Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam
Abstract
:1. Introduction
2. Theoretical Background and Hypotheses’ Development
2.1. Resource-Based View Theory
2.2. Firm Performance
2.3. Entrepreneurial Financial Support
2.4. Firm Innovation
2.5. Firm Competitive Advantage
2.6. Entrepreneurial Financial Support, Firm Performance, Firm Innovation, and Firm Competitive Advantage
2.7. Mediating Roles of Firm Competitive Advantage and Firm Innovation
3. Methodology
3.1. Measures
3.2. Sampling Strategies, Sampling Design, and Data Collection
3.3. Analysis
4. Data Analysis and Results
4.1. Demographic Characteristics of Samples
4.2. Measurement Model Results
4.3. Discriminant Validity
4.4. Assessment of the Structural Model
4.4.1. Testing Multicollinearity
4.4.2. Testing Predictive Power of Structural Model
4.4.3. Testing Predictive Relevance
4.5. Hypotheses Testing: Direct Effects
4.6. Mediation Analysis
5. Discussion
5.1. Practical Implications
5.2. Limitations and Future Research
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Categories | Items | 315) | Percentage |
---|---|---|---|
Gender | Male | 153 | 48.6 |
Female | 162 | 51.4 | |
Age Group | <30 | 97 | 30.8 |
31–40 | 142 | 45.1 | |
41–50 | 53 | 16.8 | |
>50 | 23 | 7.3 | |
Education level | High School | 19 | 6.0 |
Vocational | 16 | 5.1 | |
College | 58 | 18.4 | |
University | 180 | 57.1 | |
Postgraduate | 42 | 13.3 | |
Major | Economics | 85 | 27.0 |
Social Sciences and Humanities | 26 | 8.3 | |
Tourism | 17 | 5.4 | |
Management | 47 | 14.9 | |
Number of staff | Under 10 Employees | 91 | 28.9 |
11–50 Employees | 122 | 38.7 | |
51–100 Employees | 42 | 13.3 | |
Over 100 Employees | 60 | 19.0 | |
Field of company operating | Information Technology | 23 | 7.3 |
Transportation | 15 | 4.8 | |
Agriculture, Forestry, Fishing, and Mining | 12 | 3.8 | |
Real Estate Activities | 51 | 16.2 | |
Retail and Distributive Trade | 27 | 8.6 | |
Service Activities/Tourism | 31 | 9.8 | |
Manufacturing | 50 | 15.9 | |
Others | 106 | 33.7 | |
Total annual revenue | Under 10 Billion | 184 | 58.4 |
11-100 Billion | 85 | 27.0 | |
Over 100 Billion | 46 | 14.6 |
Constructs and Indicators | Factor Loading |
---|---|
Financial Performance: FiPer (Cronbach’s Alpha = 0.923, CR = 0.951, AVE = 0.867) | |
FiPer1: In comparison with competitors’ return on sales increases | 0.934 |
FiPer2: In comparison with competitors’ return on assets increases | 0.929 |
FiPer3: In comparison with competitors’ return on equity increases | 0.930 |
Firm Operational Performance: BOP (Cronbach’s Alpha = 0.911, CR = 0.931, AVE = 0.692) | |
BOP1: Our firm can find credits easily when needed | 0.763 |
BOP2: The customers are satisfied with the firm | 0.844 |
BOP3: We present enough new products/menus/services for the customers | 0.799 |
BOP4: Our firm has a competitive advantage | 0.859 |
BOP5: We get the worth of our money, labor, and time we spent for the firm | 0.864 |
BOP6: Our company is successful in general | 0.857 |
Firm Competitive Advantage: FCA (Cronbach’s Alpha = 0.902 CR = 0.925, AVE = 0.671) | |
FCA1: Exploit all market opportunities that have been presented to your industry | 0.828 |
FCA2: Neutralize all competitive threats from rival firms in your industry | 0.843 |
FCA3: Reduction of total expenses at a higher rate than competitors | 0.811 |
FCA4: The employee appears to highly committed to the organization | 0.803 |
FCA5: Customers are satisfied with our firm’s products and services | 0.815 |
FCA6: Customers are optimistic about long-term future of this corporation | 0.815 |
Firm Innovation: INO (Cronbach’s Alpha = 0.949, CR = 0.956, AVE = 0.709) | |
INO1: Organization’s emphasis on developing new products or services | 0.854 |
