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Determinants of the performance of small and medium-sized enterprises in emerging markets

The Nguyen Huynh (University of Finance - Marketing, Ho Chi Minh City, Vietnam)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 30 April 2021

451

Abstract

Purpose

The aim of this article is to investigate the determinants of the performance of small and medium-sized enterprises in emerging markets: evidence from Vietnam.

Design/methodology/approach

This article relies on the resource-based view to examine the factors affecting the performance of small and medium-sized enterprises in emerging markets. The method employed in the research is the generalized method of moments for testing hypotheses of data collected from the General Statistics Office of Vietnam in the period of 2013–2016.

Findings

The results show that factors such as the intensity of capital investment, age and size of the firm, labor productivity, foreign ownership, location, cost management effectiveness and export activities have a positive effect on the performance of Vietnamese small and medium-sized enterprises, while revenue growth rate, fixed assets and financial leverage tend to hinder their performance. This has brought important messages that the input markets and the business environment in emerging markets like Vietnam have not yet stimulated well-economic activities.

Originality/value

This study sheds light on a topic that has not been fully explored in small and medium-sized enterprises in emerging markets in general, and Vietnam in particular. Specifically, small and medium-sized enterprises in emerging markets reconfigure available resources and strengthen internal capabilities to overcome barriers of the shortages of strategic, rare and irreplaceable resources in order to improve their performance. This is a unique contribution to the existing literature and highlights the original value of this article.

Keywords

Citation

Huynh, T.N. (2021), "Determinants of the performance of small and medium-sized enterprises in emerging markets", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-08-2020-0440

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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