INTRODUCTION
Innovation plays a crucial role in promoting environmental sustainability, a fact increasingly recognized by decision-makers in organizations Numerous studies emphasize the importance of sustainability as a key criterion for innovation Various terms such as eco-innovation, eco-friendly innovations, and green innovations are commonly used in academic literature to describe innovations that prioritize long-term environmental sustainability This study adopts the term "sustainable innovation" to encapsulate these concepts effectively.
Green Innovation(GI)with thestipulation,which theapproachingo f studyconsidersinnovationsdiminishthecollisionoforganizationalactiviti esonthen a t u r a l environment.
Twoyearsago,thenaturalenvironmentincentralVietnamwasseverelyimpacted bythedisaster,whichinvolvesaForeignDirectInvestment(FDI)companyd i s c h a r g i n g theuntreatedwastewaterintotheenvironment.Afterthisdisaster,policymakersh a v e n u m e r o u s a c t i v i t i e s w h i c h i n c r e a s i n g l y strictr e g u l a r s p u n i s h i n g e n v i r o n m e n t a l l y harmfulbehaviors.Thesepolicieshaveencouragedprodu certocontroltheimpactsoftheiractivitiesonthenaturalenvironmenttomitigatenega tiver e p u t a t i o n a n d a d d i t i o n c o s t T h u s , r e s p o n d i n g t o t h e i n c r e m e n t a l o f environmentpressu re, m a n u f a c t u r e r u s e G I t h a t c o n s i d e r e d i m p o r t a n t t o o l t o o b t a i n s u s t a i n a b l e d ev elo p m en t Despitethesignificanceand benefitsofGI,manycase,thecontributiono f p r o d u c e r i n G I h a v e b e l o w e x p e c t a t i o n ( A b d u l l a h , Z a i l a n i , Iranmanesh,&
Jayaraman,2016).Somemanufacturesarepreventedbyinnovationparticipationb e c a u s e ofthedifficultiesinvolvedand stilllockedintotheestablishedroutines T oach i ev i n g a d o p t i o n o f G I , t h e s e w e r e i m p o r t a n t f a c t o r s , w h i c h i n c l u d e s t a k e h o l d e r compression,environmentalprotectionact,firmsize,andchar acteristicsofmanager,st a f f s andbusinessfield(González,2006;andEtzion,2007).
AlthoughGI,andGEliteraturesareplentiful,relatively littleresearchattentionhasb e e n f o c u s e d o n V i e t n a m i n d u s t r y T h e e c o n o m i c , s o c i a l , c o m m u n i t y , marketconditionso f V i e t n a m a r e almostd i f f e r e n t f r o m o t h e r a r e a s T h e c o m p o s i t i o n o f customersandtheirpreferences arechangingswiftly,thusformedmarketturbulence.Moreover,Vietnam’sindustriesare mostlyinvolvedinSMEs,whichplayimportantr o l e s innationalmarket,andcontribute dover40%GDP(Hoang,2016).AccordingtothereportbyGeneralStatisticsoffice,in201 7,therearenearly517,900SMEso p e r a t i n g i n t h e c o u n t r y , up5 1 6 % c o m p a r e d t o
In 2012, small and medium-sized enterprises (SMEs) accounted for 98.1% of businesses, with 172,979 SMEs operating in Ho Chi Minh City alone Globally, SMEs play a crucial role in economic growth and competition, as they foster innovation and adapt to customer needs They significantly contribute to wealth creation and job production, generating a diverse array of products and services However, SMEs often face challenges due to limited human, financial, and marketing resources, which can hinder their ability to globalize In the context of turbulent market conditions and increasing environmental pressures, the importance of SMEs is magnified This raises the question of whether the development of SMEs aligns with the Globalization and Environmental (GE) approach, particularly in such challenging environments.
Inthisthesis,t h e developmentofSMEscompriseofincrementalemployment,performanc eoff i n a n c e , a n d t h e n e w b o r n i n d u s t r i e s ( M a n g e m a t i n e t a l , 2 0 0 3 ).C o n f i d e n t l y , concludingthatSMEs developmentandturbulentmarketconditions havenotreceivedattentionin previousstudies Basedon themassiveliteraturereviewthat hasdiscloseda cleargapinevidenceonthegrowthofSMEsfromGI,andGEinmarketturbul encei s confirmed.B a s e d ona d v a n c e s t h a t m e n t i o n e d a b o v e , s o t h e a c t i v a t i n g o f S M E s activitiesinHoChiMinhbusinessCityiscorrespondedtothedemographicce nsusofthisstudy.
At the firm level, Green Innovation (GI) research has focused on two key aspects According to Caputo (2014), one aspect examines the enabling factors of GI, emphasizing stakeholder pressures, environmental protection acts, redundant resource expectations, economic benefits, and the environmental awareness of managers The other aspect investigates the outcomes of GI, with many studies debating how GI-driven policies influence innovation and firm performance The Porter hypothesis (M E Porter & Van der Linde, 1995) supports a relationship between GI and corporate performance, suggesting that increased resource efficiency leads to higher economic efficiency While the impact of corporate GI on firm performance is widely recognized, some empirical studies indicate a positive effect on business performance (Amorese et al., 2014; Rennings & Rammer, 2011), although these effects may incur short-term costs before yielding long-term benefits (Horváthová, 2012) Identifying and classifying GI activities within firms remains a critical challenge.
