This research examines how the capabilities of firms, specifically learning orientation (LO) and entrepreneurial orientation (EO), affect their operational performance (OP). The study examined 276 businesses in Vietnam across different industries, sizes, ownership structures, and ages. The analysis, which included descriptive statistics, reliability tests, exploratory factor analysis, and multivariate regression using SPSS version 20, revealed that both LO and EO positively affect OP, with EO having a more significant effect. The study also identified differences between small and medium-sized enterprises, noting that medium-sized companies experience a greater impact of LO on OP than smaller firms. Based on these findings, the study suggests that Vietnamese businesses should enhance their capabilities to strengthen their competitive edge and improve OP. Furthermore, the research encourages investing in employee training to achieve higher efficiency and long-term sustainability, a strategy particularly relevant for the large number of small and medium-sized businesses in Vietnam.
