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The distribution channel, strategic factor and firm performance: Evidence from FDI enterprises

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2021, v.19 no.10, pp.35-41
https://doi.org/https://doi.org/10.15722/jds.19.10.202110.35
BUI, Lan Thi Hoang
NGUYEN, Dat Ngoc

Abstract

Purpose: Research on the development of distribution channels and the strategy will help businesses develop competitiveness in the market. At the same time, the excellent effect of distribution channels and the outstanding implementation of business strategies will help optimize firm performance. Therefore, this study helps to evaluate the influence of distribution channels, and strategy factors on the performance of FDI enterprises in Vietnam. Research design, data, and methodology: Research using quantitative method with PLS-SEM model based on 210 samples using Smart-PLS3. software. The survey subjects are corporate managers who understand the strategies, distribution channels, and performance in Vietnamese FDI enterprises. Results: The analysis results show that strategy factors have a positive effect on firm performance, and distribution channel also has a positive impact on firm performance. This result also indicates that distribution channels activity as an intermediary between strategy and firm performance. Conclusion: The study also gives some policy implications on strategy and distribution channels to improve firm performance. The strategic implementation of finance, human resources, risk, innovation, and diversification of distribution channels are implications for improving firm performance in FDI enterprises. In addition, the research has contributed to the relationship between the distribution channels and firm performance.

keywords
Distribution channel, Statergy, Firm performance, FDI enterprises, Vietnam

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