Impact of innovation on the performance of manufacturing enterprises in Vietnam

Abstract

This research aims to assess the impact of innovation on the efficiency of enterprises in Vietnam’s manufacturing and processing industry. The findings reveal that engaging in research and development (R&D) activities positively contributes to enterprise efficiency. Similarly, the implementation of process innovation strategies and product expansion strategies improves enterprises’ production and business performance. Meanwhile, strategies involving changes to entirely new business domains reduce enterprise efficiency, while  strategies aimed at improving product quality do not demonstrate any effect on enterprise efficiency. Innovation-related investments in equipment, machinery, and ICT exert a greater impact on the efficiency of medium enterprises compared to large enterprises. The research also provides some suggestions on the issue of innovation for enterprises in Vietnam.