This paper examines the impact of market orientation and corporate social
responsibility (CSR) on firm performance and how firm performance is affected by
these factors in a transition economy, like Vietnam. A model incorporating the key
determinants was tested with a sample of 256 owners, senior managers and CEOs in
Vietnamese enterprises in the Mekong Delta. Four concepts of CSR are used in this
study including economic, legal, ethical and philanthropic. Market orientation (MO)
comprises three behavioral components: customer orientation, competitor
orientation, and inter-functional coordination. Structural equation modeling (SEM)
was used to analyze the data collected. The results showed that both CSR activities
and MO have positive impact on firm performance. Through the analysis, legal factor
(PL) almost has no significant. Only PL1 variable (with λ = .664) has significant and
nearly compatible with ethical component. The study also suggests Vietnamese senior
managers, CEOs, as well as owners should upgrade their perceptions about the
importance of CSR, therefore they could improve their competitiveness into the
market-orientation economy. A major limitation of this study is the examination of two
concepts that impact on Vietnamese firms’ performance. Several other concepts may
be investigated in specific industries and how these impacts on other concepts may be
studied.
Key words: Market orientation, corporate social responsibility (CSR), firm
performance, Vietnam, the Mekong Delta.