ISSN: 2411 – 6742
Vol. 3, No. 1, 12/2016
Journal of
Global Merit Management
---------------------------------------------------------------------------------------------------------------------------------------------------
Journal of Global Merit Management (JoGMM) seeks to publish research
articles, case studies and book reviews which are novel, theoretical
and empirical in its nature and provide exploratory insights into the
field of business, finance, economics and management sciences.
Journal of Global Merit Management (JoGMM) is committed to the merit
management perspective on a variety of topics under the category of
business management with a global context. In addition to the global
management
focus,
however,
the
JoGMM
seeks
submissions
for
publication with a decidedly social science application or approach;
that is, writing on global management predominately connected with
the subfields of the social science, and management fields.
JoGMM is a membership access journal that publishes research papers
at least two times in a year regarding the issues of importance to
the business community. It develops a wide perspective related to
business,
encourages
finance,
and
innovative
economics
and
and
original
in
management
research
work
of
fields
which
researchers,
academicians, practitioners and scholars from all over the world.
The journal promotes a link
of
communication
among academicians,
practitioners and research scholars from all over the world through
their publications.
Journal of Global Merit Management
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CONTENT
Page
Article 1:
4
FACTORS INFLUENCING HUMAN RESOURCE PRACTICES IN EMPLOYEE
RETENTION OF VIETNAMESE SMALL AND MEDIUM SIZE CONSTRUCTION
FIRMS: A CASE OF SONG HONG CORPORATION JSC
Dr. LA TUAN HUNG; Hanoi, Vietnam
Article 2:
16
AN EMPIRICAL RESEARCH ON THE RELATIONSHIP BETWEEN STUDENTS’
PERCEIVED VALUE AND EDUCATION INSTITUTION’S ATTRIBUTES: A
CASE OF VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY
DR. DUONG TON THAI DUONG; Ho Chi Minh City, Vietnam
Article 3:
42
FACTORS AFFECTING THE QUALITY OF TRAINING FOR EDUCATION
MANAGEMENT IN VIETNAM: A CASE STUDY OF PEDAGOGY UNIVERSITY IN
HO CHI MINH CITY
NGUYEN KY TRUNG; PEDAGOGY UNIVERSITY, Ho Chi Minh City, Vietnam
Article 4:
60
TOTAL QUALITY MANAGEMENT AND PERFORMANCE OF STATE-FUNDED
UNIVERSITIES IN NIGERIA: A PROPOSED FRAMEWORK
DR. YEOH KHAR KHENG & GARBA MUDDAHA; College of Business,
Universiti Utara Malaysia, Malaysia
Article 5:
81
DEVELOPING AN EFFECTIVE LEADERSHIP MODEL TO SMULL OND MEDIUM
SIZES ENTERPRISES (SME) IN THE CONTEXT OF VIETNAM IS PREPARING
FOR TPP.
PHAM NGOC SON; Vung Tau Province, Vietnam
Article 6
104
GOOD WORKSHOP MANAGEMENT TECHNIQUES FOR TEACHING WELDING IN
HO CHI MINH CITY VOCATIONAL COLLEGE
TRAN VIET PHU; Ho Chi Minh City, Vietnam
Journal of Global Merit Management
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Article 7:
112
THE INFLUENCES OF SUPPLY CHAIN CAPABILITY ON ATTRACTING
FOREIGN DIRECT INVESTMENT TO VIETNAM
PHAM TAN ANH; Ho Chi Minh City, Vietnam
Article 8:
112
CONFIGURATION OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES
FOR HIGH FINANCIAL PERFORMANCE: EVIDENCE FROM SERVICE FIRMS
IN HONG KONG
HENRY SHIU; Hong Kong
LETTER FROM THE EXECUTIVE EDITOR
Journal of Global Merit Management
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Vol. 3, No. 1, 12/2016
Article 1:
FACTORS INFLUENCING HUMAN RESOURCE PRACTICES IN EMPLOYEE RETENTION OF
VIETNAMESE SMALL AND MEDIUM SIZE CONSTRUCTION FIRMS: A CASE OF SONG
HONG CORPORATION JSC
Dr. LA TUAN HUNG; Hanoi, Vietnam
Abstract
The Vietnamese construction industry is growing rapidly, competition
is intense. There is high staff turnover, and additionally, it is
costly to train new employees and to get them "up to speed" with the
same level of ability as those who have resigned. In this context,
this study seeks to examine the relationship between the current
Human
Resource
Management
(HRM)
practices,
and
the
macroenvironmental factors in this sector of the Vietnamese construction
business in order to assess their impact upon HRM outcomes. This
study comprised two major phases. Prior to conducting in-depth
interviews with seventy two individuals from twenty four construction
firms, five case studies were conducted involving interviews with
five senior managers from five major construction businesses in
Vietnam to explore specific variables relative to HRM practice sand
HRM outcomes. A qualitative methodology was employed through semistructured interviews questions. The seventy-two target respondents
in the second phase of the research focused on managers and nonmanagers from fourteen small-sized and ten medium-sized firms which
are either subsidiary of Song Hong Corporation JSC or joint venture
partners. The results of interviews show that rewards create the
greatest job satisfaction for employees within the firms while the
organizational characteristics (internal factor) were ranked as
secondary factors. The study showed that environmental factors
(external factor) influenced managers of medium-sized firms because
they were seen as beneficial to employees and promoted organizational
growth while the non-managers stated that these factors were less
important and did not influence their decision to remain with a
particular firm. This is because the non-managers considered that
organizational characteristics (internal factor) impacted on firm
performance and competency to a greater degree than the environmental
factors (external factor).
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Vol. 3, No. 1, 12/2016
1 INTRODUCTION
The construction market in Vietnam, while of limited size, is set for
above average growth rates through to the end of the decade.
Construction spending in 2012 was some US$18.6 billion, which
accounted for roughly 20 percent of the country’s GDP. Spending is
forecast to grow by close to 7 percent pa over the next five years.
The property market in Vietnam is currently subdued, Challenging
market conditions including a lack of capital resources have resulted
in developers being unable to complete projects, while buyers are
finding it difficult to afford property because of a lack of access
to loans. There are also signs of distressed property assets
throughout the country.
Conceptually, HRM can be regarded as a strategic and coherent
approach to the management of an organization's most valuable asset,
its human capital (Storey, 1989).The people working within a
corporation are individually and collectively responsible for the
achievement of corporate objectives. Aspects of HRM, including how a
firm interacts with organizational characteristics and environmental
factors in recruiting, training, appraising, and compensating its
human resources, can determine whether it can meet competitive
challenges, but also grow. Financial success in the construction
industry, as in other fields of corporate competition, is dependent
on gaining competitive advantage and staying ahead of competition.
Further, there is intense competition between construction industry
in Vietnam, making it essential for them to develop HRM to enhance
their competitive advantage. The operation of construction businesses
in Vietnam, be the small -medium-or large-sized, depends heavily on
ample available manpower. Therefore, in the construction business,
apart from capital equipment and construction technology, human
capital is integral to achieving a firm's goals. As there are high
levels of competition in the construction industry, the importance of
good HRM practices is a key to effective management. In this
competitive environment, employees have a chance to pick and choose
jobs offering better remuneration and security. Consequently, HRM
practices are a key ingredient to successfully competing and
surviving in this highly competitive market environment.
The research questions are to examine HRM practices and their
influence and effect on HRM outcomes with reference to how they
influence the ability of construction companies’ to compete
successfully.
This
study
is
significant
Journal of Global Merit Management
for
a
number
of
reasons.
Firstly,
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Vietnamese companies are currently viewed as having a cheap and
dispensable labor supply; however, increases in the standard of
living locally, followed by the increasing minimum wage, the stronger
role of local government and labor unions, global exposure and
competition demands, are causing a shift that warrants a more
strategic focus.
Secondly, understanding the role human resources
play in Vietnamese construction industry will allow a much greater
understanding of the factors influencing the success of human
resource practices formulation and implementation. Finally, as one of
the leader of the Song Hong Corporate JSC, it is important to
understand the situation of employee retention and the challenges
that Song Hong Corporate JSC has to address in attracting and
retaining talent in view of the stiff competition faced by the
industry.
The current research project has focused on individuals employed in
Song Hong Corporation JSC in the construction industry: managing
directors, managing partners, human resource managers, personnel
managers, and non-managers within the subsidiary companies and joint
venture companies.
CONCEPTUAL FRAMEWORK
This research examines the relationship between HRM practices as they
relate to the Vietnamese construction industry and HRM outcomes. It
does not explore the impact of the contingency variables The
conceptual
model,
shown
in
Figure
10,
draws
together
core
constructions of the relationship of HRM practices towards HRM
outcomes and contingency variables; environmental factors and
organizational characteristics. The key elements in the theoretical
framework for the current research presents the contingency variables
as
environmental
factors
government
rules
and
regulations,
globalization, economics, technology, politics, and organizational
characteristics:
labour
unions,
decentralization,
organization
capability, age, business lifecycle, management style, size that
affect HRM practices to HRM outcomes and the relationship between HRM
practices and HRM outcomes.
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Vol. 3, No. 1, 12/2016
Figure 10: Conceptual Model
2. REVIEW OF RELATED LITERATURES
Organisational culture and structure
It has become a common assertion that culture must be managed (Baker,
1980; Green, 1988; Kilmann, 1982; and Whipp et al, 1989). Legge
(1989) observed that HRM emphasizes the management of culture as a
central management activity, while Whipp et al, (1989) noted that the
management of culture is an essential element of HRM. Equally, it is
argued that the achievement of certain HR policy objectives (such as
integration,
commitment,
flexibility,
quality
and
competence)
identified by Beer et al (1985) and Guest (1987) requires the
management of organisational culture, notwithstanding that different
cultures require the support of different HR practices (Fombrun,
1983).
HR leadership, management and planning
Consistency of management style within an organisation is of
significant importance since a key feature of SHRM is to devolve much
of the HR responsibility to operational line management. Thus, the HR
professional's role in advising operational managers particularly on
the increasingly complex web of national and EU legislation remains
crucial (Gennard and Judge, 2002).
People management strategies
People
management
strategies
Journal of Global Merit Management
or
an
organisation's
human
resource
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system can be categorised in a number of ways and definitions offered
by key authors in the field. For the purpose of this study they are
classified as: recruitment and selection; training and development;
and employee relations.
3. RESEARCH METHODS
While the current research has a seemingly small target population
the sample is drawn from a relatively small total population of less
than 30 active construction firms either the subsidiaries of Song
Hong Corporation JSC or partnership companies. The details of
respondents are contained in Table 9.
The study comprised two major steps. Prior to conducting in-depth
interviews a pilot study using five case studies was conducted to
identify the key variables with respect to HRM practices and HRM
outcomes in the construction industry in Vietnam.
Table 8: Profiles of Five Pilot Study Construction Organizations
POPULATION AND SAMPLING TECHNIQUES
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Table 9: Breakdown of Interviewees
In-depth interviews were conducted with seventy-two persons. Of these
thirty six were employed by subsidiary companies and thirty six by
joint venture partnerships (see Table 9).
4. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
The analysis of HRM practices within Vietnam construction industry in
terms of rewards, levels of participation or involvement, training,
and individual performance appraisals are as follows:
Rewards
Generally, both managers and non-managers in the construction
industry see remuneration levels as important. It can be seen that
not only new graduates, but also those with 3-5 years’ experience,
see levels of reward as of primary significance in considering
whether to accept a position on offer or move to another organization.
Therefore, this makes most new graduates, non-managers and managers
alike consider job changes based solely on salary levels (Robert,
1997; Hackett and McDermott, 1999; Bamberger and Meshoulam, 2000).
Those who have technical skills who are in demand are commodities in
the employment market and aim at higher salary as their principal
objective. Therefore, this group tends to change employment within
one to three years of initial employment and have probably worked in
two or three businesses in the first five or six years of their entry
into the work force, based solely on their desire to earn higher
salary.
This research indicates that non-managers and managers in mediumsized subsidiary companies seek to which change of employment by
moving to small-sized organizations, generally to a medium-sized JV
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partnership. This is because the management of small-sized and
medium-sized JV partnerships can offer employees a range of
compensation packages. Small-sized JV partnerships can be more
flexible
than
small-sized
subsidiary
companies.
Functional
flexibility is the ability of firms to vary their labour needs and
this is accomplished primarily by having a labour force that is able
to carry out a wide range of tasks, that is, the ability to move
workers from one task to another. Wage or reward flexibility is the
ability of pay and payment systems to respond to labour market
conditions and to reward and encourage improved performance (for
example, performance-related pay), McNabb and Whitfield (1998).
Because of their corporate structure, companies are bound by
inflexible rules and regulations. On the one hand, corporations give
fair compensation to employees but on the other hand their lack of
flexibility causes them to lose their best and most efficient
employees. In this context, what happens in practice is that smallsized and medium-sized subsidiary companies become the training
schools for employees who then seek to improve their employment
prospects by moving to work with a small-sized JV partnership. Thus,
new graduates tend to work in the small-sized and medium-sized
subsidiary companies for about six to twelve months and then, given
the
opportunity,
change
to
small-sized
and
medium-sized
JV
partnerships. Given their size, and hence their flexibility, smallsized JV partnerships get well-trained employees at the expense of
the larger incorporated construction firms. Furthermore, small-sized
and medium-sized JV partnerships are able to attract employees by
using reward packages that are tailored to attract employees from
other larger organizations. By drawing on this reservoir experienced
employees, they can readily achieve satisfactory HRM outcomes.
Employee's satisfaction is positively related to compensation
productivity and reduces labour costs (Guest, 1999b); motivation is
positively related with employee's satisfaction and employee's
commitment
(Guest,1999a).
Small-sized
and
medium-sized
JV
partnerships are able to motivate staff and offer job satisfaction in
return for trust and loyalty. This raises core competencies more
easily and quickly than occurs in the small-sized and medium-sized
subsidiary companies.
However, job hopping by non-managers, who tend to be new graduates,
and by managers, results in uncertainty in employment within smallsized and medium-sized subsidiary companies even though those
organizations are generally more financially stable than their nonincorporated, small-sized, counterparts. Small-sized and medium-sized
JV partnerships are less financially stable and may offer less
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overall job security. However, they are often prepared to pay higher
compensation to get the employees they want for a specific project.
Yet, this may result in project to project employment which carries
the risk that once a project is completed, with no new project in the
pipeline, employees may get termination notices. In contrast,
companies can offer more secure and ongoing employment commitments to
employees in the longer term given their size and corresponding
ability to commit to more and larger projects. In Japan and in many
other Asian countries there used to be a belief in employment for
life. In other countries, there is also strong protection offered to
employees through unions and labour laws. Yet, neither is the case in
Vietnam. Employees do not see employment as a long term commitment
even though Vietnam construction industry benefit from having stable
workforces to enable them to complete projects on time and to compete
in every other respect with rival firms. Vietnam does not offer
employees the protection of strong labour laws and if employment is
terminated
law
only
provides
for
limited
compensation.
The
construction industry hires only highly experienced employees by
using compensation incentives to attract them from other industries.
The lower end of the construction industry is motivated, not only to
attract the numbers it needs, but also to minimize the expenses of
training. Small-sized construction companies aim to train employees
on-the-job rather than through structured training courses. In
contrast larger companies run structured training programs and will
seek to motivate and retain employees through incentives programs and
promotion. Employees, once they have achieved five years standing in
and organization hope to move to the ranks of senior management as
senior engineers, or senior project managers, depending on their
qualifications.
In contrast, smaller construction industry firms, which are often
family owned and controlled, generally seek to recruit at the level
of project manager or assistant project manager, and these positions
carry significantly higher levels of responsibility than the
corresponding position in larger organizations. For this reason these
employees can gain greater on-the-job experience more quickly than
their counterparts in larger, incorporated, construction companies.
Despite the generally held belief that larger incorporated firms
offer greater security than their partnership counterparts the
research shows that this is not always the case. The findings show
that individual ability of the employee, not the size of the business,
is the primary factor in regard to ensuring job security.
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Involvement or Participation
Employee's involvement practices (aimed at generating commitment)
have a positive influence on productivity and product quality (Fernie
et al.,1995) and Guest (1997) and Paauwe and Richardson (1997) stated
that involvement is a standard HRM practice. The managers of smallsized and medium-sized subsidiary companies and medium-sized JV
partnerships place importance on their level of involvement within
their organizations. In contrast to small-sized or medium-sized JV
partnerships, small-sized and medium-sized subsidiary companies and
JV partnerships in the construction industry place a lot of emphasis
on teamwork in circumstances where projects are bigger, involve
larger workforces, and hence, require more systematic and coordinated
effort. Small-sized and medium-sized JV partnerships, managing
smaller projects with fewer staff offer employees the opportunity to
be involved, not only in carrying out the work, but also in
organizing and planning projects. This means levels of motivation and
job satisfaction of employees in these smaller organizations is
higher. Boselie et al. (2001) indicated that employee's satisfaction,
motivation and involvement as HRM mediating outcomes between HRM
practices and firm performance. Consequently, employees in smaller
organizations have the opportunity to show their ability, and their
managers and supervisor are better able to evaluate their performance.
Such evaluation can then result in increased compensation relative to
the employee's individual ability. Job promotions may come more
quickly. Correspondently, those who cannot perform efficiently are
weeded out.
Non-managers and managers in small-sized and medium-sized JV
partnerships have greater involvement in projects and this gives them
the opportunity to show their abilities. This in turn results in
ongoing performance evaluations and compensation adjustments relative
to their abilities. Additionally, greater levels of involvement
result in higher levels of commitment and satisfaction in the work
place. Employees with ability participate more and succeed in
achieving their goals. Success results in higher compensation.
Teamwork is also reinforced and rewarded. If the employees are a part
of a team and can work successfully to reach organizational/project
goals, all those in the team also stand to benefit. By participating
as the member of a team individual employees get additional
incentives. The organizations objectives focus on completion of work
as scheduled and decreasing over heads. So the duel benefits to
employees of higher compensation and job satisfaction reinforce and
strengthen the corporate.
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Training
Training in medium-sized subsidiary companies is more systematic than
in
small-sized
and
medium-sized
JV
partnerships.
Small-sized
subsidiary companies and medium-sized subsidiary companies generally
have training budgets. For example, employees, as a condition of
employment have set training sessions, including training as a
prerequisite for promotion to higher positions. Systematic management
training for both managers and non-managers in large organizations
entitles them to receive higher compensation .Furthermore, training
expenses are often deemed to be compensation for employees in smallsized
and
medium-sized
JV
partnerships
.In
small-sized
JV
partnerships training tends to be is specific, for example, focusing
on the use of a particular piece of equipment or using a specific
technology which will make employees work more efficiently. As
discussed earlier, small-sized and medium-sized JV partnerships and
small-sized subsidiary companies offer higher rates of salary to get
employees who already have skills and so place less importance in the
training programs than do medium-sized or larger firms.
The relationship between HRM practices and HRM outcomes are directly
influenced by organizational characteristics such as decentralization
(Arthur,1994) and participatory management, organization, age,
management style, business, and the size of the organization. As will
now be discussed, the study also illustrates the extent that
environmental factors, such as government rules and regulations,
globalization, the economic environment, technological change, will
also directly affect HRM in SMEs in varying degrees, relative to
their size (Huselid, 1995; Jackson and Schuler, 1995; Khatri, 2001).
Thus, since internal flexibility relates to reward levels, staff
involvement, training practices, and bias it has direct relevance to
HRM practices. These factors also directly affect HRM outcomes as
they relate to employee motivation, satisfaction, commitment, trust,
loyalty, and individual development.
Performance Appraisal
Small-sized and medium-sized JV partnerships and medium-sized
subsidiary companies, which tend to be more flexible than their
larger counterparts, are able to adjust rates of compensation
depending on each employee's ability. Ongoing evaluation by
supervisors is used to promote managers, who in turn receive higher
salaries. In contrast, performance appraisal in larger construction
industry firms is the duty of Directors who may be remote from the
Journal of Global Merit Management
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workplace and the workforce. In small-sized and medium-sized JV
partnerships, most of which do not have a systematic HR management
evaluation regimes, performance appraisals depends solely on the
business owner and may be haphazard, not reflecting ability of
employees. Consequently, managers in these small-sized organizations
may not give importance to performance evaluation. There are fewer
staff members and the absence of a systematic approach to HRM, in
contrast to the medium-sized or larger companies, may result in
performance appraisals. Medium-sized subsidiary companies may not
give importance to performance evaluation of non-managers and may not
have effective management evaluation systems in place. Unless
evaluated is carried out by supervisors in medium-sized subsidiary
companies, it may be left to Directors, who as stated earlier, may be
remote from employees.
The larger organization the greater the emphasis placed by employees'
performance evaluation as higher compensation as well as promotion is
directly dependent on formalized appraisal. However, the non-managers
in small-sized subsidiary companies and in small-sized and mediumsized JV partnerships place a lot of importance on performance
evaluation.
In
small-sized
and
medium-sized
JV
partnerships
performance evaluation of individual employees may be undertaken
informally without the medium-sized of rules and regulations as in
longer organizations relates mainly to personal appraisal by the
business owner relative to the individual's abilities In this context
the process of performance appraisal may be neither systematized or
transparent.
Impact of environmental factors on HRM practices and HRM outcomes
The current research indicates that HRM in the Vietnam construction
industry is affected by a range of environmental factors and
organizational characteristics (Ferris et al., 1999 and Pendleton et
al., 2003). In particular, government legislation and regulations,
and government policy initiatives which promote expenditure on major
infrastructure projects assist the industry generally. Yet, Labour
Laws, for example, cause increased expenses to firms in such areas as
basic salary levels, social security benefits and termination
payments respectively. At the same time, they are factors that
influence
employee
satisfaction
and
motivation.
Moreover,
globalization enables employees, managers and non-managers, in both
small-sized and medium-sized enterprises, the chance to choose where
they will work, as it causes the overall construction market to
expand. Vietnamese firms may be able to look overseas for projects
Journal of Global Merit Management
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and workers, both skilled and unskilled, can work overseas. This
increases levels of competition in the employment market which in
turn is beneficial to employees. The Vietnam economy is relatively
healthy and the government is currently funding a number of large
infrastructure projects; these include the new airport, train
extensions, the road system, and expressways, intersection bridges
and underpasses both in Hanoi and regionally. These all help drive
the economy and impact on employment demand, and at the same time,
job security for both managers and non-managers.
In the area of technology, organizations have always needed to use
sophisticated technology in construction of major projects. The use
of technology is now essential and is also cost effective on larger
projects. Employees need to learn new techniques and manage complex
technology more than ever before. Thus, especially in the firms,
construction industry, job training to enable employees to master new
technology is essential (Peppard, 1993 and McCole et al., 2001). With
greater skill comes the chance of higher compensation .It also means
that once employees have achieved higher skill levels they may look
elsewhere if they feel they can gain higher remuneration.
Impact of organizational characteristics on HRM practices and HRM
outcomes
Generally, in Vietnam the organizational characteristics will be of
greater direct benefit to employees than environmental factors
(Khatri, 2001 and Ferris et al.,1999). Employees generally receive
compensation in the form of salary relative to their individual
abilities and experience (Kirkman and Shapiro, 2000; Hackett and
McDermottt, 1999). Most organizations offer bonus pay and incentives
to individuals based on good performance outcomes. In this regard,
the construction industry is different from most other businesses in
Vietnam, given the importance of teamwork and the fact that the
success or failure of a project in terms of customer's satisfaction
is immediately assessable (Paul and Anantharaman, 2003).Hands on
management in smaller organizations results in decisions being made
quickly
and
this
impacts
on
project
completion,
employees'
compensation pay, bonuses and incentive payments. Furthermore, there
are higher levels of participation in smaller organizations, in
contrast to the medium-sized subsidiary companies. This means that
supervisors
in
smaller
organizations
can
assess
employees'
performance and this will enable them to receive compensation
commensurate to ability. Job satisfaction and loyalty follow.
Employee job satisfaction leads to stability in the workforce and
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this in turn reduces HR costs and hence assists the "bottomline". The
smaller organizational management structures in construction industry
firms, with fewer levels of managers enables decisions to be made
more quickly and increases overall efficiency. Thus, quick decision
making promotes efficiency and this will influence remuneration
outcomes for employees. Moreover, in the smaller the organizations
training is less formal but more hands-on for employees. Training in
smaller construction FIRMs is undertaken to ensure speed and
efficiency in completing specific projects. The age of employees is
not a factor which influences job security. Levels of compensation
relate to ability and age does not directly affect this. Construction
work needs employees with high levels of experience and hence older
employees are generally an asset to the organization. In terms of
management style, small-sized and medium-sized construction JV
partnerships maybe family-run businesses or non-family businesses.
