Institutional Architecture and High-Technology FDI Performance: Quality, Incentives, and Human Capital Determinants in Vietnam

This study examines the determinants of high-technology foreign direct investment (FDI) performance in Vietnam through the lens of institutional architecture, financial incentives, and human capital endowments. Employing a mixed-methods approach that combines structural equation modelling (SEM) with fuzzy-set qualitative comparative analysis (fsQCA), the research analyses data from 312 high-technology foreign firms operating in Vietnam between 2012 and 2016. The findings demonstrate that institutional quality serves as the primary determinant of FDI performance, whilst financial incentives and human capital availability function as necessary but insufficient conditions. The fsQCA results reveal three distinct configurational pathways to superior FDI performance: institutional-led, incentive-complemented, and human capital-augmented configurations. These findings contribute to the institutional economics literature by demonstrating the asymmetric and configurational nature of FDI determinants in emerging markets. The research provides crucial insights for policymakers in developing economies seeking to optimise their institutional frameworks for attracting and retaining high-value foreign investment whilst advancing theoretical understanding of institutional complementarities in FDI performance.