Critical successful factors for innovation in Vietnamese firms

T an Hoai Nam; Tuan, Nham Phong; Nguyen Van Minh A icle C i ical success ul ac o s o inno a ion in Vie namese i ms Jou nal o Indus ial Enginee ing and Managemen (JIEM) P o ided in Coope a ion wi h: The School o Indus ial, Ae ospace and Audio isual Enginee ing o Te assa (ESEIAAT), Uni e si a Poli ècnica de Ca alunya (UPC) Sugges ed Ci a ion: T an Hoai Nam; Tuan, Nham Phong; Nguyen Van Minh (2017) : C i ical success ul ac o s o inno a ion in Vie namese i ms, Jou nal o Indus ial Enginee ing and Managemen (JIEM), ISSN 2013-0953, OmniaScience, Ba celona, Vol. 10, Iss. 3, pp. 522-544, h ps://doi.o g/10.3926/jiem.2020 This Ve sion is a ailable a : h ps://hdl.handle.ne /10419/188832 S anda d-Nu zungsbedingungen: Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen Zwecken und zum P i a geb auch gespeiche und kopie we den. Sie dü en die Dokumen e nich ü ö en liche ode komme zielle Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich machen, e eiben ode ande wei ig nu zen. So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen (insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en, gel en abweichend on diesen Nu zungsbedingungen die in de do genann en Lizenz gewäh en Nu zungs ech e. Te ms o use: Documen s in EconS o may be sa ed and copied o you pe sonal and schola ly pu poses. You a e no o copy documen s o public o comme cial pu poses, o exhibi he documen s publicly, o make hem publicly a ailable on he in e ne , o o dis ibu e o o he wise use he documen s in public. I he documen s ha e been made a ailable unde an Open Con en Licence (especially C ea i e Commons Licences), you may exe cise u he usage igh s as speci ied in he indica ed licence. h ps://c ea i ecommons.o g/licenses/by-nc/3.0/ Jou nal o Indus ial Enginee ing and Managemen JIEM, 2017 – 10(3): 522-544 – Online ISSN: 2013-0953 – P in ISSN: 2013-8423 h ps://doi.o g/10.3926/jiem.2020 C i ical Success ul Fac o s o Inno a ion in Vie namese Fi ms T an Hoai Nam1, Nham Phong Tuan2* , Nguyen Van Minh3 1,3Depa men o Economic In o ma ion Sys em and Elec onic Comme ce, Thuongmai Uni e si y, Hanoi (Vie nam) 2Uni e si y o Economics and Business, Vie nam Na ional Uni e si y, Hanoi (Vie nam) nam h@ mu.edu. n, *Co esponding au ho : uannp@ nu.edu. n, minhdh [email protected] Recei ed: June 2016 Accep ed: July 2017 Abs ac : Pu pose: Inno a ion is conside ed as a co e elemen o sus ainable compe i i e ad an age in he apidly changing en i onmen . Howe e , in Vie nam, esea ches on inno a ion a e e y a e, which a e mos ly gene al epo s wi hou unde lying analyses o inno a ion in i ms, especially de e minan s o inno a ion. The e o e, his pape ocuses on analyzing c i ical success ul ac o s o inno a ion in Vie namese i ms. Design/me hodology/app oach: This s udy used p ima y da a h ough ques ionnai e su ey om No embe 2015 o Feb ua y 2016. Responden s we e senio manage s o i ms loca ed mos ly a Hanoi (No he n), Hochiminh (Sou he n) and Danang ci y (Cen al). The ques ionnai e included mul i-i ems designed o measu e ac o s. Each i em was measu ed by 5 poin Like scale: 1 (s ongly disag ee) o 5 (s ongly ag ee). Ques ionnai es we e adminis e ed o 500 i ms belonging o lis o Vie nam Chambe o Comme ce and Indus y (VCCI) in hese h ee ci ies wi h a e o 40% (Hochiminh ci y), 40% (Hanoi ci y) and Danang (20%). Howe e , he e we e 360 e u ned ques ionnai es and alid o nex analyses. Analysis me hodologies o eliabili y, ac o analysis and eg ession a e u ilized in his pape . Findings: We de eloped and es ed a model o de e minan s o Inno a ion in Vie namese i ms. The majo con ibu ion o his s udy is es ing six de e minan s o inno a ion in Vie namese companies. The esul s showed ha awa