Labor productivity of Vietnamese manufacturing SMEs

Abstract

This study evaluates the impact of technology innovation, employee characteristics, and managerial and trading strategies on labor productivity of Vietnamese small medium enterprises (SMEs) by examining longitudinal data of over 12,500 samples during the period from 2005 to 2013. The results show that application technology has a positive impact on labor productivity. Additionally, the study illustrates the analysis of some labor characteristics, as well as the critical role of high-educated employees in overall firm productivity. The effectiveness of some human resource policies relating to compensation and motivation has been confirmed. The exporting firms are more likely to gain higher productivity than non-exporting ones.