THE MEDIATING ROLE OF INNOVATION ADOPTION FOR ECONOMIC EFFICIENCY IN THE MANUFACTURING SECTOR OF VIETNAM

Abstract

The purpose of this study was to investigate the mediating role of innovation adoption in enhancing economic efficiency within Vietnam’s manufacturing sector. A mixed-methods approach was employed for this study. Qualitative methods, including in-depth interviews, were utilized to gather insights, while a comprehensive survey instrument was administered to industry stakeholders, collecting a substantial number of responses. Quantitative techniques such as Structural Equation Modeling (SEM) and Partial Least Squares (PLS) analysis were employed for data analysis. The findings of this study indicated that Industry Forward, 6Ps Maturity, 6Ss Smart Manufacturing, 6Rs Operational Resilience, and Block-Chain Leadership played significant roles in contributing to economic efficiency within the manufacturing sector in Vietnam. The study also highlighted the pivotal role of innovation adoption across various levels including individual, departmental, organizational, and inter-organizational in driving improvements in economic efficiency. Common challenges faced during the adoption of innovation, including financial constraints, technological gaps, and resistance to change, were also recognized. Recommendations were proposed based on these results, encompassing strategies to strengthen top management commitment, enhance supply chain integration, and promote continuous improvement culture, smart manufacturing practices, and skill development initiatives. The research provides valuable insights for practitioners and policymakers seeking to enhance economic efficiency and competitiveness within Vietnam’s manufacturing industry.