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Just a Piece of Paper? Domestic Standards Certification and Small Firm Growth in Viet Nam

Year: 2021

Type: article

Abstract: Using two waves (2013, 2015) of the Micro, Small, and Medium sized Enterprises (MSMEs) survey of Vietnamese manufacturing firms, this paper first explores what drives firms’ decision to have a domestic standards certificate, taking into account a rich number of factors related to the cost and expected benefits of certification as well as institutional factors. It further explores the presence of a positive and significant effect of domestic certificates on firm growth, testing whether these serve as signalling devices for desirable attributes under information asymmetry. Evidence is indeed found for a signalling effect of domestic standards certification, being stronger for female-run businesses. Results hold even when controlling for international certifications.

Source: The Journal of Development Studies

DOI: 10.1080/00220388.2021.1873289

Authors: Elisa Calza, Micheline Goedhuys

Institution: United Nations University – Maastricht Economic and Social Research Institute on Innovation and Technology

Language: English

Topic: Global trade, sustainability, and social impact

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W3128415491

FWCI: 1.359

Cites: 75

Cited by: 13

Related to: 10