MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY OPEN UNIVERSITY PHAM ANH NGUYEN THE IMPACT OF GREEN INNOVATION AND ENVIRONMENTAL PERFORMANCE ON FIRM PERFORMANCE OF VIETNAMESE MANUFACTURING ENTERPR.
MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY OPEN UNIVERSITY PHAM ANH NGUYEN THE IMPACT OF GREEN INNOVATION AND ENVIRONMENTAL PERFORMANCE ON FIRM PERFORMANCE OF VIETNAMESE MANUFACTURING ENTERPRISES MAJOR: BUSINESS ADMINISTRATION CODE: 9340101 SUMMARY OF DOCTORAL THESIS IN BUSINESS ADMINISTRATION Science instructor Prof Dr Nguyen Minh Ha Ho Chi Minh City - 2022 GUARANTEE The author hereby declares that the thesis "The impact of green innovation and environmental performance on firm performance of Vietnamese manufacturing enterprises " is my own research The author hereby declares that no uncredited use of another person's research has been made in this thesis, and to the best of my knowledge, no portion of the work mentioned in this thesis has ever been submitted in support of an application for another degree or a degree from a university or research institution Ho Chi Minh City, 2022 Pham Anh Nguyen i TABLE OF CONTENT Table list vi Figure list vi CHAPTER 1: INTRODUCTION 1.1 STUDY REASONS 1.1.Practical reasons 1.1.2 From previous study 1.2 PROBLEMS STATEMENT 1.3 RESEARCH OBJECTIVE 1.3.1 General objective 1.3.2 Specific objectives 1.4 RESEARCH QUESTION 1.5 RESEARCH SUBJECT AND SCOPE 1.5.1 Research subject 1.5.2 Research scope 1.6 METHODOLOGY 1.7 NEW FINDINGS 1.8 STRUCTURE OF THESIS CHAPTER 2: LITERATURE REVIEW 2.1 CONCEPTS 2.1.1 Factors affecting green innovation 2.1.2 Green innovation 2.1.3 Environmental performance 2.1.4 Firm performance 2.2 MAIN THEORIES 2.2.1 Green growth theory 2.2.2 Sustainable development theory 2.2.3 Stakeholder theory ii 2.2.4 Organizational effectiveness theory 2.2.5 Resource-based viewed theory 2.2.6 Diffusion of innovation theory 2.3 FACTOR AFFECTING GREEN INNOVATION 2.4 IMPACT OF GREEN INNOVATION AND ENVIRONMENTAL PERFORMANCE OF VIETNAMESE MANUFACTURING ENTERPRISES 11 2.5 IMPACT OF GREEN INNOVATION, ENVIRONMENTAL PERFORMANCE AND FIRM PERFORMANCE OF VIETNAMESE MANUFACTURING ENTREPRISES 11 2.6 REVIEWING PREVIOUS STUDIES 13 2.7 PROPOSED RESEARCH MODEL 13 CHAPTER 3: METHODOLOGY 15 3.1 RESEARCH DESIGN 15 3.2 RESEARCH PROCEDURE 16 3.3 QUALITATIVE METHODS 16 3.4 MEASUREMENT SCALE 16 3.4.1 Relative advantage (LTD) 16 3.4.2 Compatibility (KTT) 17 3.4.3 Simplicity (SDD) 17 3.4.4 Organizational support (HTC) 17 3.4.5 Quality of human resources (CNL) 17 3.4.6 Customer pressure (AKH) 17 3.4.7 Government pressure (ACP) 17 3.4.8 Government support (HCP) 17 3.4.9 Environmental uncertainty (DTT) 17 3.4.10 Green product innovation (DSP) 17 3.4.11 Green process innovation (DQT) 17 3.4.12 Environmental performance (SMT) 17 iii 3.4.13 Financial performance (HQC) 18 3.4.14 Non-Financial performance (HQP) 18 3.5 QUANTITATIVE METHODS 18 3.5.1 Questionnaire 18 3.5.2 Sample size 18 3.5.3 Sampling method 18 3.5.4 Data Analysis Methods 18 CHAPTER 4: RESULTS ANALYSIS 19 4.1 DESCRIPTIVE STATISTICS 19 4.2 SCALE DESCRIPTIVE 21 4.3 SCALE VALIDITY ASSESSMENT 21 4.3.1 Cronbach’s Alpha 21 4.4 EXPLORE FACTOR ANALYSIS (EFA) 23 4.4.1 EFA analysis of the Independent variables 23 4.4.2 EFA analysis of the Dependent Variables 23 4.5 MEASUREMENT MODEL VALIDITY ASSESSMENT 23 4.5.1 Outer loadings 23 4.5.2 Composite Reliability 23 4.5.3 Discriminant Validity 23 4.6 STRUCTURAL MODEL ASSESSMENT 24 4.6.1 R square (R2) 24 4.6.2 Variance Inflation Factor (VIF) 24 4.6.3 Path coefficients 24 4.6.4 Effect Size value (f2) 27 4.6.5 Hypothesis testing results 27 4.7 RESULT DISCUSSION 28 4.7.1 Result of the Green Innovation scale (DMX) 28 iv 4.7.2 Result of the Environmental scale (SMT) 28 4.7.3 Result of regression model 29 4.7.4 The results of the research hypothesis 29 4.7.5 Recommendations for businesses 35 CHAPTER 5: CONCLUSION & POLICY IMPLICATIONS 36 5.1 CONCLUSION 36 5.2 NEW FINDINGS 37 5.3 POLICY IMPLICATIONS 39 5.3.1 Technological factors 39 5.3.2 Organizational factors 39 5.3.3 Environmental factors 40 5.3.4 Green innovation 40 5.3.5 Environmental performance 41 5.3.6 Firm performance 41 5.4 LIMITATION & FUTURE RESEARCH 42 5.4.1 Limitations 42 5.3.6 Future research 42 REFERENCES 44 v TABLE LIST Table 2.1 Research hypothesizes 14 Table 3.1 Summary of qualitative method results 15 Table 4.1 Demographic of respondents 19 Table 4.2 Path Coefficients 25 FIGURE LIST Figure 2.1 Proposed research model 14 Figure 4.1 Structural Modeling 26 vi CHAPTER 1: INTRODUCTION 1.1 STUDY REASONS 1.1.1 Practical reasons Environmental degradation and resource depletion are also results of the economy's fast expansion and the vast expansion of businesses Manufacturing companies are frequently cited as one of the primary contributors to the environmental issues the world is now experiencing The reason is that our nation's businesses still operate at a low level of economic efficiency, poor innovation, and backward technology In fact, businesses pay little attention to community, social, and environmental