Previously,t h e f a c t o r s i n f l u e n c e t o i m p l e m e n t a t i o n o f G I o f firm,h a v e b e e n examinedinsomestudies(Y.Lin,Tseng,Chen,&Chiu,2011;Tseng,2013).T h e r e f o r e , G I c a n b e c l a s s i f i e d i n t o f o u r mainc a t e g o r i e s , i n c l u d i n g t e c h n o l o g i c a l innovation,processinnovation,performanceofmanagement,andp r o d u c t d e s i g n K l a s s e n &Whybark(1999)presentedanarrayofGreenmeasureshelpm anufacturera d j u s t processes inde si gn ofp r o d u c t todiminishenvironmental n egative consequences.Moreover,well- designedenvironmentalstandardscandevelopanincentiveofproducertointroducegr eenproductswithlowercostanddifferentiating( Chen,L a i , & W e n , 2 0 0 6 ).T h u s ,
G I i m p r o v e p r o d u c t o r p r o c e s s e s t h a t r e a c h i n g sustainabilityandthebarg ainof environmentalpressures.Rennings&Rammer(2011)a n d Kemp& P e a r s o n ( 2 0 0 7 ) studiesi n d i c a t e d thatG I c a n s i g n i f i c a n t l y d e c r e a s e e n v i r o n m e n t a l p o l l u t i o n a n d t h u s c a n c r e a t e s u s t a i n a b l e d e v e l o p m e n t I n V i e t n a m , comparedt o o t h e r d e v e l o p i n g c o u n t r i e s , e n v i r o n m e n t a l p o l l u t i o n h a s n o t d e a l efficiency,causebyseriousmeasureshavenotadopted,especiallyinfieldofm akinga n d consumptionofgreenproducts(Linetal,2013).Thisstudypresentedtheorigina ltopicdeliberatedonthethemeofGIandgreenmanufacturing.
Accordingtothismatter,thisstudyaccessesanemergingphenomenon,whichc a l l G r e e n e n t r e p r e n e u r s h i p ( G E ) TheGEa p p r o a c h i s a n outcomeo f i n n o v a t i o n , whichh a s t h e p o t e n t i a l t o s o l v e e n v i r o n m e n t a l p r o b l e m byc re a t e n e w p r o d u c t a n d technology(York&Venkataraman,2010).GEconsiderssustainabilityisthe
In 2009, national plans and international meeting reports prominently featured the concept of a green economy According to the United Nations Environment Programme (UNEP), a green or sustainable economy is an economic system designed to enhance the quality of life for individuals This model encompasses the manufacturing, consumption, and distribution of goods and services, with a strong emphasis on addressing environmental issues and promoting sustainable businesses.
Preventing environmental risks and addressing natural scarcity are essential components of green entrepreneurship (GE) Uslu, Hancıoğlu, and Demir (2015) emphasize the importance of manufacturers utilizing renewable energy, recycling waste, and focusing on organic and animal farming Kirkwood and Walton (2010) highlight that eco-entrepreneurs are motivated to create sustainable businesses grounded in strong green values, making them significant players in the business world Unlike traditional entrepreneurship, which prioritizes economic gain, green entrepreneurship emphasizes environmental and social consciousness Consequently, green entrepreneurs play a crucial role in the economy, particularly in job creation (Farinelli, Bottini, Akkoyunlu, & Aerni, 2011).
(2015)investigatedinprivatesectorthatgreenentrepreneurbringspositivei n f l u e n c e s onsocietyandgainsdesiredbusiness’sprofitabilityalso.Activitiesofgreene n t r e p r e n e u r consequentlydevelopsustainabilityforindustriesandenhancethegreeng r o w t h (Sarkar,2013).Theabove- mentionedstudiesindicatedtheimportanceruleofG I andGEinthemodernworld.
Basedo n t h e b e n e f i t o f G I , G E , o n d e v e l o p m e n t o f Vietnam’sS M E w h i c h mentionedabove.Thisthesisaimstooffera comprehensiveapproachinassessingGI.Moreover,theconclusionofthisstudyaimstoe valuatetheimpactofGEondevelopmentofSMEsinmarketturbulenceconditions.Th eremainderofthisstudy isestablishedasfollows:AdiscussionoftheliteraturesrelatedtoGI,GE,SMEsd e v e l o p m e n t , andturbulentmarketconditionsaredisplayedinChapter2.Chapter3p r e s e n t s t h e r e s e a r c h m e t h o d o l o g y , e m p i r i c a l modelsa n d v a r i a b l e s , a n d
LITERATUREREVIEW
DefinitionofSMEsinVietnam
The article begins by focusing on the literature review of Small and Medium Enterprises (SMEs), which are distinct types of organizations differing from larger entities Previous studies indicate that SMEs encompass a diverse range of sizes and sectors The definition of SMEs varies by country, as each adopts different criteria, including employment, sales, total net assets, and investment levels However, the most common criterion for defining SMEs is the number of employees, with micro-enterprises having nearly no employees and medium-sized enterprises employing over 200 individuals (Ayyagari, Beck, & Demirguc, 2007).
InVietnam,SMEsplayarolewith 98%of allenterprises,50%of employment,an d 40%GDP(Vietnam-briefing,2017).SME’sdefinitioninVietnam isdependedont h e 04/2017/QH14LawonSupportforSmall-andMedium- sizedEnterprises(SMEL a w ) , whichhasbeenintroducedbythegovernmentandtoo keffectfrom1 stJanuary 2018.B a s e d o n d e f i n i t i o n o f S M E L a w , M S M E s o r S
M E s a r e manufacturers and service units with fewer than 200 employees, registered with the state social insurance scheme, and meeting specific criteria, including total capital not exceeding VND 100 billion and annual revenue below VND 300 billion Globally, SMEs play a crucial role, accounting for 96% to 99% of all enterprises, according to the OECD (Murphy, 2002) However, they also contribute significantly to pollution, with SMEs responsible for approximately half of the total pollution in the EU, as reported by ECEI (2010) Each SME is unique, leading to varying approaches to innovation and sustainability (Bos-Brouwers, 2010).
Small and medium-sized enterprises (SMEs) face significant challenges, including financial limitations and resource constraints, which hinder their ability to innovate proactively Unlike larger organizations, SMEs often struggle to fund necessary investments or adopt comparable strategies (Abor & Biekpe, 2007) However, many studies have shown that SMEs tend to focus on environmental and social issues, allowing them to exploit niches that align with their capabilities Each company, regardless of size, should implement tailored strategies to succeed Research indicates that SMEs benefit from strong owner-manager control, which influences their behavior and decision-making (Jenkins, 2009) Consequently, SMEs can effectively innovate and compete in niche markets with green innovations (GI) more successfully than larger firms This distinction arises from differences in organizational structures and capabilities, leading SMEs to innovate in unique ways (Aragón et al., 2008) Furthermore, literature suggests that SMEs, founded on sustainability principles, are well-positioned for growth and success in niche markets with GI (Klewitz & Hansen, 2014) SMEs are also referred to as green entrepreneurs, sustainable entrepreneurs, or ecopreneurs, reinforcing their role in promoting sustainable business practices.
