tailieunhanh - The impact of business strategy on firm performance of listed firms in Vietnam

This study was conducted to contribute empirical evidence of the impact of Michael Porter’s business strategy on performance in Vietnamese listed firms. Based on data from 620 firms on the Vietnamese stock exchange from 2010 to 2019, we use a quantitative research method to demonstrate the positive association between performance and differentiation strategy. | VNU Journal of Science Economics and Business Vol. 36 No. 5E 2020 70-80 Original Article The Impact of Business Strategy on Firm Performance of Listed Firms in Vietnam Nguyen Vinh Khuong Le Phan Minh Thu Luong Bao Han Nguyen Thuy Minh Dan Pham Truc Mai Tran Nguyen Hieu Thao 1 University of Economics and Law Ho Chi Minh City Vietnam Quarter 3 Linh Xuan Ward Thu Duc Dist. Ho Chi Minh City Vietnam 2 Vietnam National University Ho Chi Minh City Vietnam Quarter 3 Linh Xuan Ward Thu Duc Dist. Ho Chi Minh City Vietnam Received 28 September 2020 Revised 18 December 2020 Accepted 19 December 2020 Abstract This study was conducted to contribute empirical evidence of the impact of Michael Porter s business strategy on performance in Vietnamese listed firms. Based on data from 620 firms on the Vietnamese stock exchange from 2010 to 2019 we use a quantitative research method to demonstrate the positive association between performance and differentiation strategy. We found cost leadership strategy has no meaning. Based on the results we make implications for listed firms and regulatory agencies which will contribute to improving firm performance. Keywords Business strategy cost leadership differentiation firm performance listed firm Vietnam. 1. Introduction using business strategy is a way to ensure a sustainable competitive advantage - by In the current new era the business investing in the resources needed to develop the environment is constantly moving transactions main capabilities of the business and if the are constantly being created and advantage is sustainable it will lead to superior implementation is becoming increasingly long-term firm performance 2 . Specifically difficult and complicated. In this ever-changing Allen 2007 found that the lack of focus on environment - a characteristic of today s global business strategy was the main reason for the economy - businesses are faced with fierce collapse of some Japanese businesses 3 . competition pressure. Therefore .