eness o inno a ion, inno a ion s a egy and -522- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 policy, o ganiza ion o inno a ion, HR o inno a ion and building capabili ies ha e posi i e impac on inno a ion. O iginali y/ alue: This s udy makes a con ibu ion o bo h academics and p ac i ione s. Fo academics, his s udy p o ided one mo e empi ical e idence o he de e minan s o inno a ion. Rega ding p ac ical implica ions, his s udy sugges s ha Vie namese companies ha e o s eng hen capabili ies o employees h ough aining, encou age gene a ion o new ideas, ule b eaking, and inno a i e beha io s by o ganiza ional membe s. Toge he , ha ing high awa eness o inno a ion, building a ional inno a ion s a egy and policy is essen ial ac o s ha i ms should possess and de elop o enhance inno a ion pe o mance. Al hough he e is no con i ma ion o impac o inance on inno a ion le el, i ms should unde s and ha inc easing inno a ion in es men can b ing a o able condi ion o c ea e inno a ion especially in SMEs. Keywo ds: inno a ion, c i ical success ul ac o s, Vie nam 1. In oduc ion Businesses oday ace a ough eali y: an icipa e, espond, and eac o he g owing demands o he ma ke place. In a ie cely compe i i e en i onmen , inno a ion no only de e mines success bu also go e ns business su i al. Resea ching o inno a ion in Vie nam indica es ha Vie namese economy mos ly ocuses on added in es men capi al while knowledge and echnological con en a e low (jus o e 20%) in a long ime (Nha & Quan, 2013). S ands ill o economic g ow h in o e he ecen yea s has been due o low labo p oduc i i y. Di icul y in a ac ing in es men capi al is main eason o Vie nam o ind newly d i en o ces o he coming g ow h s age. Following eme ging coun ies such as China, Singapo e, Malaysia and Thailand, highligh ing on inno a ion is one o basic solu ions aiming a pushing up economic de elopmen cu en ly. Inno a ion is no only meaning ul o na ion economy as a whole, bu also e y impo an o i ms. In o de o inc ease compe i i eness, i ms a ound he wo ld emphasize on inno a ion (Banbu y & Mi chell, 1995) and conside as oo o c ea ing compe i i e ad an age (Dess & Joseph, 2000). A ecen esea ch showed ha c ea ing alue is equi emen o i ms in he ma ke economy, while inno a ion is a ool o c ea e alue o i ms (B own, 1997). The inno a ion ac i i ies a e no only abou new p oduc and se ices bu also including new business me hods, p ocess and manage ial models. Acco ding o Ancona and Caldwell (1987), inno a ion plays an impo an ole in he long e m su i al o o ganiza ions. Inno a ion ac i i ies in o ganiza ions can help o inc ease p oblem sol ing p ocess, aise p oduc i i y o -523- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 o ganiza ion by c ea ing new idea, solu ion, p ocess, and p oduc which a e adap ed o he end o socie y. Fo manu ac u ing i ms, inno a ion can enhance employees’ manu ac u ing compe ence and skills. Besides, i helps he i m o sha pen i s compe i i e ad an age by di e en ia ing i s p oduc s and c ea ing alue o cus ome s. Fo se ice i ms, inno a ion also is c ucial in building compe i i e ad an age and s aying ahead o compe i o s. So, companies need o unde s and ho oughly he inno a ion’s de e minan s o c ea e and p omo e inno a ion. Inno a ion is e y signi ican o i ms in he wo ld gene ally and in Vie nam speci ically. Howe e , in Vie nam, esea ches on inno a ion a e e y a e, which a e mos ly gene al epo s wi hou unde lying analyses o inno a ion in i ms, especially de e minan s o inno a ion. The e o e, his pape is o analyze c i ical success ul ac o s o inno a ion in Vie namese i ms. The ollowing sec ion is o e iew ela ed li e a u e o c i ical success ul ac o s and inno a ion. Resea ch me hodology is p esen ed in sec ion h ee. The ou h one is analysis esul s and discussion. Conclusion and implica ions is he las sec ion o he pape . 