A Firm Analysis Level of Supporting Industries in Hanoi City-Vietnam: Application of Resource-based View and Industrial Organization

Abstract

This paper focuses on applying the resource-based view (RBV) of firms and industrial organization (IO) of strategic management field to explain performance in supporting industries in Hanoi - Vietnam. Specifically, we based our research on the integrated framework of RBV and IO and reviewed previous empirical researches before deciding on testing relationships among organizational capabilities, industry effects, competitive advantage and performance. A multivariate analysis of survey responses of 102 firms belonging to supporting industries in Hanoi city - Vietnam indicates that the firm’s organizational capabilities contribute to its competitive advantage that in turn, affects its performance and mediates the organizational capabilities-performance relationship, and that industry effects have both direct and indirect impact on competitive advantages. These findings have considerable implications for academics as well as practitioners. Finally, this study also provides directions for future research.