate the significant positive effects of domestic raw materials on firm performance. Meanwhile, international raw material sources present SMEs with several disadvantages in maintaining the effectiveness of SMEs’ operations. In addition, the results also highlight that the overflow of raw materials from non-state enterprises has negative effects on firm performance. Alternatively, this study aims to fill the literature gap on supply chain management to suggest to SMEs some justifiable strategies to fortify sustainable growth and the rational flow of raw materials.

Suggested Citation

  • Phi-Hung Nguyen & Lin Hsu-Hao & Hong-Anh Pham & Huong Le Thi & Quynh Mai Do & Dieu Huong Nguyen & Thu-Ha Nguyen, 2022. "Material Sourcing Characteristics and Firm Performance: An Empirical Study in Vietnam," Mathematics, MDPI, vol. 10(10), pages 1-16, May.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:10:p:1691-:d:815978
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    2. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.

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