Family businesses managed by the owner may have more "flexible", adhoc and a less formal management style. This may be an advantage
where flexibility and responsiveness are important, is generally the
case as in the construction industry. On the other hand, the
management of non-family businesses, and larger organizations
including medium-sized subsidiary companies in particular, tend to
have well-ordered management systems, with clear employee regulations,
which in turn make employees feel more secure in their employment.
Additionally, the size of the organization directly affects HRM
practices. HRM outcomes suggest that employees feel that working in a
larger organization offers more security. The employees may also have
better training opportunities, either on-the-job on through scheduled
training programs. As employees improve their abilities, so they will
have the chance to be promoted. At the same time after several years
in a medium-sized company their employment prospects in smaller
companies and small-sized and medium-sized JV partnerships increase.
However, working in a smaller organization, or family-partnership may
offer considerably less security, dependent on the business owner or
supervisor's personal assessments of an employee abilities. Hence,
there are both advantages to employees in choosing to work in smallsized or medium-sized subsidiary companies or correspondingly smallsized or medium-sized JV partnerships.
HRM Practices towards HRM Outcomes of Managers and Non-Managers
Managers of small-sized and medium-sized JV partnerships and
subsidiary companies are managing directors (small-sized and mediumsized subsidiary companies), managing partners, and co-owners (small-
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sized and medium-sized JV partnerships). Managers who have minimum 5
to10 years training experience in large construction firms or other
firms have a greater opportunity to successfully work in both types
of firms. The training courses are on leadership, teamwork, the use
of new and advanced technology, and equipment. There is also skill in
geometry control, in concrete design, construction design for
expressways, and using prefabricated building components. To be more
specific, managers who come from large firms have more opportunity to
successfully apply for positions in small-sized and medium-sized
construction firms because they gain valuable experience through
well-organized and gain training through structured training programs.
Managers from medium-sized subsidiary companies can also easily get
access to employment in small-sized JV partnerships, small-sized
subsidiary companies and medium-sized JV partnerships because of
similar experiences. Managers from small-sized subsidiary companies
get easier access to small-sized and medium-sized JV partnerships due
to the demand for individuals with management skills. However,
managers from either small-sized or medium-sized subsidiary companies
need to make considerable adjustments to fit into the unsystematic
management style of small-sized and medium-sized JV partnerships.
Managers from medium-sized JV partnerships gain easy access into
small-sized JV partnerships because of the systematic management
approach and experiences they have gained on bigger and more complex
projects and they also earn higher remuneration and have the
opportunity for rapid promotion. In contrast, managers from smallsized JV partnerships have the possibility of successfully applying
to work in small-sized subsidiary companies, medium-sized JV
partnerships and medium-sized subsidiary companies but gaining higher
compensation may be difficult. Only managers who transfer from one
small-sized JV partnership to another small-sized JV partnership have
a chance to upgrade their remuneration but this well depend on their
capability and experience.
Managers in small-sized and medium-sized subsidiary companies can
expect to achieve career advancement from training. On the contrary,
training courses in small-sized and medium-sized JV partnerships are
provided individually, or only when necessary, to managers. Therefore,
career development prospects for managers in both small-sized and
medium-sized JV partnerships are still ambiguous. It depends on the
owners' relationship with individual employees as to how they fare.
In conclusion, managers who need long-term career development,
training courses, and know-how, especially with respect offered by
teamwork and technology need to consider small-sized or medium-sized
subsidiary companies as their priority. However, managers who have
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long-term work experience (minimum 10 years) should consider the
prospects offered by small-sized and medium-sized JV partnerships. In
these organizations they may get to handle several projects,
including complex ones, at the same time and as a result, receive
extra bonuses and extra incentives depending on the owner's
performance appraisal. Hence, managers with experience who move to
small-sized and medium-sized JV partnerships may advance their
careers considerable. Managers in small-sized and medium-sized
subsidiary companies can expect remuneration based on systematic
performance appraisal. Remuneration in this case includes annual pay
reviews and bonuses. In recent years, changes in remuneration levels
in Vietnam have benefited all employees at the expense of firms. As a
result, remuneration levels have become much fairer to all employees.
In other words, managers in small-sized and medium-sized subsidiary
companies cannot expect a great amount in special bonuses. In
contrast, remuneration of managers in small-sized and medium-sized JV
partnerships is variables and remains based on the owners 'discretion.
The amount paid can be flexibly adjusted depending on the owners'
satisfaction
regarding
the
individual
employee's
performance.
Therefore, personal relationships with owners have an important
effect on performance appraisal in small-sized and medium-sized JV
partnerships. Good personal relationships are an advantage in
partnerships if managers wish to stay longer and have the opportunity
to be responsible for projects. Managers who have 5-10 years of
working experience and who want higher pay and a senior position in
an organization will normally select either small-sized or mediumsized JV partnerships as their choice if considering a career change.
Individuals with good standing and reputations in the industry do not
risk termination but may be head hunted by owners of small-sized or
medium-sized JV partnerships with the promise of higher positions and
higher incentives. Alternatively, these individuals may leave
companies to form partnerships with their friends to become
independent owners. Managers who want a long-term position and hope
to move step-by-step up the ranks in an organization will normally
elect to work with either small-sized or medium-sized subsidiary
companies. Fresh graduates as managers in the first year of work
experience appear to adopt a pattern of behaviour in seeking
employment in either small-sized or medium-sized subsidiary companies
to gain work experience for 3-5 years prior to moving to work for
small-sized or medium-sized JV partnerships. The benefit to them is
that on moving from a medium-sized company to small-sized subsidiary
companies, or small-sized and medium-sized JV partnerships, they have
the chance to receive both higher remuneration and more challenging
jobs in supervisory positions. Non-managers with 1-3 years work
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experience working in small-sized and medium-sized subsidiary
companies have the chance to learn the basic work systems and
practices in the construction industry through work and training
programs. With 3-5 years work experience, they are in an excellent
position to change their jobs and move to the level of supervisors or
managers in small-sized and medium-sized JV partnerships. They will
experience rapid promotion and the chance to get higher remuneration.
This is because small-sized and medium-sized JV partnerships require
well-trained employees or managers and will pay higher remuneration
to get them. Experienced employees can work immediately as they bring
their skills and knowledge with them. Consequently, small-sized and
medium-sized JV partnerships in turn become more progressive and
better managed to be systematic and to progress quickly. Furthermore,
small-sized and medium-sized JV partnerships have fewer employees who
receive higher remuneration and work in less rigid more flexible
management environments and these well-trained employees are directed
by an owner manager to insure that projects are completed on time.
Non-managers tend to be good supervisors in partnerships particularly
if they have acquired good management skills in a small-sized or
medium-sized company. As a result small-sized and medium-sized JV
partnerships
have
been
highly
successful
in
the
Vietnamese
construction industry.
5. CONCLUSION
Reward, Involvement or Participation, Training and Performance
Appraisal
As the analysis of the interview results with the managers and nonmanagers indicated, reward is the most important HRM factor
motivating the managers and non-managers of small-sized and mediumsized subsidiary companies and JV partnerships. Reward emerges as the
most important factor in creating motivation and satisfaction for
employees in each category of organization. However, this finding is
less clear with respect to small-sized JV partnerships due to the
absence of structured management systems and formalized performance
appraisal, and where reward levels may be at the discretion of the
owner.
Managers of small-sized and medium-sized subsidiary companies and
small-sized and medium-sized JV partnerships considered involvement
the second most important HRM practice which directly relates to firm
outcomes.
In
contrast,
in
small-sized
and
medium-sized
JV
partnerships the dominant role of the owner manager may prelude high
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levels of involvement on the part of managers and non- managers, yet
managers and non-managers still considered it the second most
important factor. Managers and non-managers of small-sized and
medium-sized subsidiary companies stated training as the third most
important aspect of HRM practices directly related to HRM outcomes.
Small-sized and medium-sized subsidiary companies generally have
systematic procedures for training employees in a wide range of
skills; both on-the-job and off-site. Managers and non-managers in
small-sized and medium-sized JV partnerships rated training as less
important. A characteristic of partnerships, particularly small-sized
JV partnerships, is the lack of formalized training procedures;
training may be sporadic and then only task or project specific.
Managers and non-managers of small-sized and medium-sized JV
partnerships and small-sized and medium-sized subsidiary companies
expressed the view that performance appraisal as the least important
factor influencing HRM outcomes. In small-sized and medium-sized
subsidiary companies, employees may be systematically evaluated by
supervisors who report to more senior managers who take decisions. In
contrast, effective, objective or systematic evaluation is not common
practice in small-sized or medium-sized JV partnerships.
Organizational Characteristics and Environmental Factors
Managers of small-sized and medium-sized JV partnerships and smallsized and medium-sized subsidiary companies view organizational
characteristics as important, however, the larger the business the
more
important
the
environmental
factors.
Organizational
characteristics are seen as more important to managers and nonmanagers in small-sized and medium-sized subsidiary companies as
small-sized
and
medium-sized
JV
partnerships
tend
to
lack
systematized management. In terms of environmental factors, managers
see issues related to economics and politics, which may result in
larger infrastructure projects being approved and funded, as of
greater significance than non-managers in companies and managers and
non-managers in partnerships. Managers and non-managers in smallsized and medium-sized JV partnerships consider government rules and
regulations as important because they influence basic salary levels,
termination
payments
and
social
security
entitlements.
Such
environmental factors, as globalization, foreign investment in
Vietnam and the prospect of workers being employed overseas,
influence all construction industry employees in Vietnam. Furthermore,
employees are influenced by the use of technology, which brings with
it training and the prospect of higher reward, and hence this factor
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is of greater significance to managers and non-managers in smallsized
and
medium-sized
subsidiary
companies
than
to
their
counterparts in the smaller businesses where new technology is less
frequently adopted.
Other Factors
Small-sized and medium-sized JV partnerships offer higher levels of
salary but lower levels of training and lower levels of job security.
As a consequence new graduates tend to be employed initially in
small-sized and medium-sized subsidiary companies but within a
relatively short period of time may move to a small-sized or mediumsized JV partnership as they seek to improve their levels of
remuneration. Small-sized and medium-sized JV partnerships seek to
employ pre-skilled employees and do not run training courses. Another
factor that emerges from the current research is that small-sized and
medium-sized
subsidiary
companies,
which
have
systematic
and
organized management structures, have a greater chance to expand and
grow further.
6. RECOMMENDATIONS
Recruitment of Managers and Non-Managers
As discussed throughout this research, recruitment process within
these different categories of firms varies as follows:
Small-sized and Medium-sized Subsidiary Companies
In small-sized and medium-sized recruitment of managers will be the
result of a systematic process. It is suggested that the appropriate
position shall have a job description and key selection criteria
including those that are essential and those that are preferred.
Candidates must be screened and interviewed once and possibly twice.
It is a formal process.
Small-sized and medium-sized subsidiary companies recruit nonmanagers using a systematic recruitment process. Depending on the
position, there shall be a detailed, lengthy, structured interview
process involving the candidate and based on his or her references.
The process must be opaque, and both slow and formal.
Small-sized and Medium-sized JV Partnerships
In contrast, recruitment of managers in JV partnerships will mainly
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be fairly ad-hoc. It is suggested that the co- owner identifies and
then interviews a candidate or candidates. Only one person may be
interviewed. The co-owners will look for well-trained individuals
with a range of skills in various fields, for example, administrative
and office management skills with experience across a range of
industry
related
areas
including
purchasing,
human
resources
(recruitment of labourers), and communication skills, particularly in
dealing with officers in government agencies. The new employee will
generally have to start work immediately, a factor which reflects the
ad-hoc management style in smaller enterprises. As in the case of the
recruitment of non-managers in small-sized and medium-sized JV
partnerships, the process must also be fast and fairly "ad-hoc". The
candidate is expected to have office administration skills including
purchasing and the ability to negotiate with government agencies in
addition to building industry expertise. Immediate availability to
start work is usually essential. Overall though, non-managers in
firms need less skill and less training than managers as their main
duties will usually be to manage other non-managers.
Training of Managers and Non-Managers
There should be little on-the-job training for managers in smallsized and medium-sized JV partnerships because only experienced
managers, who can start work immediately, are generally recruited.
This is consistent with the finding of flolliday (1995), and Atkinson
and Storey (1994). Small-sized and Medium-sized JV Partnerships
Consistent will the findings in the literature review, training
should be focused on skills specific to the firm and to the projects
in hand. The training programs provided mainly depend on the coowner's assessment of what is required. As discussed in the
literature review, there is less training in these firms. Training
will only be given to employees on a "need-to-know" basis, specific
to current project work being undertaken. As stated earlier this is
because the firm only recruits well-trained employees who have all
the basic generalist skills required for them to function efficiently.
Small-sized and Medium-sized Subsidiary Companies
In these firms, it is suggested that training systems is setup and
incorporated into the firm's corporate plan and annual strategic plan,
as in large companies. Levels of remuneration are directly related to
levels of training and ability. However, the level of training
appears to be proportionate to the size of the organization as
discussed in the literature review.
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Compensation of Managers and Non-Managers
Quite often compensation paid to managers in firms is nonsystematized. Salary usually depends on actual performance, but in
addition firms are likely to use an incentive system to reward more
efficient employees. Furthermore, incentive systems are considered an
important aspect of HRM practice in the achievement of high
performance (Arthur, 1994; Huselid, 1995;MacDuffie, 1995). Delery and
Doty (1996) identified performance-based compensation as the single
strongest predictor of firm performance. It is suggested that firms
provide their managers with incentive packages designed to improve
their performance achieve high levels of motivation and overall
higher levels of performance. It may be that the incentives offered
are too easily achieved or that, although classified as incentives,
they become regarded as part of the basic package entitlement. One
incentive, however, does appear to have an impact on firm performance
must be considered and that is team and individual performancerelated pay. The most common proportion of income paid in this form
is in the range of 20-40 per cent, which has been shown to encourage
marginally better performance rather than a 5-10 per cent allowance.
Small-sized and Medium-sized Subsidiary Companies
Compensation shall be paid to managers in small-sized and mediumsized subsidiary companies in accordance with a set scale linked to
an annual pay review or bonus scheme. Moreover, it is more
transparent and less flexible than in small-sized and medium-sized JV
partnerships. Compensation paid to non-managers in small-sized and
medium-sized subsidiary companies in accordance with a pre-determined
fixed pay scale depends on assigned work. Moreover, there is usually
only one annual pay review and overall the non-managers will receive
less than managers. Therefore, it is suggested the non-manager shall
also be considered to the compensation scheme like manager.
Small-sized and Medium-sized JV Partnerships
Compensation shall be paid to managers in small-sized and mediumsized partnerships in the owner's absolute discretion and will not
follow a clear or predicable pattern. The process will not be
transparent as in larger organizations. Therefore, it depends on the
ability of individual managers and non-managers to get on well with
the owner and to perform well in achieving project completions on
time and on budget. Salary reviews, bonuses and incentive payments,
shall be all flexible and successful outcome related. Compensation
must be mainly paid on the basis of ability as evaluated by the coowner. Furthermore, the co-owner will assess what if any special
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remuneration is to be paid to non-managers. Once again, non-managers
shall be considered the similar compensation scheme like managers.
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Appendix: Interview Questions
1. How HRM practices in firms successfully promote employees
performance and outcomes?
• How HRM practices successfully reward employees?
• How HRM practices successfully encourage employees to commit
to their work?
• How HRM practices in firms successfully train employees?
• How HRM practices in firms use performance appraisal to
produce successful outcomes?
2. How environmental factors affect HRM practices and the
relationship between HRM practices and HRM outcomes in
construction industry in Vietnam?
• Government rules and regulations
• Globalization
• Economics
• Politics
• Technology
• Others
3. How organization characteristics affect HRM practices and the
relationship between HRM practices and HRM outcomes in
construction firms in Vietnam?
• Labour unions within company
• Decentralization
• Organization
• Age
• Business life cycle
• Management style
• Size
•
Other
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Article 2:
AN EMPIRICAL RESEARCH ON THE RELATIONSHIP BETWEEN STUDENTS’ PERCEIVED
VALUE AND EDUCATION INSTITUTION’S ATTRIBUTES: A CASE OF VIETNAM
NATIONAL UNIVERSITY, HO CHI MINH CITY
DR. DUONG TON THAI DUONG; Ho Chi Minh City, Vietnam
Abstract
After the reform in 1986, Vietnam opened the door to the world and
has been adapting modern education system from developed countries to
diversify national education system, especially to higher education
programs. Enhancing the education quality and determine the best
solutions to improve the competitive advantage of each university is
very necessary and important for the survival of a higher education
institution in a rapidly changing competitive environment. This
article attempts to assist Vietnamese educational institutions in
identifying and evaluating the effectiveness and quality of the
educational process through the student’s perceived value attributes.
The outcome of this study is to help education management to
determine core factors and construct the overall solutions to improve
the quality of the educational process and individual academic units.
Keywords:
Student’s perceived value attributes, perceived value in
higher education, training services, education quality, resource
availability
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1. INTRODUCTION
In modern competitive environment concept, educational system is
considered as a type of services which is standardized by combining
local demands with international enhancement within the effort from
educational institutions. In other words, the expectation of learners
to the education service is becoming higher quality than ever.
Nowadays, due to the development of industrialization, modernization
and international economic integration in Vietnam, each educational
institution must improve itself to offer quality academic programs so
that the graduate students are accepted by the market and employers.
In addition, Vietnam government also considers education improvement
is one of the most important campaigns of national education
enhancement project to the next period 2016-2020 perspective so that
Vietnam government has planned to increase public expenditure on
education and training more than 19% of total annual budget.
Therefore, society’s concerns about education activities are not only
highly demanded but also to be multidimensional. That is the purpose
and motivation of the researcher to study about the changes of the
educational philosophy from a teaching-orientated to a learningorientated.
In addition, Vietnam’s higher education system has grown quickly over
the last 15 years. Between 2001 and 2011, an average of eight new
universities and 12 colleges were established each year, leading to a
total of 163 universities and 223 colleges by 2010/11. Much of the
growth in the system since the year 2000 has been in the form of
private-sector institutions, particularly smaller colleges with more
narrowly focused curricula. With a fast-growing economy on the road
towards global integration, Vietnam is in urgent need of more and
more young and well-trained individuals with high educational
standards to be the driving force of our national advancement goals.
Vietnamese higher education system has opened up the competition with
yearly increasing the rate in both number of institutions and number
of students shown below:
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Source: Website of Vietnam Ministry of Education and Training (2016)
www.moet.gov.vn
Figure 1. Number of Education Institutions of Vietnam (1999-2013)
Source: Website of Vietnam Ministry of Education and Training (2016)
www.moet.gov.vn
Figure 2. Number of Students at Higher Education Institutions of
Vietnam (1999-2013)
Although students’ perceived value is a worthy goal for a university
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education, researches on this important topic are sparse and still
less in Vietnam. In order to achieve the general study goals, author
conducted the analyses based upon the theory of consumption value
which was developed by Sheth et al. (1991). The perceived values were
also utilized by Hermawan (2006), and Ledden et al. (2007) who
suggested that the value perceived by a student is the overall
evaluation made of the utility of the service based upon the
perception of that which is received and that given. In this study
the value perceived by the student is a broad concept that includes
more than a trade-off between what is given and what is received and
thus includes other components that may be relevant in higher
education. In this study, author identified five consumption values,
which influences consumer behavior directly, are functional value,
epistemic value, social value, emotional value and conditional value
(Hermamwam, 2006; Ledden et al., 2007; and Shelth et al., 1991).
After analyzing the relationship between students’ perceived value
and the educational institution resources, this study will be able to
answer the following research questions:
a. What effective methods to measure students’ perceived value
through the educational process at the universities in
Vietnam National University?
b. What factors may influence on the quality improvement
university education in Vietnam National University?
of
c. How to improve students’ satisfaction on education services at
universities in Vietnam National University?
2. LITERATURE REVIEW
2.1. Review of Related Literature
Zeithaml (1988) proposed Means–End model to study the decision-making
processes regarding consumption which were influenced by: (i)
linkages among product attributes; (ii) the perceived consequences of
consumption; and (iii) the personal values of consumers. In his study,
he described four different definitions of value: (i) value as low
price; (ii) value as whatever the consumer wants in a product; (iii)
value as the quality obtained for the price paid; and (iv) value as
what the consumer gets for what he or she gives.
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Figure 3. Means–End Model (Zeithaml , 1988)
The Means–end model was described as a hierarchy of variables based
on the establishment according to their level of abstraction. This
model provided an overview of the relationships among the concepts of
perceived price, perceived quality, and perceived value. According to
this conceptual model, people evaluate products on the basis of their
perceptions of price, quality, and value, rather than on the basis of
objective attributes (such as actual prices or actual quality).
Finally, the author suggested that situational or contextual factors
can affect the formation of value perceptions and that perceived
value is subject to the influence of the consumer’s frame of
reference.
Some of these studies have sought to explain value through certain
variables, including: (i) corporate image (Lemmink et al., 2003);
(ii) quality and sacrifice (Cronin et al., 2000); (iii) service
quality, social value, play, aesthetics, and time and effort spent
(Gallarza & Gil, 2006); (iv) sacrifice, benefit, personal preference,
and the perceived situation (Blackwell et al., 1999); and (v)
perceived risk and the valence of experience (Chen & Dubinsky, 2003).
Sheth et al. (1991) developed an important theory that explains the
basic consumption values that guide consumers when they make the
choices that they do. The authors viewed the choice as a function of
multiple independent consumption values that can vary in importance
in various situations. Five consumption values - namely, functional
value, social value, emotional value, epistemic value, and condition
value as below:
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Figure 4. “Five Values” Consumer Choice Behavior Model (Sheth et al.,
1991)
In the higher educational context, firstly, functional value is
related to the perceived performance or utility of the service. These
aspects are related to both the so-called tangibles and intangibles.
The former refer to facilities or infrastructures such as library,
computer equipment, canteens, student housing, which are potential
determinant dimensions of student satisfaction since they are easily
recognizable by students. The latter are related to the process of
service assembly that is particularly important with regard to
students’ satisfaction levels and service expectations Appleton-Knapp
and Krentler (2006). They are closely related to the essential
service provided by universities – education – therefore; they are
factors that can shape student satisfaction.
Second, epistemic value refers to benefits deriving from the
university ability to improve the skills and knowledge base of
students. The staff plays an important role in assuring the quality
and the effectiveness of the instruction (e.g. the teaching methods
used by the teaching staff for giving the classes). The elements
concerning
the
core
(teaching)
and
the
additional
services
(administrative) are all related to the quality and effectiveness of
the university.
The third component is given by image, which is closely related to
the reputation of the university and acts as a risk reducing
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mechanism. Consistent with the literature on corporate reputation
(Fombrun, 1996; Lemmink et al., 2003; Helm, 2007), reputation has
been measured by two items: the students’ perceptions of the
university general reputation and the students’ perceptions of their
chosen study program reputation.
The fourth, emotional value, accounts for the affective commitment,
which derives from the sense of belonging to an established
institution. The aspects related to the surrounding environment such
as the campus life or social life significantly affect the total
university experience. Further, social value – the fifth component represents the relational benefits derived from being part of a
social network. In fact, student loyalty is directly and strongly
influenced by the fourth and the fifth components. Therefore, loyalty
has been measured by three items: probability of recommending the
university to friends/acquaintances, probability of attending the
same university if starting again and the intention to return to
participate in courses (Lervik & Johnson, 2003).
Finally, conditional value is described as the set of situations that
the customer faces when making a choice. In this context, situational
variables are deemed to have an impact upon the customer's assessment
of the utility of the product/service (Belk, 2007). For example, the
size of university and the parents' views with regard to its programs
are situational variables which have the potential to influence the
value of the educational experience.
2.2. Review of Prior Studies
Brady and Robertson (1994) argued that a customer-oriented approach
should be applied to an education setting to better understand the
values students derive from the services they receive. Using the
Theory of Consumption Values proposed by Sheth et al. (1991),
Stafford developed a questionnaire and tested it on two undergraduate
elective sections. The discriminant analysis shows that the choice of
an elective is predominantly driven by the desire for variety (the
epistemic value) and scheduling imperatives (the conditional value).
LeBlanc and Nguyen (1999) examined the concept of service value in
business education with data collected from 402 students of a small
business school in Canada. They also followed Consumption-value
theory with five dimension of perceived value includes function value,
epistemic value, social value, emotional value, conditional value;
and price/quality relationship and developed a 33-item questionnaire.
A set of factors were found to impact on students' evaluation of
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value during their educational experience.