benefits, instead focusing on organizational profits (Nham, 2012) They are also hesitant to invest in equipment and production technology to protect the environment because it consumes a lot of costs that can affect enterprise profits Following a period of fast economic expansion, Vietnam confronted the immense task of balancing economic development and environmental sustainability (O'Rourke, 2004) Despite increased efforts, available research indicates that environmental rules in Vietnam have not been very successful in terms of company compliance, with low levels of compliance seen in critical industries such as food, leather, and paper (Ho, 2015) Vietnamese customers are now prepared to pay more for companies with "green" and "clean" pledges, green products, and items that fulfill quality safety requirements and are increasingly ecologically friendly become the people's true needs As a result, businesses that not aggressively develop to generate environmentally friendly goods would struggle to fulfill demand and attract customers, resulting in low competitiveness and economic efficiency Companies are currently actively offering solutions to minimize costs in the manufacturing process, adopt lean production to reduce costs and waste, and enhance competition to achieve high profitability in the global market (Brigham and Houston, 2012; Tortorella et al., 2018) Green innovation is one of the effective solutions that companies are particularly interested in since it can assist businesses to minimize production costs, generate product differentiation, and help businesses achieve competitive advantage Controlling input resources, energy consumption, and waste in the manufacturing process improves corporate efficiency (Chen & Liu, 2019) Enterprises that invent green digital technologies in the manufacturing process, in particular, will make a significant contribution to attaining competitive efficiency and profit goals while conserving the environment and increasing quality of life provides a significant possibility for more ecologically friendly manufacturing while meeting corporate profit objectives (Rüßmann et al., 2015; Stock & Seliger, 2016) The goal of upgrading the level of production technology is to assist firms in being proactive in regulating the environmental consequences of the manufacturing process, as well as to perform effectively in environmental protection activities, leading to the growth of clean technology enterprises Environmental friendliness, lowering greenhouse gas emissions; and contributing to increased competitiveness and green growth are critical needs for our country's businesses today The thesis will investigate the level of impact of the elements influencing green innovation, as well as the link between green innovation, environmental performance, and firm performance, and will provide solutions based on the aforementioned practical needs steps to encourage firms to engage in environmental protection activities, create corporate growth plans in the most effective and sustainable manner, earn the maximum profits, and contribute to the improvement of social life 1.1.2 From previous studies Researchers have demonstrated a significant deal of interest in studies on the relationship between green innovation and firm performance, and these studies have produced findings on the relationship in related industries Green innovation's influence on corporate success, including financial and nonfinancial performance, as well as its effects on the environment, have not been well investigated adequate in prior research In this thesis, the following issues will be explored in depth: First, empirical research around the globe and Vietnam still has many controversies about the scale for the concepts of factors affecting green innovation, green innovation, environmental performance, and business performance Despite the debate, the measurements scale and study findings are not widely agreed upon Thus, the thesis clarifies the research concepts and also takes into account and develops the research scales to fit the research context and objectives The impact of green innovation on environmental performance and business performance has not been simultaneously investigated, and there are nine component scales of variables on technology, organization, and environment for its implementation In order to clarify the relationship between the factors and provide a fairly thorough analytical framework on the association between the relationship between factors affecting green innovation, the influence of green innovation, and environmental performance on firm performance, the thesis will test the research model and hypothesis about the relationship between the observed variables Third, the results of previous studies on the relationship between green innovation, environmental performance, and enterprise efficiency are still inconsistent Therefore, this thesis will empirically study the effects of these three factors to clarify this issue Last and especially important, the mediating role