Impact of Ownership Structure on Innovation and Technological Adoption in Vietnam’s Textile-Garment Industry

EasyChair Preprint 13340

Abstract

The ownership structure in Vietnam's textile-garment industry has a significant impact on innovation and technological adoption. Private ownership provides the industry with flexibility, incentives, and resources to drive innovation and adopt new technologies. Private companies have the autonomy and profit motives to invest in research and development (R&D) activities, upgrade machinery and equipment, and embrace advanced manufacturing technologies. The competitive nature of the market pushes private firms to continuously innovate and stay ahead in order to maintain their competitive edge.
Conversely, state ownership or a mixed ownership structure, where the government holds a substantial stake, can present challenges for innovation and technological adoption. State-owned enterprises (SOEs) often face bureaucratic hurdles and decision-making processes that can impede quick and agile innovation. The priorities of SOEs may be aimed more at fulfilling government targets and social objectives rather than pursuing innovation and cutting-edge technologies. Additionally, financial constraints can limit their ability to invest in R&D and adopt new technologies. However, it's important to note that government intervention and support can also play a role in fostering innovation and technological adoption through policies, incentives, and investments in infrastructure and education.
By understanding the influence of ownership structure on innovation and technological adoption, policymakers and industry stakeholders can develop strategies and policies to encourage a conducive environment for innovation in Vietnam's textile-garment industry. Striking the right balance between private and state ownership, along with targeted government support, can help drive innovation, R&D, and technology adoption, ultimately enhancing the industry's competitiveness in the global market.

Keyphrases: Business Management, article writings, social science

@booklet{EasyChair:13340,
  author    = {Joseph Bayo Shalom},
  title     = {Impact of Ownership Structure on Innovation and Technological Adoption in Vietnam’s Textile-Garment Industry},
  howpublished = {EasyChair Preprint 13340},
  year      = {EasyChair, 2024}}