IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i21p15519-d1272287.html
   My bibliography  Save this article

Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam

Author

Listed:
  • Quoc Hoang Thai

    (School of Business, International University, Vietnam National University Ho Chi Minh City (VNU-HCM), Linh Trung Ward, Thu Duc District, Ho Chi Minh City 700000, Vietnam)

  • Khuong Ngoc Mai

    (School of Business, International University, Vietnam National University Ho Chi Minh City (VNU-HCM), Linh Trung Ward, Thu Duc District, Ho Chi Minh City 700000, Vietnam)

Abstract

This research applied the resource-based view (RBV) theory to examine the effects of entrepreneurial financial support on new ventures’ performance via competitive advantage and innovation. A questionnaire survey was performed to collect data from 315 entrepreneurs of new ventures in the Ho Chi Minh City region. A quantitative method was applied, and partial least squares structural equation modeling (PLS-SEM) was utilized to confirm the significant relationships among variables of the research model. The findings demonstrated that all financial and operational performances of new venture constructs in this research model were completely supported. Furthermore, entrepreneurial financial support had the strongest direct and indirect effects on firm innovation and competitive advantage, while firm innovation and competitive advantage fully mediated relationships between entrepreneurial financial support and firms’ financial and operational performance. Hence, this research solved extant debates in the literature, concurrently enhancing the RBV theory in the entrepreneurship context. In the post-COVID-19 pandemic era, it offers novel insight for governors and other stakeholders to build an efficient financial support system, while providing entrepreneurs with strategies to leverage said system to develop innovation for achieving better competitive advantage, leading to higher firm performance.

