Strategic perspectives, creativity, and financial performance in Vietnamese SMEs

Phuong Ngoc-Duy Nguyen; Khuong Ngoc Mai; Thu-Hang Le

doi:10.1016/j.heliyon.2023.e20354

Strategic perspectives, creativity, and financial performance in Vietnamese SMEs

Heliyon. 2023 Sep 21;9(9):e20354. doi: 10.1016/j.heliyon.2023.e20354. eCollection 2023 Sep.

Authors

Phuong Ngoc-Duy Nguyen^{1

2}, Khuong Ngoc Mai^{1

3}, Thu-Hang Le^{1

3}

Affiliations

¹ Vietnam National University, Ho Chi Minh City, Viet Nam.
² School of Economics, Finance and Accounting, International University, Vietnam National University-HCMC, Viet Nam.
³ School of Business, International University, Vietnam National University-HCMC, Viet Nam.

Abstract

This study examines the relationships between the inside-out and outside-in perspectives of strategists, organizational creativity, and financial performance in Vietnamese small and medium enterprises (SMEs). Based on the resource-based view and dynamic capabilities view, we collected cross-sectional data from 382 managers at all levels of Vietnamese SMEs. The study employed partial least squares structural equation modeling. The findings confirm that the inside-out perspective positively affects organizational creativity but has a negative impact on financial performance. Conversely, the outside-in perspective positively affects both organizational creativity and financial performance. Additionally, the study reveals that organizational creativity positively affects financial performance and acts as a mediator between both perspectives and financial performance. Thus, the study suggests that SMEs can benefit from adopting an outside-in perspective to enhance both their organizational creativity and financial performance. Overall, the study contributes to the literature on the cognitive school of strategic management in SMEs.

Keywords: Dynamic capabilities view; Financial performance; Inside-out perspective; Organizational creativity; Outside-in perspective; Resource-based view.