of environmental performance on the relationship between green innovation and corporate performance, including both financial and non-financial performance, has not been found in previous studies The thesis will explore the mediating role of environmental performance to answer this issue 1.2 PROBLEMS STATEMENT 1.3 RESEARCH OBJECTIVE 1.3.1 General objective This study has the general objective of analyzing the factors affecting green innovation and analyzing the relationship between green innovation and firm performance through the intermediate variable, environmental performance 1.3.2 Specific objectives This study has the following specific objectives: (1) Determining the factors affecting the green innovation of manufacturing enterprises in Vietnam (2) Determining the impact of green innovation on the environmental performance of manufacturing enterprises in Vietnam (3) Determining the impact of environmental performance on firm performance of manufacturing enterprises in Vietnam (4) Determining the impact of green innovation on firm performance of enterprises through the mediating role of environmental performance (5) Suggesting management implications to improve firm performance of manufacturing enterprises through green innovation and environmental performance 1.4 RESEARCH QUESTION (1) Which factors affect green innovation of manufacturing enterprises in Vietnam? (2) How does green innovation affect the environmental performance of manufacturing enterprises in Vietnam? (3) How does environmental performance affect the firm performance of manufacturing enterprises in Vietnam? (4) How does green innovation affect the firm performance of manufacturing enterprises in Vietnam through the mediating role of environmental performance? (5) What recommendations and solutions can help manufacturing enterprises in Vietnam promote green innovation to develop enterprises effectively and achieve environmental performance? 1.5 RESEARCH SUBJECT AND SCOPE 1.5.1 Research subject This study explores the impact of factors (technology, organization, environment) impacting green innovation and the relationship between green innovation, environmental performance, and firm performance 1.5.2 Research scope The survey subjects are directors of 400 production enterprises in key industrial zones in provinces and cities across the country May–June 2021 is the survey period 1.6 METHODOLOGY - Qualitative method: Face-to-face interview and group discussion their general level of excellence, enabling them to make money while minimizing environmental damage, enhancing their value, and having good effects favorably impact an organization's financial performance (Sher et al., 2005; Chang, 2015) (3) Analyzing the impact of green innovation and environmental performance on the efficiency of production enterprises, the research results show that green innovation has a positive and strong impact on environmental performance and firm performance with the level of influence being 0.357 and 0.483 ≥ 0.35, respectively (strong influence) In addition, environmental performance is a partial mediator that has a positive impact on the efficiency of enterprises and creates competitive advantages for enterprises in production and business activities (Chiou et al., 2011) (4) The results of the analysis and evaluation of path coefficients show that environmental performance (SMT) has a positive impact on the performance of the business, but at a low significance level with 90% confidence This means that environmental performance positively regulates the relationship between green innovation and firm performance The results also agree with the study Al-Tuwajri et al (2003), Iqbal et al (2013), and Seman et al., (2019) demonstrating that the effect of environmental performance on firm performance is very positive This study demonstrates a positive relationship between environmental performance and manufacturing firm performance, however, it is at a low level of significance, which is reasonable given the rigorous laws in Vietnam, where the research was conducted Strict environmental regulations make it difficult for manufacturing companies to compete, and they force them to invest heavily in systems for reducing noise, air pollution, and other environmental issues These regulations also place a heavy financial burden on small and medium-sized businesses to comply with environmental laws, which drives up production costs and product prices As a result, Vietnamese manufacturing companies have realized that improving environmental performance does not primarily increase financial efficiency (5) With the evaluation of the current state of the study reported in Chapter I, it is clear that green enterprise innovation and product upgrading are essential for the growth of the existing integrated economy The "Green Economy" policy of the Party and State is in accord with this (6) In terms of application, the research's contribution is significant and useful for companies to actively engage in green innovation, enhance the financial and