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

Thy, Ngo Giang; Duong, Linh; Khoa, Huynh Dang; Binh, Tu Van

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 survey of GSO conducted in 2017, in which 645 SMEs at Ho Chi Minh City are extracted to estimate. Very interesting findings show that positive changes in 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 the sales growth with a good control of the labour cost growth. This is a message to SMEs in Vietnam to think of innovation programmes based on marketing activity contribution, doing that the SMEs’ performance obtain competitive advantages toward achievements.
Key words: firm performance, innovation, marketing, SMEs.

Citation

Thy, N. G., Duong, L., Khoa, H. D., & Binh, T. V. (in press). Does innovation lead to firm growth through endogenous marketing expenditure for SMEs in Ho Chi Minh City (Vietnam)?. International Journal of Entrepreneurship and Small Business,

• Journal Article Type: Article
• Acceptance Date: Jul 27, 2021
• Deposit Date: Aug 26, 2021
• Journal: International Journal of Entrepreneurship and Small Business
• Print ISSN: 1476-1297
• Electronic ISSN: 1741-8054
• Publisher: Inderscience
• Peer Reviewed: Peer Reviewed
• Public URL: https://uwe-repository.worktribe.com/output/7711452