TheeffectofGreeninnovationonGreenentrepreneurship
Green product innovation and green process innovation are essential components of green innovation (GI), focusing on enhancing product design, quality, safety, and sustainability while minimizing negative environmental impacts This innovation involves the development of eco-friendly product designs and standardization, aimed at reducing the adverse effects on nature, particularly during the usage and disposal phases of a product By addressing these critical phases, green product innovation plays a vital role in mitigating the environmental impact associated with production, use, and disposal Additionally, GI supports the implementation of environmental management practices, helping companies comply with environmental regulations and create competitive advantages in the market.
(Dangelico&Pontrandolfo,2010).Recently,therearesignificanta s s o c i a t i o n s between GI,GE,andgreenbusinesses.Companiesinvolveonhighsustainability ofbusinesses,thuscanfacilitatethegenerationofGE.GEfosterfirmtoa l t e r theirstrategies andmaneuversthentheycanoffsetthecostofimprovinge n v i r o n m e n t a l i m p a c t I n g e n e r a l , G I c o m p r i s e t h e d i m i n u t i o n o f d e s t r u c t i v e e n v ir o n m en t a l effects,developmentresourcesproductivity,andhasbeenextensivelystudied( M.Porter&Linde,1995;Wong,2013).
According to Farinelli et al (2011), georepreneurship is defined as the implementation of innovations aimed at sustainability, with the primary goals of promoting sustainability and a green economy Miller (1983) highlighted the significance of entrepreneurship at both individual and organizational levels, emphasizing the creation of new business models and products within established firms Previous studies have shown that owner-managers continually strive to enhance their economic position and innovative behavior (Croitoru, 2012) Green entrepreneurs assess resources and opportunities through their environmental commitment (Gibbs, 2008), leading to a definition of entrepreneurship as an innovation process that involves utilizing opportunities with significant effort and persistence, while also managing financial, rational, and social risks These risks are counterbalanced by the potential for financial gain, personal achievement, self-satisfaction, and autonomy (Hisrich, Peters, & Shepherd, 2002).
Hypothesis1:G r e e n i n n o v a t i o n h a s a s i g n i f i c a n t a f f e c t a t i o n o n G r e e n en tr e p r en eu r sh i p
GreenentrepreneurshipandSMEdevelopment
Manyp r e v i o u s s t u d i e s i n d i c a t e d t h a t e n t r e p r e n e u r s h i p p o s i t i v e i n v o l v e t o a strategicdecisionmakingofcompanyandadministrationform(Farine llietal.,2011;K r a u s , Rigtering,Hughes,&Hosman,2012).Meanwhile,Entrepre neurshipalsosignificantlyi n f l u e n c e o n a v i g o r o u s c a p a b i l i t y , e v o l u t i o n i n c e n t i v e , a n d b u s i n e s s i m p l e m e n t a t i o n
(Lee,Lee,&Pennings,2001).Themeasurementofinnovativebehaviorc o m p r i s e o f i n n o v a t i v e n e s s , p r o - a c t i v e n e s s ( P A ) , a n d r i s k - t a k i n g ( R T ) wh i ch hasbeenpopularlyemployed(Covin&Wales,2012).
Proactive organizations play a crucial role in monitoring market trends, enhancing their ability to identify imminent customer demands and foresee shifts in needs or emerging problems This proactive approach can lead to novel venture opportunities while phasing out operations and products with expired lifecycles Companies that recognize changes ahead of their competitors position themselves for success Owner-managers who embrace proactivity focus on future growth possibilities, constantly seeking new avenues for development Innovativeness is another key dimension, involving companies' efforts to create and explore fresh solutions through creativity and experimentation, ultimately leading to new products, services, and technological processes Additionally, risk-taking (RT) reflects a company's inclination to seize venture opportunities despite their inherent failure risks Successful entrepreneurship often requires companies to embrace riskier alternatives, moving away from established processes or products, as previous research has shown a correlation between elevated risk, pioneering designs, and innovative projects.
Accordingtof i n an ci a l field,companiesreferrisk- takingwillobtainhighfinancialreturns.Though highriskshouldrisetheprobabilityofschemefailure,soitisappropriateexamplefora n o t h e r project(Anderson,Covin,&Slevin,2009).
Usually,bringingnewproductssuccessfullytomarketisessentiallifebloodformost businesses.However,newproductdevelopmentisalsoacomplexanddifficultt a s k , w h i c h byg e n e r a t i n g n o n - e x i s t e n t a n d p i o n e e r i n g t h i n g s i n t h e wayo f m a n u f a c t u r i n g freshoutcom e.Asthese elementsare relatedasthecircumstances ofachievementindrivenbene fit.
Sotheabsenceofsupportoffirmsforminnovationisasignificantobstacle,whichcanbealter edandincreasedbyeffortwithinthecompany.Numerouss t u d i e s i n d i c a t e d t h a t p o s i t i v e r e l a t i o n s h i p b e t w e e n e n t r e p r e n e u r s h i p a n d incrementali n n o v a t i o n ( B o u n c k e n , P l ü s c h k e , P e s c h , & K r a u s , 2 0 1 6 ),t h u s t h e t e n d e n c y towardse n t r e p r e n e u r s h i p cause in no va ti on todevelop Int h i s point, m a n y studiespresente da backgroundf o r theelementsinfluencingonthedevelopmentofSMEs.
