Business practices of trade and service firms: Evidence from Vietnam

Chi H. P. Ho (), Kiet T. Nguyen () and Duc C. Trinh ()
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Chi H. P. Ho: Can Tho University
Kiet T. Nguyen: Can Tho University
Duc C. Trinh: Can Tho University

Journal of the Knowledge Economy, 2024, vol. 15, issue 1, No 81, 2037-2061

Abstract: Abstract The paper aims to measure and explain the business activities of small and micro enterprises (SMEs) in Vietnam. The paper is approached based on management practice perspectives in enterprises to test the hypothesis about the relationship between business practices and the outcome of SMEs, simultaneously determining the factors affecting the business practice level of owners/managers of the SMEs. The data were collected from two different sources: (i) face-to-face interviews with 168 owners/managers about their application of business practices, and (ii) business outcomes of the firms collected from corporate income tax reports provided by tax authorities. The results show mean business practice scores of the firms of 15,87 (out of 26), which has a positive correlation with the profit of the firms. Furthermore, it shows that business practice scores depend on the competitive level, education of managers, and type of business. This paper also highlights the importance of the competitive effect, human capital, and types of business on business practices. Finally, implications and ideas for future research are suggested.

Keywords: Business practices; Competitive Advantage; Performance; Profit; SMEs; Viet Nam (search for similar items in EconPapers)
JEL-codes: D22 M21 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s13132-023-01186-z

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