Does Innovation Increase Labor Wage and Boost Firm’s Financial Performance? Evidence of Agricultural Firms in Vietnam with Bayesian Approach

Quang Phu Tran and Kien The Nguyen
Additional contact information
Quang Phu Tran: Ho Chi Minh National Academy of Politics, Hanoi, Vietnam
Kien The Nguyen: VNU University of Economics and Business, Hanoi, Vietnam

HSE Economic Journal, 2022, vol. 26, issue 3, 475–486

Abstract: Many studies have agreed that innovation leads to product and process improvements, allows firms to grow more quickly, be more efficient, and ultimately be more profitable than non-innovators. In this study, we explore the impact of innovation (including product innovation, process innovation, organizational innovation, and marketing innovation) on firms’ financial performance and employees’ wages in Vietnamese agricultural firms. We take a survey from 257 agricultural firms in Vietnam and analyze our dataset with the Bayesian multiple regression ap­proach. Our results show that product, process, and marketing innovations positively affect firms’ financial performance, while organizational innovation contributes positively to an increase in average labor wage. These results give some inside implications for firms and the government in distributing resources efficiently for promoting different aspects of innovation.

Keywords: innovation; financial performance; labor wage; Bayesian regression (search for similar items in EconPapers)
JEL-codes: C11 E24 L25 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ej.hse.ru/en/2022-26-3/782582177.html (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hig:ecohse:2022:3:6

Access Statistics for this article

More articles in HSE Economic Journal from National Research University Higher School of Economics
Bibliographic data for series maintained by Editorial board () and Editorial board ().