Impact of market orientation, innovation capacity and government support on market development: Unburnt building materials in the Mekong Delta, Vietnam

Abstract

This study aims to examine the impact of market orientation, innovation capacity, and government support on the development of the Unburnt Building Materials (UBMs) market in the Mekong Delta, Vietnam. In this study, we analyzed the impact of government support on UBMs market development through market orientation, and incoming innovation capacity. In addition, this study analyzed the impact of market orientation and innovation capacity on the market development of manufacturers’ UBMs. Because the whole manufacturers of UBMs in the Mekong Delta are small, the number of samples of the study is the target population - the whole overall with 78 owners or senior managers of micro, medium, and small manufacturing enterprises. For data analysis, we applied the Partial Least Squares Structural Equation Modeling (PLS-SEM) to test both measurement and structural models. The results show that government support has a positive impact on the market development of UBMs through market development and innovation capacity. Furthermore, market development is also influenced by one’s market orientation and innovation capacity in terms of products, processes, and marketing. In this study, innovation capacity has the highest impact on the market development of UBMs of enterprises. This study has contributed to the knowledge related to the positive impact of government support on market orientation, on innovation capacity from the perspective of small, medium, and micro construction enterprises in Vietnam. Develop a new product market development model for small, medium, and micro enterprises by integrating external factors (government support) and internal resources of enterprises (market orientation and innovation capacity).