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Business practices of trade and service firms: Evidence from Vietnam

Author

Listed:
  • Chi H. P. Ho

    (Can Tho University)

  • Kiet T. Nguyen

    (Can Tho University)

  • Duc C. Trinh

    (Can Tho University)

Abstract

The paper aims to measure and explain the business activities of small and micro enterprises (SMEs) in Vietnam. The paper is approached based on management practice perspectives in enterprises to test the hypothesis about the relationship between business practices and the outcome of SMEs, simultaneously determining the factors affecting the business practice level of owners/managers of the SMEs. The data were collected from two different sources: (i) face-to-face interviews with 168 owners/managers about their application of business practices, and (ii) business outcomes of the firms collected from corporate income tax reports provided by tax authorities. The results show mean business practice scores of the firms of 15,87 (out of 26), which has a positive correlation with the profit of the firms. Furthermore, it shows that business practice scores depend on the competitive level, education of managers, and type of business. This paper also highlights the importance of the competitive effect, human capital, and types of business on business practices. Finally, implications and ideas for future research are suggested.

Suggested Citation

  • Chi H. P. Ho & Kiet T. Nguyen & Duc C. Trinh, 2024. "Business practices of trade and service firms: Evidence from Vietnam," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2037-2061, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01186-z
    DOI: 10.1007/s13132-023-01186-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Business practices; Competitive Advantage; Performance; Profit; SMEs; Viet Nam;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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