Accordingt o S i d i k ( 2 0 1 2 ) ’ss t u d y , w h ic h i n d i c a t e d t h e t r a i t s o f e n t r e p r e n e u r andp e r f o r m a n c e o f S M E s r e l a t e d t o t h e d e v e l o p m e n t o f a n S M E T h u s , i t o f f e r s a propositionframeworko f v a l u a b l e dimensionsthatt o a s s e s s e n t r e p r e n e u r s h i p a n d S M E development.Withtheseargumentsleadtothefollowinghypoth esis:
Themoderatingimpactofmarketturbulence
M T i s a s s o c i a t e d t o t h e r a t e o f c h a n g e i n s t r u c t u r e o f c u s t o m e r s a n d t h e i r preferencesi n a n industry.T h e s e c h a n g e s c a u s e d bys e v e r a l f a c t o r s , h o w e v e r t h e p r i m a r y causeforthesevariationsistheuncertaintyandchangeableofexteri ord i m e n s i o n s (Theodosiou,Kehagias,&Katsikea,2012).
Ina n i n d u s t r y , t h e r a t e o f c h a n g e i n c u s t o m e r p r e f e r e n c e s f o r p r o d u c t s a n d servicesisreflectedbyMT(Olson,Slater, &Hult,2005;Jaworski&Kohli, 1993).SoMTisthecorefoundationofenvironmentalturbulence.Therateofvariationinmarket and/ ortherateofchangesinthetechnology,whichisindicatedbytheenvironmentalturbule nceinani n d u s t r y (Kim& A t u a h e n e -
G i m a , 2 0 1 0 ).I n t h i s study,MTdistinguishesbetweenmarketandtechnology- stemfromturbulence.Thereasonsarec o n s i d e r e d thatdissimilarfoundationofturbul enceshouldaffectalteredopportunitiesa n d hazardsforcompanies(Danneels&Sethi,201 1).Anotherreasonrelatedtomanagerialp r a c t i c e s , w h i c h a s h e e t c o n c e p t u a l i z a t i o n o f e n v i r o n m e n t a l t u r b u l e n c e c o n s i d e r e d essential comprehensions(Buganza,Dell'Era,&
Verganti,2009).Tomakea profit,companiescreatecompetitiveadvantagesbycreationo fvalueforcustomers.I n thiscase,aclearunderstandingabouttheircustomer,which companyshouldfirsth a v e bycheckingandscrutinizingtheindustryenvironment(Grant,20 16).
Numerousp r e v i o u s s t u d i e s p r e s e n t e d thatt h e r e a r e s e v e r a l t h e o r e t i c a l perspectivesofmarketturbulence.ThesetheoriesindicatedthatMT couldadjusttheinfluen ce o f c o m p a n y i n n o v a t i v e n e s s o n i m p l e m e n t a t i o n A t t h e i n t e n s e c h a n g e o f markete n v i r o n m e n t , companiest h a t c h a n g e t o s u f f i c i e n t l y r e p l y t o e n v i r o n m e n t a l c h a n g e s willbesuccess.Thus,co mpaniesactoncreativitytounceasinglyadjusttheirp r o d u ct s , s e r v i c e s a n d p r o c e s s e s t o m e e t onc h a n g e s o f c u s t o m e r demands(Cui,Griffith,&Cavusgil,2005).Inno vativecompaniesfeaturedtobuildinitiativeplansto
In today's rapidly changing market, companies must innovate to meet unpredictable customer demands (Lumpkin & Dess, 2001) Under high market turbulence (MT) conditions, a firm's ability to adapt and innovate becomes crucial for satisfying evolving customer needs (Santos & González, 2007) Rhee (2010) emphasizes that effective innovation can serve as a strategic tool for firms navigating market fluctuations When faced with significant MT, companies should intensify their initiatives and ensure successful implementation of pioneering strategies (Hult, Hurley, & Knight, 2004) Firms that prioritize above-average innovation can gain a competitive edge by addressing customer challenges and reconfiguring their resources to thrive amidst market changes This rationale suggests that in rare MT scenarios, a firm's innovative capacity positively influences business performance (Tsai & Yang, 2013).
T h u s , t h e reviewing and a n a l y z i n g o f t h i s r e l a t i o n s h i p i s e s s e n t i a l Accordingt o Lumpkin,Cogliser,&Schne ider(2009),basedonentrepreneurshipthatcompanyconsciousthec h a n g e s inthema rketpreference.Thus,theexecutivegroupsattendonthealterationi n t h e industrya n d onthe customer’sneeds.Based onorganization ofMTandappropriatedrivers,thatthedecisionmakerssignificantlyefforttocogni tivethegapb e t w e e n marketprecedenciesandcomparativelyhomogeneousresour ces.Firmshavesoaringentrepreneurshipcouldrapidlymeetthechangesofcustomerprefer
20 ences.Thes t u d y ofDevezer,Sprott,Spangenberg,&Czellar(2014)indicatedthatdiv erselevels
21 ofrevenueorincreasedcognizanceofcominggenerationsdeterminethesep r e f e r e n c e s Especiallyf o r SMEs,that theperformancemayh a v e beennegativei n f l u e n c e intheenvironmentalturbulence.
Duringi n t e n s e t h i s c o n d i t i o n , firmss h o u l d d e d i c a t e a d d i t i o n a l s o u r c e s a n d s h o u l d approvenewplansthatarerelatedaselementsofdestituteperfo rmancehazard( L i , G u o , L i u , & L i , 2 0 0 8 ).T h e u n c e r t a i n o f estimationc u s t o m e r n e e d s a r e c a u s e , w h i c h theintenseenvironmental turbulencehassignifica ntlyinfluencedonthee n t r ep r en e ur i a l c o m p a n i e s I n a c h a n g e a b l e e n v i r o n m e n t , f i r m s f a v o r c o r r e s p o n d e n t activitiesr a t h e r t h a n consideringsuperiore n t r e p r e n e u r i a l s i t u a t i o n S t u d y o f Iyer( 2 0
1 1 ) indicatedthatbyanalyzingthecustomerpreferences,oneoftheconsiderationof companieswere marginalimprovements Insummary,studyofWales,Gupta, & Mous a(2013) indicatedthatthepositiveassociationbetween theentrepreneurshipandperformanceofSMEsmaynotbeexpectation.
