Promote Research and Product Innovation.

need to behave properly, follow regulations and pay attention to corporate culture to expect to receive support in return.

5.2.2 Using social capital outside the enterprise.

External social capital is a network of relationships with business partners (Dai et al., 2015). According to BarrosoCastro (2016), the main function of external social capital is to bridge, or link, a company to the external environment in various ways such as participating in the board of directors of other companies; or social capital in the form of personal relationships, connections and social status of directors (Johnson et al., 2013). The existence of positive, close relationships with business stakeholders such as customers, suppliers, professional associations and market regulators will increase the sales revenue and profit level of a business (Akintimehin et al., 2019). This is especially true in Vietnamese society, where social relationships still play an important role in securing valuable resources and improving many business operations (Nguyen and Huynh, 2012).

VXBN factors directly affect knowledge acquisition and product innovation.

with weights of 0.543 and 0.411 (Table 4.12); and indirectly affect the results.

business through knowledge acquisition and product innovation with a standardized weight of 0.157 (Table 4.12). Therefore, to develop social capital outside the enterprise, it is necessary to develop the quality of the enterprise's relationship with business partners, which are individuals or enterprises with business relationships, according to the following suggestions:

- Enterprises and business partners need to keep their promises to each other such as delivering and receiving goods in the correct quantity, quality, and on time as well as making payments on time to enhance the quality of good relationships with each other.

- Enterprises and business partners need to regularly share information, introduce new business opportunities if any, and at the same time avoid harming each other's interests.

- Enterprises and business partners need to maintain a close relationship not only in business but also between individuals in the enterprise and partners need to maintain a relationship like friendship with each other.

5.2.3 Using social capital within the enterprise.

Cross-functional communication is the quality of the relationship network between individuals/internal functional departments in a company, fostering close ties within the organization (Tsai, 2000) that facilitates coordination between employees and different departments (Adler and Kwon, 2002). Mutual understanding and trust among employees allows for frequent sharing of knowledge or information through informal conversations, leading to high levels of cross-functional team effectiveness (Rosenthal, 1996). Furthermore, good coordination between departments is the key to improving efficiency (Chen and Tseng, 2012). In addition, cross-functional communication creates a friendly working environment through mutual trust and understanding among employees. Therefore, the stronger the cross-functional communication, the more likely the company is to improve its profitability (Dai et al., 2015).

VXBT factors have a direct and positive impact on knowledge acquisition and product innovation.

products with weights of 0.272 and 0.341 (Table 4.12); and indirectly affect the results.

business performance through knowledge acquisition and product innovation with a standardized weight of 0.111 (Table 4.12). Therefore, to develop internal social capital, enterprises in the textile industry must develop the quality of relationships between individuals and internal departments according to the following suggestions:

- It is necessary to increase internal information within the enterprise about goals and visions so that each individual and department has the same aspirations and maintains close relationships to achieve the highest business results.

- It is necessary to pay attention to building corporate culture, especially a culture of solidarity by each individual keeping promises to each other, regularly maintaining relationships by regularly exchanging knowledge or information.

- Each department tries its best to avoid harming the interests of other departments/divisions in the enterprise.

5.2.4 Promote learning and knowledge acquisition.

Acquiring knowledge helps businesses quickly detect fundamental changes in the textile industry environment as well as quickly detect changes in

customer products, especially in the textile industry. Product innovation efficiency

Innovation capability is the ability of a firm to successfully and efficiently implement new ideas, products, and processes (Paladino, 2008), and up-to-date information related to products and processes can help a firm build innovation capability (Chang, 2017). The Knowledge Based View suggests that existing knowledge influences the level of new knowledge creation and new knowledge is formed and transformed into existing knowledge in the form of new services or products (Kogut & Zander, 1992). Therefore, knowledge about end users can lead to product advantage and enable producers to be more creative and innovative.