2. Li e a u e Re iew and Hypo hesis De elopmen The e ha e been a lo o esea ches o inno a ion in i ms in he wo ld. They a e esea ches on de ini ion, ea u e, ole o inno a ion, ela ionship be ween inno a ion and business ac i i ies and pe o mance o en e p ises, condi ions and ac o s a ec ing inno a ion in i ms. Inno a ion in i ms is de ined as using p ocess o new knowledge o ma ke and echnology o de elop new p oduc s, se ices, p ocess and manage ial sys em aiming a adap ing changes o business en i onmen and cus ome demand (D’A eni, 1994). Th ee cha ac e is ics o inno a ion in i ms a e as ollows: •New o he ma ke •Use ulness •Success ul comme cialize (p o i abili y) Inno a ion in i ms is di ided in o wo le els: •Radical inno a ion: p o iding p oduc /se ice which is o ally new o ma ke place (inno a ion in e ms o echnology, cus ome and ma ke ) (Danneels, 2002). •Inc emen al inno a ion: p o iding p oduc /se ice which is imp o ed o ma ke place. -524- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Schumpe e (1934) classi ied inno a ion in o i e basic g oups, including: •Launching new p oduc /se ice o imp o ing exis ing p oduc . •P o iding new manu ac u ing me hods •De eloping new ma ke s •De eloping new supplemen •O ganiza ional inno a ion Apa om he in ensi y o inno a ion, he ecen esea ches indica ed wo main di ec ions o inno a ion ha a e p oduc inno a ion and p ocess inno a ion. The p oduc /se ice inno a ion is ela ed o change and adjus men o p oduc unc ions (adding new unc ions) compa ed o he exis ing p oduc /se ices in he ma ke (Loilie & Tellie , 1999); p ocess inno a ion is associa ed wi h me hods o supply se ices, echnological p ocess om design o dis ibu ion and comme cial ac i i ies (Johnson, 2011). The ollowing subsec ion e iews only c i ical success ul ac o s o inno a ion and hen de eloping hypo heses as well as esea ch amewo k o he pape . C i ical success ul ac o s o inno a ion Min zbe g (1982) con i med ha i ms should ha e lexible and o ganic s uc u e o make inno a ion be e . Inno a ion depends much on o ganizing, s a egic hinking, awa eness o leade and de elopmen o i m cul u e. Adminis a i eness o an o ganiza ion is o en a es ic ion o inno a ion. Inno a ion is associa ed wi h eam wo king and inno a i e hinking. Capabili ies o employees a e impo an ac o o inno a ion. Risk aking and passion a e wo essen ial cha ac e is ics o implemen inno a ion ac i i ies. Mo i a ion and a i ude o o ganiza ion’s membe s also play key ole in inno a ion (Julien & Jacob, 1999). Ch is ine, Mikel and Ke in (2002) conduc ed an empi ical esea ch abou impac o en i onmen al and o ganiza ional ac o on inno a ion. The s udy conside ed e ec o en i onmen al, o ganiza ional, p ocess, and manage ial ac o s on inc emen al and adical inno a ion in h ee indus ies (ae ospace, elec onics, and elecommunica ion). Resul s showed ha he en i onmen al and o ganiza ional a iables we e signi ican ac o s o bo h kinds o he inno a ion. Fac o s a ec ing he inc emen al inno a ion include en i onmen al dynamics, age and size o i m, and linkage among i ms. E ec s con ibu ing o he adical inno a ion consis o en i onmen al dynamics, linkages among i ms, expe ience and ans o ming o es uc u ing om o he p ojec s o p oduc s. Acco ding o Fe a i (2005), in o de o inno a e, businesses need o s ongly in es in human esou ce and R&D ac i i ies. The ma ke -leading en e p ise always has high a e a he R&D in es men . R&D con ibu es o in en o s and new po en ial business ideas on he ma ke . Inspi e o he ideas and -525- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 inno a ions, R&D will be ine ec i e i he en