THE EFFECT OF ENTERPRISE’S RESOURCES ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISE IN VIETNAM

Abstract

The study investigates the moderating effect of subcontract on the relationship between resources and small-medium enterprise (SME)’s performance in Vietnam. Building upon resource-based view, the hypotheses are proposed that the effect on loan and marketing resource on the performance of sub-contract SME is lesser than that of non sub-contract SME, whereas the effect of SME manager’s education on its performance is higher. 260 sub-contract SMEs from enterprise survey data of the World Bank were used to test the hypotheses. Regression reveals that the empirical findings are strongly supported the proposed hypotheses. The study however fails to find the evidence on the role of sub-contract on the relationship between debt and SME’s performance.