Suggested Citation

  • Quoc Hoang Thai & Khuong Ngoc Mai, 2023. "Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam," Sustainability, MDPI, vol. 15(21), pages 1-29, November.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15519-:d:1272287
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/21/15519/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/21/15519/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Raphael Amit & Paul J. H. Schoemaker, 1993. "Abstract," Strategic Management Journal, Wiley Blackwell, vol. 14(1), pages 33-46, January.
    2. Andrzej Cieslik & Jan Jakub Michalek, 2018. "Process and product innovations, multi-product status and export performance: firm-level evidence from V–4 countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(2), pages 233-250, June.
    3. Edi Suandi & Herri & Yulihasri & Syafrizal, 2023. "Evaluating the relationship between entrepreneurial marketing, competitive advantage, and Islamic banks performance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 599-614, September.
    4. Christopher S. Hayter & Andrew J. Nelson & Stephanie Zayed & Alan C. O’Connor, 2018. "Conceptualizing academic entrepreneurship ecosystems: a review, analysis and extension of the literature," The Journal of Technology Transfer, Springer, vol. 43(4), pages 1039-1082, August.
    5. Eric Liguori & Josh Bendickson & Shelby Solomon & William C. McDowell, 2019. "Development of a multi-dimensional measure for assessing entrepreneurial ecosystems," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(1-2), pages 7-21, January.
    6. Martijn A. Boermans & Daan Willebrands, 2018. "Financial Constraints Matter: Empirical Evidence On Borrowing Behavior, Microfinance And Firm Productivity," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(02), pages 1-24, June.
    7. Beck, Thorsten & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2004. "Bank Competition and Access to Finance: International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 627-648, June.
    8. Muhammad Anwar, 2018. "BUSINESS MODEL INNOVATION AND SMEs PERFORMANCE — DOES COMPETITIVE ADVANTAGE MEDIATE?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-31, October.
    9. Salvatore Corrente & Salvatore Greco & Melita Nicotra & Marco Romano & Carmela Elita Schillaci, 2019. "Evaluating and comparing entrepreneurial ecosystems using SMAA and SMAA-S," The Journal of Technology Transfer, Springer, vol. 44(2), pages 485-519, April.
    10. Marjeta Marolt & Hans-Dieter Zimmermann & Andreja Pucihar, 2022. "Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    11. Meyer Haggège & Caroline Gauthier & Charles-Clemens Rüling, 2017. "Business model performance: five key drivers," Post-Print hal-01592049, HAL.
    12. Annalisa Ferrando & Alessandro Ruggieri, 2018. "Financial constraints and productivity: Evidence from euro area companies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 257-282, July.
    13. Partiwi Dwi Astuti & Luh Kade Datrini & Anis Chariri, 2023. "Understanding the Antecedents and Consequences of Sustainable Competitive Advantage: Testing Intellectual Capital and Organizational Performance," Economies, MDPI, vol. 11(4), pages 1-14, April.
    14. Albena Pergelova & Fernando Angulo-Ruiz, 2014. "The impact of government financial support on the performance of new firms: the role of competitive advantage as an intermediate outcome," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 26(9-10), pages 663-705, December.
    15. Francisco Javier Lloréns Montes & Antonia Ruiz Moreno & Luis Miguel Molina Fernández, 2004. "Assessing the organizational climate and contractual relationship for perceptions of support for innovation," International Journal of Manpower, Emerald Group Publishing Limited, vol. 25(2), pages 167-180, March.
    16. Kathrin Bischoff, 2021. "A study on the perceived strength of sustainable entrepreneurial ecosystems on the dimensions of stakeholder theory and culture," Small Business Economics, Springer, vol. 56(3), pages 1121-1140, February.
    17. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    18. Melissa S. Cardon & Colleen P. Kirk, 2015. "Entrepreneurial Passion as Mediator of the Self–Efficacy to Persistence Relationship," Entrepreneurship Theory and Practice, , vol. 39(5), pages 1027-1050, September.
    19. Dong Xiang & Andrew C. Worthington, 2017. "The impact of government financial assistance on the performance and financing of Australian SMEs," Accounting Research Journal, Emerald Group Publishing Limited, vol. 30(4), pages 447-464, November.
    20. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
    21. Francesco Castellaneta, 2016. "Building firm capability: managerial incentives for top performance," Post-Print halshs-03902432, HAL.
    22. Julio Cesar Ferro de Guimarães & Eliana Andréa Severo & César Ricardo Maia de Vasconcelos, 2017. "Sustainable Competitive Advantage: A Survey of Companies in Southern Brazil," Brazilian Business Review, Fucape Business School, vol. 14(3), pages 352-367, May.
    23. Ilídio Barreto & Charles Baden‐Fuller, 2006. "To Conform or To Perform? Mimetic Behaviour, Legitimacy‐Based Groups and Performance Consequences," Journal of Management Studies, Wiley Blackwell, vol. 43(7), pages 1559-1581, November.
    24. Henrik Hansen & John Rand & Finn Tarp, 2009. "Enterprise Growth and Survival in Vietnam: Does Government Support Matter?," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1048-1069, August.