e p ise does no ha e he app op ia e way o implemen i . I will be was ed i he new ideas and in en ions a e no used in his way o o he ways. Le chemenan (2006) s udied he de e minan s o inc emen al and adical inno a ion in Malaysia indus ies. The esea ch showed ou he e ec s o in e nal ac o s on he inc emen al and adical inno a ion. These ac o s included o ganiza ional capaci y, and demog aphic. Resea ch model was app o ed and modi ied om Vincen , Bha adwaj and Challagalla (2004). The esea ch esul s showed ha he o ganiza ional abili y and demog aphic implemen a ion we e impo an and had a posi i e ela ionship wi h he inc emen al inno a ion, bu no he adical inno a ion. This also showed ha e y ew companies in Malaysia conduc ed he adical inno a ion bu he inc emen al inno a ion. The esea ch made commen s abou how o manage and adminis e R & D and enginee ing depa men s in he o ganiza ion in o de o make much be e p oduc de elopmen o inno a ion p ocesses. The e ha e been many s udies conduc ing esea ch he ela ionship be ween human esou ces wi h inno a ion. Typically, empi ical s udies demons a ed human esou ce managemen a ec o he de elopmen and exploi a ion o in ellec ual capi al (W igh , Dun o d & Snell, 2001), knowledge c ea ion & p oduc de elopmen (Collins & Smi h, 2006) and o ganiza ional lea ning (Snell, Yound & W igh , 1996). These ac o s in u n acili a e he inno a ion in business. Based on he s udy on he mixed sample o en e p ises in Spanish indus ies, Jiménez-Jiménez and Sanz-Valle (2005) demons a ed he ela ionship be ween he e ec i e e alua ion sys em, incen i e compensa ion, and in e nal ca ee oppo uni ies and inno a ion. This s udy con i med ha human esou ce managemen (HRM) p ac ices wi h he pa icipa ion o employees in en e p ises c ea ing oppo uni ies o he inno a ion. The s udy by Ship on, Wes , Dawson, Bi di and Malcolm (2006) showed ha no only aining bu also e alua ion and impac senso a ec ed o inno a ion. Howe e , he impac o hese p ac ices can a y acco ding o he ype o inno a ion ac i i y (ie: he exploi a ion s explo a ion). The poin ha HRM ce ainly had an impac on a ious aspec s o inno a ion was s udied by De Leede and Looise (2005) and Jø gensen, Hyland and Ko oed (2008). Jø gensen, Becke and Ma hews (2009) s udied on he ela ionship be ween human esou ces and inno a ion, and con i med ha he unc ion o HRM in co po a e managemen sys em and HRM sys em a ec ed he inno a ion capabili y. Emmanuel (2008) s udied he c i ical ole o leade ship in he p ocess o o ganiza ional inno a ion. He a gued ha , in en e p ises, he leade s mus ac i ely implemen s a egies o encou age c ea i i y. The e o e, leade ship is a ca alys and sou ce o o ganiza ional c ea i i y and inno a ion. In essence, o achie e con inuous inno a ion o o ganiza ions, leade s mus es ablish a a o able en i onmen o inno a ion and build an o ganiza ional cul u e encou aging c ea i i y and inno a ion. C ea i e o ganiza ions also depend on how leade s encou age, manage in he o ganiza ion, as well as de elop e ec i e leade ship s uc u e o sus ain he inno a ion p ocess. Due o en i onmen al changes in many -526- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 a eas o business oday, o ganiza ions need he con inuous c ea i i y and inno a ion o emain compe i i eness and success. This means ha hey mus ecognize and ake use o he exis ing c ea i i y and leade ship o e ec i ely manage inno a ion p ocesses. Ga cía-Mo ales, Llo ens-Mon es and Ve du-Jo e (2006) analyzed a a ie y o ac o s ha a ec o ganiza ional inno a ion and lea ning, hen demons a ed ha o ganiza ional lea ning and inno a ion posi i ely a ec he exp ession o he o ganiza ion. Based on p e ious esea ches, he s udy o Ga cía- Mo ales e al. (2006) ga e many