Drawingfromp r e v i o u s m e n t i o n s , c o n f i d e n t l y t o c o n f i r m t h a t t h e s e a r e limits t u d i e s on t h e influenceof G I andG E inMTconditions o n de ve lo pme nt o f S M E s Despitetherichliteraturesoneachvariablehoweveralmostauthorsfou ndirrelevantstudies,whichdeliberatedontheMTconditionsasamoderatorinthecorrel ationofv a r i a b l e s f o r d e v e l o p m e n t o f S M E s T h u s , t h e s e a r g u m e n t s l e a d t o t h e f o l l o w i n g h y po t h esi s:
RESEARCH METHODOLOGY
Research design
Inordertocreatearesearchdesign,author consideredthekindofmodelan dmeasuredwillbesuitabletothesubjectofthestudy.Thefocusofthisresearchwase xaminingt h e t h r e e f a c t o r s a f f e c t i n g p e r f o r m a n c e o f S M E t h a t i n c l u d e s E I , E G B e s i d e s , t h i s studya l s o w a s testingmarketturbulenceconditions,whichmoderater e l a t i o n s h i p betweenGIandGE.Anoperationmodelwaspresentedi nFigure1.Thisstu dy usedp r i m a r y data, w h i c h c o l l e c t e d a l m o s t f r o m SMEsi nHoC h i M i n h C i t y T hu s,aquestionnairesurveydesignwasusedasthedatacollectingmetho d.
Research process
Theresearchincludes t w o phases,apilotstudyandamainsurvey.Thepil ots t u d y wascarriedoutbyqualitativemethodandamainsurveybyquantitativemethod.
Basedonr e l e v a n t p r e v i o u s s t u d i e s , t h i s studyp r o p o s e d t h r e e h y p o t h e s e s , wh ich werepresented in Chapt er2 Then, the modelwas mo di fi ed andselectedthe preliminaryscaleforquestionn aireofthestudy.
After completing the preliminary questionnaire, the author conducted a focus group with 10 owner-managers of SMEs, including a logistics manager, two law firm owners, three retail managers, and two IT firm owners, as well as two owners of food startups These participants were selected due to their interest and achievements in sustainable business practices Additionally, the author held an in-depth interview with Mr Pham Ngoc Hung, a lawyer and vice chairman of the HCM City Union of Business Associations (HUBA), who possesses significant experience in supporting SMEs and a deep understanding of the Vietnamese market The insights gained from both the focus group and the interview ensured that the content and terminology used in the initial measurement scales were relevant and comprehensible, allowing for appropriate modifications to be made.
Althoughmostofthemeasuredoftheconstructswerementionedinthep r e v i o u s l i t e r a t u r e s , thisp i l o t s t u d y i s n e c e s s a r y t o makea p p r o p r i a t e a n d easyt o u n d e r s t a n d i n t h e c o n t e x t o f studying.D u r i n g t h e i n t e r v i e w a n d f o c u s g r o u p , s o m e s i g n i f i c a n t feedbackswerereceivedandsuggestedfromthepartici pantstomakethei m p r o v e m e n t f o r t h e o f f i c i a l q u e s t i o n n a i r e ( S e e A p p e n d i x A ) A f t e r f i n i s h i n g p i l o t study,thesea d j u s t me n t leadt o thefollowingfi nalq u e s t i o n na i r e , whichwere, r e v i e w e d carefullythemeasurementofeachconstruct.(SeeAppendixB)
Aftert h e q u a l i t a t i v e r e s e a r c h , t h e q u e s t i o n n a i r e w a s a p p r o p r i a t e sui tablea n d u n d e r st a n d ab l e Thus,themainsurveywasconductedbyusingconveni encesample, whichalmostcollectedDistrict6 ofHoChi MinhCity. Besides,theonlinesurveyalsowa sc o n s i d e r e d a t t h e p o t e n t i a l i n s t r u m e n t T h e p r o c e s s o f t h e q u a n t i t a t i v e r es e a rc h wasfollowingthesepaces:
Secondly,t h e d e f i n i t i o n o f samples i z e w a s p r o v i d e d B a s e d o n e n o r m o u s p r e v i o u s studies,the methodofestimatethesampledesignedthesizeofthesample.Ing e n e r a l , thesamplesizewase qualormorethan100,andwasminimum5observationsf o r eachscale(Hair,2010).The modelinthisstudycomprisedof4factorswith25scalessothattheminimumsamplesiz ewas:25*55observations.
Fors t a n d a r d m u l t i p l e r e g r e s s i o n a n a l y s i s , t h e r e q u i r e d s a m p l e w a s recommendedshouldben>50+8m(wherem=numberofindependentvariables).Therew e r e 2independentvariables,whicharethecomponentofthesecondorderstructure( G I ) inthisresearch.Thus,theminimumsamplerequiredtorunmultipleregressioninthisstudyisn> 50+8*2fobservations.
216observations.Thissamplesizew a s a p p r o p r i a t e f o r EFAa n d CFA.A f t e r t h a t , samplingw a s c o n d u c t e d b a s e d o n c o n v e n i e n c e sampling.
The questionnaire was distributed to participants using both direct and indirect methods In the direct method, the owner-managers of SMEs in District 6 of Ho Chi Minh City received the questionnaire and were guided by the author to complete it Conversely, the indirect method involved deploying the questionnaire online via Google Docs, with the survey link sent to participants through Gmail and Facebook Participants could easily respond by clicking the link, entering their answers, and submitting the form to the researcher Data collection took place over a month, with an expected total of approximately 280 completed questionnaires, including 230 from the direct method and 50 from the indirect method.
Afterthat,theauthorreceivedthequestionnaireandgreentoensure forsuitableresults.Inthisstage,theauthorwillcollectanswers,andfiltertheerrorquestionnaires.
T h e n , theusabledataofthisstudyshouldappropriate216observations.Itissuitabl ewiththerequirementofminimumsamplesize:125observations.
TomeasureG I i n t h e i n d i v i d u a l S M E s t h e i n d e p e n d e n t v a r i a b l e s “ S e r v i c e I n n o v at i o n ” , “AdministrativeInnovation”,and“ProcessInnovation” wereconstructedpertypeofGI.Additionally,thecombinedindependentvariable“Gre enInnovation”wascreated.
