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Critical successful factors for innovation in Vietnamese firms

Innovation is considered as a core element of sustainable competitive advantage in the rapidly changing environment. However, in Vietnam, researches on innovation are very rare, which are mostly general reports without underlying analyses of innovation in firms, especially determinants for innovation. Therefore, this paper focuses on analyzing critical successful factors for innovation in Vietnamese firms. | Journal of Industrial Engineering and Management JIEM, 2017 – 10(3): 522-544 – Online ISSN: 2013-0953 – Print ISSN: 2013-8423 https://doi.org/10.3926/jiem.2020 Critical Successful Factors for Innovation in Vietnamese Firms Tran Hoai Nam1 , Nham Phong Tuan2* , Nguyen Van Minh3 1,3 Department of Economic Information System and Electronic Commerce, Thuongmai University, Hanoi (Vietnam) University of Economics and Business, Vietnam National University, Hanoi (Vietnam) 2 namth@tmu.edu.vn, *Corresponding author: tuannp@vnu.edu.vn, minhdhtm@gmail.com Received: June 2016 Accepted: July 2017 Abstract: Purpose: Innovation is considered as a core element of sustainable competitive advantage in the rapidly changing environment. However, in Vietnam, researches on innovation are very rare, which are mostly general reports without underlying analyses of innovation in firms, especially determinants for innovation. Therefore, this paper focuses on analyzing critical successful factors for innovation in Vietnamese firms. Design/methodology/approach: This study used primary data through questionnaire survey from November 2015 to February 2016. Respondents were senior managers of firms located mostly at Hanoi (Northern), Hochiminh (Southern) and Danang city (Central). The questionnaire included multi-items designed to measure factors. Each item was measured by 5 point Likert scale: 1 (strongly disagree) to 5 (strongly agree). Questionnaires were administered to 500 firms belonging to list of Vietnam Chamber of Commerce and Industry (VCCI) in these three cities with rate of 40% (Hochiminh city), 40% (Hanoi city) and Danang (20%). However, there were 360 returned questionnaires and valid to next analyses. Analysis methodologies of reliability, factor analysis and regression are utilized in this paper. Findings: We developed and tested a model of determinants for Innovation in Vietnamese firms. The major contribution of this study is testing six determinants for innovation .