The Impact of Absorption Capability, Innovation Capability, and Branding Capability on Firm Performance—An Empirical Study on Vietnamese Retail Firms

Linh Nguyen Phuong, Khanh Cao Tuan, Nhuan Nguyen Duc and Uyen Nguyen Thi
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Linh Nguyen Phuong: Business Administration Faculty, Thuongmai University, Hanoi 122868, Vietnam
Khanh Cao Tuan: Marketing Faculty, Thuongmai University, Hanoi 122868, Vietnam
Nhuan Nguyen Duc: Business Administration Faculty, Thuongmai University, Hanoi 122868, Vietnam
Uyen Nguyen Thi: Business Administration Faculty, Thuongmai University, Hanoi 122868, Vietnam

Sustainability, 2022, vol. 14, issue 11, 1-17

Abstract: This study aims to explore the impact of absorption capability, innovation capability, and branding capability on the performance of retailers. Using the resource-based view (RBV), this study proposes a research model on the direct impact of absorption capability, innovation capability, and branding capability on firm performance as well as the indirect impact of absorption capability on firm performance which is mediated by both innovation capability and branding capability. By surveying 201 middle and senior managers representing 201 Vietnamese retailers, PLS-SEM was used to test the hypotheses. The research results show the important role of developing innovation capability and branding capability in improving retailer performance. The findings also reveal the significant impact of absorption capability on retailers by an indirect mechanism through innovation capability and branding capability. Based on the findings, practical implications for Vietnamese retailer managers are suggested to improve their performance by strengthening and developing absorption capability, innovation capability, and branding capability.

Keywords: resource-based view; absorption capability; innovation capability; branding capability; performance; retail firm (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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