The results of previous studies indicated the relationship between
price and quality, the knowledge acquired, the economic utility of a
business degree, image, as well as social and emotional value, are
important drivers of value in business education. Specifically, the
results of LeBlanc and Nguyen’s study suggested a significant
relationship between students' overall evaluation of service value
and perceptions of price in the form of the price/quality
relationship that exists at the business school.
Lai, Lung and Lai (2012) explored the value of higher education from
the perspective of non-local Chinese students to understand how
various consumption values affect students’ satisfaction with their
educational experience with target population to non-local Chinese
students registered as full-time undergraduates in higher education
institutions in the Greater China Region: Macao SAR, Guangzhou,
Shanghai, and Taipei. All cities had a large population of non-local
Chinese students and sample size was 316 responses. Non-local
students are defined as the ones studying in the region with student
visas and treated as overseas/international students. As non-local
Chinese students, in a sense, are overseas Chinese students, the
results presented in this study have a wide application to higher
education institutions locally as well as overseas. In this research,
the authors considered the process of education an act of consumption
and recognize that the two functional values—the experiential aspect
and the usefulness of a degree—are the two major determinants for
Chinese students’ satisfaction with non-local higher education.
Given that higher education is one of the primary factors in earning
power in the Chinese economy (Fornell, 2006), it is clear that the
earning increasing has been significant functional value to the
student.
Moreover,
many
researchers
reported
that
graduate
unemployment has gained social and political attention in recent
years (Zhou & Wu, 2009; Wu, 2011). However, this phenomenon does not
deter parents from supporting their children in pursuing higher
education programs but only leads students to choose programs having
great employability (Wu, 2011) and may lead higher education
institutions to offer more creative, vocationally oriented programs
(Zhou & Wu, 2009).
Another source of students’ satisfaction from functional value that
Chinese students may derive from their educational choice relating to
an aspect of Chinese culture that place a high value on pragmatism.
Chinese pragmatism is perhaps best encapsulated by Deng Xiaoping’s
1962 statement, “It doesn’t matter whether a cat is white or black,
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as long as it catches mice” (Peterson, 2009). This statement refers
to the use of capitalist production methods and incentives in order
to improve the economy of the Communist state. From this ideology, if
the most rational economic choice is to pursue higher education, then
a Chinese student may gain significant functional satisfaction from
performing the economically rational choice in accordance with the
economic rational man. This type of satisfaction can be considered as
a strong career motivation to undergraduate students.
The epistemic value of education, as the current study observes, is
negatively associated with non-local Chinese students’ satisfaction
with their higher educational experience. This phenomenon is somewhat
contradictory to majority studies of other researchers such as
LeBlanc and Nguyen (1999). One possible explanation for the mismatch
among Chinese student expectations and the potential epistemic value
offered by non-local higher education may relate to the issue of
student cognitive overload (Paas et al., 2010) and resulting loss of
academic self-efficacy.
Chinese students in a non-local environment have a higher intrinsic
cognitive load (Paas et al., 2010) than local students, because of
learning in a non-native language or dialect and in a learning style
unfamiliar to them. Due to these difficulties, if students face the
ineffective or inefficient teaching techniques, which may increase
the extrinsic cognitive load or do not break down the complexity of
tasks well. According to Clark et al. (2006), students may experience
high levels of stress and anxiety but this can be overcome by mastery
of the learning material. Moreover, cognitive overload may cause
students to give up on the material altogether in frustration with
the educational process (Clark et al., 2006).
In Vietnam, there are not so many researches concerned to this topic.
In 2005, Ngoc’s research examined the structure of the perceived
value of education services in Vietnam’s public universities,
conducted at the Faculty of Economics - Nha Trang University, with
the sample size of 490 students (Ngoc, 2005). By adapting the
consumption – value theory developed by Sheth et al (1991) and
applying with adjustments the research of Le Blanc and Nguyen (1999),
the findings of this research indicated that there is a relationship
between tuition and quality, knowledge and understanding and those
are gained through educational process, economic practicality of
qualifications in the job and for future careers, the image of the
school, as well as social values and emotional value, are all
important factors of
dimension that form the student’s perceived
value (Ngoc, 2005).
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Furthermore, when comparing the perceived value through school years,
the result of Ngoc’s study showed an upward trend of students
perceived value through the course; they are more likely to believe
that getting a bachelor degree now will ensure a steady job, a good
salary and promotion. In addition, the author found that perceived
value and satisfaction for the quality of teaching plays a
significant role which affects the student’s comprehensive evaluation
about training service (Ngoc, 2005).
2.3. Conceptual Framework
Perceived values of students on education institutions can provide
very useful information to management in allocating resources and
designing programs in order to improve student’s satisfaction and
leading quality improvement programs of the overall education system.
To find the relationship between students’ perceived values and
university’s resources availability, author determine dependent
variable is Perceived Value while Independent Variables or predictors
are Price/Quality, Image, Functional Value, Social Value, Epistemic
Value, Emotional Value, Conditional Value. Thus, the conceptual
framework is developed by the author as the follow:
Figure 5. The Conceptual Framework of the Study – Developed by Author
Based on the conceptual framework, the hypothesis was constructed as
below:
 H1: There is a correlation between students’ perceived values
and resources availability.
 H0: There is no correlation between students’ perceived values
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and resources availability.
Note: The resource availability includes university’s resources and
student’s resources.
In addition, to conduct the regression analysis, the research model
should be:
Perceived Value = β0 + β1*Price/Quality +β2*Image + β3*Functional Value
+ β4* Social Value + β5* Epistemic Value + β6*Emotional Value +
β7*Conditional Value + εi
3. RESEARCH METHODOLOGY
3.1. Research Instruments
This investigation used questionnaires which were first developed by
LeBlanc and Nguyen (1999) in a research study about perceived service
value among business college students in Canada and modified by Ngoc
(2005) in a research of business students’ perceived value in Nha
Trang University, Vietnam. A few minor revisions were made to the
instrument based upon author experience and the observation on
participants within survey. The main focus to verify the validity of
instrument is assessing the overall fit of the hypothesized model by
the test of the reliability of variables in the instruments. The
final questionnaire was developed and modified in order to measure
students’ beliefs and perceptions on the service offerings and
attributes of the education institutions, and identify the cues that
signaled value to students and to determine the relative importance
of these cues in their evaluation of their educational experience.
The questionnaire consists of two parts: the first part includes 32
statements on consumption values adapted from LeBlanc and Nguyen
(1999) with some modifications from Ngoc’s study (2005). The second
one includes three statements on satisfaction adapted from Ngoc
(2005).
3.2. Data Collection Procedure
In agreement with the data collection procedures, only students who
are currently studying full-time at Vietnam National University with
experiences on service offered by the university are encouraged to do
the survey. The sample size of this study was calculated based on
equation which was introduced by Krejcie and Morgan (1970), for
confidence level of 95%, standard errors or margin of error at 5%,
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and a known population size of approximate 6,500 students, the sample
size of this study should be 361 students. However, to prevent errors
during survey collection, a target number of the sample size should
be more than 361 students; this may produce meaningful results
statistically.
3.3. Data Analysis Procedure
The final version of questionnaire was given directly to the selected
groups
of
specialization
and
year
students
by
the
trained
interviewers in classes. A short description about the purpose of
this survey research was given to the students. The students were
asked to participate voluntarily to ensure the randomization of
selected subjects. The instruction on what is on and how to fill in
the survey forms was given verbally in Vietnamese, and in writing on
the forms in both English and Vietnamese. The students spent 20
minutes for completing the survey form and answering all the
questions. The completed survey forms were collected and analyzed by
the investigator.
The participant responses received numerical values to facilitate
statistical analysis. The descriptive statistics used to analyze the
respondent demographic information included frequency counts and
percentages. The descriptive statistics used to analyze the research
variables included means, standard deviation, minimum, and maximum.
The inferential statistics used to analyze the variables included the
Multiple Regression Analysis, enabling the examination of the
criterion variable from the combination of predictor variables and
control variables, and the Pearson Correlation Coefficient, enabling
the examination of whether a correlation exists between the variables.
The inferential statistic used to analyze the consideration,
initiating structure, and employee engagement scales for internal
reliability was Cronbach’s Alpha. With .911 Cronbach’s Alpha of the
whole questionnaire, we can conclude that degree of reliability for
this survey is “very high”. To each dimension, the Cronbach’s Alpha
results also support to high reliability. The results (α = .89, α
= .91) indicated that the perceived value and resource availability
scales were internally reliable, respectively. The inferential
statistic used to analyze these scales for construct validity was
Pearson Correlation Coefficient. The results indicated that 32
dimensions items and 3 perceived value items had a significant
correlation to the 0.01 level, meaning the scales all had construct
validity.
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4. ANALYSIS AND FINDINGS DISCUSSION
4.1. Reliability and Validity Analysis
The Cronbach’s Alpha statistic facilitated the determination that
each scale had internal reliability. For each dimension, Cronbach’s
alpha is high; the detail of each dimension is presented in the
following table:
No
Dimension
Cronbach’s Alpha
Degree of Reliability
1.
Functional Value
.850
High
2.
Epistemic Value
.697
Acceptable
3.
Emotional Value
.865
High
4.
Image
.807
High
5.
Price/Quality
.849
High
6.
Social Value
.734
Acceptable
7.
Conditional Value
.762
Acceptable
8.
General
Value
Perceived .787
Acceptable
Table 1. Reliability Analysis
The final questionnaire includes 35 items with 32 items for
dimensions and 3 for general perceived value. After that, the
inferential statistic used to analyze these scales for construct
validity was Pearson Correlation Coefficient. The results indicated
that 32 dimension items and 3 general perceived value items had a
significant correlation to the 0.01 level, meaning the scales all had
construct validity.
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4.2. The Relationship among Dimensions and Perceived Value
Applying this Regression model for collected data by ordinary least
squares
method
(OLS),
the
result
was:
Table 2. Summarized tables of multiple regression analysis model
Standard
ized
Unstandardized
Coeffici
Model Summaryb
Coefficients
ents
Change Statistics
Mode
l
Model
1
1
Model
1
R
.736a
R Square
.541
Adjusted R
Square
B
.533
Std. Error
(Constant) -3.661E-ANOVAb
.033
Sum16
of Squares
Df
Regression
Residual
Price/Qual
224.537
190.463
7
408
F
68.713
Sig.
.000a
a. Control Variables: (Constant), Conditional Value, Emotional Value, Epistemic Value, Social Value, Functional
Value, Image,
Price/Quality
Image
.244
.034
.244
7.287 .000* .244
b. Dependent Variable: Perceived Value
.339 .244
415
.292
.000 1.000
.396 .292
415.000
.034
Mean Square
32.077
.467
Sig. F
Part
F Change df1 df2ZeroChange Durbin-Watson
T 68.713 Sig.
order
ial 2.003
Part
7 408
.000
8.711 .000* .292
Total
ity
.292
R Square
Std.
of the Estimate
Change
Error
Beta
.68324219
.541
Correlations
Functional
.253
Value
.034
.253
7.544 .000* .253
.350 .253
Social
Value
.144
.034
.144
4.297 .000* .144
.208 .144
Epistemic
.273
Value
.034
.273
8.154 .000* .273
.374 .273
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Emotional
.361
Value
.034
.361
10.77
.000* .361
5
.471 .361
Conditiona
.325
l Value
.034
.325
9.699 .000 .325
.433 .325
Note. * Statistical significance at the .05 level (p < .05)
Table 3. Regression Analysis Results of Research Model
Table 2 contains the model summary by perceived values. The Adjusted
R-Square statistic for the control and the predictor variables
combined was .533, indicating that the model accounted for
approximately 53.3% of the variation in perceived value. In addition,
F = 68.713 and sig. = .000 < .05, this indicates there is sufficient
statistical evidence to reject H0. Thus this model is suitable for
explaining general perceived value with the fitness level of 53.3%.
In addition, the regression analysis model would be:
Perceived Values = .292*Price/Quality + .244*Image + .253*Functional
Value + .144*Social Value + .273*Epistemic Value + .361*Emotional
Value + .325*Conditional Value
Table 3 provides clear and comparable parameters through partial
correlations and Beta standardized coefficients for identifying the
effective level of each dimension on general perceived value in which
Emotional Value and Conditional Value have the largest impact on
Perceived Value (.361 and .325); the next is the group of
Price/Quality,
Epistemic
Value,
Functional
Value,
Image
(.292; .273; .253; and .244) and the last one is Social Value (.144).
Finally, in order to support the existence and the meaning of all
coefficients, t –statistic with null hypothesis: H0:βi = 0 in tstudent distribution is used with the following results:
 H0:β0 =0 for constant variable, t–statistic = .000 and sig. =
1.000 > .05, there is not sufficient statistical evidence for
rejecting H0 so we accept H0.
 H0:β1 = 0 for Price/Quality, t–statistic = 8.177 and sig. = .000
< .05, there is sufficient statistical evidence to reject H0.
 H0:β2 = 0 for Image, t–statistic = 7.287 and sig. = .000 < .05,
there is sufficient statistical evidence to reject H0.
 H0:β3 = 0 for Functional Value, t–statistic = 7.544 and sig.
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= .000 < .05, there is sufficient statistical evidence to reject
H0.
 H0:β4 = 0 for Social Value, t–statistic = 4.297 and sig. = .000
< .05, there is sufficient statistical evidence to reject H0.
 H0:β5 = 0 for Epistemic Value, t–statistic = 8.154 and sig.
= .000 < .05, there is sufficient statistical evidence to reject
H0.
 H0:β6 = 0 for Emotional Value, t–statistic = 10.775 and sig.
= .000 < .05, there is sufficient statistical evidence to reject
H0.
 H0:β7 = 0 for Conditional Value, t–statistic = 9.699 and sig.
= .000 < .05, there is sufficient statistical evidence to reject
H0.
4.3. The Relationship among Resource Availability and Perceived Value
To conduct the analysis, the hypothesis was tested. With respect to
the relationship between perceived value and resource availability,
the Multiple Regression Analysis results in table 4 indicated that
the perceived value had a statistically significant effect on
resource availability, with a p-Value of .000. The Beta for this
relationship was .612. The positive Beta meant that for each one-unit
increase in resource availability the expected value of perceived
value would increase by a standard deviation of .612.
Variable
Resource
Availability
(Constant)
R
Square
.453
Unstandardized
Coefficients
Standardize
d
Coefficient
s
B
Std.
Error
Beta
.723
.075
.612
24.845
4.429
tStatist
ic
p Value
9.911
.000*
5.216
.000*
Note. * Statistical significance at the .05 level (p < .05)
Table 4. Relationship of Perceived Value and Resource Availability
Table 5 contains the Pearson
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perceived value and resource availability. The results (r = .621)
indicated a strong, positive correlation between perceived value and
resource availability. Additionally, with the statistical significant
at the .05 level, the results (p = .000) indicated that the
correlation was significant at the 0.01 level. Therefore, H1 was
accepted.
Perceived
Value
Perceived Value
Pearson Correlation 1
.621**
Sig. (2-tailed)
.000
N
Resource
Availability
Resource
Availability
416
Pearson Correlation .621**
Sig. (2-tailed)
.000
N
416
416
1
416
Note. ** Correlation is significant at the 0.01 level (2-tailed).
Table 5. Correlation between Relationship of
Resource Availability
Perceived Value
and
5. SUMMARY OF FINDINGS AND CONCLUSIONS
With corresponding coefficients presented in this model at table 2,
there are two findings about the impact of each independent variable
on dependent variable (Perceived Value):
-
All of the coefficients from β1 to β7 are statistically different
from zero (0) and have the positive value, so the first finding
is that the impact of each component (dimension) on students’
perceived value is positive and different from zero. Therefore,
if we want to enhance the general perception of student through
education process, increasing student satisfaction for any
dimensions policies are suitable and effective solutions.
However, with limited resources of the university, we should
have a detail plan for concentrate on dimensions that affected
the most on perceived value of students. For this reason, we
must analyze the impact level of each factor on the research
objective.
-
The effect level of each dimension on students’ perceived values
are sorted by size of beta coefficient shown on Table 2.
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Regression analysis result of research model in section 4.2 as
follows: Emotional Value (β6=.361) > Conditional Value (β7=.325)
> Price/Quality (β1=.292) > Epistemic Value (β5=.273) >
Functional Value (β3=.253) > Image (β2=.244) > Social Value
(β4=.144)
Based on this finding, researcher suggests the following grouping
solutions:
 Group 1: Strongly affected values: Emotional Value, Conditional
Value, and Price/Quality
 Group 2: Averagely
Functional Value
affected
values:
Epistemic
Value,
and
 Group 3: Slightly affected values: Image, and Social Value
This grouping will help university administrators to design
integrated solutions for improving training service quality through
education process.
With respect to the first research questions and corresponding
hypothesis, the researcher tested to determine whether a correlation
exists between perceived values, as perceived by students at Vietnam
National University, and the resource availability. The results of
the Pearson Correlation Coefficient indicated that the data were
consistent with the hypothesis by determining a correlation existed
between the variables. Specifically, the results indicated a strong,
positive relationship (r = .621; p = .000) between resource
availability and perceived values at a significance level of .01. The
resource availability is the ability of that university on offering
available resources to students including image, conditional value of
infrastructure for academic and non-academic purposes, epistemic
value that is related to curriculum, course content, training staff
and lecturers and the most important factor is a reasonable and
balanced ratio in price/quality. This recommends the management at
university should pay more attention on each available resource if
they want to maintain positive perceived value from students. The
degree of perceived value also reflects the degree of satisfaction of
students on university quality. This also provides the new research
tendency in the future for other researchers.
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Article 3:
FACTORS AFFECTING THE QUALITY OF TRAINING FOR EDUCATION MANAGEMENT IN
VIETNAM: A CASE STUDY OF PEDAGOGY UNIVERSITY IN HO CHI MINH CITY
NGUYEN KY TRUNG; PEDAGOGY UNIVERSITY, Ho Chi Minh City, Vietnam
Abstract
This dissertation, entitled FACTORS AFFECTING THE QUALITY OF TRAINING
FOR EDUCATION MANAGEMENT IN VIETNAM: A CASE STUDY OF PEDAGOGY
UNIVERSITY IN HO CHI MINH CITY conducted during the period from July
2013 to October 2015.
The research result showed that there were 280 postgraduate students
who to be interviewed and answered nearly 22 questions. The
researcher had analysed KMO test, the result of KMO analysis used for
multiple regression analysis. Postgraduate student responses measured
through an adapted questionnaire on a 5-point Likert scale. Hard copy
and interview postgraduate student by questionnaire distributed among
postgraduate students of Pedagogy University in Ho Chi Minh City
(HCMUP).
The main objectives of this study were following:
1. The first objective was to conduct a survey to find factors that
affecting the training quality of the postgraduate students at HCMUP.
2. The second objective was to identify some factors that affected on
the training quality of the postgraduate students at HCMUP.
3. The third objective was to analyse and to test some factors that
affected the training quality of the postgraduate students at HCMUP.
4. Finally, I recommended solutions to improve the training quality
of the postgraduate students at HCMUP.
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1. INTRODUCTION
The training nature of HCMUP assumes a key part in the protection,
improvement and continuation of human progress. As per measurements
of Ministry of Education and Training in Viet Nam such as year of
2013-2014, there were add up to more than 419 colleges and
universities including open and tuition based schools in Vietnam.
While, in the time of 1999 - 2000, there were just 153 colleges and
schools. Since, it mirrors a sensational change in Vietnam advanced
education. Understudy can have numerous options of spot to think
about.
The fundamental destinations of this study were taking after:
• The primary goal was to lead a review to discover elements that
influencing
the
training
nature
of
the
postgraduate
understudies at HCMUP.
• The second target was to recognize a few components that
influenced on the training nature of the postgraduate
understudies at HCMUP.
• The third target was to dissect and to test a few elements that
influenced
the
training
nature
of
the
postgraduate
understudies at HCMUP.
• At long last, the researcher prescribed answers for enhance the
training nature of the postgraduate understudies at HCMUP.
This study is to address the general problem of:
How do different elements influence the nature
postgraduate students of education management?
of
training
of
Particular issue:
1. How may the nature of training for training of postgraduate
students of Education Management be described in term of:
a. Quality of lecture;
b. Study Facilities;
c. Training projects; and
d. HCMUP Staffs
2. How do the profile variables impact the nature of training of
the postgraduate students?
3. Is there a significant relationship on the nature of training of
the postgraduate students and the trail of relationships using
ANOVA test?
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Conceptual Framework
In study by Firdaus (2005), he found out HEdPERF (higher education
performance). HEdPERF is the service quality measuring tools in the
field of higher education. Later in the study by Brochado (2009), he
proved HEdPERF to be an effective tool for measuring the service
quality in higher education. The variables of HEdPERF regarding
service quality are:
1. Non-academic aspects; 2. Academic aspects; 3. Reputation;
4. Access; 5. Program issues.
The data collected from the questionnaire survey of nearly 280
postgraduate students at HCMUP in Ho Chi Minh City. It analyses the
participant students’ attitudes and beliefs about the training
quality of postgraduate students at HCMUP in Ho Chi Minh City.
Hypothesis
H1: Th℮r℮ is a positiv℮ r℮lationship b℮tw℮℮n L℮ctur℮r quality and th℮
training quality of postgraduat℮ stud℮nts at HCMUP.
H2: Th℮r℮ is a positiv℮ r℮lationship b℮tw℮℮n Study Faciliti℮s and th℮
training quality of postgraduat℮ stud℮nts at HCMUP.
H3: Th℮r℮ is a positiv℮ r℮lationship b℮tw℮℮n Training programs and th℮
training quality of postgraduat℮ stud℮nts at HCMUP.
H4: Th℮r℮ is a positiv℮ r℮lationship b℮tw℮℮n HCMUP Staffs and th℮
training quality of postgraduat℮ stud℮nts at HCMUP.
The significance of this sstudy was to help the HCMUP enhance the
focused position against the giant contenders, to survive and to make
progress in education field in Viet Nam. Furthermore, the research
results assisted HCMUP chiefs with designing administration strategy
framework to upgrade the adequacy and productivity of training
quality for postgraduate understudies. The understudies have spot to
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enhance their insight and to help understudies enhance the nature of
prepared learning and delicate ability advancement later on. What's
more, the outcomes help the undertakings build up the high human
asset quality for what's to come. In addition, the ventures are not
to need to retrain those understudies.
2. REVIEW OF RELATED LITERATURE
Parasuraman et al. (1985) suggested SERVQUAL as a determinants and
measuring instrument of service quality.
Later, Parasuraman et al. (1988) reduced the ten attributes to five
attributes.
The
model
of
changed
SERVQUAL
was
reliability,
responsiveness, assurance, empathy and tangibles.
1.
2.
4.
5.
6.
Reliability: It is the ability to perform the promised service
dependably and accurately.
Responsiveness: It is the willingness and/ or readiness of
employees to help customers and to provide prompt service,
timeliness of service.
Assurance: The knowledge and courtesy of employees and their
ability to convey and confidence.
Empathy: The provision of caring, individualized attention to
customers.
Tangibles: It is the state of facilitating good, physical
condition of the buildings and the environment, appearance of
physical facilities, tools and equipment used to provide the
service.
Firdaus developed HEdPERF model by comparing with SERVPERF (HEdPERF SERVPERF)
in
order
to
access
the
relative
advantages
and
disadvantages of each instrument, to identify the most superior
instrument. SERVPERF is another service quality-measuring instrument
developed by Cronin & Taylor (1992). Cronin & Taylor criticized the
framework of SERVQUAL and developed their own model “SERVPERF”,
consisting of 22 items, and kept only the perception of service
quality.
Fridaus categorized five determinants of service quality in higher
education. They are non-academic aspect, academic aspect, reputation,
access and program issues.
1. Non-academic aspects: This aspect relates to the duties that
carried out by non-academic staff.
2. Academic aspects: It consists of the items that describe the
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factor that are solely the responsibilities of academics
(instructor).
3. Reputation: The factor consists of the item that is important
for higher learning institutions in projecting a professional
image.
4. Access: It includes issues as approachability, ease of contact,
availability and convenience of academic and non-academic
staffs.
5. Program issues: It includes the item related to program
flexibility, offering wide range of programs/ specialization,
and quality program.
The Relationship of Service Quality (Independent)
Satisfaction (Dependent) In Higher Education
and
Student
There are several studies done in past which shows that various
service quality of higher education leads to student satisfaction.
