Political ties and performance of multinational corporations in Vietnamese emerging market
Local governments play a key role in attracting foreign investment and the operations of multinational
corporations (MNCs) in Vietnam, yet limited research has focused on the emerging issues in this
context. This study adopted a mixed-methods approach. Representatives of MNCs in Ho Chi Minh
City and four provinces participated in this research. Partial least squares structural equation modelling
was used to analyze the data and test the model. The results reveal both direct and indirect relationships
between political ties, institutional support, opportunity recognition and firm performance.
Recommendations for the local governments are discussed in detail.
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Tóm tắt nội dung tài liệu: Political ties and performance of multinational corporations in Vietnamese emerging market
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Variable (Code) Item Adapted and modified from previous studies or self-developed Managerial political ties (MPT) Political leaders at various levels of the government. (MTP1) (Li & Zhou, 2010) Officials in industrial bureaus. (MTP2) Officials in regulatory and supporting organizations such as tax bureaus, state banks, commercial administration bureaus, and the like (MTP3) Institutional support (IS) The government often implements policies and programs beneficial to our operations (IS1) (Guo et al., 2014; Li & Zhou, 2010) The government provides us with much useful information. (IS2). The government often helps us obtain licenses such like an import license or a technical license (IS3) The government provides us with securing local resources such as land, electricity, and human resources (IS4). Opportunity Recognition (OR) Recognizing opportunities from the new establishment or the adjustment of industrial policies and planning (OR1) (Guo et al., 2014) Recognizing opportunities by communicating with government officials (OR2) Recognizing opportunities from new free trade agreements in Vietnam (OR3) Developed from the in- depth interviews We have well prepared to predict the outcome of the upcoming trade agreements (OR4) Regulatory Legitimacy (RL) What we do are authorized by the government (RL1) (Guo et al., 2014) What we do confirm with the policies, rules and regulations (RL2) What we do correspond to the government's thinking of possible policy adjustments (RL3) What we do often become industrial templates as recommended by the government (RL4). Training activities (TA) Training for fire protection (TA1) Developed from the in- depth interviews Training on labor safety (TA2) Informing new policies for FDI firms (ex post facto) (TA3) Providing information about the commitment of trade and market information (TA4) Informing the transparency of information and policies related to business (TA5) Organizing business seminars and business meetings (TA6) Firm performance (FP) Market share growth (FP1) (Guo et al., 2014; Jayaram & Tan, 2010) Sales growth (FP2) Profit growth (FP3) Return on assets (FP4) Product quality (FP5) Customer service level (FP6) 258 © 2020 by the authors; licensee Growing Science, Canada. This is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC-BY) license (
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