es ed heo ies, in es iga ing how indi idualism, leade ship, ini ia i e and en i onmen in luence inno a ion ac i i ies. This s udy ound ou he elemen s o o ganiza ional inno a ion and lea ning ha a ec ed en ep eneu ship and compe i i e ad an age. The eby i made ecommenda ions ha en i onmen should con inuously o e incen i es o pe sonal de elopmen . Managemen me hods need o be imp o ed and he leade needs o know how o o ganize and shape he model o de elopmen , hus p omo ing capabili ies in o ganiza ions and essen ial s a egies o do business. Howe e , he limi o his s udy is ha su ey da a based on sel - epo s may be bias. The esea ch o Lin (2006) ocused on he ac o s a ec ing o ganiza ional inno a ion in p o iding logis ic se ices. The su ey was conduc ed wi h 114 companies p o iding logis ic se ices in Taiwan. Fac o s a ec ing inno a ion include human esou ces and he way o o ganizing and implemen ing inancial in es men . Thus, i made conclusions ha he human ac o s, o ganizing way and inancial ac o s ha e di e en e ec s on inno a ion ac i i ies in p o iding logis ic se ices. Gómez-Viei es and Cal o (2011) conduc ed a s udy o ac o s a ec ing he inno a ion ac i i ies o Spanish businesses. The main objec i e o he s udy was o analyze he ole o some ac o s ha could in luence he de elopmen o he inno a ion ac i i ies o la ge companies in Spain, explo ing how hese ac o s could help companies o achie e success by inno a ion and business e iciency imp o emen . The au ho s came up wi h a new model o analyze he ela ionship be ween he o ganiza ion, echnology, inance, in o ma ion and coope a ion elemen s among companies. The s udy used Pa ial Leas Squa e (PLS) me hod and s uc u al equa ion model o de e mine heo e ical model, he s udy’s da a was aken om he Ins i u e o S a is ical Su ey o Spain. The samples we e aken om he 2224 Spanish businesses wi h 200 employees o mo e. Resul s showed ha he esou ces, he coope a ion and inance posi i ely impac R&D ac i i ies; while R&D, in o ma ion managemen and echnology esou ces had a posi i e impac on inno a ion; inally, he R&D ac i i ies, inno a ion esul s (p oduc and inno a ion p ocess) and business pe o mance a ec managemen ac i i ies o he business. As hese ac o s a e summa ized abo e, he au ho s p opose a eseach model o he success ac o s o inno a ion in Vie nam including six hypo heses abou he success ac o s o inno a ion in he en e p ise. Compa ed o p e ious s udies, his esea ch amewo k is conside ed as mo e comp ehensi e and in eg a ed one and hus p o iding one mo e oice o li e a u e. -527- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Figu e 1. Resea ch Model (au ho s) Hypo hesis 1 (H1): Awa eness o en e p ises on inno a ion has posi i e impac on inno a ion. Hypo hesis 2 (H2): Inno a ion s a egy and policy ha e posi i e impac on inno a ion. Hypo hesis 3 (H3): Inno a ion impleme a ion in he en e p ise ha e posi i e impac on inno a ion. Hypo hesis 4 (H4): Capi al ( inancial) in es men o inno a ion has posi i e impac on inno a ion. Hypo hesis 5 (H5): Human esou ces o inno a ion has posi i e impac on inno a ion. Hypo hesis 6 (H6): Capaci y building o inno a ion in he en e p ise has posi i e impac on inno a ion. 3. Resea ch Me hodology 3.1. Da a and Sample This s udy used p ima y da a h ough ques ionnai e su ey om No embe 2015 o Feb ua y 2016. Responden s we e senio manage s o i ms loca ed mos ly a Hanoi (No he n), Hochiminh (Sou he n) and Danang ci y (Cen al). The ques ionnai e included mul i-i ems designed o measu e ac o s (Appendix). Each i em was measu ed by 5 poin Like scale: 1 (s ongly disag ee) o 5 (s ongly ag ee). Ques ionnai es we e adminis e ed o 500 i ms belonging o lis o Vie nam Chambe o Comme ce and Indus y (VCCI) in hese h ee ci