Firdaus (2005) pointed out the non-academic aspects, academic aspects,
program issues, access and reputation are determinants of service
quality in higher education. Afjal et al. (2009) reported Design,
Delivery and Assessment, Academic facilities, Non-academic facilities,
Recognition, Guidance, Student representation, Study opportunities
and Group size are the eight dimensions that determine the service
quality of the higher education. Delaney (2005) reported that
academic staff, academic experience, residential life, social life on
campus, personal development opportunities, student service and
resources were the service quality that lead towards the student
satisfaction. Helgesen and Nesset (2007) suggest satisfaction to have
positive relationship with students’ perception of the university’s’
reputation.
Brochado (2009) found that HEdPERF, distinguished non-academic
aspects, academic aspects, program issues, access, and reputation in
higher educational service, had high correlation with overall
satisfaction, future visits and intention to recommend the university
to a friend.
3. METHODS AND TECHNIQUES OF THE STUDY
This study comprises of two stages: First: it is a preparatory study
and the second stage is a formal and more extensive study. This study
is finished by Qualitative strategies. The Research is finished by
formal quantitative strategies. Unit of examination is an understudy.
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Study subjects are postgraduate understudies at HCMUP in Ho Chi Minh
City.
The preparatory study for understudies directed in July 2013,
utilizing
qqualitative
techniques
to
meeting
30
postgraduate
understudies to inspect the substance and significance of the words
utilized as a part of the scale. Tailing this, the formal study led
in October 2015, utilizing Qualitative strategies to meet 280
postgraduate understudies to analyze the substance and importance of
the words utilized as a part of the scale.
Research Locale
The instrument for information accumulation was a self-administrated
questionnaire. The survey intended to learn the demographic profile
of the postgraduate understudies. The variables impact the training
quality of postgraduate understudies at HCMUP.
The information gathered and dissected utilizing the factual markers
with information Training programming SPSS 20.0. The objectives
incorporate distinct measurements, unwavering quality investigation,
connection examination, component investigation investigate, break
down multiple linear regression.
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4. PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
Table 1 Descriptive Statistics for the training
postgraduate students at HCMUP in Ho Chi Minh City
quality
of
(Source: The researcher’s collecting data and SPSS)
Table 1 demonstrated that there
HCMUP in Ho Chi Minh City met.
extreme quality was 5. Standard
mean is from 2.92 to 3.70. This
analysis.
were 250 postgraduate understudies at
There were least esteem was 1, most
deviations were from 0.678 to 1.604;
information was useful for regression
There were 14 postgraduate understudies having the present position
of chief with 5.6 % and 167 postgraduate understudies having the
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present position of staff with 66.8 %. In addition, there were 69
postgraduate understudies having the present position of other
position with 27.6 %.
Table 2 KMO and Bartlett's Test for Factors affecting the training
quality of the postgraduate students at HCMUP in Ho Chi Minh City
(Source: The researcher’s collecting data and SPSS)
Table 2 demonstrated that Kaiser-Meyer-Olkin Measurement of Sampling
Adequacy was factually critical and high information unwavering
quality (KMO = 0.817 > 0.6). This outcome was useful for information
examination. Table 2 demonstrated that Cumulative Percentage was
measurably critical and high information unwavering quality was
81.7 % (> 60 %).
Table 3 Structure Matrix for factors of the training quality of the
postgraduate students at HCMUP in Ho Chi Minh City
Code Component
1
LQ1
.903
LQ2
.900
LQ3
.885
LQ6
.853
LQ5
.831
LQ4
.811
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3
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LQ7
.809
SF1
.921
SF2
.878
SF3
.850
SF4
.784
SF5
.707
TP3
.888
TP4
.838
TP1
.836
TP2
.788
LS1
.888
LS2
.875
LS3
.694
(Source: The researcher’s collecting data and SPSS)
Table 3 demonstrated that Structure Matrix for the Factors
influencing the preparation nature of the postgraduate understudies
at HCMUP in Ho Chi Minh City had 4 Components. Segment 1 was Lecturer
quality, Component 2 was Study Facilities, Component 3 was Training
projects and Component 4 was HCMUP Staffs for the preparation nature
of the postgraduate understudies at HCMUP in Ho Chi Minh City taking
after:
KMO and Bartlett's Test for the training quality of the postgraduate
students at HCMUP in Ho Chi Minh City
MO and Bartlett's Test for the preparation nature of the postgraduate
understudies at HCMUP in Ho Chi Minh City demonstrated that KaiserMeyer-Olkin Measurement of Sampling Adequacy was factually noteworthy
and high information unwavering quality (KMO = 0.659 > 0.6). This
outcome was useful for information investigation. The preparation
nature of the postgraduate understudies at HCMUP in Ho Chi Minh City
demonstrated that Cumulative Percentage was factually huge and high
information dependability was 65.9 % (> 60 %).
KMO and Bartlett's Test for Lecturer quality demonstrated that there
was 1 segment removed. Teacher quality demonstrated that KaiserJournal of Global Merit Management
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Meyer-Olkin Measurement of Sampling Adequacy was factually huge and
high information unwavering quality (KMO = 0.894 > 0.6). This outcome
was useful for information examination. Teacher quality demonstrated
that Cumulative Percentage was factually huge and high information
unwavering quality (73.486 > 60 %).
KMO and Bartlett's Test for Study Facilities demonstrated that there
was 1 segment separated. Also, Study Facilities demonstrated that
Kaiser-Meyer-Olkin Measurement of Sampling Adequacy was measurably
huge and high information unwavering quality (KMO = 0.808 > 0.6).
This outcome was useful for information investigation. Study
Facilities demonstrated that Cumulative Percentage was measurably
critical and high information unwavering quality (69.429 > 60 %).
KMO and Bartlett's Test for Training programs demonstrated that there
was 1 part removed. In addition, Training programs demonstrated that
Kaiser-Meyer-Olkin Measurement of Sampling Adequacy was factually
critical and high information unwavering quality (KMO = 0.732 > 0.6).
This outcome was useful for information investigation. Preparing
programs demonstrated that Cumulative Percentage was measurably
critical and high information dependability (70.146 > 60 %).
KMO and Bartlett's Test for HCMUP Staffs demonstrated that there was
1 part separated. Also, HCMUP Staffs demonstrated that Kaiser-MeyerOlkin Measurement of Sampling Adequacy was measurably huge and high
information dependability (KMO = 0.602 > 0.60). This outcome was
useful for information investigation. HCMUP Staffs demonstrated that
Cumulative Percentage was measurably critical and high information
unwavering quality (68.831 > 60 %).
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Regression analysis for the training quality of the postgraduate
students at HCMUP in Ho Chi Minh City
Table 9 Regression Model Summary analysis about the training quality
of the postgraduate students at HCMUP in Ho Chi Minh City
(Source: The researcher’s collecting data and SPSS)
Section 1 (X1): Lecturer quality component impacting on the
preparation nature of the postgraduate understudies at HCMUP in Ho
Chi Minh City with basic level of 5%.
Section 2 (X2): Study Facilities component impacting on the
preparation nature of the postgraduate understudies at HCMUP in Ho
Chi Minh City with basic level of 5%. Fragment 3 (X3): Training
programs segment affecting on the preparation quality of the
postgraduate understudies at HCMUP in Ho Chi Minh City with basic
level of 5%. Section 4 (X4): HCMUP Staffs segment impacting on the
preparation nature of the postgraduate understudies at HCMUP in Ho
Chi Minh City with basic level of 5%.
Table 9 exhibited that Adjusted R Square was quantifiably basic and
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high data relentless quality. Besides, Adjusted R Square accomplished
63.8 %. Results showed that all t regard > 2 was truthfully basic and
high data reliability. Also, the relapses coefficients were sure.
This exhibited the effects of free variables in the same heading with
the preparation nature of the postgraduate understudies at HCMUP in
Ho Chi Minh City.
Multicollinearity (MC): Variance Inflation Factor (VIF) and Tolerance
are two estimations that can coordinate an analyst in perceiving MC.
Before working up the thoughts, it should be seen that the change of
the OLS estimator for a normal relapses coefficient had all the
earmarks of being the going with VIF < 10 (1 < VIF < 10). This
exhibited there was not Multicollinearity.
Model summary analysis for the training quality of the postgraduate
students at HCMUP in Ho Chi Minh City
Figure 4. The Result of the Regression for the training quality of
the postgraduate students at HCMUP in Ho Chi Minh City
Figure 4 demonstrated that the relapse coefficients were sure. This
demonstrated the impacts of free variables are in the same course to
the preparation nature of the postgraduate understudies at HCMUP in
Ho Chi Minh City with criticalness level of 5 %.
Analysis of Correlation and Correlation for the training quality of
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the postgraduate students at HCMUP in Ho Chi Minh City
The relationship association between Lecturer quality and the
preparation nature of the postgraduate understudies showed that there
was Pearson Correlation (0.482) between Lecturer quality and the
preparation nature of the postgraduate understudies with lower sig
(2-took after) 0.05 we release H0 and recognize H1. This showed there
was the association between the self-sufficient variable of Lecturer
quality and the dependent variable of the preparation nature of the
postgraduate understudies. This showed there was the clear result
that had the association between the free variable of Lecturer
quality and the destitute variable of the preparation nature of the
postgraduate understudies.
The connection between Study Facilities and the preparation nature of
the postgraduate understudies demonstrated that there was Pearson
Correlation (0.494) between Study Facilities and the preparation
nature of the postgraduate understudies with lower sig (2-followed)
0.05 we dismiss H0 and acknowledge H1. This demonstrated there was
the relationship between the free variable of Study Facilities and
the needy variable of the preparation nature of the postgraduate
understudies. This demonstrated there was the clear result that had
the relationship between the free variable of Study Facilities and
the reliant variable of the preparation nature of the postgraduate
understudies.
The connection between Training programs and the preparation nature
of the postgraduate understudies demonstrated that there was Pearson
Correlation (0.302) between Training programs and the preparation
nature of the postgraduate understudies with lower sig (2-followed)
0.05 we dismiss H0 and acknowledge H1. This demonstrated there was
the connection between the free variable of Training projects and the
reliant variable of the preparation nature of the postgraduate
understudies. This demonstrated there was the apparent result that
had the relationship between the free variable of Training projects
and the reliant variable of the preparation nature of the
postgraduate understudies.
association between HCMUP Staffs and the preparation nature of the
postgraduate
understudies
exhibited
that
there
was
Pearson
Correlation (0.332) between HCMUP Staffs and the preparation nature
of the postgraduate understudies with lower sig (2-took after) 0.05
we release H0 and recognize H1. This exhibited there was the
relationship between the independent variable of HCMUP Staffs and the
penniless variable of the preparation nature of the postgraduate
understudies. This showed there was the evident result that had the
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relationship between the free variable of HCMUP Staffs and the
penniless variable of the preparation nature of the postgraduate
understudies.
Analysis of Variance
postgraduate students
(ANOVA)
about
the
training
quality
of
the
Analysis of Variance (ANOVA) about Labour situation following:
Examination of Variance (ANOVA) about Labor circumstance demonstrated
that F = 0.729 was factually critical and Significance quality was
0.394 (> 0.05). In this way, we dismiss H1 and acknowledge H0. This
demonstrated there was the same as Labor circumstance for the
preparation nature of the postgraduate understudies at HCMUP in Ho
Chi Minh City.
Analysis of Variance (ANOVA) about Gender following:
Investigation of Variance (ANOVA) about Gender demonstrated that F =
0.171 was factually critical and Significance worth was 0.680 (>
0.05). Along these lines, we dismiss H1 and acknowledge H0. This
demonstrated there was the same as Gender for the preparation nature
of the postgraduate understudies at HCMUP in Ho Chi Minh City.
Analysis of Variance (ANOVA) about Family situation following:
Examination
of
Variance
(ANOVA)
about
Family
circumstance
demonstrated that F = 0.001 was factually noteworthy and Significance
worth was 0.974 (> 0.05). In this way, we dismiss H1 and acknowledge
H0. This demonstrated there was the same as Family circumstance for
the preparation nature of the postgraduate understudies at HCMUP in
Ho Chi Minh City.
Analysis of Variance (ANOVA)
postgraduate students following:
about
the
study
major
of
the
Examination of Variance (ANOVA) about the study major of the
postgraduate understudies demonstrated that F = 0.942 was measurably
critical and Significance quality was 0.391 (> 0.05). So we dismiss
H1 and acknowledge H0. This demonstrated there was the same as the
study major of the postgraduate understudies for the preparation
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nature of the postgraduate understudies at HCMUP in Ho Chi Minh City.
Analysis of Variance (ANOVA) about experienced following:
Analysis of Variance (ANOVA) about experienced showed that F = 0.909
was statistically significant and Significance value was 0.404 (>
0.05). Therefore, we reject H1 and accept H0. This showed that there
was no different from experienced for the training quality of the
postgraduate students at HCMUP in Ho Chi Minh City.
Analysis of Variance (ANOVA) about Current position following:
Analysis of Variance (ANOVA) about Current position showed that F =
1.750 was statistically significant and Significance value was 0.176
(> 0.05). Therefore, we reject H1 and accept H0. This showed that
there was no different from Current position for the training quality
of the postgraduate students at HCMUP in Ho Chi Minh City.
Analysis of Variance (ANOVA) about Income for per month following:
Analysis of Variance (ANOVA) about Income for per month showed that F
= 0.101 was statistically significant and Significance value was
0.904 (> 0.05). Therefore, we reject H1 and accept H0. This showed
that there was no different from Income for per month for the
training quality of the postgraduate students at HCMUP in Ho Chi Minh
City.
5 CONCLUSIONS
The results from information examination uncovered that respondents
consider the accompanying Components as the most compelling elements:
1. Lecturer quality;
2. Study Facilities;
3. Training programs;
4. HCMUP Staffs;
Every one of the four most powerful variables identified with the
training quality of the postgraduate understudies at HCMUP in Ho Chi
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Minh City with essentialness level of 5 %. This outcome affirmed what
found in the Lecturer quality that was the most essential component
to the training quality of the postgraduate understudies at HCMUP in
Ho Chi Minh City.
Recommendations
Suggestion 1: Lecturer quality
The HCMUP keeps on enhancing the Lecturer quality after: (1) The
HCMUP keeps on Training educators so as to enhance instructing
quality. every speaker ought to utilize a wide range of techniques
for instructing understudies. HCMUP speakers kept on enhancing the
information that helped understudies comprehend the injuries less
demanding. (2) The HCMUP keeps on enhancing speakers' science inquire
about that reflects present and future social interest, particularly
ventures' interest. Also, the HCMUP ought to keep on training
numerous aptitudes to help postgraduate understudies have a decent
position later on. (3) HCMUP ought to keep on training teachers who
are the general public with brilliant HR who have particular learning,
proficient capability, qualified aptitudes, administration capacity
and delicate abilities, for example, software engineering, remote
dialects.
Suggestion 2: Study Facilities
The HCMUP keeps on enhancing Study offices taking after: (1) The
HCMUP keeps on enhancing the offices of the examining for
postgraduate understudies with a specific end goal to help
understudies concentrate all the more effortlessly. The HCMUP keeps
on contributing numerous books, course readings, diaries, daily
papers, web, Wi-Fi that was great environment for instructing and in
addition examining science. (2) The HCMUP keeps on overhauling its
offices for inquiring about, instructing and exchanging innovation to
endeavours. This was great condition for enhancing the preparation
nature of postgraduate understudies. (3) HCMUP ought to keep on
investing in current offices for exploration and educating later on.
Plus, HCMUP ought to keep on building numerous spaces for learning
and science inquiring about of the understudies and Lecturer.
Suggestion 3: Training program
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The HCMUP keeps on enhancing Training program taking after: (1) The
HCMUP ought to enhance Training program nature of postgraduate
understudies. (2) The HCMUP ought to keep on improving Training
programs
that
reflect
present
and
future
social
interest,
particularly schools' interest. Furthermore, the project ought to
keep on having numerous aptitudes so as to help postgraduate
understudies have a great job later on. (3) The HCMUP ought to be to
fortify lawful framework in Science research and bit by bit build
spending plan for Science research speakers as well as postgraduate
understudies. (4) The HCMUP ought to exchange the outcome of Science
examination of teachers and postgraduate understudies for schools to
apply in education Management. (5) The HCMUP ought to have
collaboration with non-public school proprietors to take an interest
during the time spent Training projects of postgraduate understudies.
Through gatherings, workshops and listen to thoughts get and assess
remarks from the proprietors.
Suggestion 4: The HCMUP staffs
The HCMUP keeps on enhancing the HCMUP staffs taking after: (1) The
HCMUP keeps on enhancing the meetings, workshops and courses relating
conduct society. This helped staffs comprehend the preparation data
of the HCMUP. (2) The HCMUP keeps on enhancing relationship between
postgraduate understudies and the postgraduate staffs. This helps the
understudies pick the right majors or Training programs for the
concentrating on.
Proposals for the Academic (Future Research)
The previously mentioned things, the following examination ought to
review more than 280 the postgraduate understudies at HCMUP in Ho Chi
Minh City (almost 1.000 postgraduate understudies at HCMUP). This
helps the information that is more huge. Since the study point is
wide as postgraduate understudies at HCMUP in HCMC is a major zone.
The following examination ought to study more than 28 the inquiries
(things) in parts influencing the preparation nature of the
postgraduate understudies at HCMUP in Ho Chi Minh City.
Journal of Global Merit Management
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BIBLIOGRAPHIES
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Kitsawad, K. (2013). An Investigation of Factors Affecting
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Watkins, A. E.; Richard L. Scheaffer, George W. Cobb (2008).
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Kennedy, Peter (2003). A guide to econometrics. Cambridge,
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Wooldridge, Jeffrey (2003). Introductory
Modern Approach. Mason: Thomson South-Western.
Econometrics:
A
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Keisuke Hirano (2008). Decision theory in econometrics. The
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23.
Berg, Bruce L., (2009). Qualitative Research Methods for
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Edward
E.
Leamer
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Creswell,
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Joubish, Farooq Dr. (2009). Educational Research Department
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of Education. Federal Urdu University, Karachi, Pakistan.
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Howell, K. E. (2013). Introduction to the Philosophy of
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Jinous Kasravi (2009). Factors Influencing the Decision to
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Jinlong Wang (2010). Study on Student score based on Data
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Marwan M. Shammot (2011). Factors Affecting the Jordanian
Students' Selection Decision Among Private Universities. Riyadh
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Suh Li Phang (2013). Factors influencing international
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Jennifer Brown (2003). Factors affecting the size of the
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Hassan Shahid (2012). What Factors Affect a Student’s
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Foo Chuan Chew (2007). Factors affecting choice for
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Dubey
Pushkar
(2013).
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Acharya College of Engineering, (PKACE), Bargarh, Odisha, India.
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Mingyang Liu (2013). Factors Affecting Students’ Decision
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Technology.
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Marvin J. Burns (2006). Factors influencing the college
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Unpublished Materials:
1. Sheng Zhang (2013). Investigation and Analysis of Influence
Factors on Postgraduate Innovation Capacity. Scientific
Journal of Education Technology.
2. Mulu Nega Kahsay (2012). Quality and quality assurance in
ethiopian higher education: critical issues and practical
implications. (Doctoral dissertation). At the University of
Twente, in Tigray, Ethiopia.
3. Anil R. Sahu (2008). Key Factors Affecting the Effectiveness
of Technical Education– An Indian Perspective. Proceedings of
the World Congress on Engineering in London, U.K.
4. Ali Kara (2004). Business Student Satisfaction, Intentions
and Retention in Higher Education: An Empirical Investigation.
(Master of thesis). Pennsylvania State University-York Campus.
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towards
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Satisfaction.
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service quality perceptions: the case of university education.
European Journal of Marketing.
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Vol. 3, No. 1, 12/2016
Appendix – Questionnaire
1. Questionnaire Survey
Please indicate the level of satisfaction on the following questions:
1
2
3
4
5
Strongly
disagree
Disagr
ee
Norma
l
Agree
Strongly
agree
For each question, please mark X on one of these other numbers 1
through 5.
Code
Lecturer quality
LQ1
You completely satisfied about the 1
Lecturer’s teaching methodology at
HCMUP
2
3
4
5
LQ2
You completely satisfied about the 1
Lecturers
who
applying
practical
experience in lessons at HCMUP
2
3
4
5
LQ3
You completely satisfied about the 1
Lecturers who were enthusiasm when
communicating with students at HCMUP
2
3
4
5
LQ4
You completely satisfied about the 1
Lecturers who were cheerfulness when
teaching the lesions at HCMUP
2
3
4
5
LQ5
You completely satisfied about the 1
Lecturers who were politeness when
communicating with students at HCMUP
2
3
4
5
LQ6
You completely satisfied about the 1
Lecturers who supplied many books for
reading and researching at HCMUP
2
3
4
5
LQ7
You completely satisfied about the 1
Lecturers’ lessons and trained major
knowledge at HCMUP
2
3
4
5
Code
Study Facilities
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SF1
You
completely
satisfied
about
the 1 2
equipment such as room, table that were
suitable for the needs of learning at
HCMUP
3
4
5
SF2
You
completely
satisfied
about
the 1 2
equipment such as projector, computer,
micro that were suitable for the needs
of teaching at HCMUP
3
4
5
SF3
You completely satisfied about the books 1 2
that were very good for teaching and
science researching at HCMUP
3
4
5
SF4
You
completely
satisfied
about
the 1 2
internet system that were very good for
teaching and science researching at
HCMUP
3
4
5
SF5
You
completely
satisfied
about
the 1 2
library system and other equipment for
teaching and learning at HCMUP
3
4
5
Code Training programs
TP1
You
completely
satisfied
about
the 1
training program that HCMUP announced
for all students before learning.
2 3
4
5
TP2
You completely satisfied about the HCMUP 1
that supplying necessary information of
the program for students
2 3
4
5
TP3
You completely satisfied about the HCMUP 1
that was interested in changing the
training program for enterprise demand
and social need
2 3
4
5
TP4
You completely satisfied about the HCMUP 1
that
was
supplying
information
technology for training program
2 3
4
5
Code HCMUP Staffs
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LS1
You completely satisfied about the staff 1
behaviour of HCMUP and service quality
for students at HCMUP
2
3
4
5
LS2
You completely satisfied about service 1
for
studying,
researching,
eating,
sporting when you went to study at HCMUP
2
3
4
5
LS3
You completely satisfied about the staff 1
of HCMUP when they solved the problem
for students
2
3
4
5
Code Training quality
TQ1
You
completely
satisfied
with
learning
environment,
facility
training program of HCMUP
the 1
and
2
3
4
5
TQ2
You completely satisfied about the 1
lecturer quality and teaching method at
HCMUP
2
3
4
5
TQ3
You completely satisfied about the 1
HCMUP’ management ability when you
wanted to help and want to solve the
problem
2
3
4
5
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Vol. 3, No. 1, 12/2016
2. Personality information
Please you take a little time to answer the following questions.
Please note that there is no right or wrong questions. For each
question, please mark X on one of these other numbers following:
2.1 Labor situation:
 Indirect labor
 Direct labor
2.2 Sex:
 Male
 Female
2.3 Family situation:
 Single
 Married
2.4 The study major:
 Secondary Education
 Primary Education
 Early Childhood Education
2.5 Experienced
 Under 5 years
 More than 10 years
 From 5 to 10 years
2.6 Current position:
 Management Level
 Teacher
 Others
2.7 Income for per month
 Under 5 million VND
 More than 10 million VND
 From 5 to 10 million VND
THANK YOU SO MUCH
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Vol. 3, No. 1, 12/2016
Article 4:
TOTAL QUALITY MANAGEMENT AND PERFORMANCE OF STATE-FUNDED UNIVERSITIES
IN NIGERIA: A PROPOSED FRAMEWORK
YEOH KHAR KHENG & GARBA MUDDAHA;
College of Business, Universiti Utara Malaysia, Malaysia
Abstract
The mission of state funded universities is to give a fundamental
where youth are not just prepared to have mental, physical and
scholarly capacity, additionally are set up to end up more helpful
and profitable workforce that could shoulder different divisions of
the nation`s economy. Universities instruction is crucial for economy
development and improvement of any country. Be that as it may, this
mission couldn't be acknowledged in Nigeria because of low execution
of state funded universities. Despite the fact that literature has
distinguished a few elements that could anticipate the execution of
state funded universities, yet at the same time the issue of low
execution is common among state funded universities in Nigeria. The
principle goal of this study is to propose a research framework for
looking at directing impact of corporate entrepreneurship on the
relationship between total quality management and performance of
state funded universities in Nigeria. The study proposes a framework
which if validated will be of worth to the state funded universities,
students and employers; as well as the Nigerian economy in general.
Keywords: Total quality management, corporate entrepreneurship,
performance of state-funded
universities, Nigeria.
