Enhancement of innovation capacity: important solutions to sustainable development of Vietnamese businesses

Abstract

Vietnam is one of the most vulnerable countries on the earth due to the climate change. Moreover, in the previous time, Vietnam developed in width inclination which leads to an overheated economy, mainly based on using of natural resources. This damages the environment and increases the impact of climate change. To be able to continue its development, Vietnam must have strategic and appropriate solutions to switch to a model that develops in depth inclination for sustainable development. Sustainable development must be perceived insightfully and implemented in the whole society, including businesses and institutions. However, concerning changing from the traditional development model to sustainable development model, Vietnamese businesses must improve their innovation capacity continuously, which requires mastering the innovation capacity and highlighting factors that affect the innovation capacity of Vietnamese enterprises. This article below will clarify this issue, using the survey results of 380 Vietnamese enterprises in addition to such quantitative techniques as Cronbach's Alpha reliability, EFA, CFA and SEM. Our findings indicate that Total Quality Management (TQM), Internal human resources (IHC), Absorptive capacity (AC), Collaboration networks (CN) and Government support (GS) positively impact on the Vietnamese businesses innovation capacity (IC). Additionally, by carrying out the qualitative research and typically case study, this research explores another factor that greatly affects Vietnamese enterprises’ innovation capacity in the current period, which is technology acquisition and exploitation—TAE. On account of such we propose some solutions and recommendations to help Vietnamese enterprises enhance the innovation capacity to survive and develop.