Research on how product differentiation influences corporate financial performance, and the moderating role of CSR among Vietnamese enterprises

Overview

This study examines how product differentiation strategies impact financial performance, while analyzing the moderating role of Corporate Social Responsibility (CSR) in Vietnamese enterprises. The research contributes practical insights for firms balancing innovation, competitiveness, and sustainable business practices.

My Role

• Led key contributions across research development and final report delivery
• Built research background, problem statement, literature gap, and study objectives
• Developed theoretical framework covering CSR, product differentiation, and financial performance
• Synthesized findings into conclusions, managerial implications, and recommendations
• Collaborated on research design, data interpretation, and final report consolidation

Research Methodology

• Sample of Vietnamese listed enterprises across manufacturing and non-manufacturing sectors
• Quantitative research approach using secondary corporate data

• Statistical techniques included:

  • Descriptive Statistics
  • Exploratory Factor Analysis (EFA)
  • Confirmatory Factor Analysis (CFA)
  • Structural Equation Modeling (SEM)
  • Moderation Effect Analysis
  • Bootstrap Reliability Testing

Key Findings

1. Product Differentiation Improves Financial Performance

Companies with stronger product quality, brand image, and unique positioning tended to achieve better financial outcomes.

2. CSR Positively Impacts Firm Performance

Businesses actively investing in environmental, employee, and community responsibility improved reputation, customer loyalty, and competitiveness.

3. CSR Moderates the Differentiation Effect

When CSR spending increased excessively without strategic balance, the positive impact of product differentiation on financial performance weakened. This suggests firms must allocate resources efficiently.

4. No Major Industry or Age Differences

Firm age and whether companies operated in manufacturing vs. non-manufacturing sectors did not significantly affect CSR disclosure levels.

Strategic Implications

The study suggests Vietnamese firms should:

• Integrate CSR into long-term competitive strategy
• Avoid treating CSR as short-term PR activity
• Balance innovation investment with sustainability initiatives
• Use CSR to strengthen premium brand positioning

Outcome

• University Representative Project – Foreign Trade University at Eureka Research Competition (2022)

Completed under supervision of M.Sc. Lê Sơn Đại with advanced research methods, practical experience using SEM / CFA / EFA in business context