ies wi h a e o 40% (Hochiminh ci y), 40% (Hanoi ci y) and Danang (20%). Howe e , he e we e 360 e u ned ques ionnai es and alid o nex analyses. Cha ac e is ics o he su ey da a a e desc ibed in he Table 1. -528- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Da a Cha ac e is ics F equency Pe cen age (%) o esponden s Dis ibu ed by loca ion Hanoi 76 21.1 Hochiminh 119 33.1 Danang 89 24.7 O he s 76 21.1 Main business ac i i ies ICT 52 14.4 Biological Technology 56 15.6 Enginee ing-Mechanics 63 17.5 En i onmen al Technology 29 8.1 Cons uc ion Ma e ials 52 14.4 Se ices 88 24.4 O he s 20 5.6 Legal s a us Limi ed company 161 44.7 Join s ock company 144 40.0 Pa ne ship 07 1.9 P i a e company 23 6.4 O he s 25 7.0 Ci izenship Domes ic 300 83.3 Fo eign 14 3.9 Join en u e 46 12.8 Scope Local 129 35.8 Na ion wide 190 52.8 Sou heas Asia 25 6.9 Ou side o Sou heas Asia 16 4.4 Numbe o employees (pe son) Unde 50 128 35.5 51-100 91 25.3 101-300 141 39.2 O e 300 0 Re enue (VNĐ) Unde 1 billion 75 20.8 1 bil - 10 bil 110 30.6 10 bil - 50 bil 71 19.7 50 bil - 100 bil 26 21.7 O e 100 bil 78 7.2 To al ( esponden s) 360 100 Table 1. Cha ac e is ics o he su ey da a (N = 360) (summa ized by au ho s om su ey) -529- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 o ganiza ion. The HR sys em has o include: aining- ocus, pe o mance-based ewa d and eam de elopmen o highe le el o inno a ion. I is impo an o ocus on de eloping an inno a i e and en ep eneu ial cul u e by managing he HR unc ions p ope ly. Inno a ion can only be es ablished i employees ha e he possibili y o be inno a i e. Managemen should gi e employees mo e space, acili a ion, exci emen and challenges o come up wi h dis inc i e concep s. Posi i e impac o HR on inno a ion also was con i med by esea ch o Allani, A cand and Bayad (2003), hey conside ed HR is a key ac o o company’s compe i i eness and c i ical capaci y o inno a ion. O he s udies o Ka lsson (2013), A ul ajah (2014) and Ghamdi and Razek (2015) explo ed he ela ionship be ween o ganiza ional HRM p ac ices and inno a ion, and he conclusion was ha HRM p ac ices a e impo an o os e o ganiza ional inno a ion. Hypo hesis 6 Las hypo hesis in his pape s a es ha Capaci y building o inno a ion has posi i e impac on Inno a ion in o ganiza ions. We can see ha he p- alue is p e y small (0.000<0.05), so ha he ela ionship is s ongly suppo ed. The coe icien o ela ionship be ween Capaci y building o inno a ion and Inno a ion is 0.317. The esul is consis en wi h esea ch o Lau & Ngo (2004), aining ocused and building capabili ies o employees ha e s ong link wi h inno a ion pe o mance. Lawson and Samson (2011) s udied abou how o de elop capabili ies o inno a ion has concluded ha building capabili ies which ha e se en aspec s will help i ms in achie ing sus ainable inno a ion ou comes as he engine o hei business pe o mance. Snyde (2013) s a ed ha capabili ies in an o ganiza ion a e necessa y equi emen o inno a ion adop ion decision. Fu he mo e, Aleg e and Chi a (2008) showed a posi i e link be ween equi emen o o ganiza ional lea ning capabili ies and inno a ion pe o mance. The ollowing able (Table 6) shows summa y o hypo hesis es ima ion o his esea ch. O e all, ou o six hypo heses, i e hypo heses (H1, H2, H3, H5, H6) a e suppo ed on he basic o h ee signi ican le el o P alue. -536- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Hypo heses Es ima ed esul s Hypo hesis 1 (H1): Awa eness o en e p ises on inno a ion has posi i e impac on inno a ion. Suppo ed Hypo hesis 2 (H2): Inno a ion s a egy and policy ha e posi i e impac on inno a ion. Suppo ed Hypo hesis 3 (H3): Inno a ion impleme a ion in he en e p ise ha e posi i e impac on inno a ion. Suppo ed Hypo hesis 4 (H4): Capi al ( inancial) in