INO2: Rate of introduction of new products or services into the market | 0.842 |
INO3: Organization’s spending on new product or service development activities | 0.858 |
INO4: Number of new products or services added by the organization and already on the market | 0.841 |
INO5: Number of new products or services that the organization has introduced for the first time to the market | 0.826 |
INO6: Investment in developing proprietary technologies | 0.800 |
INO7: Emphasis on creating proprietary technologies | 0.861 |
INO8: Organization’s emphasis on technological innovation | 0.844 |
INO9: Organization’s emphasis on pioneering technological developments in its industry | 0.851 |
Entrepreneurial financial support: FIN (Cronbach’s Alpha = 0.930, CR = 0.944, AVE = 0.707) | |
FIN1: There are local individual investors in my community who are willing to financially support entrepreneurial ventures | 0.748 |
FIN2: New and growing firms have opportunities to raise capital from friends and family | 0.788 |
FIN3: Bankers in my community work hard to help entrepreneurs obtain financing | 0.870 |
FIN4: Financing for entrepreneurship is available in my local community | 0.890 |
FIN5: Information on what funding programs are available for entrepreneurs is easily accessible | 0.855 |
FIN6: My community has a sufficient number of banks who are willing to lend to entrepreneurs | 0.870 |
FIN7: There are sufficient government subsidies available for new and growing firms | 0.857 |
FIN | FiPer | FCA | INO | BOP | |
---|---|---|---|---|---|
FIN | 0.841 | ||||
FiPer | 0.584 | 0.931 | |||
FCA | 0.662 | 0.625 | 0.819 | ||
INO | 0.696 | 0.588 | 0.718 | 0.842 | |
BOP | 0.655 | 0.690 | 0.783 | 0.720 | 0.832 |
Hypothesis | Direct Effects | Path Coefficients | T-Values | p-Values | Decisions |
---|---|---|---|---|---|
H1a | FIN → FiPer | 0.231 | 3.554 | 0.000 | Supported |
H1b | FIN → BOP | 0.137 | 2.279 | 0.023 | Supported |
H1c | FIN → INO | 0.696 | 0.000 | Supported | |
H1d | FIN → FCA | 0.313 | 17.91 | 0.000 | Supported |
H2a | FCA → FiPer | 0.341 | 4.848 | 0.000 | Supported |
H2b | FCA → BOP | 0.505 | 5.081 | 0.000 | Supported |
H3a | INO → FiPer | 0.183 | 7.661 | 0.008 | Supported |
H3b | INO → BOP | 0.262 | 2.674 | 0.000 | Supported |
H3c | INO → FCA | 0.500 | 3.867 | 0.000 | Supported |
Hypothesis | Indirect Effects | Path Coefficients | T-Values | p-Values | Decisions |
---|---|---|---|---|---|
H4a | INO FCA FiPer | 0.170 *** | 3.348 | 0.001 | Supported |
H4b | INO FCA BOP | 0.252 *** | 5.060 | 0.000 | Supported |
H5a | FIN FCA FiPer | 0.107 ** | 4.464 | 0.000 | Supported |
H5b | FIN FCA BOP | 0.158 *** | 4.154 | 0.000 | Supported |
H6a | FIN INO FiPer | 0.127 * | 2.599 | 0.009 | Supported |
H6b | FIN INO BOP | 0.182 *** | 3.631 | 0.000 | Supported |
H6c | FIN INO FCA | 0.348 *** | 6.569 | 0.000 | Supported |
H7a | FIN INO FCA FiPer | 0.119 *** | 4.143 | 0.000 | Supported |
H7b | FIN INO FCA BOP | 0.176 *** | 4.747 | 0.000 | Supported |
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Thai, Q.H.; Mai, K.N. Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam. Sustainability 2023, 15, 15519. https://doi.org/10.3390/su152115519
Thai QH, Mai KN. Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam. Sustainability. 2023; 15(21):15519. https://doi.org/10.3390/su152115519
Chicago/Turabian StyleThai, Quoc Hoang, and Khuong Ngoc Mai. 2023. "Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam" Sustainability 15, no. 21: 15519. https://doi.org/10.3390/su152115519
APA StyleThai, Q. H., & Mai, K. N. (2023). Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam. Sustainability, 15(21), 15519. https://doi.org/10.3390/su152115519