Legal Policy Recommendations for Fostering Green Business Development: A Case Study of Enterprises in Vietnam
DOI:
https://doi.org/10.48161/qaj.v4n3a836Abstract
Green growth is one of the development trends many countries worldwide aim for Vietnam; green growth is also gradually becoming inevitable. However, businesses are among the critical subjects contributing to green growth and are still not interested in this trend. Objective: The article aimed to identify the key factors affecting green business development and proposed legal policy implications for green business development. Methodology: The author applied quality and quantitative methods; based on the study goal, the author surveyed 800 managers of green enterprises in five provinces and three cities in Vietnam and used structural equation modelling based on the quantitative research method. Result: The findings explored five critical factors affecting green business development: (1) financial capacity, (2) corporate culture, (3) leadership and business management capacity, (4) mechanisms and policies of the government and localities, and (5) the interaction of components in the business ecosystem. This comprehensive set of recommendations provides a strategic roadmap for Vietnam to foster green business development through effective legal policies. Conclusion: The article's contributions proposed recommendations to management agencies in developing and implementing mechanisms and policies to support and promote businesses to build in a green direction. Implementing these legal policy recommendations can significantly enhance the development of green enterprises in Vietnam. Unique Contribution: The novelty of this study was to supplement and complete the system of criteria for evaluating green business development, which is also the basis for businesses to recognize the effectiveness of current activities. Key Recommendation: From the above results, the author proposed to establish green financing programs, including low-interest loans, grants, and subsidies for green business initiatives to make improvements in each stage of the production process to increase efficiency while minimizing negative impacts on the environment.
Downloads
References
Abbas, J., & Sağsan, M. (2019). Impact of knowledge management practices on green innovation and corporate sustainable development: A structural analysis. Journal of Cleaner Production, 229, 611-620.
Shang, Y., Raza, S. A., Huo, Z., Shahzad, U., & Zhao, X. (2023). Does enterprise digital transformation contribute to the carbon emission reduction? Micro-level evidence from China. International Review of Economics & Finance, 86, 1-13.
Achi, A., Adeola, O., & Achi, F. C. (2022). CSR and green process innovation as antecedents of micro, small, and medium enterprise performance: Moderating role of perceived environmental volatility. Journal of Business Research, 139, 771-781.
Akinwale, Y. O., & Alshraim, M. A. (2024). Drivers of innovation capabilities among MSMEs in Saudi Arabia. Cogent Business & Management, 11(1), 1-11.
Asad, M., Majali, T., Aledeinat, M., Almajali, D. A., & Akhorshaideh, A. H. O. (2023). Green entrepreneurial orientation for enhancing SMEs financial and environmental performance: Synergetic moderation of green technology dynamism and knowledge transfer and integration. Cogent Business & Management, 10(3), 1-20.
Ahmed, H., Hussain, S., & Masroor, N. (2020). Transparency, CSR disclosure and the financial performance of firms: A case of Pakistan stock exchange. Karachi University Business Research Journal, 1(1), 01-10.
Ambekar, S., Prakash, A., & Patyal, V. S. (2018). Role of culture in low carbon supply chain capabilities. Journal of Manufacturing Technology Management, 30(1), 146-179.
Amoako, G. K., Bonsu, G. A., Caesar, L. D., & Osei-Tete, F. (2020). Finding the nexus between green supply chain practices and sustainable business advantage: An emerging market perspective. Management of Environmental Quality: An International Journal, 32(6), 1133-1149.
Corrales-Estrada, A. M., Gómez-Santos, L. L., Bernal-Torres, C. A., & Rodriguez-López, J. E. (2021). Sustainability and resilience organizational capabilities to enhance business continuity management: A literature review. Sustainability, 13(15), 8196-8832.
Anagnostopoulos, T., Kyriakopoulos, G. L., Ntanos, S., Gkika, E., & Asonitou, S. (2020). Intelligent predictive analytics for sustainable business investment in renewable energy sources. Sustainability, 12(7), 2817-2811.