es men o inno a ion has posi i e impac on inno a ion. Rejec ed Hypo hesis 5 (H5): Human esou ces o inno a ion has posi i e impac on inno a ion. Suppo ed Hypo hesis 6 (H6): Capaci y building o inno a ion in he en e p ise has posi i e impac on inno a ion. Suppo ed Table 6. Summa y o hypo hesis es ima ion 5. Conclusion and Implica ion In his s udy, we de eloped and es ed a model o de e minan s o Inno a ion in Vie namese i ms. The majo con ibu ion o his s udy is es ing six de e minan s o inno a ion in Vie namese companies. The esul s showed ha awa eness o inno a ion, inno a ion s a egy and policy, o ganiza ion o inno a ion, HR o inno a ion and building capabili ies ha e posi i e impac on inno a ion. F om he esul s, his s udy makes a con ibu ion o bo h academics and p ac i ione s. Fo academics, his s udy p o ided one mo e empi ical e idence o he de e minan s o inno a ion. Rega ding p ac ical implica ions, i s ly, his esea ch p oposes ha awa eness o inno a ion can posi i ely in luences inno a ion ac i i ies in Vie namese i ms. So, awa eness o inno a ion can be conside ed as i s s age o inno a ion s a egy in he i m. I he e is no awa eness in he i m, inno a ion canno be pe o med. To inc ease inno a ion awa eness in Vie namese o ganiza ions, i is impo an o c ea e campaign o showcase abou inno a ion o aising inno a ion awa eness pu pose. Fu he mo e, leade s and manage s in he company should pay mo e a en ion o ain he employees abou he necessi y o inno a ion, encou age hem o explo e and con ibu e new ideas o company. Inc easing inno a i e awa eness o indi iduals in company can es ablish an inno a i e en i onmen ha p omo es inno a ion in ha company. Secondly, he esul in his s udy has shown ha s a egies and policies o inno a ion is one o d i e s o inno a ion in o ganiza ion. A i m is conside ed is mo e inno a i e i i has sui able inno a ion s a egy and policy. So, o be inno a i e and dominan o e o he compe i o s, a company should know how o manage i s esou ce o c ea e an open, adap i e inno a ion s a egy o each desi able u u e s a e o he company. Thi dly, o ganiza ion o inno a ion also is a c i ical ac o can a ec inno a ion pe o mance wi hin a i m. The s udy shows posi i e in luence o o ganiza ion o inno a ion on inno a ion, ha means how a company o ganizes, implemen inno a ion ac i i ies can a ec inno a ion success. The company should -537- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 empowe employees o encou age inno a i e ideas, mo i a ing leade s and employees o in ol e in inno a ion p ocess, as well as collabo a ing wi h ex e nal pa ne s o po en ial inno a i e p ojec s. Fou hly, his esea ch poin s ou ha mo e human esou ce company uses o inno a ion ac i i ies, he e will be highe le el o inno a ion. So, companies which desi e a highe le el o inno a ion should concen a e on how o inc ease numbe o people in ol ed in inno a ion p ocess, especially high- expe ise people. Mo eo e , when i comes o a pe son who has high capabili y o inno a ion, he e should be a easonable mo i a ion as well as compensa ion o ha pe son such as ewa d o p omo ion. Finally, he esul sugges s ha i ms ha e highe building capabili ies ac i i ies wi hin o ganiza ion will mo e likely o ha e high le el o inno a ion. As a pa o HR sys em o inc ease inno a ion, i ms need o p o ide necessa y skills o employees h ough ocus on aining. I is essen ial o di using he knowledge, skills o employees as well as leade s, manage s in he company. I companies do no ha e sou ces o inno a ion knowledge and skills, hey can in es mo e money in aining ac i i ies om ex e nal sou ces. Building capabili ies o inno a ion ac i i ies should be implemen ed equen ly wi h di e se aining con en . The e a e some limi a ions in