Abstract

This study aims to examine the impacts of firm constraints and proactive innovation on firm performance, using a sample of 3504 small and medium enterprises (SMEs) in Vietnam from 2011–2015. Our findings suggest that technological innovations in general are beneficial to firm performance, increasing firm sales and profits. Further filtering innovations into two categories of proactive and reactive ones, we find that reactive innovation negatively affects firm performance, consistent with the view that proactive entrepreneurial behavior is a highly sought-after characteristic or a valuable resource for a firm as specified in resources-based theory. Finally, our result implies that if firms have low constraint or have sufficient resources, proactive strategies should be the choice if firms seek to improve their performance.

Details

Title
Firm Constraints on the Link between Proactive Innovation, Open Innovation and Firm Performance
Author
Nguyen Thanh Liem 1   VIAFID ORCID Logo  ; Nguyen, Vinh Khuong 2   VIAFID ORCID Logo  ; Thai Hong Thuy Khanh 3 

1  Center for Economic and Financial Research, University of Economics and Law, VNU-HCM, Ho Chi Minh City 700000, Vietnam 
2  Faculty of Accounting and Auditing, University of Economics and Law, VNU-HCM, Ho Chi Minh City 700000, Vietnam; [email protected] 
3  Faculty of Finance and Accounting, Nguyen Tat Thanh University, Ho Chi Minh City 700000, Vietnam 
First page
88
Publication year
2019
Publication date
2019
Publisher
Elsevier Limited
e-ISSN
21998531
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.3390/joitmc5040088
ProQuest document ID
2577738474
Copyright
© 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.