International Journal of


EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

line decor
line decor

 Volume 7, Issue 7 (July 2020), Pages: 95-101


 Original Research Paper

 Title: Determinants of business performance in firms: Evidence in Vietnam technology and manufacturing enterprises

 Author(s): Vu Ngoc Xuan *


 Center for Analysis, Forecasting and Sustainable Development, National Economics University, Hanoi, Vietnam

  Full Text - PDF          XML

 * Corresponding Author. 

  Corresponding author's ORCID profile:

 Digital Object Identifier:


This article aims to identify factors affecting the business performance of enterprises. Vietnam. The author gathered information from 458 technology and manufacturing businesses in Vietnam. Survey enterprises in Hanoi, Da Nang, Ho Chi Minh, and Can Tho Cites. Data were processed via SPSS software version 20.0. Cronbach's Alpha test methods, exploratory factor analysis (EFA), and regression analysis were used in this study. The results show that firm size positively affects business performance. The research results show there are 07 main factors that positively affect the business performance of enterprises, including: (1) solvency, (2) firm size, (3) growth rate revenue growth, (4) administrative procedures, (5) access to credit institutions, (6) labor qualifications and (7) the age of the business. From the results of the analysis, the author gives some recommendations and solutions to improve the business operations of businesses in Vietnam, especially those in the technology and manufacturing sectors, in the context of Industrial network 4.0. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (

 Keywords: Enterprise, Business performance, Manufacturing enterprise, Technology enterprise, FDI enterprise

 Article History: Received 17 January 2020, Received in revised form 12 April 2020, Accepted 22 April 2020


This research is funded by National Economics University, Hanoi, Vietnam.

 Compliance with ethical standards

 Conflict of interest: The authors declare that they have no conflict of interest.


 Xuan VN (2020). Determinants of business performance in firms: Evidence in Vietnam technology and manufacturing enterprises. International Journal of Advanced and Applied Sciences, 7(7): 95-101

 Permanent Link to this page


 Fig. 1


 Table 1 Table 2 Table 3


 References (21)

  1. Ahmad N, Salman A, and Shamsi A (2015). Impact of financial leverage on firms’ profitability: An investigation from cement sector of Pakistan. Research Journal of Finance and Accounting, 6(7): 75-80.   [Google Scholar]
  2. Anbar A and Alper D (2011). Bank specific and macroeconomic determinants of commercial bank profitability: Empirical evidence from Turkey. Business and Economics Research Journal, 2(2): 139-152.   [Google Scholar]
  3. Athanasoglou PP, Brissimis SN, and Delis MD (2008). Bank-specific, industry-specific and macroeconomic determinants of bank profitability. Journal of International Financial Markets, Institutions and Money, 18(2): 121-136.   [Google Scholar]
  4. Blažková I (2018). Sectoral and firm-level determinants of profitability: A multilevel approach. International Journal of Entrepreneurial Knowledge, 6(2): 32-44.   [Google Scholar]
  5. Capon N, Farly JU, and Hoenig SM (1990). A meta-analysis of financial performance. Management Science, 16(10): 1143-1159.   [Google Scholar]
  6. Child J (1972). Organizational structure, environment and performance: The role of strategic choice. Sociology, 6(1): 1-22.   [Google Scholar]
  7. Cosh A, Fu X, and Hughes A (2012). Organisation structure and innovation performance in different environments. Small Business Economics, 39(2): 301-317.   [Google Scholar]
  8. DeAngelo H and Masulis RW (1980). Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8(1): 3-29.   [Google Scholar]
  9. Deloof M (2003). Does working capital management affect profitability of Belgian firms? Journal of Business Finance and Accounting, 30(3‐4): 573-588.   [Google Scholar]
  10. Fareed Z, Ali Z, Shahzad F, Nazir MI, and Ullah A (2016). Determinants of profitability: Evidence from power and energy sector. Studia Universitatis Babe-Bolyai Oeconomica, 61(3): 59-78.   [Google Scholar]
  11. Gill A, Biger N, and Mathur N (2010). The relationship between working capital management and profitability: Evidence from the United States. Business and Economics Journal, 10(1): 1-9.   [Google Scholar]
  12. Goddard J, Tavakoli M, and Wilson JO (2005). Determinants of profitability in European manufacturing and services: Evidence from a dynamic panel model. Applied Financial Economics, 15(18): 1269-1282.   [Google Scholar]
  13. Hall M and Weiss L (1967). Firm size and profitability. The Review of Economics and Statistics, 49: 319-331.   [Google Scholar]
  14. Nguyen TNL and Nguyen VC (2020). The determinants of profitability in listed enterprises: A study from Vietnamese stock exchange. The Journal of Asian Finance, Economics and Business, 7(1): 47-58.   [Google Scholar]
  15. Nickell S and Nicolitsas D (1999). How does financial pressure affect firms? European Economic Review, 43(8): 1435-1456.   [Google Scholar]
  16. Pattitoni P, Petracci B, and Spisni M (2014). Determinants of profitability in the EU-15 area. Applied Financial Economics, 24(11): 763-775.   [Google Scholar]
  17. Serrasqueiro ZS and Nunes PM (2008). Performance and size: Empirical evidence from Portuguese SMEs. Small Business Economics, 31(2): 195-217.   [Google Scholar]
  18. Xuan VN (2013). Financial Analysis of Vietnam seafood industry listed companies. Master Thesis, National Economics University, Hanoi, Vietnam.
  19. Xuan VN (2020). Factors affecting foreign direct investment: Evidence at foreign technology enterprises in Vietnam. International Journal of Advanced and Applied Science, 7(4): 21-28.   [Google Scholar]
  20. Xuan VN, Thu N, and Anh N (2020a). Factors affecting support services in small and medium enterprises: Evidence from Vietnam small and medium information technology enterprises. Management Science Letters, 10(2): 303-312.   [Google Scholar]
  21. Xuan VN, Thu N, and Anh N (2020b). Factors affecting the business performance of enterprises: Evidence at Vietnam small and medium-sized enterprises. Management Science Letters, 10(4): 865-870.   [Google Scholar]