Dynamic competitiveness, firm performance and the regulatory role of government policies in Industry 5.0

Industry 5.0 poses many challenges for insurance companies. This article explores the impact of sustainable competitive advantage on firm performance under the moderator effect of government policies in Vietnamese insurance companies. The study surveyed 248 leaders at insurance companies and used the PLS-SEM method to analyze the data in two steps. The research results show that sustainable competitive advantage is positively influenced by infrastructure capacity, digital orientation, market orientation, and innovation capacity. Sustainable competitive advantage has a strong effect on firm performance. The results also confirm the mediating role of sustainable competitive advantage and the moderating role of government policy. From there, the implication of a solution for insurance companies has been proposed. This study has provided significant empirical evidence for stakeholder theory and dynamic capability theory in the insurance industry, an area where research findings are still ambiguous. Additionally, the study also offers guidelines to assist insurance firms in locating and cultivating the best resources to improve their competitiveness and advance sustainable development.