    25. Adomako, Samuel & Opoku, Robert A. & Frimpong, Kwabena, 2018. "Entrepreneurs' improvisational behavior and new venture performance: Firm-level and institutional contingencies," Journal of Business Research, Elsevier, vol. 83(C), pages 10-18.
    26. Meyer Haggège & Caroline Gauthier & Charles-Clemens Rüling, 2017. "Business model performance: five key drivers," Grenoble Ecole de Management (Post-Print) hal-01592049, HAL.
    27. Braun, Matías & Briones, Ignacio & Islas, Gonzalo, 2019. "Interlocking directorates, access to credit, and business performance in Chile during early industrialization," Journal of Business Research, Elsevier, vol. 105(C), pages 381-388.
    28. Quoc Hoang Thai & Khuong Ngoc Mai & Tung Thanh Do, 2023. "An Evolution of Entrepreneurial Ecosystem Studies: A Systematic Literature Review and Future Research Agenda," SAGE Open, , vol. 13(1), pages 21582440231, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Quoc Hoang Thai & Khuong Ngoc Mai, 2024. "Do Entrepreneurial Financial Support and Entrepreneurial Culture Stimulate New Venture Performance through Organizational Creativity and Firm Innovation? Empirical Findings from Ho Chi Minh City Regio," Sustainability, MDPI, vol. 16(13), pages 1-35, June.
    2. Yang Songling & Muhammad Ishtiaq & Muhammad Anwar & Hamid Ahmed, 2018. "The Role of Government Support in Sustainable Competitive Position and Firm Performance," Sustainability, MDPI, vol. 10(10), pages 1-17, September.
    3. Muhammad Anwar & Sher Zaman Khan & Syed Zulfiqar Ali Shah, 2018. "Big Data Capabilities and Firm’s Performance: A Mediating Role of Competitive Advantage," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-28, December.
    4. Theodoraki, Christina & Dana, Léo-Paul & Caputo, Andrea, 2022. "Building sustainable entrepreneurial ecosystems: A holistic approach," Journal of Business Research, Elsevier, vol. 140(C), pages 346-360.
    5. Muhammad Anwar & Shuangjie Li, 2021. "Spurring competitiveness, financial and environmental performance of SMEs through government financial and non-financial support," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7860-7882, May.
    6. Agnieszka Kuś & Dorota Grego-Planer, 2021. "A Model of Innovation Activity in Small Enterprises in the Context of Selected Financial Factors: The Example of the Renewable Energy Sector," Energies, MDPI, vol. 14(10), pages 1-17, May.
    7. He, Yiqing & Ding, Xin & Yang, Chuchu, 2021. "Do environmental regulations and financial constraints stimulate corporate technological innovation? Evidence from China," Journal of Asian Economics, Elsevier, vol. 72(C).
    8. Jorge Vareda Gomes & Mário José Batista Romão, 2023. "Gaining a Competitive Advantage Through Benefits Management," International Journal of Strategic Decision Sciences (IJSDS), IGI Global, vol. 14(1), pages 1-15, January.
    9. Pejvak Oghazi & Rana Mostaghel, 2018. "Circular Business Model Challenges and Lessons Learned—An Industrial Perspective," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    10. Odlin, Denis, 2019. "Domestic competitor influence on internationalizing SMEs as an industry evolves," Journal of World Business, Elsevier, vol. 54(2), pages 119-136.
    11. Wanjiku Joseph Thukia, 2022. "Differentiation strategies and tourism performance interplay," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(10), pages 13-23, December.
    12. Edi Suandi & Herri & Yulihasri & Syafrizal, 2023. "Evaluating the relationship between entrepreneurial marketing, competitive advantage, and Islamic banks performance," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 599-614, September.
    13. W. David Allen & Donald J. Schepker & Clint Chadwick, 2022. "Firms' responses to changes in frictions in related human capital factor markets," Strategic Management Journal, Wiley Blackwell, vol. 43(7), pages 1347-1373, July.
    14. Junping Yang & Mengjie Zhang, 2021. "The value of entrepreneurship and the entrepreneurial ecosystem: Evidence from 265 cities in China," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2256-2271, December.
    15. Varadarajan, Rajan, 2023. "Resource advantage theory, resource based theory, and theory of multimarket competition: Does multimarket rivalry restrain firms from leveraging resource Advantages?," Journal of Business Research, Elsevier, vol. 160(C).
    16. Jianhong Zhang & Désirée Gorp & Henk Kievit, 2023. "Digital technology and national entrepreneurship: An ecosystem perspective," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1077-1105, June.
    17. J. W. Stoelhorst, 2023. "Value, rent, and profit: A stakeholder resource‐based theory," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1488-1513, June.
    18. Reha Karadag & Laura Poppo, 2023. "Strategic resource decay," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1534-1561, June.
    19. Fasano, Francesco & Rocca, Maurizio La & Cariola, Alfio & Passarelli, Mariacarmela, 2023. "Banking relationship and research spin-offs’ life cycle: The Italian experience," Research in International Business and Finance, Elsevier, vol. 65(C).
    20. Nabila Abid & Michael Dowling & Federica Ceci & Junaid Aftab, 2023. "Does resource bricolage foster SMEs' competitive advantage and financial performance? A resource‐based perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5833-5853, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15519-:d:1272287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.