An Analysis of Small and Medium-sized Firms’ Prosocial Behaviours in Vietnam

Abstract

This study investigates the interplay between entrepreneurial resources, social networks, and institutional frameworks, and their collective impact on the tripartite dimensions of prosocial behaviour—social, people, and environmental. Drawing from the resource-based view, social identity theory, and institutional theory, we analyse micro-level data from 2,400 firms in Vietnam spanning 2008 to 2015. Employing a random effects model, our findings suggest that entrepreneurs’ prosocial behaviours amidst institutional challenges emerge from a strategic amalgamation of individual resources and diverse networks. However, the dynamic nature of network characteristics implies that sustaining them at ideal levels as a long-term strategy for fostering prosocial behaviours may be impractical. Therefore, we advocate for policymakers to focus on improving the quality of local institutions to support sustainable practices. Additionally, our research indicates that the quality of formal institutions moderates the influence of social networks on prosocial behaviours via a substitution effect for network diversity and via a complementary effect for network size.