IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04981577.html
   My bibliography  Save this paper

Impact of innovation on productivity growth of SMEs in a factor-driven economy

Author

Listed:
  • Charbel Salloum

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

  • Nikita Baklanov

    (UCPH - University of Copenhagen = Københavns Universitet)

  • Kent Wickstrøm Jensen

    (SDU - University of Southern Denmark)

  • Jan Vang Brambini Pedersen

    (SDU - University of Southern Denmark)

  • Matteo Rossi

    (POLIMI - Politecnico di Milano [Milan])

Abstract

This study explores the relationship between various types of innovation and productivity growth in small and medium-sized enterprises (SMEs) within Vietnam, a factor-driven economy. Utilising a longitudinal dataset from three surveys of 3,550 Vietnamese manufacturing SMEs, the study employs regression analysis to account for dual causality between innovation and factor productivity growth. The results reveal that process innovation leads to greater productivity gains compared to product modification and product innovation strategies. The findings underscore the importance of process innovation in enhancing productivity in factor-driven economies, where firms primarily exploit unskilled labour and natural resources. The study also highlights the need for policymakers to tailor innovation support strategies to the unique contexts of factor-driven economies, emphasising process innovations that leverage existing factor endowments. The research contributes to the limited literature on innovation in the lowest stages of economic development and provides practical insights for promoting sustainable economic growth in developing countries.

Suggested Citation

  • Charbel Salloum & Nikita Baklanov & Kent Wickstrøm Jensen & Jan Vang Brambini Pedersen & Matteo Rossi, 2025. "Impact of innovation on productivity growth of SMEs in a factor-driven economy," Post-Print hal-04981577, HAL.
    • Handle: RePEc:hal:journl:hal-04981577
    DOI: 10.1504/IJESB.2026.10066650
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:hal:journl:hal-04981577. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.