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The determinants of innovation in Vietnamese manufacturing firms: an empirical analysis using a technology–organization–environment framework

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  • Tran Thi Hue

    (Foreign Trade University
    Waseda University)

Abstract

The aim of this study is to empirically analyze the determinants of the innovation decision for Vietnamese manufacturing firms by using an extensive firm-level panel dataset for the period 2010–2013. This study adopts the technology–organization–environment (TOE) model to explore the influence of these factors on the innovation decision of firms in the context of a developing country—in particular, Vietnam. The results show that the technological factors that are represented by a higher percentage of skilled workforce and that are based in technologically intensive sectors appear to be critical elements for the innovation decision. The organizational factors “firm size” and “ownership” significantly affect the innovation decision. With regard to ownership, a surprising finding is the lack of innovative activities in wholly foreign-owned firms, which is in contrast with other studies. Furthermore, regarding the environmental factors, the findings show that the financial support from the local government is unrelated to the innovation engagement of Vietnamese firms.

Suggested Citation

  • Tran Thi Hue, 2019. "The determinants of innovation in Vietnamese manufacturing firms: an empirical analysis using a technology–organization–environment framework," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(3), pages 247-267, September.
    • Handle: RePEc:spr:eurasi:v:9:y:2019:i:3:d:10.1007_s40821-019-00125-w
    DOI: 10.1007/s40821-019-00125-w
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    2. Luong Vinh Quoc Duy & Damien Cassells, 2022. "Agglomeration and innovation effort: A longitudinal study on small and medium manufacturing enterprises in Vietnam," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1252-1268, August.
    3. Agata Sudolska & Justyna Łapińska, 2020. "Exploring Determinants of Innovation Capability in Manufacturing Companies Operating in Poland," Sustainability, MDPI, vol. 12(17), pages 1-21, August.
    4. Huy-Cuong Vo-Thai & Trinh-Hoang Hong-Hue & My-Linh Tran, 2021. "Technological- and Non-Technological Innovation During the Growth Phase of Industry Life Cycle: An Evidence From Vietnamese Manufacturing Enterprises," SAGE Open, , vol. 11(3), pages 21582440211, July.
    5. Idris Gautama So & Hasnah Haron & Anderes Gui & Elfindah Princes & Synthia Atas Sari, 2021. "Sustainability Reporting Disclosure in Islamic Corporates: Do Human Governance, Corporate Governance, and IT Usage Matter?," Sustainability, MDPI, vol. 13(23), pages 1-23, November.
    6. Ng, Peggy M.L. & Lit, Kam Kong & Cheung, Cherry T.Y., 2022. "Remote work as a new normal? The technology-organization-environment (TOE) context," Technology in Society, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    Innovation decision; manufacturing firms; TOE model; Vietnam;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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