IDEAS home Printed from https://ideas.repec.org/a/vrs/ecobur/v10y2024i4p129-164n1001.html
   My bibliography  Save this article

The effects of technology and innovation adoption on firm performance among small and medium enterprises: Evidence from Vietnam’s logistics sector

Author

Listed:
  • Nguyen Thanh Tuan

    (LAMIH, LARSH (CRISS), Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Bekrar Abdelghani

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Le Thi Muoi

    (LARSH (CRISS), Université Polytechnique Hauts-de-France, Les Tertiales, 59313, Valenciennes, France)

  • Artiba Abdelhakim

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Chargui Tarik

    (LAMIH, UMR CNRS 8201, Université Polytechnique Hauts-de-France, Le Mont Houy, 59313, Valenciennes, France)

  • Vo Thi Le Hoa

    (CNRS, UMR 6211, Université de Rennes, F-3500 Rennes, France)

  • Trinh Thi Thu Huong

    (School of Economics and International Business, Foreign Trade University, 91 Chua Lang Street, Dong Da District, Ha Noi City, Vietnam)

Abstract

In Industry 4.0, technology and innovation constitute a driver for enhancing firms’ performance, particularly for small and medium-sized enterprises (SMEs). Our study aims to examine whether that statement is correct for SMEs in a developing country. We developed a generic model and employed multiple regression techniques, including ordinary least-squares, robust standard errors and weighted least squares, to test this hypothesis and address heteroskedasticity. Using a micro-level dataset including 11,630 SMEs in Vietnam’s logistics sector, an emerging logistics market in a developing country, our results reveals that the effects of technology on firm performance may differ depending on particular metrics of this performance. Furthermore, not all forms of innovation significantly affect SME performance. Control variables such as “firm’s age”, “firm’s size”, “state ownership”, “education of the manager” and “foreign activities” also play a significant role in SME performance, underscoring the importance of both internal capabilities and external technological elements.

Suggested Citation

  • Nguyen Thanh Tuan & Bekrar Abdelghani & Le Thi Muoi & Artiba Abdelhakim & Chargui Tarik & Vo Thi Le Hoa & Trinh Thi Thu Huong, 2024. "The effects of technology and innovation adoption on firm performance among small and medium enterprises: Evidence from Vietnam’s logistics sector," Economics and Business Review, Sciendo, vol. 10(4), pages 129-164.
    • Handle: RePEc:vrs:ecobur:v:10:y:2024:i:4:p:129-164:n:1001
    DOI: 10.18559/ebr.2024.4.1123
    as

    Download full text from publisher

    File URL: https://doi.org/10.18559/ebr.2024.4.1123
    Download Restriction: no
    File URL: https://libkey.io/10.18559/ebr.2024.4.1123?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jan De Loecker, 2013. "Detecting Learning by Exporting," American Economic Journal: Microeconomics, American Economic Association, vol. 5(3), pages 1-21, August.
    2. Engin Deniz Eris & Omur Neczan Timurcanday Ozmen, 2012. "The Effect of Market Orientation, Learning Orientation and Innovativeness on Firm Performance: A Research from Turkish Logistics Sector," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 5(1), pages 77-108, April.
    3. Michael Wang, 2016. "The Role Of Innovation Capability In The Australian Courier Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-18, October.
    4. Joseph Dery Nyeadi, 2023. "Foreign Direct Investment and Firm Value: Evidence from Selected Countries in Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 260-279, April.
    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. Geoffrey Barrows & Hélène Ollivier & Ariell Reshef, 2023. "Production Function Estimation with Multi-Destination Firms," CESifo Working Paper Series 10716, CESifo.
    2. Catherine Fuss & Angelos Theodorakopoulos, 2018. "Compositional Changes in Aggregate Productivity in an Era of Globalisation and Financial Crisis," Working Papers of VIVES - Research Centre for Regional Economics 627696, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.
    3. Moisă ALTĂR & Ana-Maria CAZACU, 2016. "Testing Self-Selection And Learning By Exporting Hypotheses. The Case Of Romania," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 50(1), pages 5-22.
    4. Amaresh K Tiwari, 2023. "Automation In An Open, Catching-Up Economy: Aggregate And Microeconometric Evidence," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 144, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    5. Giordano, Claire & Lopez-Garcia, Paloma, 2019. "Firm heterogeneity and trade in EU countries: a cross-country analysis," Occasional Paper Series 225, European Central Bank.
    6. Naqeeb Ur Rehman, 2017. "Self-selection and learning-by-exporting hypotheses: micro-level evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 133-160, April.
    7. Aksel Erbahar, 2020. "Two worlds apart? Export demand shocks and domestic sales," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(2), pages 313-342, May.
    8. Ciarli, Tommaso & Coad, Alex & Moneta, Alessio, 2023. "Does exporting cause productivity growth? Evidence from Chilean firms," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 228-239.
    9. Pascal L. Ghazalian & Ali Fakih, 2017. "R&D and Innovation in Food Processing Firms in Transition Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 427-450, June.
    10. Cathy Ge Bao & Maggie Xiaoyang Chen, 2018. "Foreign Rivals Are Coming to Town: Responding to the Threat of Foreign Multinational Entry," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 120-157, October.
    11. Filippo Biondi & Sergio Inferrera & Matthias Mertens & Javier Miranda, 2023. "Declining Business Dynamism in Europe: The Role of Shocks, Market Power, and Technology," Jena Economics Research Papers 2023-011, Friedrich-Schiller-University Jena.
    12. Flynn, Zach, 2018. "Identifying productivity when it is a factor of production," SocArXiv bwxfz_v1, Center for Open Science.
    13. Alvaro Garcia-Marin & Santiago Justel & Tim Schmidt-Eisenlohr, 2019. "Trade Credit, Markups, and Relationships," CESifo Working Paper Series 7600, CESifo.
    14. Cristiano Antonelli & Christophe Feder, 2021. "The Schumpeterian creative response: export and innovation: evidence for OECD countries 1995–2015," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 803-821, October.
    15. Stefanescu, Razvan & Dumitriu, Ramona, 2014. "Investigation on the relationship between Romanian foreign trade and industrial production," MPRA Paper 62547, University Library of Munich, Germany.
    16. Yiqing Xie & Chao Song, 2020. "The role of processing trade in exporters' responses to exchange rate: Evidence from China," The World Economy, Wiley Blackwell, vol. 43(6), pages 1521-1543, June.
    17. Antonio Rodriguez-Lopez & Miaojie Yu, 2017. "All-Around Trade Liberalization and Firm-Level Employment: Theory and Evidence from China," CESifo Working Paper Series 6710, CESifo.
    18. Alvaro Garcia Marin & Nico Voigtländer, 2018. "Product-Level Efficiency and Core Competence in Multi-Product Plants," 2018 Meeting Papers 737, Society for Economic Dynamics.
    19. Caroline Stiel, 2017. "Modern Public Enterprises: Organisational Innovation and Productivity," Discussion Papers of DIW Berlin 1713, DIW Berlin, German Institute for Economic Research.
    20. Gibbon, Alexandra J. & Schain, Jan Philip, 2023. "Rising markups, common ownership, and technological capacities," International Journal of Industrial Organization, Elsevier, vol. 89(C).

    More about this item

    Keywords

    firm performance; innovation; logistics; supply chain; technology;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    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:vrs:ecobur:v:10:y:2024:i:4:p:129-164:n:1001. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.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.