his s udy ha can be imp o ed by u u e esea ches. Fi s ly, he sample is aken in Vie nam coun y and mos ly om small and medium en e p ises so as a esul , he indings may be limi ed o his sample. I would be mo e in e es ing i u u e s udy can expand he sample in a la ge con ex , ake da a om mo e i ms as well as mo e employees in each i m. Secondly, inno a ion is a la ge a ea o s udy abou , his s udy only ound ou some in e nal ac o s which can a ec inno a ion in an o ganiza ion. Fu u e esea ch can expand he model o es he impac o some ex e nal ac o s on inno a ion o Vie namese i ms. Finally, he ques ionnai e con ains some b oad ques ions so ha Like 5-poin scale migh no ob ain ull in o ma ion on he ac o s s udied. Fu u e esea ches could a emp o ob ain da a mo e speci ically om mul iple sou ces. 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Human Resou ces and he Resou ce Based View o he Fi m. Jou nal o Managemen , 27, 701-721. h ps://doi.o g/10.1177/014920630102700607 Zal man, G., Duncan, R., & Holbek, J. (1973). Inno a ions and o ganiza ions. New Yo k: Wiley. -542- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Appendix: Ques ionnai es Inno a ion o i m (Y) Y1 - le el o p o iding o ally new p oduc /se ice o ma ke Y2 - le el o p o iding imp o ed p oduc /se ice o ma ke Y3 - le el o pene a ing in o new ma ke (p oduc /se ice in new geog aphical a ea, new cus ome segmen a ion). Awa eness o i m o inno a ion (F1) F11 - Awa eness o leade o inno a ion F12 - Awa eness o employees o i m o inno a ion F13 - Employees ecognize con en and plan o inno a ion S a egy and policy o inno a ion (F2) F21 - le el o sha ing s a egies, policies o inno a ion in he i m F22 - le el o implemen ing s a egies, policies o inno a ion F23 - le el o exp essing opinions o inno a ion (issuing and conduc ing ideas sha ed and espec ed, sha ing and ecei ing new knowledge…) O ganiza ion o inno a ion (F3) F31 - making e o o implemen ing in en , ideas F32 - sel - implemen ing capabili y o in en , ideas F33 - success ul le el o coope a ing wi h ex e nal pa ne s o implemen inno a i e p ojec s. F34 - capabili y o handle possible issues when implemen ing inno a ion in i m -543- Jou nal o Indus ial Enginee ing and Managemen – h ps://doi.o g/10.3926/jiem.2020 Capi al ( inancing) in es men o inno a ion (F4) F41 - ac i ely inancing o inno a ion ac i i ies F42 - in es men a e o inno a ion ac i i ies in compa ison wi h o al in es men o i m F43 - sa is ied le el wi h in es men ou come o inno a ion ac i i ies Human esou ces o inno a ion (F5) F51 - a e o numbe o employees in ol ing inno a ion ac i i ies o e o al numbe o employees in i m. F52 - inno a i e capabili y o employees F53 - employees wi h inno a i e capabili y a e p io i ized and compensa ed ( ec ui men , aining, incen i es, p omo ion, assignmen , keeping). Building inno a i e capabili y in i m (F6) F61 - o en implemen ing ac i i ies o help imp o e inno a i e capabili y o employees F62 - aining need o imp o ing inno a i e capabili y F63 - di e si y o opic and aining con en o imp o e inno a i e capabili y F64 - i m sa is ies achie emen om aining ac i i ies o imp o ing inno a i e capabili y F65 - in es men budge o aining ac i i ies o imp o ing inno a i e capabili y (compa ed o o al in es men o i ms) Jou nal o Indus ial Enginee ing and Managemen , 2017 (www.jiem.o g) A icle’s con en s a e p o ided on an A ibu ion-Non Comme cial 3.0 C ea i e commons license. Reade s a e allowed o copy, dis ibu e and communica e a icle’s con en s, p o ided he au ho ’s and Jou nal o Indus ial Enginee ing and Managemen ’s names a e included. I mus no be used o comme cial pu poses. To see he comple e license con en s, please isi h p://c ea i ecommons.o g/licenses/by-nc/3.0/. -544-