Linking investment decisions-based on firm performance and open innovation practices in Vietnam’s wire and cable market using data envelopment analysis models

The wire and cable market has experienced a significant upsurge in demand, driven by its integration with industries such as electronics, telecommunications, infrastructure construction, and electronic equipment manufacturing. This study aims to investigate the linkages between investment decisions, open innovation practices, and firm performance in Vietnam's wire and cable market. In this study, Data Envelopment Analysis (DEA) models, specifically the super-slacks-based measures (Super-SBM) and the Malmquist index, were applied to evaluate the profitable efficiency, position, technical innovation, and technological innovation of the top ten wire and cable firms in Vietnam from 2017 to 2020. The main results revealed that EC-07 emerged as the most efficient firm in terms of overall efficiency, while EC-04 and EC-05 exhibited substantial potential for development. Moreover, the key findings identified a critical gap in the area of technical and technological innovation, which hampers the continuous advancement of technical capabilities and overall productivity improvement in this industry. Therefore, the outcomes of this study have practical implications for enterprises in Vietnam's wire and cable market, offering insights to improve their innovative skills, cost reduction efforts, and overall profitability. The study underscores the importance of integrating open innovation practices into investment decisions as a means to enhance business performance, including the enhancement of innovative capabilities, cost reduction, and profit maximization. Furthermore, the findings of this study provide valuable insights for policymakers and regulators, offering a deeper understanding of the influence of open innovation and investment decisions on Vietnam's economic development, particularly leveraging these insights to support the growth and development of Vietnam's wire and cable industry.