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INTRODUCTION
The mission of universities instruction is not just to create
graduate who have mental and scholastic capacity, however deliver an
equipped and gainful workforce that could man different divisions of
the
nation`s
economy
(Wolfensohn,
2000).
Past
studies
have
demonstrated that scholarly capability, enterprise preparing and
moral behavior is a portion of the components that decided quality
education. The normal risen demand for quality education and the
resulting endeavor to actualize UNESCO (2000) `s Education for all
objectives have getting to advanced education to be an issue.
According to the National Policy on Education (NPE), (2004) the
overall goals of university education includes: entrenchment and
inculcating of proper values that will guarantee the survival of
individual and society; contribution to national development by
delivering and sustaining adequate manpower training in the relevant
sectors; breeding individuals who possess intellectual capability to
understand and appreciate not only their immediate environment, but
also the emerging happenings and trend in the external environments;
instill both physical and intellectual ability that will assist
individuals to be more useful to the society; promoting community
service and encouraging award of scholarship; strengthening national
unity and encouraging national and international interactions and
understanding.
Ayodele (2006) stated that the absence of total quality management
initiatives, as well as the political and economic environment of the
country was unfavorable, unhealthy and infertile for having sound
entrepreneurship development. Looking at the country – Nigeria, the
needed infrastructural facilities that will assist the Nigerian
universities in particular and entrepreneurial activities in general
were not provided by the government, as programs that will promote
entrepreneurship are not given adequate attention. The unfavorable
development of the Nigerian environment which was characterized with
both employable and unemployable youth has made the country to
witness high rate of premature winding up of business enterprises
(Okpara, 2011).
It is on this note that, this study is set to
propose a framework for examining the relationship between total
quality management and performance of Nigeria public universities
with the moderating variable of corporate entrepreneurship.
Though to some extent Nigerian public universities have contributed
to technological enhancement, employment generation and innovation,
the sector has witnessed decline in employment generation. The
quality of graduates of Nigerian universities in employment is 72
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percent in 1979 as against 68 percent in 1999 (Uche, 2014).
The
above statistics have captured clearly the nature of the sector`s
poor performance, hence the need to conduct studies on the academic
performance of Nigerian public universities. Dabalen and Adekola
(2010) reported series of complaints from employers over graduates`
poor preparation to job is almost daily affair.
They found that the academic standard in the country is gradually
fallen and that obtaining a university degree does not translate to
acquisition of technical competence. Consequence, upon having large
number of half-baked university graduates roaming the labor market.
Similarly, the performance of Nigerian graduates stood at 48,243 and
47,339 during 2008/2009 and 2009/2010 session which signifies decline
in the students` performance and therefore become a problem worthy of
investigation (Dabalen and Adekola (2010)). According to report
faculty staff of Nigerian university (2010) was grossly inadequate
representing a short fall of 39.1 percent which at the long run may
have negative consequence on the overall performance of students.
For instance, the total staff strength is 30,452, while the number
required is 50,000 (Shu’ara, 2014).
Though some of the previous studies have found the importance of
entrepreneurial orientation on performance. Findings of an empirical
study on corporate entrepreneurship appeared to be of great relevance
while studying entrepreneurial organization and corporate entities
(Covin,
Green
&
Slevin,
2006).
Miller
(1983)
considered
innovativeness, risk taking and proactivity to be the essential
features of entrepreneurial firms. The main problems of Nigerian
university education according to Nwagu (1997); Odia and Omofinwan,
(2007) are: poor quality management, poor funding, poor corporate
entrepreneurial orientation, general indiscipline and inadequate
facilities. Many education stakeholders in the Nigeria has termed
poor performance of Nigerian graduates to be a source of concern
(Shu’ara, 2014). The current executive – secretary of the National
University Commission (NUC), Okoji (2014), enumerated the problems of
Nigeria Universities to include among others lack of access to
funding, low corporate entrepreneurial spirit, unfavorable learning
environment, globalization threat, inefficiency in managing the
universities, insecurity, and many more.
The study is aimed at
examining the relationship between total quality management and
performance
Nigerian
public
university
with
corporate
entrepreneurship as mediating variable.
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2. LITERATURE REVIEW
2.1 Performance of public Universities
Different scholars have put forward a number of definitions as to
what performance stand for. Performance is viewed as the total output
an organization produces measured along with its input.
Without
proper understanding of performance measurement there is no how an
organization could recognize and focus on areas or units that require
enhancement or conduct progress assessment in terms of time, quality
and cost as well as carry out maintenance work in areas of high
productivity (Tomlinson 2011).
Globalization and competition are
required to be critically looked into while an organization is
evaluating its performance and planning to set short and long term
goals. Some of the determining factors to be put into consideration
while measuring the performance of an organizational may include:
market share, liquidity, human resource management, productivity,
innovation level and goods and service quality (Jabeen et.al., 2014).
Kanyabi and Devi (2012) defined performance from the perspective of
financial worthiness of a firm using a yardstick such as level of
investment and increase in sales and profit. According to Mandy
(2009) performance is the effect of sound and effective management
process and argued that the following criteria is important in the
assessment of organizational performance; growth, productivity,
effectiveness and system efficiency. Effectiveness could go a long
way in measuring financial, operational and behavioral levels of an
organization.
According
to
Shariff,
Peous
and
Ali
(2010)
organizational performance should be viewed from the angle of
objective measures used in financial assessment such as, return on
assets, sales growth and return on equity. Some researchers have
preference
in
measuring
organization
success
using
financial
performance measures (Murphy, Trailer & Hills 1996). However, other
studies prefer measuring performance using the subjective or nonfinancial measures. Thus, the preference of this is to use the nonfinancial (subjective) measure of organizational performance.
Total Quality Management and Performance of Public Universities
Despite the availability of literature and numerous works conducted
on total quality management practices, still there is disagreement
and lack of consensus among researchers on what TQM is. The TQM
definition depends largely on the method adopted towards ensuring and
achieving quality (Reed et al., 1996). However, based on the
literature consulted and prior studies on TQM, different scholars
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under different circumstances have offered and put forward variety of
definitions. According to Dale (2003), Flynn et al., (1994) TQM as a
philosophy of management that promote participation and cooperation
among teaming organizational employees for improve productivity and
production of better products and services that conform with the
specification and overall desire of customers.
Similarly, Anderson, Rungtusanatham, and Schroeder (1994) viewed TQM
strategy as an all rounded system designed by an organization to
ensure maintenance of quality through major principles such as
effective process management, continuous improvement, product and or
services design, good leadership, employee involvement and training
and customer satisfaction and involvement. Additionally, Yusof and
Aspinwall (2000) defined TQM as the introduction of a new paradigm
that can change an organization to world-class status through
championing of change initiatives. Moreover, TQM was also defined by
the same authors as an arrangement that promote organization
excellence. Additionally, Kumar, Choisne, Grosbois, and Kumar (2009)
considered TQM as an embodiment of management approach that seek to
not only satisfy the needs of customers, but also go a little further
beyond the expectations of customers through consolidating and finetuning the organizational activities towards achieving the overall
organizational objectives.
In a related suggestion put forward by Dean and Bowen (1994), TQM
strategy can be viewed from the angle of techniques, practices and
principles. Principles were made up of continuous improvement,
customer focus and teamwork, and each principle possesses some set of
practices on quality and process control, group training and skills
and customer relationships. For effective implementations, these
practices need to encompass some definite procedures such as team
building techniques, control charts and quality function deployment
(Al - Swidi and Mahmood, 2012). Mehra, Hoffman, and Sirias (2009)
noted that while defining TQM some critical factors have be put into
consideration such as quality tools; management structure, customer
orientation, human resources focus and supplier support. As
literature on quality management has identified severally some of the
critical factors within which TQM can be measured (Arawati, 2005; Li
et al., 2003; Saraph, Benson & Schroeder. 1989). As Swamidass and
Newell (1987) explained the strategy as series of repetitive
practices and actions that were initiated for the purpose of
achieving organizational goals.
Based on the above therefore, TQM is regarded as a system of
management that comprise numerous coordinated and harmonized critical
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factors designed primarily for the development of effective set of
actions
that
could
assist
in
the
realization
of
targeted
organizational goals. Deming (1986) considered quality from the basis
of customer - centric to the product performance in line with
provision on quality specifications and customer needs.
Service Quality as earlier mentioned in the course of literature
review, although TQM strategy has gotten its root from the
manufacturing sector, now it has started gaining ground and
researchers are beginning to apply the concept in the service sector
organizations. Service quality literature was able to come up with
two schools of thought (Camison, 1998; Lakhe & Mohanty 1995). The
first school is led by Gronroos (1988) and Gummesson (1988) and was
more concern with the content of services, and tried to come up with
mechanism of differentiating technical from the function. While the
second school which is led by Parasuraman, Zeithaml, and Berry (1985;
1988), focuses on customers` perception of service delivery. While
technical dimension is more concern with the effectiveness of core
service production, the functional dimension is more concern with the
way the service produced is being delivered (Gummesson, 1988).
Parasuraman et al., (1988) has identified five behavioral dimensions
regarding
the
other
research
perspective
namely
empathy,
responsiveness, reliability, assurance and tangibility.
The critical success factors are defined as the examination of the
impacts of critical areas that an organization is targeting in trying
to achieve its mission (Oakland, 1995). However, critical success
factors are considered as those necessary things that have to be in
place for successful TQM activity implementations. According to Tari
(2005), critical factors for TQM were; quality planning; commitment
and leadership; continuous improvement; management based on facts;
process management; organizational social and environmental issues,
human resources management; cooperation with suppliers; customer
based approach, work team communication and related awareness.
In the field of quality management, Yusof and Aspinwall (2000) were
one of the earlier researchers to conduct empirical studies that
analyzed the TQM CSFs.
Based on their result, CSFs for TQM
implementation were: system and processes, education and training,
improvement tools and techniques, resources, measurement and feedback,
supplier quality assurance, work environment and culture, continuous
improvement system, management leadership and human resources
development. More importantly, Hodgetts, Kuratko and Hornsby (1999)
identified CSFs of TQM implementation to be; generating new ideas,
employees training, customer focus, employee empowerment and top
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management involvement. Along this line study of Dayton (2003) has
identified ten TQM critical factors as: people and customer
management,
quality
improvement
systems,
suppler
partnerships
communications, external interface management, operational quality
planning, teamwork structures for improvement, strategic quality
management, customer satisfaction. According to Rahman’s (2001)
critical factors of TQM successful implementation are employee
involvement, strategy and planning, information analysis, employee
empowerment, leadership, customer management and employee training
and development. While Demirbag et al., (2006) identified seven CSFs
of TQM as: supplier quality management, role of top management,
process management, quality data and reporting, training, quality
policy and employee relations.
Additionally, Demirbag, et al., (2006) the relationship between
quality implementations and organizational performance on five
hundred sampled SMEs located in Istanbul Turkey was analyzed. The
data was obtained via self-administered questionnaire and analyzed
using structural equation modeling. According to the result, the
relationship between practices of total quality management and nonfinancial performance of the SMEs is strong and positive, while the
relationship between practices of TQM and financial performance of
the SMEs is weak. Santos - Vijande, Alvarez - Gonzalez (2007) the
relationship between total quality management and firm performance
was also examined on Spanish firms in the manufacturing and services
sector. The measurement scale`s psychometric properties were tested
using a confirmatory factor analysis, while the data obtained via
mail survey method for data collection was analyzed using structural
equation modeling. Results indicate positive association between TQM
practice and organizational performance.
However, Awam, Raof, Ahmad and Spark (2009) using a twenty nine items
questionnaire, data of ninety pharmaceutical distributors in Pakistan
was obtained using convenience non-probability sampling tehniques and
descriptive statistics, identified critical success factors of TQM.
Top management support on TQM implementation in pharmaceutical
distribution is found to be adequate. Jimenez and Martinex - Costa
(2009)
examined
human
resource
management
(HRM)
effects
in
influencing
total
quality
management
(TQM)
in
the
Spanish
organizations. The study is cross - sectional in nature and the data
of seven hundred and six companies was generated from Spanish
Ministry of Service and Technology. The findings reported a positive
impact of HRM on TQM practices in influencing organizational
performance. Based on the finding, relationship of ISO 9000 and
organizational performance is strong and positive. Valmohammadi
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(2011) found TQM to have a positive relation with organizational
performance. But a weak correlation was established based on the
conducted survey that records 81.5 percent response rate on sixty
five quality managers. Saeed and Hasno (2011) Descriptive statistics
and correlation analysis was conducted on data collected using survey
questionnaire on a sample of ninety SMEs. The results found TQM
implementation among SMEs to be at medium level.
Jabeen, Shehu, Mahmood, and Kofar Mata (2014) assessed total quality
management influence on the Nigerian SMEs business performance. Based
on cross-sectional study and data analysis using partial least square
method. The results of the study established the relationship among
the two constructs to be positive and significant. Al-Ettayen and AlZubi (2015) also evaluated TQM impact on organizational performance
in the banking sector of Jordan. Responses were collected from eleven
commercial banks that participated in the study using a survey
questionnaire.
The data was analyzed using statistical package of
social science (SPSS) and the relationship between TQM and
performance was confirmed to be positive. Similarly, Topalovic (2015)
corporate clients` contributions in the implementation of various
elements of TQM practices in the banking industry were examined. The
outcome of the study indicated that courtesy and responsibility
towards customers and top management commitment are significant for
satisfaction. In line with the above arguments, the study comes up
with the following proposition:
Proposition 1: There is a significant relationship between total
quality management and performance of Nigerian public Universities.
Total Quality Management, Corporate Entrepreneurship and Performance
of Public Universities
The association between corporate entrepreneurship and organizational
performance was examined by prior studies and the possible findings
are: Morris and Jones (1995) have examined the role of environmental
turbulence on human resource management practice and corporate
entrepreneurship relationship. HRM practice was found to be the major
predictor of corporate entrepreneurship in most of the business firms
that are operating in the turbulent environment. Barrett, Balloun and
Weintein (2003) examined moderating effect of marketing mix factors
on the relationship between CE and BP. A strong association between
CE behavior and BP was established based on the outcome of the study.
Marketing mix factors such as product quality, pricing and promotion
have moderated CE and BP relationship. In support of previous studies
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Antoncic and Hisrich (2003) found the linkage between privatization
and corporate entrepreneurship to be positive in addition to its
mediating effects on CE activities.
Additionally, Jennings and Hindles (2004) empirically evaluated the
equifinality of CE through the analysis of structure, strategy and
performance. One hundred and forty eight firms that specialize in the
distribution of electrical materials in the US between 1998-2002 were
selected as the sample. Based on the results, entrepreneurial and
non-entrepreneurial organizations that recorded increase in the
performance level are those with an optimum structural match.
Similarly, Antoncic and Zorn (2004) corporate entrepreneurship was
found to be a good mediator on the organizational performance
relationship. The study was a cross-sectional research design and the
responses were obtained by the use of mail questionnaire.
However, the outcome of the study of Kaya (2006) reported human
resource management practice to mediate partially CE and FP
relationship, whereas CE has direct positive relationship with FP.
Antoncic (2006) results have established single business and vertical
diversification to be of great relevance through its direct effects
on firm`s growth and profitability; but not in terms of corporate
entrepreneurship strategy making`s indirect mediation effects.
Additionally, Kellemanns and Eddleston (2006) discovered technology
opportunity recognition and willingness to change to have a
positively correlation with CE; while strategic planning moderating
effect on the association between technology opportunity recognition
and generational involvement and CE was found to be significant. In
2007, Yang, Li-Hua, Zang and Wang put forward an argument pertaining
to corporate entrepreneurship and market performance in China based
on responses collected using questionnaire survey. The results
identified some of the key dimensions of corporate entrepreneurship
to exercise varying degree of influence on market performance in
China.
Hernonen
(2007)
examined
entrepreneurial-directed
approach
to
teaching of corporate entrepreneurship (CE) designed within one
university-level course for Master’s level students. Both qualitative
and observation research methods were employed at the time of the
course and during completion of the program, results indicates
positive relationship between the study constructs. Thorgen, Wincent
and Ortquist (2009) results also has supported the reciprocal
causation model. Zampatakis and Moustakis (2010) examined corporate
entrepreneurship stimulants in the Greek public sector. Bayesian
factor analyses was employed and the sample comprises of fifteen
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Greek. The results specified the relationship between entrepreneurial
civil servant preferences and CE as significant.
Lechner and Gudmundson (2014) empirically studied three hundred and
thirty five randomly sampled Icelandic firms. Mixed findings were
reported
on
the
relationship
between
the
dimensions
of
entrepreneurial orientation, form strategy and performance. The
relationship between innovativeness and differentiation was found to
be positive; while aggressiveness and risk taking relate negatively
with cost leadership and differentiation. Hence, the relationship
between
cost
leadership
and
differentiation
strategies
and
performance is positive and significant. Similarly, Filser and Eggers
(2014) using multiple regression method examined entrepreneurial
orientation and firm performance. The results indicated mixed
findings, a positive association between risk taking, innovativeness
and performance of firms was found, but negatively associated was
reported between pro-activeness and firm performance. In line with
the above arguments, the study comes up with the following
propositions:
Proposition 2: There is a significant relationship between corporate
entrepreneurship and performance of Nigerian public Universities.
Proposition 3: Does
corporate
entrepreneurship
moderates
the
relationship between total quality management and performance of
Nigerian public Universities.
2.2 Underpinning Theory
Resource Based View (RBV)
Resource Based - view theory (RBV) will be used to underpin this
study. The need for organization to have competitive advantage
through unique development of resource is the fundamental concern of
resource-based view theory (Barney, 1991). Though there is no
consensus among researchers about the actual meaning of resources
based view notion, thus, give room for using words such as resources
and capabilities interchangeably (Christene & Overdorf, 2000; Gold,
Malhorta & Segars, 2001; Shehu & Mahmood, 2014). RBV described
resources as either capability, processes or assets.
Barney (1991) asserted that increase performance can be achieved when
an organization is able to acquire resources of economic value that
are rare, unique and difficult to either alternate, copy or imitate
by competitors and other corporate rivals. Therefore, focusing on
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development and utilization of peculiar resources should be the
priority of each and every organization for their own benefit. Amit
and Schoemaker (1993) regarded resources as those assets that an
organization processed through ownership and control, whereas
capabilities are more concern with the ability of an organization to
combine and adequately use resources.
The RBV is of the view that possessions may result to the
actualization of overall organizational objectives, whereas others do
not. Therefore, it lies on the ability of an organization to find
resources that will make the organization to have an impetus in the
realization of overall corporate performance (Wade & Hulland, 2004).
Therefore, the underpinning theory for this study is the RBV, since
it has provided better explanations on the interaction between the
firm resources and competitive advantage for improve firm performance
(Barney, 1991; Fahy, 2000; Shehu & Mahmood, 2014). Mills, Platts and
Bourne (2003), classified resources according to the following:
intangible resources and network resources and potential dynamic
capabilities, cultural values and resources, knowledge resource,
tangible resources. Similarly, Fahy and Smithee (1999) and Fahy
(2000) considered resources as: capabilities, intangible and tangible.
Therefore, resources are those input that were injected into a
production process of an organization with the sole aim of improving
competitiveness and performance.
This study will adopt the intangibility perspective of RBV since the
fundamental focus of intangibility centered on resources like
reputations, innovation and other relevant strategies that make an
organization to gain competitive advantage in the environment (Mills
et al., 2003; Shehu, 2014). Using such resources will assist the
university to acquire internal competence and get strength and
capability needed in the formulation and implementation of strategy
for the achievement of the fundamental objectives which is the
academic excellence.
3.
METHODOLOGY
3.1
Partial Least Square (PLS-SEM)
This study has the intension of using Partial Least Squares (PLS)
path model in the data analysis, because PLS has some level of
flexibility and provide room for the usage of small data during data
analysis.
PLS technique is also reported as the most preferred
method in the analysis of cause and effect relationship (Lowry &
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Gaskin, 2014).
3.2
Proposed Framework
Figure 2.1 Proposed Frameworks
4.
CONCLUSION AND IMPLICATION
The paper discusses moderating effect of corporate entrepreneurship
on the relationship between total quality management and performance
of public universities in Nigeria. The extant literatures argue that
delivery of quality services by the academic staff could as the
remedy of the current low performance of public Universities in
Nigeria.
The paper also argues that the entrenchment of corporate
entrepreneurship concept in the educational curriculum of the public
Universities will further enhance their performance.
Therefore, it
is in line with these that a research framework that will examine the
moderating effects of corporate entrepreneurship on the relationship
between
total
quality
management
and
performance
of
public
Universities in Nigeria is proposed. The study if empirically
validated will bring an insight on policies that affect Nigerian
educational sector as well as the public Universities. The study is
expected to be found very valuable to the public Universities in
particular and Nigerian government in general. This is because the
Nigerian government can evolve appropriate measures that could halt
continued decline in the performance of public universities by
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creating a more serene environment in the public universities for
teaching and learning process.
As for the academics, the proposed model if validated, it will be of
benefit as they will be presented with empirical evidence pertaining
to the performance of public universities that they serve.
This
means that the study will serve as a guide to them, especially as
they will realize that quality service delivery is essential for
improved performance of the public Universities.
Similarly, the
entrenchment of corporate entrepreneurship in the educational
curriculum and subsequent transfer of the concept to students will
further increase the level of the performance of the public
Universities in Nigeria. The study will benefit students considering
the fact that, corporate entrepreneurship training they will undergo
will add to the quality of education they acquire from the
Universities. With this it means that they are better trained to
become self-reliant and more focused in choosing their future carrier
either as employees or as employer of labor. On the other hand, it
means that when the students graduate, they will be more responsible
and engages in different types of occupation that will translate to
provision of employment opportunities, poverty alleviation and
reduction as well as increase in employment and income level that
could lead to the economic growth and development of the nation.
The study is also expected to be of benefit to the employers of labor
in the public and private sectors. This is because the labor market
will be flooded with job seekers in one hand and the employers of
labor on the other hand, always tried to employ graduates who are
competent
enough
and
academically
sound
to
hand
routine
organizational tasks and face emerging challenges that they may come
across as a result of changes in technology, programs, demand and
standards.
Similarly, employers of labor want to employ people who
are committed and dedicated to the job as they need maximum
return/profits. The study will also be of benefit to researchers.
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Article 5:
DEVELOPING AN EFFECTIVE LEADERSHIP MODEL TO SMULL OND MEDIUM SIZES
ENTERPRISES (SME) IN THE CONTEXT OF VIETNAM IS PREPARING FOR TPP.
PHAM NGOC SON; Vung Tau Province, Vietnam
Abstract
After being a member of WTO in 2007, Vietnam has gained many
achievements in economic and social aspects. In recent period, the
world situation has changed rapidly and profoundly as never before.
Under WTO commitments, Vietnam has to open its economic system and
accept new business models in free market. This has brought many
opportunities to small and medium-sized enterprises (SMEs) than ever.
More importantly, Vietnam is in the negotiating progress of TransPacific Partnership (TPP) agreement while the contribution of SMEs is
needed and an unavoidable key to the new challenge. The purpose of
this article aims to find out the relationship between leadership
models and employee’s job satisfaction among SMEs within the context
of Vietnam is preparing to join TPP agreement. To conduct the study,
the Ohio State Leadership studies and the Michigan Leadership Studies
were used as the theoretical foundation and used survey instruments
from permissions of the three sets of self-reported questionnaires,
including
Demographic
Characteristics,
Multifactor
Leadership
Questionnaire (MLQ) (Bass & Avolio, 1995) and Employee Satisfaction
Survey (ESS) (Spector, 1985). The results of the study indicated that
transactional leadership style and laissez-faire leadership style
significantly and inversely predicted overall employee satisfaction.
The findings of this study resulted in an addition to the body of
knowledge and could serve as a foundation for future research
regarding this relationship within the SMEs in Vietnam.
Keywords:
transactional leadership style, laissez-faire leadership
style, employee satisfaction, perceived leadership style
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1. INTRODUCTION
Following the commitment to WTO in 2007, Vietnam has to open the
opportunity to small and medium sized enterprises (SMEs) to take part
in the free market as other business models. Since 2007, many
policies and regulations have passed to support SMEs by the
government. Based on statistics from Ministry of Justice, Vietnam in
the past few years has experienced a robust growth of SMEs, which
accounted for 97% the total number of enterprises in the country.
Attaching with such growth, there are many vital roles and benefits
brought by SMEs, namely as job creation, enhancing income for
employees, encouraging various social resources for investment and
development, poverty reduction in locals and provinces, positive
effect on the growth of large enterprises, in which, including
industrial supporting industry (Phan, Nguyen, Mai, & Le, 2015). As a
report of the Ministry of Labor, Invalid and Social Affair, SMEs
create more than half million of new jobs; use more than 51% of the
labor force and contribute to 40% GDP. Tax and other fees’ payment
from SMEs to the State increased 18.4 times just after 10 years. Such
contributions from SMEs distributed into social affairs and other
developing programs (MOLISA, 2015).
