The influence of organizational culture, strategic vision development and competitive advantage on organizational performance in small and medium enterprises

Our article examines the influence of organizational culture (OC), strategic vision development (SVD) and competitive advantage (CA) on organizational performance (OP) in small and medium-sized enterprises (SMEs) in Vietnam. 224 questionnaires were emailed to business managers and department managers in SMEs - who volunteered to participate in the study. The questionnaire was built to collect experts’ opinions through direct interviews regarding content, presentation and language. We use structural equation modelling (SEM) techniques with the help of SPSS and AMOS software to conduct research. We find that businesses with high CA will have higher OP than other businesses. Our findings also show OC’s direct, positive, and indirect (through CA) impact on OP. The test results also confirm the direct influence of SVD on OP, but it is not statistically significant. The present study contributes to the general knowledge with empirical evidence on the relationship between OC, SVD, CA, and OP. Its findings show the importance of building OC, designing SVD, and improving CA to enhance SMEs’ performance. Furthermore, our analysis suggests future research opportunities on this relationship.