Theindependentvariables“ServiceInnovation”,“AdminProcessInnova tion”measuret he pre senc e o f twoparticularformsof G Iw it hi nt he SM Es Acco rding t o studiesof( N d u b i s i & I f t i k h a r 2 0 1 2 ) , t h e v a r i a b l e G I w i t h 1 5 itemsw e r e u s e d i n previouss t u d i e s E v e r y d i m e n s i o n i n v o l v e s “ S e r v i c e I n n o v a t i o n ” , “ A d m i n i s t r a t i v e I n n o v a t i o n ” , and“ProcessInnovation”,whichwer eassessedbyfiveitems.
Thei n d e p e n d e n t v a r i a b l e “ G r e e n I n n o v a t i o n ” measuresG I i n a c o m p a n y i n g e n e r a l Infindingwhatimportantfactorsarethatcontributetodevelopmentof SMEsemphasisiso n t h e i n t e r m e d i a r y o f G E T h e r e l e v a n t i t e m s i n t h e s e v a r i a b l e s usedrangingfrom1(stronglyagree)to5(stronglydisagree)withfive- pointLikertscale.
Atprecedingmentionandpilotstudy,theitemsof“ServiceInnovation”consiste doffivequestionsthatadoptedto(Ndubisi&Iftikhar2012).
Basedo n p i l o t study,thecombinationo f “AdministrativeI n n o v a t i o n ”a n d “ P r o c e s s Innovation”wasconducted.Thus“AdminProcessInnovation”wasthe consequentialvariable whichmeasuredbysevenquestionsthatadoptedfrom(Ndubisi
API6 Managementconstantlyseeksnewwaystoimpr ovetheadministrationsystemswithgreen attitu des.
The dependent variable assessed by nine items is "SME development," which has been created and recommended by researchers to include three items for each dimension (Ebrahimi & Mirbargkar, 2017) However, a pilot study revealed differing conditions in Vietnam, leading to variations in responses across the three dimensions Consequently, it was recommended that "SME development" be treated as a variable In total, six scales were selected, with relevant items in these variables rated on a five-point Likert scale, ranging from 1 (strongly agree) to 5 (strongly disagree).
Baseonpilotstudy,“SMEdevelopment”increasewasmeasuredbysixquesti onsthatadoptedfromEbrahimi&Mirbargkar(2017).
SMED1 Revenuegrowthisdesirable,consideringgreen pr oducts.
SMED4 Formationofindustriesexclusivelyforthepr od u ct ion ofgoodsandnewgreen
SMED6 Thisorganizationinvestedinordertoincreaseth eexpertisefortheproductionofg r e en products.
“ProactiveRisktaking”and“Autonomy”usedtomeasureGEintheindividual firms.
&Iftikhar2012)willbeassessed.GEhasbeenofferedbyauthorstoincludefiveitemso f “Riskta king”,and“Pro- activeness”,andthreeitemsof“ Autonomy”dimensions A f t e r p i l o t study,t h e r e w e r e n u m e r o u s f e e d b a c k s , w h i c h i n f l u e n c e d t o d e c i s i o n o f selectingdimen sions.Thus,therewere2 dimensions,whichcomprised“ProactiveRiskT aking”a n d “ A u t o n o m y ” T h e r e l e v a n t itemsi n t h e s e v a r i a b l e s u s e d r a n g i n g f r o m 1(stronglya gree)to5(stronglydisagree)withfive-pointLikertscale.
“ProactiveR i s k T a k i n g ” w a s measuredbyf i v e q u e s t i o n s f r o m ( N d u b i s i & I f t i k h a r 2 0 1 2 ).ThecombinationalsowasbasedonthestudiesofLee(2001)andKraus(2011),wh ichaskedpilotrespondentbeforeconsideringappropriatescaleused.
PRT4 Weareconstantlyseekinggreeninvestmento pp ort un it ies toimproveourbusinessperformance.
PRT5 Inthisorganization,thenew(green- basedapproach) venturefailureisviewedaslear ningexperience.
BasedonstudyofWang,Dou,Zhu,&Zhou(2015), therewe re threeq u e s t i o n n a i r e s , whichwereusedtomeasure“Marketturbulence”.Therelevantitemsi n th esevariablesusedrangingfrom1(stronglyagree)to5(stronglydisagree)withf i v e- p o i n t Likertscale.
MT2 Competitioninourproductmarketisr el en tless.
Data analysismethod
TheS P S S ( S t a t i s t i c a l P a c k a g e f o r S o c i a l S c i e n ce ) s o f t w a r e v e r s i o n 2 3.0w a s u sed inthisstudyforanalyzingcollecteddata.Besides,inordertostatisticthesample,c omparetheresults.Thereliabilityandvalidityofmeasurementscaleswasassess edbyusingbothcompriseCronbach’salphacoefficientandexploratoryfactora nalysis( E F A ) InEFA,theKMOindicatorandBarlett’stestwasused.Afterthat,CF Ausedto measurev a l i d i t y m a s t e r o f t h e model,a n d t h e n A M O S t e s t e d t h e r e l a t i o n s h i p b e t w e e n independentvariablesanddependentvariables,whi chasproposedh y po t h ese s
NorrisandLecavalier(2010)presentedthatEFAisbaseduponatestablemodelandcanb eanalyzedintermsofitsfittothehypothesizedpopulationmodel;itindicesc a n begenerate dtohelpwithmodelinterpretation.Ontheonehand,EFAmethodisu sed toidentifyw hichofalargesetofitemsgotogetherasagroup,orareansweredmostsimilarlybyrespond ents(Leechetal.,2005).
-Toascertainfactoranalysiswillbesufficient,thusKMOvaluewillbefrom 1.5 to1.(Hoang&Chu,2005)
- Factorloadingforrotatedfactorswithloadingshouldbehigher0.5thata regenerallyconsiderednecessaryforpracticalsignificance.Ifsamplesizeisabout10 0,f a c t o r loadingshouldbehigher0.55(Hairetal.,2007).
