Relationship between manufacturing strategy and firm performance: the empirical study of Vietnamese manufacturing plants

Economic Annals-ХХI: Volume 166, Issue 7-8, Pages: 41-45

Citation information:
Anh, Ph. Ch., Tuan, N. Ph., & Hoa, H. T. (2017). Relationship between manufacturing strategy and firm performance: the empirical study of Vietnamese manufacturing plants. Economic Annals-XXI, 166(7-8), 41-45. doi: https://doi.org/10.21003/ea.V166-08


Phan Chi Anh
PhD (Business Administration),
Center for Business Administration Studies,
VNU University of Economics and Business
Room No. 307, E4 Building, 144 Xuan Thuy road, Cau Giay District, Hanoi, Vietnam
anhpc@vnu.edu.vn
ORCID ID: http://orcid.org/0000-0002-0153-1845

Nham Phong Tuan
PhD (Business Administration),
Associate Professor,
School of Business Administration,
VNU University of Economics and Business
Room No. 307, E4 Building, 144 Xuan Thuy road, Cau Giay District, Hanoi, Vietnam
tuannp@vnu.edu.vn
ORCID ID: http://orcid.org/0000-0002-0973-3943

Hoang Trong Hoa
Researcher, Center for Business Administration Studies,
VNU University of Economics and Business
Room No. 307, E4 Building, 144 Xuan Thuy road, Cau Giay District, Hanoi, Vietnam
hoantronghoa1988@gmail.com
ORCID ID: http://orcid.org/0000-0001-6115-8686

Relationship between manufacturing strategy and firm performance: the empirical study of Vietnamese manufacturing plants

Abstract. The process of formulation and implementation of the firm’s strategy is closely linked to its performance. This article presents the results of an empirical research regarding the relationship between manufacturing strategy and performance of manufacturing plants in Vietnam. Data was collected from 25 plants as part of the High Performance Manufacturing (HPM) project and analysed by using statistical tools. The manufacturing companies are operating in three industries: transportation, electronics and machinery equiment. The respondents were mainly directors, vice directors, plant managers, upstream and downstream supply chain managers. The present research is aimed to test two hypotheses constructed. Hypothesis 1: Manufacturing strategy practices at the managerial level have a significant impact on firm performance. Hypothesis 2: Manufacturing strategy practices at the supervisory level have a significant impact on firm performance.

Notable results were found regarding the relationship between manufacturing strategy and firm performance among Vietnamese plants. The results of analysis of variance (ANOVA) and regression analysis indicate the importance of management in formulating and implementing the manufacturing strategy with regard to firm performance, whereas supervision is less significant in terms of its influence on firm performance.

Keywords: Strategy; Firm Performance; Vietnamese Plants; Manufacturer; Vietnam; High Performance Manufacturing (HPM) Project; ANOVA

JEL Classification: M10

Acknowledgements: This research is funded by Vietnam National University, Hanoi (VNU) under project number QG.16.53.

DOI: https://doi.org/10.21003/ea.V166-08

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Received 20.05.2017