Effects of internationalization on supply chain agility and business performance of manufacturing firms in Vietnam

Purpose The purpose of this study is to examine the effects of internationalization depth on supply chain agility (SCA) and business performance of Vietnamese manufacturing firms. Design/methodology/approach This study used a cross-sectional design. Data were collected from 127 manufacturing firms in Vietnam through questionnaires. The collected data were analyzed using confirmatory factor analysis and structural equation modeling. Findings The findings of this study indicate that among the three aspects of internationalization depth (import, export and foreign ownership intensity), only foreign ownership intensity positively affected business performance through SCA. The other two aspects do not affect SCA or business performance. Research limitations/implications This study significantly enhances our understanding of how different aspects of internationalization depth affect SCA. The findings also confirm the crucial role of SCA in transmitting the effects of internationalization on business performance. Practical implications Firms should consider increasing foreign ownership to sustain growth and profitability through internationalization. Originality/value Internationalization only guarantees enhanced business performance if firms develop sufficient complementary capabilities, particularly SCA.