STRATEGIC MANAGEMENT OF RENEWABLE ENERGY ENTERPRISES: A PSM AND PLS-SEM APPROACH TO SUSTAINABLE BUSINESS MODELS IN VIETNAM

Objective: This study evaluates the impact of strategic management practices on the performance and sustainability outcomes of renewable energy enterprises in Vietnam. It specifically investigates the mediating roles of innovation capabilities and operational efficiency in enhancing financial and environmental performance. Methods: A mixed-method quantitative approach was employed, integrating Propensity Score Matching (PSM) to ensure causal inference and Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore the structural relationships between strategic practices, mediators, and outcomes. Data from 319 renewable energy enterprises in Vietnam were analyzed to assess these relationships. Key Findings: The findings reveal that strategic management practices significantly improve both financial (β=0.35,p<0.01) and environmental (β=0.42,p<0.01) performance. Innovation capabilities and operational efficiency were confirmed as critical mediators, with innovation primarily influencing financial outcomes (β=0.15,p<0.05) and operational efficiency driving environmental performance (β=0.18,p<0.05). Practical Implications: The study provides actionable recommendations for managers in renewable energy enterprises, emphasizing the need to foster innovation, enhance operational efficiency, and develop sustainable business models. These strategies are vital for aligning profitability with sustainability objectives in Vietnam’s rapidly expanding renewable energy sector.