Abstract

This paper focuses on applying the resource-based view (RBV) of firms and industrial organization (IO) of
strategic management field to explain performance in supporting industries in Hanoi - Vietnam. Specifically, we
based our research on the integrated framework of RBV and IO and reviewed previous empirical researches
before deciding on testing relationships among organizational capabilities, industry effects, competitive
advantage and performance. A multivariate analysis of survey responses of 102 firms belonging to supporting
industries in Hanoi city - Vietnam indicates that the firm’s organizational capabilities contribute to its
competitive advantage that in turn, affects its performance and mediates the organizational
capabilities-performance relationship, and that industry effects have both direct and indirect impact on
competitive advantages. These findings have considerable implications for academics as well as practitioners.
Finally, this study also provides directions for future research.

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