Title: Impact of dynamic capabilities and firm characteristics on the firm performance of Vietnamese small and medium-sized retail enterprises

Authors: Tommi Tapanainen; Kien Trung Dao; Hai Nguyen Thi Thanh; Hue The Nguyen; Ngoc Bich Dang; Nguyen Danh Nguyen

Addresses: College of Economics and International Trade, Pusan National University, Busan, South Korea ' Faculty of Economics and Business, Phenikaa University To Huu, Ha Dong, Hanoi 12116, Vietnam and School of Economics and Management, Hanoi University of Science and Technology, No. 01 Dai Co Viet, Hai Ba Trung, Hanoi, Vietnam ' Faculty of Social Sciences, Business and Economics, Abo Akademi University, Vanrikinkatü 3B, Turku, Finland and Department of Industrial and Information Management, Tampere University of Technology, Finland ' Hai Phong University, Phan Dang Luu, Kien An, Hai Phong City, Vietnam ' The Quanlitative Analysis Center, QA GLOBAL, JSC 9/82 Chua Lang, Lang Ha, Dong Da, Hanoi, Vietnam ' School of Economics and Management, Hanoi University of Science and Technology, No. 01 Dai Co Viet, Hai Ba Trung, Hanoi, Vietnam

Abstract: Within the research area of dynamic capabilities, one important context is SMEs, which are thought to be resource-poor and hence disadvantaged in the creation of such capabilities. We develop a model comprising of adaptive capability, entrepreneurial orientation, marketing capability and innovativeness, and investigate their link to firm performance using a sample of 243 Vietnamese retail-sector companies. We also include firm age and type (registered or traditional) in the hypotheses. The result of structural equation modelling indicates that entrepreneurial orientation and innovativeness are directly linked to firm performance in this context, whereas adaptive capability and marketing capability are indirectly linked. Additionally, firm age was found to link to performance. Our findings have implications to context-based research in dynamic capabilities for SMEs. They also suggest, particularly, that Vietnamese SMEs should strengthen their entrepreneurial orientations and innovativeness further to improve their performance.

Keywords: dynamic capability; firm performance; entrepreneurial orientation; marketing capability; adaptive capability; innovativeness.

DOI: 10.1504/IJMED.2022.120539

International Journal of Management and Enterprise Development, 2022 Vol.21 No.1, pp.28 - 61

Received: 18 Jun 2020
Accepted: 03 Jul 2021
Published online: 25 Jan 2022 *