environmental performance of production companies, and contribute to the preservation of the environment for green innovation and the growth of the green economy in Vietnam In order to assess the effectiveness of eco-enterprises through the use of green product innovation, this study also presents a new research model with the above scales This model can be applied extensively and used flexibly with the size of production enterprises in Vietnam, especially small and medium enterprises 5.2 NEW FINDINGS The research has theoretically integrated, developed, and tested a nine-component scale for the application of green innovation, the influence of green innovation on environmental performance, and the effectiveness of enterprises, particularly the mediating role of environmental performance on the relationship between green innovation and business performance from actual research data at manufacturing enterprises (1) Research has synthesized, developed, built, and verified a scale of 09 components of technology, organization, and environmental factors for the implementation of green innovation; and the effect of green innovation on the environmental performance and firm performance from 37 actual research data at manufacturing enterprises The research findings provide organizations with a better understanding of all the aspects that might encourage green innovation and the influence of green innovation on corporate efficiency, allowing them to better orient, formulate policies, and develop strategies In today's intensely competitive market economy, an adequate plan for harmonious growth toward green and sustainable goals is required This study also discovered 09 elements that favorably promote green enterprise innovation, and green enterprise innovation positively affects environmental performance and enterprise efficiency, including financial and non-financial efficiency of manufacturing firms (2) While most earlier research only completed independent factors has a direct influence on the dependent variable, the study has constructed a model with multiple scales on the firm performance when adopting green innovation through the intermediate variable of Environmental performance In particular, the study investigates the mediating effect of environmental performance on the relationship between green innovation and firm performance, including both financial and non-financial performance, which has not been discovered in earlier studies According to the study's findings, environmental performance influences green innovation and firm performance positively, however at a low level of significance that is consistent with the Vietnamese research context Since then, this study has demonstrated the comprehensive and total influence of green innovation on firm performance, providing new research opportunities on the relationship between these two variables and completing the theoretical framework for innovation and corporate performance (3) In order to comprehend and address research issues, the study has employed a variety of theories, including Green Growth theory, Sustainable Development theory, Stakeholder theory, Organizational effectiveness theory, Resource-Based viewed theory, and Innovation Diffusion theory As a result, those theories offer a very thorough analytical framework for examining how environmental performance, green innovation, and firm performance are related to each other Furthermore, the thesis approach has not been effectively adopted by many studies, theories, and empirical research throughout the world, and Vietnam still has many controversies, with no agreement on the measuring scale study outcomes As a result, the thesis proposes supplementing and modifying the study scales to meet the research aims and context The outcomes of data analysis and scale verification contribute to complementing the research scale on green innovation to firm performance (4) The survey results and actual research on the scales of green innovation in the production and business activities of small and medium enterprises in the provinces and cities of Vietnam have helped the Manufacturing enterprises become aware that the key issue in today's fiercely competitive environment is that if they are interested in effectively implementing the innovation of green production processes, green products will help them gain a competitive advantage Building a green manufacturing process and employing green materials in production and business is also a vital and required duty for production companies, demonstrating that firms support the Party and State's trend of conserving environmental protection and green economic growth (5) The findings of this study also serve as a foundation for demonstrating the common effect of green innovation on environmental performance and firm performance The results of this study also show that green innovation has a positive impact on the performance of production enterprises, so managers, directors of companies, and production units must change their 38 