Strategic perspectives, creativity, and financial performance in Vietnamese SMEs

• Published in: Heliyon Vol. 9; no. 9; p. e20354
• Main Authors: Nguyen, Phuong Ngoc-Duy, Mai, Khuong Ngoc, Le, Thu-Hang
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.09.2023; Elsevier
• Subjects: Dynamic capabilities view; Financial performance; Inside-out perspective; Organizational creativity; Outside-in perspective; Resource-based view; Dynamic capabilities view; Outside-in perspective; Organizational creativity; Financial performance; Inside-out perspective; Resource-based view
• ISSN: 2405-8440; 2405-8440
• DOI: 10.1016/j.heliyon.2023.e20354

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.