Creating Competitive Advantage for Vietnamese Manufacturing and Service Firms: The Role of Collaborative Culture and Innovation Capability

Abstract

Collaborative culture and innovation are broadly recognized as the crucial antecedents of creating competitive advantage for firms. However, the research on how collaborative culture connects with innovation to enhance firm’s competitive advantage is still sparse and limited. To clarify these relations, this study uses structural equations modeling (SEM) based on data collected from 265 manufacturing and service firms in Vietnam to explore the correlation between collaborative culture, innovation and competitive advantage. The result indicates that collaborative culture has significant effects on both innovation capability and competitive advantage. In addition, innovation capability acts as the mediator between collaborative culture and competitive advantage. The findings of this study provide useful guidelines for both scholars and practitioners in identifying the effective way to increase competitive advantage for firms.