Key success factors for enhancing productivity in Vietnamese industrial garment enterprises through the application of science, technology, and innovation

Abstract

This study aims to identify and examine the critical success factors affecting productivity through the mediating roles of various types of innovation, including product, management, process, and business model innovation. Data were collected from 400 middle- and senior-level managers in Vietnamese industrial garment enterprises and analysed using the partial least squares structural equation modeling (PLS-SEM) method with SmartPLS 4.0 software. The measurement model demonstrates strong reliability, convergent validity, and discriminant validity across all constructs. The structural model shows substantial explanatory power, particularly for the productivity variable, with an R² value of 0.745. Bootstrapping results indicate that key organisational factors - such as leadership commitment, innovation strategy, firm resources, employee capabilities, knowledge management, and market demands - primarily influence productivity indirectly through innovation activities. Among the innovation types, process innovation exerts the strongest impact on productivity, followed by management, product, and business model innovation. The study further elucidates how managerial practices and organisational resources are translated into productivity outcomes through an integrated innovation system while offering a scientific basis enabling businesses to prioritise innovation strategies in order to enhance productivity.