In addition, the impact of globalization and the knowledge-based
economy forces developing countries to join the world economy system,
and the situation for them is much more difficult than before (Nam,
2015). The negotiation process to join Tran-Pacific Partnership (TPP)
also requires businesses in Vietnam have to change and improve
themselves if they do not want to withdraw the competition with
foreign competitors of other members of TPP. In this context,
managements of SMEs need to position themselves among competitive
market map. SMEs are the most common business formations in Vietnam.
They have predominated in Vietnam’s economic structure. Vietnamese
SMEs are diversified, flexible, efficient and hence relatively
competitive. These characteristics are among the key factors that
have helped Vietnamese small and medium enterprises survive in a
highly competitive and rapidly changing world economic environment.
Many studies proved the important role of SMEs in the economy
development of Vietnam, however, there is not any study about
effective leadership model which is appropriated with Vietnamese SMEs.
The SMEs’ organizational structures are different from large firms. A
leader is the primary soul of any enterprise. However, the leader of
Vietnam’s SMEs has higher affective power than a large firm leader.
Leadership has been defined as “the process of influencing the
activities of an organized group toward goal achievement” (Robinson,
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2006).
The
leader’s
leadership
style
could
directly
affect
subordinates’ working attitude, total production, and enterprises’
success.
The purpose of this quantitative correlational study is to determine
if a relationship exists between employees’ perceptions of leader’s
leadership style and the employees’ job satisfaction at SMEs in
Vietnam in the context of Vietnam is preparing to join TPP. In
addition, this study try to explain the suspicion about employee
perceptions of the leader’s leadership style can be used to predict
employee job satisfaction among SMEs in Vietnam. The participants of
this study are employees at SMEs in Vietnam. Data will be collected
using
three
sets
of
questionnaires,
including
Demographic
Characteristics, Multifactor Leadership Questionnaire (MLQ 5X), and
Job Satisfaction Survey (JSS). A pilot test will be conducted in
order to construct the validity and reliability of the questionnaires.
2. LITERATURE REVIEW
2.1. Review of Prior Studies
2.1.1. Leadership Theories
The researchers at Ohio State focused on examining leadership from a
behavioral or performance point of view. These studies sought to
describe the behavior of individuals in positions of leadership and
whether their leadership was effective or ineffective (Shartle, 1957).
A preliminary questionnaire composed of these items was called the
Leader Behavior Description Questionnaire (LBDQ) and was used by
samples of military and civilian personnel to identify their
supervisors’ behavior. As a result of these studies, two dimensions
of supervisors behavior were defined, one concerned interpersonal
relations (consideration) and the other with task objectives
(initiating
structure).
Yukl
(2012)
explained
both
behavior
dimensions:
1. Consideration is identified by characteristics that included
the leader being friendly, supportive, concerned, open and
consultative to a subordinate.
2. Initiating Structure occurs when the leader defines and
structures his or her own role, and the subordinates toward
attainment of the formal goals of the group.
The Ohio State researchers found it was the collective conclusion of
those involved in these studies that the most effective leaders are
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those who rate higher than average in both consideration and
initiating structure dimensions. However, critics have pointed out
that while “it is relatively easy to call certain behaviors of
leaders effective once the desired outcomes have been observed, it is
much more difficult to stipulate in advance the behavior of leaders
that result in the desired outcomes” (Bensimon, 1993).
A second program of research on leadership behavior was conducted at
the University of Michigan in the same time as the leadership studies
were explored at Ohio State. The approach of the Michigan research
was to examine the relationships among leader behavior, group process,
and measure of group performance. Interviews and questionnaires were
used to collect the information about managerial behavior. Objective
measures of group productivity were used to classify managers as
relatively effective or ineffective.
The research showed that three types of leadership behavior
differentiate between effective and ineffective leaders. Yukl (2012)
concluded that they are as follows:
1. Task-Oriented Behavior: Effective leaders did not waste their
time and effort doing the same work as their subordinates.
Instead, the more effective leaders concentrated on taskoriented functions. Furthermore, effective leaders lead
subordinates in setting performance goals that were high but
realistic.
2. Relations-Oriented Behavior: For the effective leaders, taskoriented behavior did not occur at the expense of concern for
human relations. The effective leaders were also more
supportive and helpful with subordinates, which included
showing trust, confidence, appreciation, and being friendly,
considerate and helpful.
3. Participative Leadership: Effective leaders used more group
supervision instead of supervising individual subordinates
separately. Subordinates participated in the group meetings
for
decision
making,
improved
communication,
promoted
cooperation, and facilitated conflict resolution. The role of
leader in group meetings should be primarily to lead the
discussion and keep it supportive.
2.1.2. Employee Satisfaction and Related Theories
Employee
satisfaction
is
not
considered
an
all-encompassing
description of employee engagement because it has traditionally been
researched at the individual level rather than the organization level.
Employee satisfaction is defined as the extent to which an employee
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has a positive affective orientation or attitude towards their job,
either in general or towards particular facets (Mostovicz, Kakabadse,
& Kakabadse, 2009). Employee engagement is measured at the
organizational
level
within
an
organizational
environment
to
adequately
account
for
organizational
performance.
Employee
satisfaction is an individual measure and is too narrowly defined as
a factor of engagement. An employee may be satisfied in his/her job
and find it personally rewarding, and yet not be committed to the
organization itself or prompted to be fully engaged at the
organizational level. Depending on the particular situations, one may
or may not be satisfied with such employment factors as management’s
interaction, communication, and involvement. Research suggests that
employee satisfaction influences organizational commitment, yet this
research does not address how an individual’s performance and
productivity and employee satisfaction impacts business results.
Essentially, employee satisfaction does not guarantee that an
employee would be motivated to perform, or is more dedicated to the
organization (Joshi, Lazarova, & Liao, 2009; Schullery, 2013).
The study of employee satisfaction has been tied to the concept of
subordinates’ motivation. Several human motivation theories have been
applied to explore employee satisfaction of subordinates and better
understand the relationship between the subordinates and organization.
Work motivation theories are often conceptualized in term of human
needs among these human motivation theories. The greatest influence
on the study of job satisfaction has come from the theory of human
needs espoused by Abraham Maslow (1954) and Frederick Herzberg (1959).
2.1.3. Review of Studies on the relationship between Leadership Style
and Employee Satisfaction
Bar-Tal (1991) studied that employee productivity and goals and
motivations determine satisfaction. The study revealed that a
leader’s personal and environmental factors might have certain value
in predicting employee behaviors due to the fact that leader behavior
is one of the components of employee’s environmental factors. The
path-goal theory has also been used to explore the moderating effects
of leadership behavior and employee satisfaction. Path-goal theory
provides a series of assumptions about the leader’s leadership styles
that will interact with subordinates’ characteristics and the work
setting to affect the subordinates’ motivation. Moreover, the pathgoal theory offers the direction for leaders to help subordinates to
accomplish their work in a satisfactory manner, such as by using
behaviors to increase the rewards valued by subordinates (House &
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Mitchell, 1974).
Bass (1985) developed the model, which reported that transformational
leadership was investigated in comparison to transactional leadership
and laissez-faire as well as in relation to outcomes of leadership.
The following studies will show the casual relationship among
transformational leadership, transactional leadership, laissez-faire
styles and employee satisfaction.
Seltzer and Bass (1990) surveyed a convenience sample of 250
employees of 85 full time managers and determined idealized influence
was the only significant and positive predictor for satisfaction with
leadership styles (p<. 001). The finding in this research revealed
that leaders presenting idealized influence more frequently advanced
employees’ satisfaction with leadership style; leaders performing
laissez-faire style more frequently reduced employees’ satisfaction
with leadership style.
Yammarino and Bass (1990) collected the leadership and outcome data
using the Multifactor Officer Questionnaire. Results showed that
transformational leadership and the outcomes were strong positively
related; transactional leadership and outcomes were less positively
related; and laissez-faire and the outcomes were negatively related.
They also indicated that there might be optimum levels of
transformational leadership for each subordinate. Some subordinates
may need or accept higher levels of transformational behaviors from a
leader than others. From these results revealed that leadership style
is
strongly
related
with
individual
subordinate’s
effort,
satisfaction and perceived leader effectiveness.
2.2. Conceptual Framework
Leadership is the ability to make sense of what people are doing
together so that people understand and be committed to the company
development. On the other hand, leadership style of management is
able to affect to the employees’ performance, so that inspire them to
commit more and contribute more to the success of the organization.
When the organization performs well, employees will trust and be
willing follow that leader’s direction. Indirectly, employees’
satisfaction will be enhanced with the degree of trust increase.
Especially to Vietnamese SMEs, the leadership styles influence much
on the employees’ satisfaction due to the characteristics of SMEs and
the attitude of employees to the leader. With this study, the survey
of employees in SMEs occurred in order to determine if a correlation
exists between leadership styles and employee’s satisfaction within
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the context of Vietnam is preparing to join TPP in short future. For
the purposes of this study, the predictor variable was the leadership
style, and the criterion variable was employee satisfaction.
The following research questions and their corresponding hypotheses
and the conceptual framework guided this study:
• H1a: There is a correlation between Perceived Leadership Style
and Employee Satisfaction among SMEs in Vietnam.
• H2b: Perceived Leadership Style can be used to predict Employee
Satisfaction at SMEs in Vietnam.
3. RESEARCH METHODOLOGY
3.1. Research Instruments
The
instruments
of
this
research
included
three
sets
of
questionnaires: (1) Demographic Characteristics (DC), (2) Multifactor
Leadership Questionnaire (MLQ), and (3) Employee Satisfaction Survey
(ESS).
3.1.1. Demographic Characteristics (DC)
To understand the demographic and background information of
respondents, the researcher designed five questions to gather the
information from the participants. The questions included gender, age,
educational background, marital status, and years of professional
experience.
3.1.2. Multifactor Leadership Questionnaire (MLQ)
The
Multifactor
Leadership
Questionnaire
(MLQ)
was
initially
developed by Bass (1985) of the Center for Leadership Studies at
Binghamton University. There have been several times of revisions to
the MLQ since 1985; the previous models fell short of explaining a
“full range” of leadership styles and behaviors, the full range model
of leadership was developed to broaden the range of leadership styles
and behaviors (Bass & Avolio, 2000).
The MLQ contains of 45 items, with the nine leadership dimensions.
Each dimension contains four items, and the outcomes of satisfaction,
extra effort and effectiveness addressed by two, three and four items
individually.
The
leadership
dimensions
of
transformational
leadership are: (1) Idealized Influence (Attributed), (2) Idealized
Influence (Behavior), (3) Inspirational Motivation, (4) Intellectual
Stimulation, and (5) Individualized. The leadership dimensions of
transactional leadership are: (1) Contingent Reward, (2) Management
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by Exception (Active), and (3) Management by Exception (Passive). In
addition, the dimension of Laissez-Fair Leadership is also included.
These MLQ items are evaluated on a 5-point Likert scale ranging from
0 to 4.
3.1.3. Employee Satisfaction Survey (ESS)
The ESS was developed by Spector (1985), contains nine facets of
employee satisfaction, as well as overall satisfaction. The original
name of this survey is job satisfaction survey (JSS). However, to
help respondents understand clearly and to make it be familiar with
Vietnamese language, author changed a little bit on sentence’s
structure and context, so, the new version is called ESS. The nine
facets of employee satisfaction are: (1) Pay, (2) Promotion, (3)
Supervision, (4) Fringe benefits, (5) Contingent rewards, (6)
Operating conditions, (7) Coworkers, (8) Nature of Work, (9)
Communication. The scale includes 36 items and uses a summated rating
scale format. This format is the most popular for employee
satisfaction scales. The responses to the ESS items are numbered from
1 to 6; hence, a respondent is asked to circle/click one of six
numbers that corresponds to his/her agreement or disagreement about
each item (Strongly Disagree (1) to Strongly Agree (6)). Each of the
items of ESS is a statement that is either a positive aspect or a
negative aspect of the job. An item in the positive aspect is one for
which agreement indicates employee satisfaction. Before the items are
combined, the scoring for the items in the negative aspect must be
reversed. Consequently, people who agree with positive aspect items
and disagree with negative aspect items will have high scores
representing employee satisfaction. People who disagree with positive
aspect items and agree with negative aspect items will have low
scores representing employee dissatisfaction.
3.2. Data Collection Procedure
In agreement with the data collection procedures, only employees who
were currently working full-time at SMEs received an invitation to
complete the survey. The distribution of research surveys occurred
over a period of four weeks with 3,000 SMEs employees having received
the survey and 203 (N = 203) having completed the survey. The
collection of the required data occurred using an anonymous selfadministered internet-based survey administered through the Google
Drive survey tool.
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3.3. Data Analysis Procedure
The self-administered internet-based survey distributed by Google
Drive yielded the required data for testing the research hypotheses.
The export of the collected data to a statistics program enabled
analysis. The participant responses received numerical values to
facilitate statistical analysis. Descriptive statistics, including
frequencies, means, standard deviations and percentages, were
reported in order to examine the demographic data, perceived
leadership style and the employee satisfaction. The .05 level of
statistical significance was used to test the hypothesis in this
study (Field, 2009). After that, T-test, one-way analysis of variance
(ANOVA) and the Scheffe post-hoc test were used to determine whether
any significant relationships existed among respondents between
managers’
leadership
style
and
the
employee
satisfaction,
respectively regarding their demographic characteristics.
Finally, Stepwise Multiple Regression Analysis was used to examine
the relationships between the variables of managers’ perceived
leadership style (including transformational leadership style,
transactional leadership styles and laissez-faire leadership style)
which perceived by employees and employee satisfaction, as well as
how these variables predict the level of employee satisfaction.
4. ANALYSIS AND FINDINGS DISCUSSION
4.1. Reliability Analysis
To assess if the items in the questionnaires provide accurate
assessment of leadership styles (which is perceived by respondents)
and employee satisfaction, the MLQ and ESS were subjected to
Cronbach’s
Alpha
Internal
Consistency
Reliability
to
delete
inconsistent items that failed to obtain their intended construct.
Cronbach’s Alpha Coefficients were calculated, and the final results
of each factor of MLQ and ESS are shown as follows:
Table 1. Reliability of Multifactor Leadership Questionnaire (MLQ)
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and Employee Satisfaction Survey (ESS)
The Cronbach’s Alpha statistic facilitated the determination that
each scale had internal reliability. The results (α = .89, α = .77)
indicated
that
the
entire
scale
of
Multifactor
Leadership
Questionnaire (MLQ) and Employee Satisfaction Survey (ESS) were
internally reliable, respectively (see table 1). This means the MLQ
and ESS were well-designed measures of leadership styles (perceived
by respondents) and employee satisfaction of the survey respondents.
These results supported the internal consistency of the responses to
the MLQ and ESS items that contributed to the generation of the
constructs.
4.2. The Relationship among Leadership
respondents) and Employee Satisfaction
Styles
(as
perceived
by
The predictor variable for this study was Perceived Leadership Styles
and the criterion variable was Employee Satisfaction. The Multiple
Regression Analysis enabled the determination of whether the control
variables accounted for any variation in the relationship between
perceived leadership styles and employee satisfaction. Table 2
contains the regression analysis of the combined control variables as
they relate to employee satisfaction. The p-Value indicated that Age
and Years of Professional Experience were statistically significant.
While Gender, Marital Status, Education Background were not
statistically significant.
Table
2.
Control
Satisfaction
Variables
Regression
Analysis
by
Employee
Additionally, Table 3 contains the regression analysis of the
predictor variable as it relates to employee satisfaction. The pValue indicated that perceived leadership style was statistically
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significant.
Table 3. Predictor
Satisfaction
Variable
Regression
Analysis
by
Employee
Table 4 contains the model summary by employee satisfaction. The RSquare statistic for the control and the predictor variables combined
was .740, indicating that the model accounted for approximately 74.0%
of the variation in employee satisfaction. The R-Square statistic for
the predictor variable was .712 or 71.2%, so the five control
variables only accounted for an additional 2.8% improvement, with Age
and the years of professional experience accounting for 2.1% of that
improvement.
Table 4. A Model Summary by Employee Satisfaction
4.3. Analysis of the Relationship between Perceived Leadership Styles
and Employee Satisfaction
To test the hypothesis, researcher has conducted the multiple
regression analysis technique. Multiple regression is an extension of
simple linear regression. It is used when we want to predict the
value of a variable based on the value of two or more other variables.
The variable author wanted to predict was called the dependent
variable (or criterion variable such as employee satisfaction). The
variable author was using to predict the value of the dependent
variable was called the independent variables (or the predictor such
as perceived leadership style).
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According to the analysis results, the Multiple Regression Analysis
facilitated the determination that the predictor variable (perceived
leadership style) had a significant relationship with the criterion
variable (employee satisfaction). The regression model accounted for
69% of the total variations of employee satisfaction. To conduct the
analysis, the hypothesis was tested.
With respect to the relationship between perceived leadership style
and employee satisfaction, the Multiple Regression Analysis results
in Table 5 indicated that the perceived leadership style had a
statistically significant effect on employee satisfaction, with a pValue of .000. The Beta for this relationship was .801. The positive
Beta meant that for each one-unit increase in perceived leadership
style the expected value of employee satisfaction would increase by a
standard deviation of .801.
Table 5. Relationship of Perceived Leadership
Satisfaction
Style
to Employee
Table 6 contains the Pearson Correlation Coefficient results for
perceived leadership style and employee satisfaction. The results (r
= .725) indicated a strong, positive correlation between perceived
leadership style and employee satisfaction. Additionally, with the
statistical significant at the .05 level, the results (p = .000)
indicated that the perceived leadership style was significant at the
0.01 level. Therefore, H1a was accepted.
Table 6. Correlation between Perceived Leadership Style and Employee
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Satisfaction
4.4. Analysis of the Different Perceived Leadership Styles Predicting
Employee Satisfaction
The study also attempted to test from the data the relationship
between
different
perceived
leadership
styles
and
employee
satisfaction.
Table 7. Regression Results of Different Perceived Leadership Styles
and Employee Satisfaction
Different perceived leadership styles and employee satisfaction are
positively related such that a unit change in perceived leadership
style will lead to .511 changes in employee satisfaction. Different
perceived leadership styles explain 27.5% of changes in employee
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satisfaction while the difference is explained by factors outside
this model.
5. SUMMARY, CONCLUSION, AND RECOMMENDATIONS FOR FUTURE RESEARCH
5.1. Summary of Findings
With respect to the first research question and corresponding
hypothesis, the researcher tested to determine whether a correlation
exists between leadership style, as perceived by respondents, and
their employee satisfaction. The results of the Pearson Correlation
Coefficient indicated that the data were consistent with the
hypothesis by determining a correlation existed between the variables.
Specifically, the results indicated a strong, positive relationship
(r = .725; p = .000) between perceived leadership style and employee
satisfaction at a significance level of 0.01.
Moreover, results revealed that the three perceived leadership styles,
including transformational leadership style, transactional leadership
style and laissez-faire leadership style, emerged as the significant
predictors of employee overall employee satisfaction at SMEs in
Vietnam.
Transformational
leadership
style
significantly
and
positively predicted all individual facets of employee satisfaction
and overall employee satisfaction, and it appeared as the strongest
single predictor among three perceived leadership styles for employee
satisfaction. The transactional leadership style and laissez-fair
leadership style significantly and inversely predicted overall
employee satisfaction.
5.2. Discussion of Findings
Beyond testing the correlation between perceived leadership style and
employee satisfaction, this study also try to find out the answer of
the research question “Can Perceived Leadership Style be used to
predict Employee Satisfaction at SMEs in Vietnam?” To come up with
the answer, the stepwise multiple regression analysis was used to
examine the relationships between the variables of perceived
leadership styles (including three different styles) and employees
satisfaction, as well as how these variables predict employees
satisfaction. The results of analysis revealed that overall perceived
leadership style emerged as the significant predictor of the employee
satisfaction.
Particularly,
transformational
leadership
style
significantly and positively predicted all respective facets of
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employee satisfaction and overall job satisfaction; it appeared as
the strongest single predictor among the three perceived leadership
styles toward employee satisfaction. The transactional leadership
style and laissez-faire leadership style significantly and inversely
predicted overall employee satisfaction. Therefore, the second
hypothesis was supported. Thus, the answer for research question is
“Employee perceptions of the leader’s leadership style can be used to
predict employee satisfaction at SMEs in Vietnam.”
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questions need more attention. Academy of Management Perspectives,
26(4),
66-85.
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Article 6
GOOD WORKSHOP MANAGEMENT TECHNIQUES FOR TEACHING WELDING IN HO CHI
MINH CITY VOCATIONAL COLLEGE
TRAN VIET PHU; Ho Chi Minh City, Vietnam
Abstract
Vocational colleges are institutions that provide post-secondary
level education in technical education. Technical education is that
aspect of education that leads to the acquisition of practical and
applied skills as well as basic scientific knowledge.
The aim of vocational colleges is to produce graduates with saleable
skills, knowledge and attitude necessary for effective employment and
who can actually function well in their place of employment. In
vocational colleges, technical teachers give training in various
disciplines
such
as
woodwork,
metalwork,
building
and
electrical/electronic technology to mention but a few. Each of the
above disciplines (including welding technology) is usually headed by
the most senior teacher usually referred to as the head of department.
Unfortunately the management of technology workshops by teachers in
Ho Chi Minh Vocational College leaves a lot to be desired. The task
of this study therefore is to identify workshop management techniques
needed to improve the teaching of welding technology in Ho Chi Minh
Vocational College. Specifically the study determined:
1. The workshop planning techniques needed by welding technology
teachers for good workshop management system in Ho Chi Minh
Vocational College
2. The workshop organizing techniques needed by welding
technology teachers for good workshop management system in Ho
Chi Minh Vocational College
3. The workshop coordinating techniques needed by welding
technology teachers for good workshop management system in Ho
Chi Minh Vocational College
4. The workshop techniques for implementing workshop instruction
needed by welding technology teachers for good workshop
management system in Ho Chi Minh Vocational College
5. The workshop evaluating techniques needed by welding
technology teachers for good workshop management system in Ho
Chi Minh Vocational College
The study adopted survey research design. The population for the
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study was 25 teachers of welding technology working in Ho Chi Minh
Vocational College. The entire population was involved in the study
because of its manageable size. A structured questionnaire (Workshop
Management Techniques for Improving Teaching of Electrical technology
Questionnaire (WMTITET)) consisting of 56 items was developed and
used for data collection.
Based on the data analyzed, the following major findings emerged:
1. All the 56 techniques distributed into five components
contributed to a good workshop management system in Ho Chi
Minh Vocational College
2. There is no significant difference between teaching
experience and workshop management techniques of the teachers
in Ho Chi Minh Vocational College
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1. INTRODUCTION
The point of technical & vocational colleges is to produce graduates
with saleable aptitudes, data and state of mind fundamental for
powerful job and who can really work well in their place of
livelihood.
Welding is a technical subject taught as part of introductory
technology in the vocational training schools and as an engineering
subject in technical colleges. Welding technology curriculum in
technical & vocational colleges was designed to train and produce
craftsmen who are proficiently skillful in the welding and
maintenance of all types of metal and mechanical parts.
Workshops are intended to give important in-school down to earth
experience to understudies. It is a room or working in which items
are made or repaired utilizing devices or hardware.
Workshop administration strategies keep the workshop materials,
machines and instruments in great working conditions if legitimately
connected by the Trainer/Lecturers. Workshop administration is
effective if the goal for dealing with the workshop is completely
accomplished.
The workshops often contain expensive facilities which should not be
handled by people who lack preparation in organizing and managing
such facilities (Ulinfun, 1993). Vietnam has imported some sets of
technical equipment from countries like USA, Russia and Germany. In
spite of these importations, most of the workshops in the colleges
are in bad conditions, while in some technical colleges, tools,
equipment and machines have been vandalized and some parts stolen due
to lack of experiences in workshop management. Also, there are
breaches of safety precaution rules among students and staff in
operation of dangerous machines in the workshops.
Hence, this study tries to find a solution to the Good Workshop
Management System that can be applied in teaching the welding
technology courses to the students of vocational colleges.
This study meant to find workshop management system that can be
applied in teaching welding technology in Ho Chi Minh Vocational
College of Technology
In particular, the study sought answers to the following research
questions:
1. How
may
the
good
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technology be described in terms of:
1.1 Planning;
1.2 Organizing;
1.3 Coordinating;
1.4 Implementing; and
1.5 Evaluating?
2. Is there a significant relationship between the teaching
experience and the workshop management methods of the welding
technology trainer and lecturers?
