The Moderating Role of Government Policy in the Relationship Between Dynamic Capability and Firm Performance Research on the Telecommunications Industry in Vietnam

Abstract

Telecommunications is considered a key industry in the increasingly competitive technology race because it plays a vital role in constructing the infrastructure for digital transformation as well as other hightech products and services. The Fourth Industrial Revolution (Industry 4.0) — characterized by high-quality and technology-intensive products and services — brings about great opportunities and significant challenges for countries and firms in the industry, significantly when Vietnam actively deepens its integration into the global economy. The objective of this chapter is to investigate the relationship between dynamic capabilities and the telecommunications industry in Vietnam. In particular, the research aims to build a theoretical model to examine how the factors of dynamic capabilities (such as innovation capability and market orientation) affect the business performance of telecommunications firms and confirm whether government policy acts as a moderator in this relationship. Based on established theories and prior studies, qualitative research was conducted through interviews and in-depth discussions with managers from leading telecommunications corporations in Vietnam. The purpose is to draw a valid connection between theory and concrete reality for future research and propose strategic orientations for enhancing competitive advantage and corporate sustainability.