Page 488 - Ebook HTKH 2024

water, fuel), the treatment of waste; and the use of clean technology and product
structure transformation towards green practices in the production process.

2.2. Factors Affecting green growth and research hypotheses
From various perspectives, many factors influence green growth in a locality, such
as environmental management, policies and legal regulations, market factors, and
cultural heritage. However, within the scope of this study, the author will approach the
analysis from the perspective of factors that are both directly impactful and specific, as
well as easily measurable. These factors are also derived from previous studies.
Specifically, the factors influencing green growth include the perception of business
leaders, the pressure from relevant agents (from the government, customers, and

partners), the financial capacity, the technological capacity, and the human resources.
The perception of business leaders
The perception of the importance of green growth and the determination to achieve
it are key factors driving corporate action. Awareness helps drive behavioral changes
toward green growth, making it a crucial element. Perception positively influences green
growth outcomes (Dinh Hong Linh & Nguyen Thi Hang, 2021). Therefore, the first

hypothesis is:
H1: The perception of business leaders regarding green growth positively affects
green growth outcomes.
The pressure from relevant agents
When the government focuses on environmental protection, it will enact stringent
regulations and enforcement measures for environmental violations. Companies that fail
to comply with these regulations will face penalties. That creates significant pressure on

businesses to modify their operational practices. Companies take responsibility for
improving technology and reducing negative environmental impacts (Mazurkiewicz &
Piotr, 2004). De Jesus Pacheco DA et al. (2016) argue that government regulations
influence the ecological improvement decisions of small and medium-sized enterprises.
Thus, the second hypothesis is:
H2: The pressure from relevant agents positively affects green growth outcomes.

The financial capacity
It is necessary to upgrade technology, machinery, equipment, and infrastructure,
which requires significant internal resources, specifically substantial capital. Companies
with high financial resources can easily acquire modern, energy-efficient technologies
and high-productivity solutions. Therefore, a company’s internal capacity (financial
capacity) affects its ecological improvement decisions, particularly for small and
medium-sized enterprises (De Jesus Pacheco DA et al., 2016; Nguyen Anh Tuan, 2021).
Based on prior research, the third hypothesis is:

H3: Financial capacity positively affects its green growth outcomes.
The technological capacity
Technology is a crucial factor influencing green growth outcomes. Advanced and
modern technology helps conserve input materials and minimize waste, saving resources
and reducing environmental impact. Empirical studies have shown a positive

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