The impact of access to finance and business environment on firm innovation in Vietnam: Moderating role of working experience of top manager
| Autor: | Thu Thi Hong Nguyen, Minh Hue Nguyen, Bich Ngoc Do, Minh Thi Hong Le |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Ho Chi Minh City Open University Journal of Science - Economics and Business Administration, Vol 14, Iss 4, Pp 55-74 (2024) |
| Druh dokumentu: | article |
| ISSN: | 2734-9314 2734-9586 |
| DOI: | 10.46223/HCMCOUJS.econ.en.14.4.3126.2024 |
| Popis: | Innovation enables organizations to swiftly adapt to market dynamics, technological advancements, and the competitive environment, hence augmenting their competitive edge. Innovation endeavors provide challenges due to their substantial financial requirements, business environment, and the need for proficient management. This research examines the role of the business environment and access to finance in influencing firm innovation effectiveness, encompassing organisational innovation and product innovation, both individually and as a simultaneous combination of both innovation activities. The business environment comprises four factors such as business licensing and permits, corruption, customs and trade regulations, and an inadequately educated workforce. Additionally, this study explores the moderating role of manager working experience in accessing finance and firm innovation. The research used a large dataset of firm-level data (996 observations) from 2006 to 2016 in the World Bank Enterprise Survey specifically extracted for the Vietnamese market. The research methodology employs multinomial probit models to analyze datasets with layers of distinct financial access levels, including minor, moderate, significant, and severe obstacles, combined with alternate testing of four business environment factors. The research results highlight limitations in financial access at different levels, leading to a reduction in both organisational and product innovation. Customs emerge as the most significant barrier in the business environment for all levels of financial access, followed by licensing and permits, corruption, and the labor workforce as obstacles at varying degrees of financial access. Managerial working experience has mitigated obstacles to financial access for both organisational and product innovation. The study outcomes contribute to both theory and management implications. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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