Tomeasurereliabilityofconcept,aCronbach’salphawasused.Itisnecessaryt o de creasethemeasurement errorwhiletherule drawnthatthehigherthevalueofC ronbach’salpha,thehigherthedegreeofinter- correlationamongitemsinthescale(Hai r, Money,Samouel&Page,2007;Hair,2006).
(2005),theacceptablevalueofCronbach’sal p h a f or reliabilityisabove0.7.However,itcanreduceto 0.60–0.69range, especiallyifthereareonlyahandfulofitemsinthescale.WhentheCronbach’salphagreatert han0 90, it probablymeansthatthe i te ms arerepetitious o r there are moreitems inthescalethanarereallynecessaryforareliablemeasureoftheconcept.Int a b l e 1,sixdifferentmeasuresaredenoted.ThevaluesofCronbach’salpharelatedtothecon structreliabilityofthemodelthatallvaluesareabovethethresholdof0.8.
Accordingt o H e n s e l e r , H u b o n a a n d Ray( 2 0 1 6 ) , t h a t i n d i c a t e d t h e g l o b a l orlocalassessmentreferstothegoodnessofmodelfit.Thus,thestandardizedrootmeans q u a r e residual(SRMR)cantestforPLSpathmodeling.Therecommendedthresholdf o r SRMRis0.08anditanswerthequestion‘howsubstantialthediscrepancybetweent h e model- impliedandtheempiricalcorrelationmatrixis”(Henseleretal.,2016).
BesideofestimatingthevalueoftheCronbach’salpha,SRMRandCR,thisisalso importanttoconsidertheCorrectedItem–TotalCorrelation.StudyofLeechetal.
( 20 0 5 ) in di cat ed t h a t ift h i s co rr el at io n is e q u a l 0 4 0 o r ab o v e , t he i t e m is prob ablycorrelatedwithmostoftheotheritemsandmakeagoodcomponentofthissummatedr a t i n g scale.Iftheitem– totalcorrelationisnegativeorlessthan0.30,toconsidertheitemforwordingproblemsa ndconceptualfitbymodifyingordeletingsuchitemsisnecessary.O n e i m p o r t a n t w h i c h a l s o w a s u s e d t o t h e v a l i d i t y o f t h e measurementmodelsisdiscriminantvalid ity.
(PNThuy,2010).Theanalysiswassupportedthroughtheuseofthecomputersoftware,w hichincludeIBMSPSSStatistics(Version23)andAmos(Version24).
SEMwaschosentotesttherelationshiptheeffectofindependentvariablesonm ultipledependentvariablesstatistically.Withinacademicliterature,PNThuy(2010)indicate dthatscholarsdistinguishbetweencovarianceandvariancebasedSEM.Them u l t i - g r o u p t e s t i n g modelingt e c h n i q u e w a s c o n d u c t e d f o r t h e e s t i m a t i o n o f moderator.
Data collection
Factually,a l l S M E s t h a t f u l f i l l t h e t w o d e f i n i t i o n o f c r i t e r i a a r e s uitablet o p a r t i c i p a t e inthisstudy,thusanonlinesurveywaschosenasdatacollectionmet hodtopossiblyreachahighnumberofparticipantsin acost- savingmanner.Furthermore,d a t a inquantitativeresearchisnormally createdfromresponsestoThroughtheongoingglobalizationandthedevelopmentofthe Internet,theessentialRecently,thef i el d ofsurveyresearch becamemore popular in scientificresearchand the innovationi n technologyalsorevolutionizedthewayinwhichscholarsconductedsurv ey.Emailsurveysandweb- basedsurveyswerefirstlypossibleinthe1980sand1990s(Evans&M a t h u r , 2005).Atthe beginningofthe
21stcentury,scholarsexpectedthatthem ajo r it y ofsurveyswouldbeconductedonlineinthe nearfuture(Schonlau,Ronald&E l l i o t t , 2002).Furthermore,online surveysareseen asmoreinteresting,important andenjoyablethanclassicsurveys(Edmonson,1997).However,onlinesurveysalsop o s s e s s bothadvantagesanddisadvantagesforscholarsandtheirresearch.
The ongoing globalization and the development of the Internet have significantly improved the effectiveness of online surveys, although disparities still exist between industrialized and less developed countries (Evans & Mathur, 2005) The Internet allows researchers to gather data and information from respondents worldwide with greater flexibility and speed, making it less time-consuming and more cost-effective than traditional face-to-face interviews (Evans & Mathur, 2005) Additionally, online surveys offer a wide variety of question formats, enabling scholars to select from dichotomous questions, scales, or multiple-choice questions, enhancing the overall research experience (Evans & Mathur, 2005).
However,somedisadvantagesexhibitinonlinesurveys,incomparisontoothertechni ques.Anessentialproblemforauthoristopreventtheidentificationasjunkmailo r s p a m ( E v a n s & M a t h u r , 2 0 0 5 ) A n o t h e r c h a l l e n g e i s t o c r e a t e a r e p r e s e n t a t i v e samplethroughtheuseofonlinesurveys.Thecreationofalargesamplethroughthe
I n t e r n e t andtheglobalizationisrelativelyeasyincomparisontoreacharepresentativesampl e.A c c o r d i n g t o E v a n ( 2 0 0 5 ) , i n d i c a t e d t h e e s s e n t i a l p r o b l e m , w h i c h u s e r s o f emailwe r e n o t trulyrepresentative o f t h e g e n e r a l p o p u l a t i o n H o w e v e r , i n t h e n e a r f u tu r e , t h e d i f f e r e n c e s b e t w e e n t h e o n l i n e a n d o f f l i n e p o p u l a t i o n w o u l d b e insignificant.
Furthermore,face-to- facesurveysareincomparisonmorepersonalthanonlinesurveys.T h e missinghumanc o n t a c t c a n limitt h e a b i l i t y t o g e t i n - d e p t h a n s w e r T h e r e f o r e , i t i s r e a l l y i m p o r t a n t t o g i v e c l e a r a n s w e r i n g i n s t r u c t i o n s f o r t h e respondentst h a t theya r e a b l e t o f i n i s h t h e e n t i r e q u e s t i o n n a i r e ( E v a n s & M a t h u r , 2005)
Anotherpossibledisadvantageareprivacyandcomparisonissuesofrespon dents Becausethelevelofsecurity instandardemailsurveyisnotonahighlevela ndfurtherrespondentsoftenconcernwhichtheiransweristreatedconfidentiallyan dcommercially.
