EL EFECTO DE LA INNO VACI Ó N ESTRATeGICA Y LA INNOVACI Ó N A NIVEL FUNCIONAL EN LA VENTAJA COMPETITIVA SOSTENIBLE

Based on the strategic approach, this paper is to examine the cause-and-effect in the strategy implementation process from the strategy innovation level to functional innovation practices and organization's outcomes. The study uses data that were collected from 289 young firms in Vietnam. PLS-SEM using Smart PLS 3.0 software was utilized to evaluate the hypotheses. The findings revealed all four significant effects of strategy innovation on organization innovation and technology innovation, and both organization innovation and technology innovation influence significantly sustainable competitive advantage. These results sustained strength for a strategic approach that created important practical evidence for the current stock of knowledge and opened up the important orientation for enhancing the sustainable competitive advantage of the young firms in Vietnam.