An analysis of the impact of business environment on the productivity of SMEs through the mediating role of export and innovation

Abstract

The study uses mediation path analysis model developed by MacKinnon et al (2009) to conduct a hypothesis test on how business environment encourages SMEs in export and innovation activities and improves total factor productivity at firm level. The study analyzes the data collected by Central Institute for Economic Management (CIEM) from 2005 to 2013. The results show that not only does business environment directly affect SMEs’ productivity but it also indirectly affect their productivity through profitableactivities. Specifically, SMEs with state financial or technical support, better business networking, location in EPZ or industrial zones; and easy access to Internet, official loans or higher competitive industry will be more productive because they can invest in machinery and engage in export activities. The research results show that good business environment is a necessary condition for businesses to improve their productivity and lead them to profitable activities.

Keywords

• môi trường kinh doanh
• doanh nghiệp vừa và nhỏ việt nam
• tổng năng suất các yếu tố
• mô hình phân tích đường dẫn trung gian