HYPOTHESIS
The following hypotheses were formulated and tested at 0.05% level of
significance:
Ho1: There is no significant difference between the mean responses of
welding technology teachers with below five years and above five
years of teaching experience on the workshop planning techniques
Ho2: There is no significant difference between the mean responses of
welding technology teachers with below five years and above five
years of teaching experience on the workshop organizing
techniques
Ho3: There is no significant difference between the mean responses of
welding technology teachers with below five years and above five
years of teaching experience on the workshop coordinating
techniques
Ho4: There is no significant difference between the mean responses of
welding technology teachers with below five years and above five
years of teaching experience on the workshops implementing
techniques
Ho5: There is no significant difference between the mean responses of
welding technology teachers with below five years and above five
years of teaching experience on the workshops evaluating
techniques
THEORETICAL AND CONCEPTUAL FRAMEWORK
The relationship among the concepts use in this study are shown in
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the schema below
In workshop management techniques, planning is the first stage. It is
followed by the organization of the workshop instructions. Following
this stage is the coordinating techniques which is link to techniques
for implementation of workshop instructions. Evaluation is the last
technique in the workshop management; after evaluation feedback is
given to technical colleges on workshop management techniques.
SCOPE AND DELIMITATION
This study was limited to workshop administration framework and
systems embraced by welding innovation educators in HCM Technical &
Vocational College. It didn't cover different schools and colleges.
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The concentrate particularly harped on workshop administration
framework
and
procedures
controlled
by
welding
innovation
Trainer/Lecturers furthermore; it secured methodologies to enhance
the present workshop administration framework.
The primary variables to be secured by this study are arranging,
sorting
out,
planning,
actualizing
and
assessing
procedures.
Variables, for example, controlling, driving, coordinating and so on
were not secured.
SIGNIFICANCE OF THE STUDY
The findings of the study will be of huge advantage to the
accompanying; welding innovation educators, welding innovation
understudies, principals of specialized universities, division of
professional instruction in Ministry of Education and Training.
(MOET)
2. REVIEW OF RELATED LITERATURE AND STUDIES
Theoretical framework for the study is based on management theories
and vocational education theories. In management theories, Scientific
Management Theory will be used for the study, while in vocational
education theories, The Process Habit Theory will be used for the
study.
2.1 Management of Welding Workshops
Welding workshop is a building in which machines or metal parts are
made or repaired using hand tools or machinery. Welding workshop is a
place where students at the technical colleges are introduced to
practical skills. The students will develop appropriate attitudes
towards work; attitudes which would enable the individual recognize
the need for work in a society and appreciate the joy that can be
derived from working. Such attitudes are of values not only to the
individual concerned, but to the society as a whole (Okoro, 1993).
Welding workshop should be equipped with tools, machines, equipment
and materials to enable the students acquire the necessary skills for
placement in the work of life (Anaemena, 2001). These tools,
equipment, machines and materials should be properly managed to give
the necessary knowledge and skills. Also proper care and maintenance
should be carried out by the workshop personnel for their proper use
and ensure long life of the tools, equipment and machines.
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2.2 Importance of Workshops in Technical Colleges
Workshop provides for the teachers the much needed variety in
instruction, using various instructional channels. This variety in
instruction helps to stimulate the interest and desire of learners to
learn effectively.
Workshop experience help to equip learners with modern skills and
problem-solving techniques in industrial and workshop related tasks.
It helps the learners to develop useful work habits and creative
ability through direct interaction with work, using real materials.
2.3 Organization of Workshop Facilities
Olaitan and Mama (2001) defined organization in the workshop context
as arrangement of all requisite resources including human, workshop
tools, utensils and material in a systematic order, such that when
they are being used or applied in the school workshop, the workshop
operations will be without interruption or gaps in the activities and
time plan to adversely affect learning or production. The instruction
plan must have specified all the tools, equipment and materials
needed for specific shop activities or instruction. Olaitan and Mama
emphasized that material and tools need to be assembled or their
locations identified for easy retrieval for use where they are needed.
2.4 Workshop Management in Vocational Colleges (Including Welding
Workshop)
The aim of management of resources is to co-ordinate the human,
physical material and financial resources so that they become at
least instrumentally and economically efficient. According to Elom
(2009), management of resources or facilities for effective
instruction in a welding workshop is very important in all aspects
for enhancing technical education. As a part of policy planning, the
limited resources allocated to run the workshops should be used with
all types of techniques and ideals following the determined process
to achieve the general goals of technical education program. Danjuma
(2005) revealed that lack of proper management such as training of
technical teachers, provision and maintenance of technical facilities
are what is killing the program.
The workshop management in technical schools according to Umar (2010)
therefore is the involvement of staff in planning, organizing,
coordinating, evaluating and controlling the training facilities and
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students for the purpose of teaching and learning skills in various
occupations in meeting with the technical education objectives.
According to Danjuma (2008) workshop management techniques that are
concerned with the improvement for teaching of welding technology in
technical colleges includes:
2.4.1 Planning Techniques for Effective Welding Workshop Instructions
Umar (2010) stated that the guidelines for planning school workshop
must include consideration for the development of each learner, the
talented and the handicapped. He added that the learning environment
must be flexible, safe, secure, accessible and organized. Nwachukwu
(2001) opined that for the planning to be effective in school
workshop instructions, the followings should be considered.
 Availability of Adequate
Workshop Practice
Materials,
Tools
and
Equipment
for
 Proper Scheduling of Workshop Activities
 Proper Arrangement in Workshop Practice
 Arrangement of students in controllable groups often yields good
results.
 Ensuring of Safety Provision in Workshop Practice
2.4.2
Organizing
Instructions
techniques
for
effective
welding
workshop
Ede and Attama (2010) in their contribution on organization of school
workshop instruction said it involves various techniques such as:
 Arranging for Procurement of Tools and Materials to be used in
School Workshop
 Arranging
for
Instructions
 Arranging
Projects
Activities
Students
2.4.3 Coordinating:
Instructions
in
to
Groups
Techniques
to
for
achieve
Execute
Effective
effective
Workshop
Particular
Workshop
Welding
workshop
According to Whawo (1999) coordinating is the bringing together of
related activities in school workshop to ensure a frictionless flow
of work. Wale (2004) looked at coordinating process in terms of
workshop management as ensuring that workshop programs and activities
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are being brought together, harmonized and unified for effectiveness
of workshop instructions. Akpakwu (2008) in his contribution said
that coordinating is the synchronization of the staff, students and
material resources to achieve effective workshop instructions.
According to him electrical technical teachers and instructors could
achieve effective instructions in their workshops by carrying out the
following coordinating activities among others with the students
thus:
 Supervising Students’ Work Activities in the Welding Workshop
 Ensuring that Different Tools, Machines
harmoniously used in the Workshops
and
Equipment
are
 Interpreting and Analyzing Different Types of Practical Projects
to the Students.
 Ensuring that the Effort of the Individual Students are Unified
2.4.4
Techniques
Instructions
for
Implementing
Effective
Welding
workshop
Implementation in the context of school workshop management means
putting into action all the activities planned and organized in the
workshop, (Ezeji, 2001). According to Olaitan and Mama (2001) before
any implementation can take place there must be a plan and
organization of resources for making that plan effective when put
into action. The teacher of welding technology therefore, should plan
and organize school workshop activities using his competence and
experience before finally executing or implementing the workshop
planned activities in the schools shop. The following implementation
activities are necessary among others for effective instructions in
workshop, thus:
 Preparation of a Time Table of the School Workshop Activities
 Adhering Strictly to the Program of Workshop Activities
 Reviewing of the Program of Workshop Activities Periodically
 Relating Teaching to Work Situation
2.4.5
Evaluation
Instructions
Techniques
for
Effective
Welding
workshop
Nwachukwu (2001) looked at evaluation in an educational setting as
the process of determining how much learning the students have
acquired. In general terms, it is the process of reaching decisions.
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The evaluation of instructional programs in technical education has
unique purpose. This emanates from the nature of technical education.
It is regarded as that aspect of education which leads to the
acquisition of practical and applied skills as well as basic
scientific knowledge. For this reason, evaluation is more than
examining the achievement of objectives from learners, nor the
evaluation of the teachers. It includes the evaluation of objectives,
personnel, student’s organization, and content, teaching methods,
facilities, equipment and other resources.
Evaluation of technical education students in classroom does not vary
very much from the evaluation of students in other academic areas
(Udoh, 2003). However, evaluation of students in the workshop,
laboratory or fieldwork settings differ from ordinary classroom
evaluation. Education of technical students in these settings
according to Udoh (2003), emphasize cognitive, psychomotor and
affective domains of learning. This kind of evaluation is said to
include the process as well as the product which emphasis are laid on
development of procedures, skills, development and work habits (Udoh,
2003).
2.5 Competency Improvement Needs Possessed and Needed by Vocational
Teachers
The success of any educational program is largely dependence on the
quality of its teachers. These teachers must be competent in the
subject matter they teach. They should master properly the techniques
of instruction and must have the desire or willingness to teach
(Olatain, 1993). Miller and Rose (1995) listed six broad qualities of
a competent technical teacher thus:
 Competent in the subject being taught:
 Mastery of the techniques of instruction;
 Resourcefulness and creativeness,
 Knowledge and application of evaluation procedure;
 The desire to teach and
 Ability to develop good personnel relationship.
Commenting on the equipment maintenance and record keeping competency,
Wale (2004), stressed that records should be properly kept by
teachers for the purpose of easy identification of materials and
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location of items. Wale also recommended a terotechnological approach
to maintenance in which the research and development specification,
design and manufacturing of facilities are noted for function and
reliability. Wale pointed out that if this is not properly done, the
rate of breaking down of machines may be high. Regular maintenance of
equipment and machine by teachers will minimize breakdown, prolong
life span, reduce cost and enhance the production of desired quality
of any product in the workshop.
3. RESEARCH METHODS
The overview plan or outline indicates how such data will be gathered
and investigated subsequent to the study involves the accumulation of
data from the respondents using survey to distinguish workshop
administration
procedures
for
enhancing
educating
of
welding
innovation in HCM Technical & Vocational College, this research
design is accordingly most reasonable for the study.
RESEARCH LOCALE
The research was conducted in Ho Chi Minh Technical and Vocational
College.
The researcher by and by reached the 25 welding innovation educators
of HCM Technical & Vocational College and regulated duplicates of the
poll to the respondents. He gave the respondents three weeks to
answer them. The finished duplicates of the survey were gathered
following three weeks by the researcher.
THE RESPONDENTS
The population for the study comprised of 25 welding innovation
educators chose from HCM Technical & Vocational College. The whole
population was included, thus there was no sampling
INSTRUMENTATION
The instrument for data accumulation for this study was a structured
questionnaire. It comprised of 56 items created by the researcher
from writing taking into account the analysis questions.
The poll was isolated into six segments (A, B, C, D, E and F). Area
An evoked individual data from the respondents. Area B has seventeen
(17) items on the arranging workshop methods required for good
workshop administration framework. Segment C has ten (10) items and
manages the association of workshop procedures required for good
workshop administration framework. Area D has eleven (11) items on
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the procedures for organizing workshop required great workshop
administration framework. Area E has nine (9) items on workshop
execution procedures required for good workshop administration
framework. While Section F has nine (9) items on workshop assessment
strategies required for good workshop administration framework in
specialized schools.
4. RESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1
Workshop
Management
Methods
of
the
welding
Trainer/Lecturer in HCM Technical & Vocational College
technology
 Planning - all the 17 items have their mean qualities reached
out from 3.56 to 4.14. This exhibited the mean estimation of
everything was over the cut-off reason for 3.50, demonstrating
that all the workshop organizing methodology are required by
instructors
of
welding
development
for
good
workshop
organization structure in HCM Technical and Vocational College.
 Organizing - nine out of 10 items have their mean qualities ran
from 3.50 to 4.04. This demonstrated the mean estimation of
items was over the cut-off purpose of 3.50, showing that
exclusive nine workshop sorting out procedures are required by
Trainer/Lecturers of welding innovation for good administration
framework in HCM Technical & Vocational College.
 Coordinating - all the eleven items have their mean qualities
extended from 3.56 to 4.04. This demonstrated the mean
estimation of items was over the cut-off purpose of 3.50,
showing that all the workshop organizing procedures are required
by
Trainer/Lecturers
of
welding
innovation
for
good
administration framework in HCM Technical & Vocational College.
 Implementing - all the nine items have their mean qualities
extended from 3.52 to 4.08. This demonstrated the mean
estimation of items was over the cut-off purpose of 3.50,
showing that all the workshop actualizing methods are required
by educators of welding innovation for good administration
framework in HCM Technical & Vocational College.
 Evaluating - all the nine items have their mean qualities went
from 3.56 to 4.10. This demonstrated the mean estimation of
items was over the cut-off purpose of 3.50, showing that all the
workshop assessing procedures are required by Trainer/Lecturers
of welding innovation for good administration framework in HCM
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Technical & Vocational College.
4.2 Relationship between the showing knowledge and the workshop
administration strategies of the welding innovation lecturer/trainer
in HCM Technical & Vocational College
 The 17 items had their figured t-values ran from 0.03 to 0.83
which were not as much as t-table estimation of 1.68 at 0.05
level of noteworthiness and at 48 level of flexibility (df).
This demonstrated there was no noteworthy contrast between the
mean reactions of welding innovation educators with underneath
five years or more five years of showing knowledge on the
workshop arranging methods of the Trainer/Lecturer in HCM
Technical & Vocational College.
 Each of the 10 items had their figured t-values extended from
0.16 to 0.86 which were not as much as t-table estimation of
1.68 at 0.05 level of importance and at 48 level of opportunity
(df). This showed there was no critical distinction between the
mean reactions of welding innovation educators with beneath five
years or more five years of showing knowledge on the workshop
arranging systems.
 Each of the 11 items had their computed t-values went from 0.07
to 0.88 which were not as much as t-table estimation of 1.68 at
0.05 level of centrality and at 48 level of flexibility (df).
This demonstrated there was no noteworthy distinction between
the mean reactions of welding innovation Trainer/Lecturers with
underneath five years or more five years of showing background
on the workshop planning strategies.
 Each of the nine items had their figured t-values ran from 0.05
to 0.74 which were not as much as t-table estimation of 1.68 at
0.05 level of hugeness and at 48 level of flexibility (df). This
showed there was no critical contrast between the mean reactions
of welding innovation Trainer/Lecturers with beneath five years
or more five years of showing knowledge on the workshop
executing methods.
 Each of the nine items had their figured t-values ran from 0.01
to 0.76 which were not as much as t-table estimation of 1.68 at
0.05 level of criticalness and at 48 level of opportunity (df).
This showed there was no noteworthy distinction between the mean
reactions
of
welding
innovation
Trainer/Lecturers
with
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underneath five years or more five years of showing knowledge on
the workshop executing strategies welding innovation educators
with beneath five years or more five years of showing background
on the workshop actualizing systems of the educator in HCM
Technical & Vocational College.
4.3 Discussion of Findings
The
workshop
arranging
procedures
incorporate
arrangement
of
satisfactory assets for the buy of consumable materials, for example,
links and support of existing offices, giving sufficient number of
welding innovation apparatuses and gear in the workshop, making
arrangements for hardware in view of welding innovation educational
programs, give workshop stores to wellbeing of consumables, finding
machines, switches and attachment outlets for comfort and security in
electrical workshop, instruments, hardware and materials utilized as
a part of showing welding innovation ought to be anticipated yearly.
The discoveries of this study uncovered that eleven workshop planning
procedures required by Trainer/Lecturers of welding innovation in HCM
Technical & Vocational College for good workshop administration
framework.
The discoveries of this study uncovered that nine workshop
actualizing strategies required by Trainer/Lecturers of welding
innovation in HCM Technical & Vocational College for good workshop
administration framework.
The discoveries of this study uncovered that nine workshop methods
required by educators of welding innovation in HCM Technical &
Vocational College for good workshop administration framework.
There was no critical distinction between the mean reactions of
welding innovation educators with underneath five years or more five
years of showing background on the workshop arranging strategies
required by Trainer/Lecturers of welding innovation in HCM Technical
& Vocational College.
There was no critical contrast between the mean reactions of welding
innovation educators with beneath five years or more five years of
showing background on the workshop sorting out systems required by
Trainer/Lecturers of welding innovation in HCM Technical & Vocational
College.
There was no critical distinction between the mean reactions of
welding innovation Trainer/Lecturers with beneath five years or more
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five years of showing background on the workshops actualizing
procedures required by educators of welding innovation in HCM
Technical & Vocational College.
There was no huge distinction between the mean
innovation Trainer/Lecturers with beneath five
years of showing knowledge on the workshops
required by educators of welding innovation
Vocational College.
reactions of welding
years or more five
assessing strategies
in HCM Technical &
5. CONCLUSION
Empirical data revealed that sixty percent of HCM Technical and
Vocational College welding innovation educators does not utilize
workshop
administration
strategies
in
their
directions
when
instructing. This happened as a consequence of absence of workshop
administration methods by the Trainer/Lecturers. A study was
presently directed to recognize workshop administration systems.
Workshop arranging methods, sorting out systems, planning, procedures,
executing strategies and assessing strategies were then distinguished
and discovered required by welding innovation Trainer/Lecturers for
enhancing their educating or guideline.
The discoveries of this study have suggestions for the Government,
school executives and the Trainer/Lecturers of innovation. The
legislature and the overseers of Technical and professional
universities offering innovation projects will arrange workshop and
classes in view of distinguished workshop administration systems
required by educators for compelling instructing of innovation. The
discoveries
of
this
study
have
suggestion
for
innovation
Trainer/Lecturers
in
specialized
universities.
These
Trainer/Lecturers will create themselves in light of workshop
administration
methods
distinguished
for
viable
educating
of
innovation to understudies. The discoveries additionally have
suggestion for innovation speakers in tertiary organizations. The
discoveries of the study will make them compose course books on
innovation workshop administration procedures.
RECOMMENDATIONS
In view of the discoveries of the study and the conclusions made, the
accompanying proposals were made:
1. Every one of the procedures distinguished in the study ought
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to be bundled to retrain educators of welding innovation
specifically and innovation programs when all is said in done
through workshop or courses
2. Equipped educators of welding innovation ought to be utilized
by government to instruct in Technical and professional
schools inside Vietnam
3. Workshop of Technical and professional schools in the nation
ought to be outfitted with significant current machines and
devices for the preparation of innovation understudies
PROPOSALS FOR FURTHER RESEARCH
The accompanying
research:
related
ranges
have
been
proposed
for
further
1. Workshop administration systems for enhancing instructing of
welding innovation program in other professional universities
inside Vietnam
2. Workshop administration methods for enhancing educating of
other innovation program in other professional universities
inside Vietnam
3. Limit constructing necessities of Trainer/Lecturers for
successful educating of innovation projects to understudies
in professional schools inside Vietnam.
4. Workshop association systems for enhancing instructing and
learning of innovation projects in HCM Technical and
Vocational College.
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(6th
Ed.),
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APPENDIX I
QUESTIONNAIRE
GOOD WORKSHOP MANAGEMENT TECHNIQUES FOR THE
TECHNOLOGY IN HO CHI MINH VOCATIONAL COLLEGE
TEACHING
OF
WELDING
SECTION A: Personal Information
Read the following statements carefully and tick (√) as appropriate
(a) Years of teaching experience
[
]
0-5 years
[
]
6 years and above.
Instruction: The following statements indicate the extent to which
you agree or disagreed with each of items in this section. Please
provide appropriate information by ticking ( √ ) where applicable.
Note the following abbreviations and their full wordings as
applicable to this questionnaire:
Key:
SA – Strongly Agree 5
A – Agree 4
UD – Undecided 3
DA – Disagree 2
SD – Strongly Disagree 1
SECTION B
PLANNING TECHNIQUES NEEDED FOR GOOD WORKSHOP MANAGEMENT SYSTEM
S/N Item statements
1.
Provision of adequate funds
for
the
purchase
of
consumable materials such as
cables
and
maintenance
of
existing facilities
2.
Providing adequate number of
welding technology tools and
equipment in the workshop
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A
UD
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SD
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3.
Equipment
and
materials
should be planned based on
welding technology curriculum
4.
Workshop
stores
should
provide
for
safety
consumables
5.
Locating machines, switches
and
socket
outlets
for
convenience
and
safety
in
workshop
6.
Tools,
equipment
and
materials used in teaching
welding technology should be
planned for yearly
7.
Selection
of
practical
projects with the ability of
welding technology students
8.
Planning the workshop to take
care of students practical
work in areas of construction
of electrical appliances
9.
Adopting
replacement
workshop
10.
Provision
for
adequate
ventilation, illumination and
artificial lighting
11.
Maintenance
schedule
for
regular maintenance of tools,
equipment
and
machines
in
workshop
12.
Provide
welding
technology
workshop facilities based on
current students’ enrollment
13.
Grouping
of
the
learners
based
on
work
stations
available in workshop
be
of
borrower-loss
system
in
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14.
Listing
clearly
the
roles
expected to be performed by
the
welding
technology
teachers
15.
Stating clearly the roles to
be performed by the students
in the lesson in workshop
16.
Examining tools and materials
necessary for the activities
to be done in workshop
17.
Utilize technical manual for
replacement
of
parts
for
welding technology equipment
SECTION C
ORGANIZING TECHNIQUES NEEDED FOR GOOD WORKSHOP MANAGEMENT SYSTEM
S/N Item statements
1.
Arranging the equipment to
facilitate
teaching
and
learning
of
welding
technology
2.
Equipment and tools should be
organized based on uses and
size for easy reference and
accountability in workshop
3.
Arrangement
of
tools
and
materials before and after
use in workshop
4.
Proper keeping of records of
all the workshop equipment
and tools
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UD
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SD
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5.
Tools
and
equipment
in
workshop should be organized
arranged so that supervisor
can
inspect
and
identify
immediately worn out, broken
and lost ones
6.
Hazardous
substances
or
materials must not only be
stored securely but should be
under control in workshop
7.
Constant checking of tools
and materials to avoid loss
due to pilfering or vandalism
8.
Tools
and
equipment
in
workshop should be used for
activities they are designed
for
9.
Work areas in workshop should
be designated and equipped
for each skill area such as
installation,
maintenance,
repairs,
design
and
construction
10.
Preventive maintenance should
be
carried
on
welding
technology
facilities
to
avoid break down
SECTION D
COORDINATING TECHNIQUES NEEDED FOR GOOD WORKSHOP MANAGEMENT SYSTEM
S/N Item statements
1.
Grouping students to execute
specific working projects in
welding technology workshop
2.
Arranging
of
workshop
facilities
available
for
different uses in workshop
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3.
Inventory and inspection of
tools
and
equipment
in
workshop should be carried
out periodically
4.
In
workshop
materials
and
tools should be allocated to
groups
or
individuals
for
different uses
5.
Make sure that effort of
individual
students
are
unified in workshop
6.
Interpreting
and
analyzing
different types of projects
to the students individually
and in groups in workshop
7.
Make
sure
that
different
tools
and
equipment
are
harmoniously used in workshop
operations
8.
Improving
the
security
arrangement in the workshop
by
checking
pilfering
of
tools
by
both
staff
and
students
9.
Improving
the
safety
arrangement in the workshop
by providing different safety
devices
10.
Ensuring
maintenance
different
machines
equipment in the workshop
11.
Ensuring cordial relationship
between
welding
technology
teachers and other members of
staff in the school to work
together for the realization
of workshop objectives
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SECTION E
IMPLEMENTING TECHNIQUES NEEDED FOR GOOD WORKSHOP MANAGEMENT SYSTEM
S/N Item statements
SA
1.
Ensuring
reviewing
of
the
workshop program activities
in workshop
2.
Adhering
strictly
program of school
activity
in
technology workshop
3.
In
workshop
selecting
of
project should be done to
coincide
with
students
aspiration
4.
Arranging
of
procedure
according to sequence by the
welding technology teacher
5.
The
welding
technology
teacher
should
demonstrate
the work to expose some of
the new procedure and safety
precautions to the students
6.
In
workshop,
the
teacher
should
motivate
work
experience
by
prompt
and
careful explanation to the
students, the objectives of
the lesson
7.
Giving
students
the
opportunity to practice using
the same workshop facilities
8.
Due explanation on how to use
the information gathered to
the learners
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UD
D
SD
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9.