Inthisstudy,thecollecteddatawasusedonceandparticipants wereensur edt h a t thedatawerecollectedanonymously.Basedonabovemention,theonlinesurvey wasdesignedbyusingtheweb- basedtoolGoogleForm,whichisoneofthefamoust o o l s f or o n l i n e survey.A f t e r w a r d s t h e l i n k t o r e a c h t he s u r v e y wa s p u t o n l i n e a n d e x e c u t i v e s fromS M E s w e r e i n v i t e d top a r t i c i p a t e byemaila n d o n s o c i a l mediaplatformslikeFace book.DatainformationofparticipantswasbasedonSaigonBizhubCompany,wh ich su pp or t
An extensive survey was conducted in District 6 of Ho Chi Minh City, combining both online and offline methods, thanks to the enthusiastic support of local officers Over a 45-day period, 280 respondents participated, resulting in a high response rate of 92.28% with 260 completing the questionnaire However, 44 of these responses were removed from the adjusted dataset due to non-engagement, ensuring the quality and relevance of the collected data.
DATAANALYSIS
Descriptivestatistics
The study included a total of 216 respondents, comprising 95 females (44%) and 121 males (56%) The majority of participants were aged between 25 and 35, accounting for 41.2% of the sample Respondents under 25 and over 55 represented smaller groups, making up 7.9% (17 respondents) and 6% (13 respondents), respectively In contrast, the age groups of 35 to 45 and 45 to 55 included 70 respondents, representing 32.4% of the total.
(60.6p e r c e n t ) r e s p o n d e n t s h a d u n i v er s it y education.Then,thehighested ucationofthisresearchwas35respondents( 1 6 2 p e r c e n t ) T h e r e w e r e 6 r e s p o n d e n t s ( 2 8 p e r c e n t ) a n d 44r e s p o n d e n t s ( 2 0 4 percent)hadfinis hedtheirprimaryandsecondary education,r e s pe c t i v e l y Theoutcomeofsurve yalsoindicatedthatmajorityofSMEwerebusinessinservicefieldw i t h 139respondent( 64.4percent).Therestwith77respondents(35.6percent)hadb u s i n e s s inmanufa cturer.
Aftert h a t , n o r m a l d i s t r i b u t i o n o f t h e c o l l e c t i o n d a t a w a s i n v e s t i g a t e d , t h u s S k e w n e s s and Ku rt os is t e s t wasu sed T h e r esu lt in di cat ed t h a t t he re w e r e no it ems a b o v e absoluteoftwo.Itmeanthatthenormalityassumptionforall variables.
Exploratoryfactoranalysis(EFA)
The Exploratory Factor Analysis (EFA) aimed to estimate measurement scales by identifying groups of items that respondents answered similarly (Lee et al., 2005) To support the Confirmatory Factor Analysis (CFA) in AMOS, the EFA utilized Maximum Likelihood Estimation with Promax rotation Key indicators such as the KMO statistic and Bartlett’s test were conducted to assess the data's suitability The conceptual model included four latent factors: Green Innovation, Green Entrepreneurship, SMEs Development, and Market Turbulence Both Green Innovation and Green Entrepreneurship were identified as second-order factors, comprising specific indicators Consequently, the EFA was performed separately for each factor, revealing that both Green Innovation and Green Entrepreneurship could explain variance effectively The EFA was conducted in four phases to examine the relationships between variables before proceeding to CFA for model fit testing (Appendix D).
Variable Dimensions Item Deleted KMO Cumulative
GI SI SI1_SI5 SI3 56.407
ReliabilityMaster
T o t a l c o r r e l a t i o n ) i s m o d e r a t e l y hight h a t s h o u l d a b o v e 0 4 ( L e e c h etal.,200 5).Anotherpoint,serialsactionshouldbeconductiftheitemoftotalcorrelationi s n e g a t i v e o r l e s s t h a n 0 3 , t h u s t h e meano f q u e s t i o n n a i r e s h o u l d b e r e v i e w e d T h e h o r r i f i c situationt h a t t h e i t e m s h o u l d b e d e l e t e f o r c o n c e p t u a l f i t p u r p o s e Inthisstudy,Cronbach’salpharangedbetween0.85to0.92,andpresentedinT a b le 3(AppendixC)
ConfirmatoryFactorAnalysis(CFA)
FollowingEFA,theindicatorswereusedtoconductCFAthatloadedoneachd erivedfactoracrossgroupstoverifythatthemeasurementmodelderivedinEFAfitt h e d a t a i n a n i n d e p e n d e n t v a l i d a t i o n s a m p l e s T h e i n d e p e n d e n t v a l i d a t i o n samplesu s e d t o c o n d u c t C F A , w h i c h w e r e c o n d u c t e d s e p a r a t e l y i n e a c h g r o u p N u m e r o u s CFAsthatwereconductedincludingaCFAofthemeasureme ntmodelderivedusingEFA,and a C F A t e s t i n g t h e h y p o t h e s i z e d f a c t o r st r u c t u r e b a s e d o n t h e s t r u c t u r e o f bothgrouphighandlowmarketturbulentcondition.Themod elgoodnessofthisstudyi s excellentrangewhichbelowthepreferencethresholdof0.08.Itin dicatedthattherei s a s u f f i c i e n t f i t a n d t h a t t h e s p e c i f i e d m o d e l r e p r o d u c e s t h e o b s e r v e d c o v a r i a n c e matrixamongallindicators.FitindicesforthetwoCFAs inboththeGroupandNon-g r o u p arepresentedinTable6(AppendixE)
CMIN/DF 1.699 Between1 and 3 Excellent
CMIN/DF 1.593 Between1 and 3 Excellent
AccordingtoH u andB e n t l e r ( 1 9 9 9 ) t h a t r e c o m m e n d c o m b i n a t i o n s o f measures,thuspreferenceinacombinationofCFI>0.95andSRMR