Bush, J. (2020). The role of local government greening policies in the transition towards nature-based cities. Environmental Innovation and Societal Transitions, 35, 35-44.
Chaudhary, R. (2020). Green human resource management and employee green behavior: An empirical analysis. Corporate Social Responsibility and Environmental Management, 27(2), 630-641.
Chen, Z., Hao, X., & Chen, F. (2023). Green innovation and enterprise reputation value. Business Strategy and the Environment, 32(4), 1698-1718.
Habib, M. A., Bao, Y., Ilmudeen, A., & Soobaroyen, T. (2020). The impact of green entrepreneurial orientation, market orientation and green supply chain management practices on sustainable firm performance. Cogent Business & Management, 7(1), 1-26.
Cheng, M., Ma, C., & Geng, H. (2020). The effects of business models on bank risk before, during and after financial crisis: Evidence from China. Applied Economics, 52(20), 2147-2164.
Zhang, Y., Zhang, Y., & Sun, Z. (2022). The impact of carbon emission trading policy on enterprise ESG performance: Evidence from China. Sustainability, 15(10), 1-27.
Çop, S., Olorunsola, V. O., & Alola, U. V. (2021). Achieving environmental sustainability through green transformational leadership policy: Can green team resilience help? Business Strategy and the Environment, 30(1), 671-682.
Kowalczyk, R., & Kucharska, W. (2020). Corporate social responsibility practices incomes and outcomes: Stakeholders' pressure, culture, employee commitment, corporate reputation, and brand performance. A Polish - German cross-country study. Corporate Social Responsibility and Environmental Management, 27(2), 595-615.
Dangelico, R. M., Pujari, D., & Pontrandolfo, P. (2017). Green product innovation in manufacturing firms: A sustainability-oriented dynamic capability perspective. Business Strategy and the Environment, 26(4), 490-506.
Freudenreich, B., Lüdeke-Freund, F., & Schaltegger, S. (2020). A stakeholder theory perspective on business models: Value creation for sustainability. Journal of Business Ethics, 166(1), 3-18.
Gao, D., Wong, C. W., & Lai, K. (2022). Development of ecosystem for corporate green innovation: Resource dependency theory perspective. Sustainability, 15(6), 1-28.
Gulsrud, N. M., Hertzog, K., & Shears, I. (2018). Innovative urban forestry governance in Melbourne?: Investigating “green placemaking” as a nature-based solution. Environmental Research, 161, 158-167.
Zheng, W., Zhang, L., & Hu, J. (2022). Green credit, carbon emission and high quality development of green economy in China. Energy Reports, 8, 12215-12226.
Siwei, D., & Chalermkia, W. (2023). An analysis on the relationship between ESG information disclosure and enterprise value: A case of listed companies in the energy industry in China. Cogent Business & Management, 10(3), 1-21.
Imran, R., & Aldaas, R. E. (2020). Entrepreneurial leadership: A missing link between perceived organizational support and organizational performance. World Journal of Entrepreneurship, Management and Sustainable Development, 16(4), 377-388.
Isensee, C., Teuteberg, F., & Griese, M. (2023). How can corporate culture contribute to emission reduction in the construction sector? An SME case study on beliefs, actions, and outcomes. Corporate Social Responsibility and Environmental Management, 30(2), 1005-1022.
Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255-2276.
Kwasi Acquah, I. S., Baah, C., Agyabeng-Mensah, Y., & Afum, E. (2023). Green procurement and green innovation for green organizational legitimacy and access to green finance: The mediating role of total quality management. Global Business and Organizational Excellence, 42(3), 24-41.
Zhang, B., & Mohammad, J. (2024). The effects of sustainability innovation and supply chain resilience on sustainability performance: Evidence from China’s cold chain logistics industry. Cogent Business & Management, 11(1), 1-20.
Hair, J., Anderson, R., Tatham, R., & Black, W. (2018). Multivariate data analysis. Prentice-Hall: Upper Saddle River, NJ, USA.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Qubahan Academic Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.