The experience paradox: The impact of managerial experience on employment growth in Vietnamese small and medium-sized enterprises
Published: September 16, 2026
Abstract
This study examines the impact of top managers on employment growth in Vietnamese small and medium-sized enterprises (SMEs) and the mediating role of human resource management (HRM). Using data from 782 SMEs in the World Bank Enterprise Survey Vietnam 2023, OLS regressions with robust standard errors show that managerial sector experience is negatively associated with employment growth. Each additional year of experience reduces annual growth by 0.23 percentage points (p = 0.008). A one-standard-deviation increase in experience corresponds to a 1.76 percentage-point decline, exceeding the sample’s average growth of 1.03%. The relationship remains robust across nine model specifications but does not affect productivity or sales. Contrary to expectations, HRM practices do not mediate the relationship, and only 11.1% of sampled SMEs provide formal training.
Keywords
small and medium-sized enterprisesupper echelons theorymanagerial experienceemployment growthhuman resource management
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