The interplay of government support, open innovation, and dynamic capabilities: Driving ambidexterity and performance in Vietnam

Abstract

This study investigates the influence of government support, dynamic capabilities, and open innovation (inbound and outbound) on organizational ambidexterity and performance in Vietnam’s emerging market context. Despite growing interest in these constructs, their joint effects and underlying mechanisms are underexplored, particularly in emerging economies. Drawing on the resource-based and dynamic capabilities views, we develop a conceptual model and test it with a partial least squares–structural equation model using data from 356 senior managers. Our results show that government support significantly enhances open innovation and directly improves performance. Open innovation positively influences ambidexterity and performance, acting as a partial mediator. Dynamic capabilities also strengthen ambidexterity. These findings show the interdependent role played by external support and internal capabilities in enabling firms to balance exploration and exploitation and attain sustained performance. The study advances the open innovation literature by modeling inbound and outbound flows as a second-order construct and offers practical guidance for firms and policymakers in emerging economies that aim to foster innovation.