perceptions, attitudes, orientation, and strategy to implement green innovation truly understand, strictly follow the regulations of the Government and authorities to move towards sustainable development, increase its reputation, and develop in new markets such as green goods market to participate in the market economy and the global trend of combating climate change 5.3 POLICY IMPLICATIONS Based on the survey results from manufacturing businesses in industrial zones in Vietnam's Northern, Central, and Southeastern regions, the research recommends and suggests policies as follows: 5.3.1 Technological factors For manufacturing enterprises, the management board of enterprises should allocate a reasonable budget to change new technologies because most small and medium-sized businesses lack the capital capacity to access new technologies and develop human resource training policies for green innovation implementation Furthermore, in order to seize good opportunities for technological innovation toward a green economy, enterprises should understand the new Party and State guidelines and policies, expand exchanges and learn, particularly actively participate in domestic and international technology fairs on "green technology", "green innovation", "green action", etc From there, businesses can grasp the global general trend, the green technologies that the world is implementing aiming for, and select the right technologies for them; plan to invest methodically to innovate technology based on green criteria of products, and take advantage of available capital sources to promote innovation most effectively To support manufacturing enterprises in technological innovation, the government needs to promulgate mechanisms, policies, and implement necessary measures to encourage enterprises to increase investment in technological factors applied to green innovation in domestic enterprises; and to contribute to participating in joining 4.0 Furthermore, the government should strengthen closer coordination with businesses in order to create favorable conditions for businesses to innovate and apply environmentally friendly technologies or through programs such as fairs introducing new technologies, disseminating scientific knowledge, and so on, so that businesses can approach technology trends advanced green following the global trend On the other hand, the government must adopt precise legislation on green economic growth and establish high environmental standards in order for enterprises to have a proper implementation roadmap that is compatible with the conditions and resources available 5.3.2 Organizational factors Through this research, business managers learn how to support the organization and improve the quality of their own human resources through training and retraining or collaboration with domestic and international educational institutions to have high-quality human resources to ensure the implementation of the green revolution in production and business Furthermore, managers must carefully select and closely collaborate with training units to place orders, and requirements for output quality of human resources and organize contests on improvement, increase productivity associated with reducing the use of inputs or saving energy sources, and offer prizes to encourage employees to enthusiastically participate and emulate Simultaneously, business owners should establish a research and technology transfer department within their organization to, on the one hand, collect information about technology for enterprises to consider and apply, and, on the other hand, research, coordinate with other organizations to research and develop new technologies with characteristics suitable for the majority of Vietnamese enterprises, particularly small and medium enterprises 39 In terms of human resources, the government's assistance is one of the aspects that assist manufacturing firms in green innovation, such as promulgating suitable rules on wage and bonus systems, particularly for employees with potential Businesses, on the other hand, should extend their advocacy for and support of workplace rules, and facilities, and provide favorable circumstances for talent development Enterprises should conduct research to establish and use the most effective "Talent Fund" to encourage talents to develop, dedicate, create, stick with, and accompany the organization; and promote and regularly organize seminars and training sessions with business owners to disseminate new knowledge, regulations, mechanisms, policies, and trends related to business transformation green innovation, the way to successfully achieve this goal at the enterprise level 5.3.3 Environmental factors Enterprises should always conform to the processes and regulations of the authorities in order to apply them to production in order to improve the efficiency of using green materials, reduce energy consumption, reduce consumption of green materials, and reduce consumption of green materials waste generation, emissions causing environmental pollution When