Original scientific paper
https://doi.org/10.20867/thm.30.3.9
The effects of differentiation strategy on market orientation and performance in Vietnamese small restaurants
Quang-Huy Ngo
; PhD, Head of Academic Affairs FPT Greenwich center at Can Tho city, FPT University, Vietnam
Abstract
Purpose - This study aims to explore the potential mediating role of differentiation strategy
in the relationship between market orientation and restaurant performance based on balanced
scorecard approaches.
Methodology - Based on the Vietnamese Yellow Pages database, a sample of 144 small
restaurants in Vietnam was analysed using partial least squares structural equation modelling.
Findings - The results indicate that differentiation strategy fully mediates the relationship
between market orientation and restaurant performance based on balanced scorecard approaches.
Originality of the research - This study contributes significantly to the field by deepening
our understanding of the underlying mechanisms of differentiation strategy on the market
orientation-performance links. Focusing on Vietnam, a collectivistic and transitional economy,
enhances our comprehension of the influence of market orientation and differentiation strategy
on the performance of small restaurants in these distinctive environments. The study provides
robust evidence supporting the positive effects of differentiation strategy on performance by
using balanced scorecard approaches. It advances the theoretical development of the resourcebased view by using a contingency perspective to empirically demonstrate how organisations
can sustain competitive advantages by leveraging their resources.
Keywords
Balanced scorecard; Differentiation strategy; Market orientation; Restaurant performance; Small business; Vietnam
Hrčak ID:
320745
URI
Publication date:
17.9.2024.
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