Factors influencing new product development capability of small and medium-sized enterprises in the manufacturing and processing industry in Vietnam amid the economic crisis

Abstract

This paper analyzes the impact of factors influencing the new product development capability of small and medium-sized enterprises (SMEs) in Vietnam, using data from Vietnamese SMEs in the manufacturing and processing industry across Northern provinces from 2007 to 2011. By applying a panel data model to estimate the model, it is shown that factors such as business performance, export activities, technology enhancement, ownership structure, and the year factor affect SMEs' capability to create new products. These empirical findings provide policy-planning evidence for SMEs in the manufacturing and processing industry in Vietnam, supporting sustainable business development.