implementing green innovation, manufacturing enterprises especially SMEs should carefully consider capital management, market factors, and long-term development strategies; at the same time, they should indeed strongly propose to the Government support requirements when implementing green innovation in accordance with Party and State policy in order to have timely support for manufacturing enterprises In terms of external environmental variables, the government also assists firms in adopting green innovation and green growth through incentive policies such as financial incentives, financial resources, etc technical resources, pilot projects, training programs, etc Since most Vietnamese businesses are small and medium-sized and have limited resources, innovation requires a significant financial investment As a result, the government should work with businesses to develop a fair economic environment by establishing mechanisms, policies, and opportunities for them to access resources by providing Programs, Funds, mobilization of resources from large enterprises and corporations abroad, etc This will help businesses attract more investment, implement innovation, and create a sustainable green economy The government should have policies for localities to pilot the construction of model ecological industrial zones and clusters, concentrating businesses that have a symbiotic relationship, closely linked together along the ecological chain utilizing waste from the operation of one enterprise into another enterprise's input for creating a cycle, reduce waste to the environment, and contribute to enhancing business efficiency 5.3.4 Green innovation In order to forecast, test, and program for more effective output, manufacturing companies should digitize their production lines by outfitting them with machinery, sensors, and automation control software and output effectiveness of the product, as well as elevating the organization's value chain and management value chain throughout the product's life cycle Additionally, to have a significant impact on the entire supply chain, manufacturing companies in Vietnam should regularly update new techniques, and digitize processes, lines, and robot programs in accordance with 4.0 technology This will result in new opportunities for business models, production techniques, fundamental changes to the economy, the working environment, the development of worker skills, the creation of jobs, and socioeconomic development toward the digital economy 40 The government should indeed work side by side with businesses to restructure the economy as a whole, as well as the industries and fields related to growth model innovation In particular, the government should focus on investment restructuring with a focus on the public and private sectors, and financial market restructuring with a focus on the commercial banking system and financial institutions The Government simultaneously implemented a number of policies to timely synchronize, and disburse swiftly with more flexible input criteria, so manufacturing enterprises could easily access preferential loans, reproduce, invest in technology and equipment in line with the green standards and export criteria of foreign countries, and quickly integrate into the global market 5.3.5 Environmental performance Manufacturing companies should reevaluate the issue of environmental performance because it directly affects the enhancement of their reputation Typically, businesses in nations all over the world have been extremely successful, creating brands, and generating sustainable profits when implementing green innovation to protect the environment As a result of improved environmental performance, manufacturers will have a better reputation for producing eco-friendly goods and will be more appealing to consumers who are concerned about the environment This will increase sales significantly, generate sustainable value for businesses, and create new domestic and international business opportunities The government's promulgation of regulations to reduce adverse environmental effects and address climate change is lagging behind in the process of implementing green innovation of enterprises, along with economic development and green innovation of the Green Enterprises to integrate with the global economy These include measures like environmental protection partitions, laws establishing buffer zones around each area's ecology and landscape, and technological and technical solutions that lessen the environmental effect of the industrial process Production may be divided into several sectors for simple administration, from light industry to heavy industry Putting your energy towards establishing clean industries, implementing cuttingedge technology, and gradually replacing old, inefficient technologies that damage the environment 5.3.6 Firm performance Businesses should create efficient marketing plans to spread the word about their goods and help individuals become more environmentally conscious while selecting goods, services, and