Determinants of marketing innovation among SMEs in Vietnam: a resource-based and stakeholder perspective

• Main Authors: To Trung Thanh, Le Thanh Ha, Hoang Phuong Dung, Doan Ngoc Thang, Tran Anh Ngoc
• Format: Article
• Language: English
• Published: LLC "CPC "Business Perspectives" 2020-12-01
• Series: Innovative Marketing
• Subjects: financial capacity; government support; knowledge; marketing innovation; political connection; R&D activities
• Online Access: https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/14441/IM_2020_04_Thanh.pdf
• ISSN: 1814-2427; 1816-6326

Innovative marketing practices are essential for firms to increase sales and profitability. This paper aims to investigate the determinants of firms’ marketing innovation based on the employment of resource-based view and stakeholder theory. A probit regression model linking marketing innovation with proxies of firms’ resources and pressures from firms’ stakeholders was tested based on a dataset of 5,857 Vietnamese enterprises taken from a survey by the Ministry of Science and Technology of Vietnam in 2016. The findings indicate that firms’ size decreases the probability of marketing innovation by 1%, while internal knowledge gained from internal R&D causes the probability of marketing innovation to increase by 0.18%. Besides, the political connection and collaborations with competitors and private consultants drive the probability that firms implement the marketing innovation up by 0.09%, 0.12%, and 0.09%, respectively. On the other hand, export-oriented firms are more likely to implement marketing innovation by 0.03%, while foreign ownership reduces the chance of this decision by 0.05%. This research also reveals the essential role of the firm’s market pressures to enter into new markets or improve product quality in encouraging marketing innovation by 0.16% and 0.13%, respectively. AcknowledgmentThis research was supported by National Economics University, Grant Number: 343-QĐ-ĐHKTQD.