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http://dx.doi.org/10.13106/jafeb.2021.vol8.no5.0335

The Influence of Competitive Advantage on Financial Performance: A Case Study of SMEs in Vietnam  

NGUYEN, Hoan (Faculty of Economics, Natural Resources and Environment, Hanoi University of Natural Resources and Environment)
TRAN, Thi Hoang Mai (Faculty of Economics, Vinh University)
NGUYEN, Thi Hai Yen (Faculty of Economics, Vinh University)
TRUONG, Duc Dinh (Faculty of Accounting, University of Labor and Social Affairs)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.5, 2021 , pp. 335-343 More about this Journal
Abstract
Profit generation is one of the main goals of small- and medium-sized enterprises (SMEs). SMEs have deployed a number of solutions to increase profits, including solutions to improve their financial advantage. The question is how to help SMEs make better and more effective decisions to improve their competitive advantage in order to improve their financial performance. The aim of this research is to examine the impact of competitive advantage on financial performance in small- and medium-sized enterprises (SMEs) in Hanoi. A survey of 120 accountants, sales staff and boards of directors of SMEs was conducted to collect data. Through quantity methodology, we used Cronbach's Alpha, EFA and correlation analysis to determine the relationship between competitive advantage and dependent variable - financial performance. The results showed that the competitive advantage had a positive relationship with financial performance. There is not, statistically, significant difference in the level of financial performance in SMEs in Hanoi in terms of genders and between the mentioned three groups of job descriptions. From the findings, this study suggests several recommendations to improve financial performance such as increase sales and increase profits. The results are considered as a useful reference for establishing policies to attract customers toward sustainable development of firms.
Keywords
Competitive Advantage; Financial Performance; Accounting; SMEs;
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