business applications In the era of digital media and smartphones, which enable businesses to quickly access the internet, electronic products are being used to introduce green products and green services of businesses to consumers or customers through social channels on Facebook, Youtube, Instagram, etc Hotlines and live chats are also being created for customers and consumers to learn more about products and the implementation of green innovation by businesses Instead of using outdated traditional marketing techniques, current e-commerce platforms may be used to connect with customers, improve financial efficiency, and build brand recognition for businesses themselves The government should speedily start releasing policies to support capital as well as encourage and attract strategic investors with sufficient financial, technological, and managerial capacity worth participating in the purchase of shares, contributing capital to the enterprise, supporting the communication connection of products of domestic enterprises with foreign countries, or concluding the legal requirements in order for manufacturing enterprises to achieve 41 green innovation efficiency From there, it becomes obvious that the government plays a crucial role in supporting industrial companies as they innovate in a greener way 5.4 LIMITATION & FUTURE RESEARCH 5.4.1 Limitations This study also has limitations as follows: (1) Firstly, this study could only be done in a restricted amount of time and space because of the challenging current Covid-19 epidemic in 2020 and 2021 The study's scope was restricted to only 400 production businesses in industrial zones in the important economic regions of the Vietnamese provinces, therefore its generalizability is limited (2) Secondly, there is a lack of concretization in the analytical sample size and research context since the study primarily examines the performance of manufacturing firms in industrial zones and ignores other types of enterprises participating in the implementation of green innovation (3) Third, the complexity of the Covid-19 epidemic scenario necessitates the use of the convenience sample approach in this study, despite the superior reliability of the probability sampling method, which also represents a drawback of the study (4) Fourth, the issue of the lag in the impact of environmental performance on firm performance has not been deeply analyzed in this study (5) The study's measurement of enterprises' financial performance based on the perceived scale rather than financial indicators such as return on equity (ROE), the ratio of return on assets (ROA), and return on sales (ROS) means that the findings may not accurately reflect all of the details of businesses' financial performance 5.4.2 Future research (1) Previous research primarily measured the effects of technological elements or stakeholders on the economic efficiency of manufacturing enterprises engaging in green innovation This study has concentrated on measuring the direct aspects, such as technological, organizational, and environmental factors, as well as environmental factors and the relationship between green innovation, environmental performance, and enterprise firm performance, that are affecting the implementation of green innovation From there, the study uses PLS-Smart to evaluate the levels of influence on the efficiency of enterprises (low, medium, strong) on the relationships in the research model Therefore, further studies can use this model to apply in measuring both financial and non-financial performance for enterprises (2) The following investigations should be carried out to survey manufacturing firms on a nationwide scale, not exclusively manufacturing enterprises in industrial zones or in major economic zones in the Northern and Southern regions, in order to strengthen the reliability of the study model Higher generalizability will result from expanding the study of businesses over a wider range of locations with various geographic features for the ensuing research in the field of green innovation (3) Future studies should broaden the research object to concretize consistency of green innovation scale with environmental performance and business efficiency since the study specifically identifies the target group as manufacturing enterprises in the implementation of green innovation while there are many enterprises in many other fields 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ENVIRONMENTAL PERFORMANCE OF VIETNAMESE MANUFACTURING ENTERPRISES 11 2.5 IMPACT OF GREEN INNOVATION, ENVIRONMENTAL PERFORMANCE AND FIRM PERFORMANCE OF VIETNAMESE MANUFACTURING ENTREPRISES... rules in Vietnam have not been very successful in terms of company compliance, with low levels of compliance seen in critical industries such as food, leather, and paper (Ho, 2015) Vietnamese customers... of manufacturing enterprises in Vietnam (2) Determining the impact of green innovation on the environmental performance of manufacturing enterprises in Vietnam (3) Determining the impact of environmental