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Strategic perspectives, creativity, and financial performance in Vietnamese SMEs

Year: 2023

Type: article

Abstract: This study examines the relationships between the inside-out and outside-in perspectives of strategists, organizational creativity, and financial performance in Vietnamese small and medium enterprises (SMEs). Based on the resource-based view and dynamic capabilities view, we collected cross-sectional data from 382 managers at all levels of Vietnamese SMEs. The study employed partial least squares structural equation modeling. The findings confirm that the inside-out perspective positively affects organizational creativity but has a negative impact on financial performance. Conversely, the outside-in perspective positively affects both organizational creativity and financial performance. Additionally, the study reveals that organizational creativity positively affects financial performance and acts as a mediator between both perspectives and financial performance. Thus, the study suggests that SMEs can benefit from adopting an outside-in perspective to enhance both their organizational creativity and financial performance. Overall, the study contributes to the literature on the cognitive school of strategic management in SMEs.

Source: Heliyon

DOI: 10.1016/j.heliyon.2023.e20354

Authors: Phuong Ngoc-Duy Nguyen, Khuong Ngoc Mai, Thu-Hang Le

Institution: Vietnam National University Ho Chi Minh City

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,100