Organisational Innovation by Manufacturing SMEs in Vietnam
- 307 Downloads
This chapter focuses on organisational innovation in Vietnam’s private domestic SMEs (small- and medium-scale enterprises) and examines determinants of organisational innovation and its effects on firm performance. We use the SME survey of 2015, which is also employed in the longitudinal data in Chap. 2. However, in this chapter, we introduce some new ideas. First, unlike in other chapters, we examine organisational innovation; second, we employ a different method (propensity score matching analysis) for empirical analysis; and, third, a combination of quantitative analysis and qualitative firm interview surveys gives the study a vivid image and enhance its significance. More specifically, ISO9001 certification is regarded as an organisational innovation and human capital (higher education of entrepreneurs and workers), social capital (business association membership) and other innovations (other certifications or investments in equipment/machinery) are found to be significant determinants. This type of innovation influences firm’s business scale in terms of profit, value added, labour as well as TFP. Yet, it has no effect on labour productivity and Return On Assets (ROA) . We also found that almost all ISO9001 certified firms introduced Kaizen/5S, a Japanese management system, which works well with the former to enhance the firms’ innovation system and gain new customers.
KeywordsVietnam Propensity score matching analysis Organisational innovation ISO9001 Kaizen/5S
- Calza, E., Goedhuys, M., & Trifković, N. (2018). Drivers of productivity in Vietnamese SMEs: The role of management standards and innovation. Economics of Innovation and New Technology, 0(March), 1–22.Google Scholar
- Imai, M. (1997). Gemba Kaizen: A commonsense approach to a continuous improvement strategy (2nd ed.). Mc Graw Hill.Google Scholar
- IMF. (2017). World Economic Outlook Database April 2017—IMF. Retrieved from https://www.imf.org/external/pubs/ft/weo/2017/01/weodata/index.aspx.
- ISO. (n.d.). ISO 9000—Quality management. Retrieved from https://www.iso.org/iso-9001-quality-management.html.
- ISO. (2015). Quality management principles. 2015, 20.Google Scholar
- ISO. (2017). 9. ISO Survey of certifications to management system standards—Full results. Retrieved from https://isotc.iso.org/livelink/livelink?func=ll&objId=18808772&objAction=browse&viewType=1.
- Lam, A. (2006). Organizational innovation. In The Oxford handbook of innovation.Google Scholar
- Nübler, I. (2014). A theory of capabilities for productive transformation: Learning to catch up. In TRANSFORMING ECONOMIES Making industrial policy work for growth, jobs and development (pp. 113–149).Google Scholar
- Pufahl, A., & Weiss, C. R. (2008). Evaluating the effects of farm programs: Results from propensity score matching. In: 12th Congress of the European Association of Agricultural Economists-EAAE 2008, 1–11.Google Scholar
- Sonobe, T., & Otsuka, K. (2014). Cluster-based industrial development: Kaizen management for MSE grouth in developing countries. Palagrave macmillan.Google Scholar
- UNU-WIDER. (n.d.). Database Viet Nam SME database. Retrieved from https://www.wider.unu.edu/database/viet-nam-sme-database.
- World Bank. (n.d.). World development indicators. Retrieved from https://data.worldbank.org/data-catalog/world-development-indicators.
- World Bank. (n.d.). ‘Vietnam: Achieving success as a middle-income country’ Retrieved from http://www.worldbank.org/en/results/2013/04/12/vietnam-achieving-success-as-a-middle-income-country.
- WTO. (n.d.). Vietnam and the WTO. Retrieved from https://www.wto.org/english/thewto_e/countries_e/vietnam_e.htm.