According to Chang (2017), acquiring knowledge, especially consumer knowledge, can help manufacturers innovate products in three ways. First, manufacturers can incorporate newly acquired consumer knowledge into their designs.

product design to align product attributes with identified needs

(Griffin & Hauser, 1991). Second, manufacturers can reduce the potential risk of product failure by identifying and integrating consumer needs into new product designs. Consumer knowledge not only aids in new product creation and design improvements, but it also addresses shortcomings in existing products. Third, consumer and market-related information can help manufacturers identify capability gaps and develop new capabilities to target newly discovered opportunities (AtuaheneGima, 2005).

In this study, the knowledge acquisition factor indirectly affects economic performance.

through product innovation with a standardized weight of 0.056 (Table 4.12). Therefore, textile and garment enterprises need to enhance knowledge acquisition by implementing the following suggestions:

- Enterprises need to focus on getting customer opinions on product quality, which is the basis for enterprises to improve and innovate products.

- Enterprises need to conduct a lot of internal research on products to satisfy new customer needs in order to quickly respond to new fashion trends.

5.2.5 Promote research and product innovation.

Product innovation offers manufacturers the opportunity to keep their product portfolio

their competitive advantage (Ottenbacher and Harrington, 2009). However, product innovation remains risky and costly as results show low success rates and

Many projects end mid-product development cycle (Cormican and O'Sullivan,

2004). To achieve business results, product innovation requires significant interaction within the organization as well as with customers and suppliers (Gunday et al., 2011). Therefore, product innovation requires product differentiation from competitors, which is especially important in the fashion textile industry.

page. Product innovation factor has a very strong impact, directly affecting

business results with a standardized weight of 0.237 (Table 4.12). Therefore, to increase product innovation, enterprises in the textile and garment industry need to implement the following suggestions:

- Through social relationships, textile and garment enterprises need to proactively improve and innovate products, pioneer in bringing new products to the market, create differences from current products to meet consumer tastes, and strengthen the position of enterprises in the market (Makani, 2016).

- Enterprises need to focus on product design (Paladino, 2007), especially in the textile industry, customers pay great attention to products with distinct designs as well as unique characteristics.

- Before deciding to buy goods or services, customers often compare product quality between businesses (Hoonsopon and Ruenrom, 2012). Therefore, to be successful in product innovation, when launching new products to the market, businesses in the textile and fashion industry need to compare the quality of their new products with that of their competitors (Paladino, 2007).

5.2.6 Implications for differentiation through multigroup structure analysis

From the test results of multi-group structure analysis between enterprise types: state-owned companies, domestic private companies and foreign-invested companies, it shows that:

Firstly , the product innovation factor (DMSP ) has a significant impact on business results ( TTKD ) in all three groups of enterprises. That shows the importance of product innovation to the business results of textile and garment enterprises. Therefore, regardless of the form

Regardless of the capital ownership, every enterprise needs to improve its competitive position by innovating in many areas, in which product innovation is vital for textile and garment enterprises. Build a product strategy to meet the increasing needs of customers according to the following suggestions:

- Textile and apparel businesses need to develop product strategies over time through market research, selecting the right markets and target customers. This means that companies will have to constantly listen to the business environment and decide how to serve their markets with new products (Rickards, 1985).

- According to McAdam & McClelland (2002), to have innovative ideas, customers

The goods are considered the most beneficial external resources, while the Creative department

Creation/Marketing/Sales and R&D are considered the most profitable internal resources. Therefore, textile companies need to pay attention and invest appropriately in these departments.

- In addition, it is also necessary to emphasize the important role of industry associations in innovation, therefore, associations support close links between businesses with the same need for innovation in the same field, which will overcome the problem of limited resources of businesses.

- The group of foreign-invested companies and domestic private companies both found the statistically significant impact of VXBN and VXBT on TTKT. This affirms the need to promote the effectiveness of these two groups of enterprises in developing the quality of internal and external relationships. Therefore, expanding and developing the quality of the relationship network is extremely necessary.

- For the group of companies with state capital, the impact of VXBN and VXBT on economic growth is not statistically significant. Therefore, leaders of enterprises with state capital need to pay attention to the use of VXBN and VXBT to enhance economic growth for the enterprise instead of other purposes to avoid negative effects as well as waste of enterprise resources.