Green innovation, green entrepreneurship, and Vietnamese SME development: The role of market turbulence

Abstract

Micro, small, and medium enterprises (MSMEs) are a significant part of Vietnam’s national economy, contributing up to 40% of GDP. However, in today’s globalized world, competition in the marketplace is increasingly complex. Besides, the state is more concerned with environmental sustainability. Thus, Vietnamese enterprises, especially MSMEs or smallmedium enterprises (SMEs) that want to stand up and develop, should pay attention to innovation by not only considering business opportunities but also the benefits of being environmentally friendly businesses. The goals of this study are to investigate the impact of green innovation (GI) on SME development (SMED) in turbulent market conditions with the mediation effect of green entrepreneurship (GE). Based on the research results, the study provides useful solutions to help SMEs develop and policymakers adjust their policies. The activating of SMEs’ activities in Ho Chi Minh City business corresponds to the demographic census of this study. A sample comprising 280 senior managers of SMEs is surveyed for the study. The questionnaire tool is used to measure the research variables. A 5-point Likert scale is used to measure the questionnaire. To test the hypotheses, the study uses the SEM method with the support of Amos software.