Does innovation lead to firm growth through endogenous marketing expenditure for SMEs in Ho Chi Minh City (Vietnam)?

Ngo Giang Thy, Linh Nguyen Khanh Duong, Huynh Dang Khoa and Tu Van Binh

International Journal of Entrepreneurship and Small Business, 2024, vol. 52, issue 1, 47-66

Abstract: This paper investigates how Vietnamese SMEs' innovation relates to its performance through impacts of endogenous covariates, such as marketing expenditure. The paper employed extended regression models. Data used is based on the Vietnam General Statistics Office Survey conducted in 2017 with 645 SMEs at Ho Chi Minh City. Very interesting findings show that positive changes in the innovation of SMEs cause an increase in sales growth and labour cost growth, but it is contributed by marketing expenditure rate as endogeneity. The companies, which are old, limited liability and private enterprises, invest more in marketing expenditure toward increasing sales growth. This is a message to SMEs in Vietnam to think of innovation programmes based on marketing activity contribution, by doing that the SME could obtain competitive advantages toward achievements.

Keywords: firm performance; innovation; marketing; SMEs. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=137756 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijesbu:v:52:y:2024:i:1:p:47-66

Access Statistics for this article

More articles in International Journal of Entrepreneurship and Small Business from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().