Playing
the
role
of
a
consultant
as
soon
as
students
begin
their
work
offering suggestions
SECTION F
EVALUATING TECHNIQUES NEEDED FOR GOOD WORKSHOP MANAGEMENT SYSTEM
S/N Item statements
1.
Welding technology teacher in
evaluating
workshop
instruction should find the
tools and equipment that were
particularly
difficult
to
operate or did not function
in making the project
2.
Welding
technology
teacher
should note the steps in the
procedure
to
complete
the
project
that
needed
modification
3.
How accurate is the finish
project
should
be
an
evaluation
question
in
evaluating
workshop
instruction
4.
Welding technology teacher in
evaluating
workshop
instruction should note any
particular
step
in
the
procedure that is hazardous
5.
How much time was used by the
welding technology students
in
completing
the
project
assigned to him
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6.
How much knowledge and skills
the students have acquired
should
form
one
of
the
evaluation
questions
in
evaluating
workshop
instruction
7.
In
evaluating
workshop
instruction,
the
teacher
should
ask
what
was
his
achievement and failure after
the lesson
8.
In
evaluating
workshop
instruction
the
teacher
should ask “was the technique
he used too hard or easy?”
9.
In
evaluating
workshop
instruction
the
teacher
should ask himself “was there
enough skills acquired by the
learner
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Article 7:
THE INFLUENCES OF SUPPLY CHAIN CAPABILITY ON ATTRACTING FOREIGN
DIRECT INVESTMENT TO VIETNAM
PHAM TAN ANH; Ho Chi Minh City, Vietnam
Abstract
This study is trying to clarify the importance of infrastructure and
location factors which define the overall production and logistic
environment of provinces in Vietnam and the inflow level of foreign
direct investment (FDI) on the competitive nation. To conduct the
study, author created a new conceptual framework to help figure out
how fundamental Vietnamese level factors impact aggregated level
inflows of FDI attraction. The focus of the study is to determine the
impact of the logistics environment of Vietnam to the attraction of
FDI. A new variable, Supply Chain Capability (SCC) of provinces is
proposed as a measure of the production and logistics environment of
provinces. The result of empirical analysis provides broad empirical
support for the hypotheses. It highlights a different impact of SCC
among provinces and affirms the influence of SCC on FDI’s attraction.
Keywords: Foreign direct investment, supply chain capability, supply
chain environment, governance, trade openness, SCC
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1. INTRODUCTION
After reform in 1986, Vietnam has been in transition from a
bureaucratic and centrally planned market to a market oriented
economy. To encourage foreign direct investment (FDI), Vietnam
government passed many law to protect foreign investors and build
fair policies to free market competition. FDI has grown in all
sectors like manufacturing, services and primary industries. Foreign
direct investment has contributed to impressive economic growth in
Vietnam. FDI not only brings additional capital to the Vietnamese
economy but also can bring modern technology, managerial expertise,
new business managerial approach and more industries, products and
jobs. Thanks to many previous studies on FDI attraction to provinces
in Vietnam, there are some potentially important determinants of FDI
distribution across Vietnam like market size, market growth, human
capital, infrastructure development, trade openness, macroeconomic
stability, public investment. The lack of studies on how impact of
the logistics environment of provinces to attract FDI is obvious and
needed to have an overview of SCC to provinces in Vietnam economy
development.
Nelson and Winter (1982) stated that there were three broad variables
determine the supply chain capability of the country such as
infrastructure, supply environment and absorptive capacity. This
study aims to determine the factors related to the attraction of FDI
to provinces in Vietnam and try to answer the following research
questions:
1. What are the main factors that impact on the FDI attraction of
Vietnam?
2. How do the SCC’s components impact the level of FDI inflows into
provinces in Vietnam?
3. What specific solutions could be proposed to improve the SCC of
Vietnam?
2. LITERATURE REVIEW
2.1. REVIEW OF RELATED THEORIES
Lall (1996) introduced two new interpretations of FDI: the strategic
linkage theory and the network approach, which were possibly more
relevant in explaining such FDI. Unlike the internalization theory
which developed by Rugman (1981) where the firm is exploiting rent
from firm specific advantages, strategic and network approaches
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suggest that firms invest abroad to sustain and develop their own
competitiveness and realize strategic advantages.
Another valid criticism of the internalization policy is that it
assumes that the firm specific advantages originate in the home
province of the MNE (Rugman & Verbeke, 1992). It is this advantage
that
is
leveraged
internationally
through
the
process
of
internalization. However, with the growth and development of
subsidiaries internationally, it has become evident that the head
office of the MNE is not the exclusive source of competitive
advantage.
The work of Hedlund (1986) and Bartlett and Ghoshal (1989) testify to
the role of subsidiaries in the generation of competitive advantage.
A major shortcoming of the internalization theory is that it
stipulates a hierarchal relationship between the parent and the
subsidiary, which is totally inconsistent with the network theory
which has received wide acceptance in recent years.
According to Birkinshaw and Neil Hood (2000) the network perspective
high-lights the underlying capabilities of the subsidiary and
emphasizes its role as part of a network. The internalization theory
is incapable of predicting or explaining autonomous action on the
part of subsidiary organizations because it perceives a dyadic
relationship between the parent company and its subsidiary. Most
important it cannot explain (in its pure form) the acquisition and
creation of firm specific advantages by the subsidiaries, which is
becoming commonplace in a globalized world economy.
Kogut and Zander (1993) note that investment, like trade, is governed
by comparative advantage and it is the economics of transfer of that
advantage to a subsidiary or another firm which determines whether
FDI would take place or not. They stated that knowledge be it in
technology, processes or other activities, is an intermediate good
that embodies the firm-specific advantage.
Since the motivations for FDI vary greatly no single theory of FDI
can satisfactorily explain all instances of MNE investment activity.
The variables that explain resource seeking FDI are very different
from those that explain strategic asset seeking investment (Dunning,
2003). In the next section, the notion of competitiveness, especially
the propositions of Kogut and Zander (1993) are reviewed as it has a
bearing on the attractiveness of a location as a FDI destination.
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Industrial
Organization
based theory
Transaction cost and
internalization Theory
Resource
based view
Dunning’s
Eclectic Theory
Major
contributors
Vernon
(1966), Hymer
(1976),
Kindleberger
(1969), Caves
(1974)
Coase (1937), Arrow
(1969), Williamson
(1975), Buckley and
Casson (1976)
Barney (1991),
Amit and
Shoemaker
(1993), Conner
(1991)
Dunning
Base
Discipline
Industrial
Organization
economics
Transactional Cost
Strategic
Economics belonging to Management
the Industrial
organization and
organizational economics
field
Industrial
Organization and
Economics
Explanatory
variables
Structurestrategyperformance
Asset specificity,
uncertainty/opportunism
Value,
uniqueness.
Inimitability
substitutability
of resources
Ownership,
location, and
internalization
variables
Unit of
analysis
Firm
Transaction/Firm
Firm
Transaction/Firm
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Basic
proposition
Structural
market
imperfection
is the major
reason for
FDI. It is a
result of
highly
concentrated
domestic
industry
participants
using FDI for
strategic
benefit
FDI is substitute for
market transactions and
is done to overcome
market imperfections
The driving
force for
international
diversification
is resource
exploitation
and resource
generation of
capability
building
FDI is made by
interplay of OLI
(ownership,
location, and
internalization)
variables.
Strengths
Strong
empirical
basis
Theory of the firm
Dynamic in
concept,
applicability to
strategy
formulation
Synthesis of
different schools
Weak empirical basis
Focuses on the
internal
resources of
organizations,
while ignoring
the market
aspect
Not a theory
reality but an
application. Has
limitation in
dealing with new
dynamics of
international
investment which
is asset
augmenting
Weaknesses
Table 2. Summary of Theories Related to Foreign Direct Investment
2.2. REVIEW OF EMPIRICAL STUDIES
Lipsey (1999), in his research, argued that inter-industry linkages
can result in vertical spillovers, which can, among other things,
facilitate technology transfer to domestic firms in host provinces.
The vertical linkages can be backward or forward. Backward linkages
include interaction between foreign firms and local suppliers, which
can promote technological advancement among domestic firms through
several channels. For example, backward spillovers can occur via
direct knowledge transfer from foreign customers to local suppliers.
Similarly,
the
presence
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technological and managerial spillovers in host provinces via forward
linkages. For example, domestic firms can become more productive
because of gaining access to new or less costly intermediate inputs
produced by foreign firms in upstream sectors. Some foreign firms are
also able to provide better customer service, which may not be
available if the same inputs were imported (Mentzer, 2001).
Whereas, Dunning (1981) debated the decision of a firm to expand
through
FDI
depends
on
ownership
(O),
location
(L)
and
internalization (I) advantages. By making use of the OLI paradigm,
Dunning developed the ‘investment development path’ (IDP) theory of
FDI. This theory was refined and further developed by Dunning (1998),
as well as Lall and Narula (2004). The central idea behind the IDP
theory is that a province’s economy evolves over time and as a result
a province that used to be an FDI recipient can become a net exporter
of capital.
A number of earlier studies investigating the impact of FDI on
domestic firms, mostly in developing provinces, have shown that ‘O’specific advantages were transferred to domestic firms through
linkages formed between foreign and domestic firms (UNCTAD, 2007).
Accordingly, in addition to evaluating the direct impact of FDI, one
has to also consider the indirect effect of FDI on host provinces.
On the basis of the work of Dunning (2003), it can be argued that FDI
contributes to economic growth in host economies through capabilitybuilding at the micro-level and that this can occur in two different
ways. First, the intra-firm transfer of ‘O’ advantages and resources
from parent to foreign affiliate enables the affiliate to compete
more effectively against domestic firms, thereby fueling competitive
pressures and raising industry standards over time.
Recent empirical studies have used endogenous growth models to
investigate the impact of FDI on economic growth in host developing
provinces. Schary et al. (2001) examined the impact of FDI on
economic growth in 69 developing nations for the periods 1970-1979
and 1980-1989. They have utilized a model where economic growth is
determined by FDI, human capital, government expenditure, domestic
investment, inflation rate and institutions. In order to overcome the
endogeneity problem, the model is estimated by two stage least
squares (2SLS). They found that: (i) FDI flows positively influence
economic growth, and (ii) FDI and domestic investment were complement.
There are numerous reports on FDI in Vietnam. However, growing in
number the body research literature on FDI in Vietnam is still very
much limited. This is partly because of data availability. The
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unavailability of data has long been an obstacle for researcher doing
empirical research on the determinants of FDI and its impacts on the
economy. More recently, although the availability of data has allowed
some research to be done, the data is not good quality. At the local
(provincial level), the data is not systematically available. There
are some measurement problems with the data (Phan & Ramstetter, 2006).
Still, the availability of data recently has allowed researcher to
conduct numerous interesting and policy relevant empirical research
on FDI and its consequences. More recently, the Government
Statistical Office has made several enterprise level datasets
available for research.
2.3. HYPOTHESES DEVELOPMENT
Lacking of technological and organizational capabilities of some
developing nations is the real problem in attracting FDI. Hanson et
al, (2010) suggested that improvement in the productive capacity of
low wage economies would lead to an increasing in vertical FDI.
Improved productive capacity is like improving supply chain process.
SCC therefore would enhance the attraction of country as an FDI
destination. It is proposed that SCC is a critical factor in
affecting FDI flows, especially to developing countries like Vietnam.
Given a large market size (incentive for Horizontal export platform
FDI or HFDI) however, the relative importance of other determinants
of FDI may decline. To put it differently, the more investors would
be willing to live with or bear the cost associated with poor SCC,
the larger the potential benefits associated with market size.
The effect of SCC on FDI would impact closely on gross domestic
product (GDP). Consequently, the following hypotheses are proposed
for this research investigation:

Hypothesis 1: The total FDI stock in a province is a function
of the SCC of a province and varies with GDP.

Hypothesis 2: SCC is a better determinant
developing province than of developed one.

Hypothesis 3: Governance influences FDI stocks both directly
and indirectly through its effect on SCC.

Hypothesis 4: The SCC of a province is a better forecaster of
vertical and export-platform FDI than of horizontal FDI.
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3. RESEARCH METHODOLOGY
3.1. THE RESEARCH DESIGN
The research design involved data collection and use of secondary and
primary data. Hard data is available for the variables, FDI, trade
openness, GDP per capita. Measure of governance is based on survey
data, which is collected by the Ministry of Planning and Investment
(MPI), Vietnam Chamber of Commerce and Industry (VCCI), UNCTAD and
the World Bank.
SCC is the ability of the country to meet the requirements of
intermediates and other inputs of the focal organization in an
efficient fashion. Measuring factors that facilitate SCC are namely,
infrastructure, absorptive capacity, and the supply environment
obtained a measure of SCC. Secondary data is based on survey for
these constituent factors that are available. The first part of the
research therefore consisted of operationalizing the variables
through secondary data sources and testing the hypotheses using
multiple regression technique. Data for 23 years (1990-2013) was used
to run regression. The researcher used this time period because of
access to the data from MPI and VCCI. This span of years is long
enough to conduct the analysis and also presents the overall
development as well as attraction of the Vietnam market.
The second part of the research entailed collecting information
through a survey instrument on the constituent factors of SCC
(excluding infrastructure), namely the supply environment (SE) and
absorptive capacity (AC). These two constructs were measured through
multi-item sub-constructs. The various measures of the constructs are
grounded in relevant literature. To establish construct content
validity, a thorough review of literature relating to supply chain
and absorptive capacity was undertaken.
Supply
environment
relates
to
the
“quality”
as
well
as
“effectiveness” of the supplying network system. This was measured
through sub-constructs of technical capacity, quality and customer
focus. Questionnaire items thus relate to the overall technical
capacity of the suppliers in each region of the whole country and
also on quality and customer orientation of the local organizations.
Content validity for the items in the questionnaire was provided by
the results of a comprehensive survey of 300 firms in Vietnam, which
identified customer service and quality as the most important supply
chain capabilities. The inclusion of the construct of technical
capacity in the questionnaire is merited since this research covers
important economic sectors with significantly varying technical
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capabilities and represented for the most developed area in Vietnam.
The other constituent variable of SCC, absorptive capacity, is
essentially a measure of the ability to absorb and exploit external
knowledge and is best captured by the “quality” of education and the
focus on technical training/research in society. These two measures
are drawn from relevant research literature.
Finally, information collected on these two constructs, supply
environment (SE) and absorptive capacity (AC) was clubbed with
secondary data on infrastructure to ascertain SCC scores of different
regions. The objective of the primary data collection exercise was to
see whether the SCC values developed through the survey provide
validation for the SCC scores developed using secondary data. If the
two scores are similar, it would validate the results of secondary
research. Additionally, SCC scores developed through survey data were
regressed on FDI and the regression results using secondary and
primary data sources were compared.
Being a cross-provinces study, it was not expedient to conduct a firm
level survey. The survey was limited to province ‘experts’. The
respondents consisted of multilateral organizations, MNEs, Chambers
of Commerce, international consultancy organizations and trade and
commerce representatives of different countries based in their
embassies in the south of Vietnam. To facilitate data collection an
electronic survey was administered except in the case of embassies
where a paper based instrument was used.
3.2. DATA ANALYSIS METHODOLOGY
The research adopted a mixed methods approach combining field-based
qualitative data with secondary data within an iterative analytical
process previously adopted in many supply chain management research
studies. Particularly, the researcher has determined values for
different constructs developed using secondary data, such as
governance and SCC; principal component analysis (PCA) was employed.
PCA is a data reduction technique that reduces the number of
variables used. Consecutive factors are extracted that account for
less and less of the total variability. The first principal component
is the linear combination of the standardized original variables that
has the greatest possible variance. Eigen value criterion was used to
select a single principal component for each of the constructs.
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3.3. MODEL DEVELOPMENT
To develop an appropriate model which is addressed this issue, the
researcher focused on the following research question: “Does SCC
affect FDI flow into provinces in Vietnam?” The empirical model was
used as:
LnFDI stock= β0 + β1*GDP + β2*SCC + β3*GOV + β4*Trade Openness +
β5GDP*SCC +ε
Across a national contingency, a framework can be deployed to examine
the relationship between SCC and FDI; regression method was used for
empirical analysis. A contingency analysis has inherent limitations.
First, dichotomizing continuous variables would lose a large amount
of variance in the sample data. Regression analysis permits use of
continuous variables. Second, regression allows examination of the
statistical significance of the effect of predictor variables on the
dependent variables. Finally, a regression analysis provides the
extent of the variance in FDI stock that is accounted for the
predictor variables which is not possible using a contingency
approach (Brouthers, Werner & Wilkinson, 1996).
In this investigation, the researcher chose the dependent variable as
FDI stock, which can be found in Department of General Statistics of
Vietnam. The reason why FDI stock is preferred because it is a better
indicator of the long-term attractiveness of Vietnam and can be
considered as a FDI destination. Annual FDI flows react to short-term
changes in Vietnamese attractiveness profile, such as political
instability, currency devaluation, inflation, and privatization of
the public sector enterprises.
Historically, the problem, which challenges many FDI studies, is the
high incidence of multicollinearity among the variables given the
present of GDP or GDP per capita in the model. Thus, with some
theoretical support, studies incorporating variables such as wages,
tax rates or incentives have often found them to be insignificant. In
many studies these variables also appear with the wrong sign. In some
initial model specifications some of these variables were tested.
They appeared with the wrong sign or were statistically insignificant.
Consequently, they have not been incorporated into the model.
4. DATA ANALYSIS AND FINDINGS INTERPRETATION
4.1. RELIABILITY ANALYSIS
In this research investigation, the researcher tested reliability of
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data collection and model in three aspects: inspect multicollinearity
phenomenon,
variance
change
phenomenon,
and
autocorrelation
phenomenon. By using SPSS software, the exaggerated coefficient of
variance is:
TRADEOPENNE
SS
GOV
GDP
TRADEOPENNE
SS
1.000
-0.771
0.775
GOV
-0.771
1.000
-0.475
GDP
0.775
-0.475
1.000
Table 3. Correlation Matrix
The correlation coefficient between GDP and Trade openness, GDP and
GOV, GOV and Trade openness is less than 0.9, it means the
relationship between GDP and Trade Openness, GOV and GDP, GOV and
trade openness is not very high, which also gives no high
multicollinearity phenomenon in most of the model.
To determine the autocorrelation phenomenon, author conducted the
following inspection:
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Heteroskedasticity Test: White
F-statistic
Obs*R-squared
Scaled explained SS
1.584353
12.03122
7.825186
Prob. F(9,13)
Prob. Chi-Square(9)
Prob. Chi-Square(9)
0.2183
0.2116
0.5519
Test Equation:
Dependent Variable: RESID^2
Method: Least Squares
Date: 06/03/15 Time: 16:57
Sample: 1991 2013
Included observations: 22
Variable
C
GDP^2
GDP*TRADEOPENNESS
GDP*GOV
GDP
TRADEOPENNESS^2
TRADEOPENNESS*GOV
TRADEOPENNESS
GOV^2
GOV
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
Coefficient
-5.138327
-7.35E-07
-0.001138
0.004029
0.008675
0.543693
-5.615097
-9.071143
-7.557794
-14.49057
0.523096
0.192932
0.155498
0.314336
16.73148
1.584353
0.218279
Std. Error
t-Statistic
Prob.
3.970098
1.01E-06
0.003006
0.005281
0.005864
1.774104
3.666307
3.364699
3.813144
7.559124
-1.294257
-0.730248
-0.378664
0.763076
1.479479
0.306460
-1.531540
-2.695975
-1.982037
-1.916965
0.2181
0.4782
0.7110
0.4590
0.1628
0.7641
0.1496
0.0183
0.0690
0.0775
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
Hannan-Quinn criter.
Durbin-Watson stat
0.122613
0.173089
-0.585346
-0.091653
-0.461183
1.877849
Table 4.Inspection of Variance Change Phenomenon
According to the Table 3, we have n = 22, k = 3, with a significance
level of 5%, the table of Durbin Watson dL = 1.078. From the
regression results we have d = 1.7238, bigger dL and less than 2, so
it is so weak to conclude that the model has autocorrelation
phenomenon.
4.2. TEST FOR THE SUITABILITY OF REGRESSION
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Dependent Variable: LNFDI
Method: Least Squares
Date: 06/03/15 Time: 16:24
Sample: 1991 2013
Included observations: 22
Variable
Coefficient
Std. Error
t-Statistic
Prob.
C
GDP
TRADEOPENNESS
GOV
6.981179
0.000780
1.905334
1.251539
0.824968
0.000281
0.558322
0.881915
8.462366
2.777386
3.412606
1.419116
0.0000
0.0010
0.0029
0.0071
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
0.846801
0.822612
0.385261
2.820094
-8.500260
35.00726
0.000000
Mean dependent var
S.D. dependent var
Akaike info criterion
Schwarz criterion
Hannan-Quinn criter.
Durbin-Watson stat
8.138695
0.914729
1.086979
1.284456
1.136644
1.723778
Table 5. Regression Coefficient Matrix
According to the table 4, the regression formula would be:
LnFDI
=
6.981179
1.251539*GOV
+
0.00078*GDP
+
1.905334*TRADEOPENNESS
+
Where:

1 = 6.981179: explains the impact of factors other than GDP,
Trade openness and GOV to the FDI that model has ignored.

2 = 0.00078: explains the condition of other factors are
constant in term of the GDP increases (decreases) of $1
million, the FDI will increase (or decrease) 0.078%

3 = 1.905334: explains the condition of other factors is
constant, whenever there is one new open trade policy will
make FDI increased by approximately 190.53%.

4 = 1.251539: explains the condition of other factors is
constant, whenever there is one effective government policy
would make the FDI increased by approximately 125.15%.

R2 = 0.847: explains that the variables such as GDP, GOV and
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Trade openness can explain 84.7% of the variation of the
variable lnFDI.
To test the regression coefficient: Based on estimated results, we
see the prob. of the regression coefficients β2, β3, β4 are less than
0.05, so we can conclude, with a 95% confidence level we have not
concluded that β2 and β3 coefficients equal to zero yet.
To test the suitability of regression as follow.
We have hypothesis
H0: R2 = 0
H1: R2 ≠ 0
From the regression results, we see Prob. (F-statistics) = 0.00000
<0.05, at 5% significant level (or 95% reliability), we can conclude
regression models are appropriate, alternatively, 3 variables GDP,
GOV and Trade openness may explain the variability of LnFDI.
4.3. REGRESSION ANALYSIS
4.3.1. REGRESSION ANALYSIS FOR HYPOTHESIS 1 & 2
Table 5 presents the correlation among the independent variables
while Table 6 presents the results of the regression to test
Hypothesis 1.
Mean
Dev.)
(Std.
GDP
(current
USD, in hundred 4.04 (7.85)
millions)
GDP
SCC
Governance
Trade
Openness
1
SCC
0.004
(0.97)
0.43***
1
Governance
0.12 (0.91)
0.34**
0.77***
1
Trade Openness
88.64
(43.72)
-0.30**
0.04
0.07
1
Table 6. Correlation among the Independent Variables
Model
All Provinces
Dependent
Variable
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All Provinces
Dependent
Variable
2 Model
All Provinces
3
Dependent Variable
Ln FDI Stock
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Ln FDI Stock
(1.7) 0.14***
VIF: 2.66
(4.10)
SCC
0.79**
(2.17) 1.00***
VIF: 2.80
VIF: 2.89
(3.17)
Governance
0.33
(0.90) 0.38
VIF: 2.55
2.56
GDP
Trade
Openness
0.11***
VIF: 1.09
Ln FDI Stock
(3.55) 0.05*
VIF: 1.42
(1.21)
0.002 (0.37) VIF: -0.002
(-0.49) -0.002
1.09
VIF: 1.15
VIF: 1.15
-0.0798***
VIF: 2.68
GDP*SCC
Intercept
9.70
10.37
10.17
R2
0.24
0.49
0.63
Adj. R2
0.20
0.43
0.58
F-ratio
6.58***
9.20
13.06***
9.181**
15.031**
46
46
FcStatistic
N
46
VIF:
(-0.46)
(-3.87)
***p < 0.01; **p < 0.05, *p < 0.1; figures in parentheses are tstatistics
(1) FcStatistic with respect to Model 1
Table 6. Regression Analysis of Hypothesis 1 (All Provinces)
In Model 1, only GDP and Trade Openness were introduced which gave an
R2 of 24%. However, while GDP was significant, Trade Openness was not
significant (Trade Openness was significant in the analysis with
secondary data). Model 2 included the other main effects. SCC turned
out to be significant but Governance was not. This is at variance
with the results of the analysis with secondary data where Governance
was significant but SCC was not significant. The R2 of 49% was
however, very comparable to the R2 of 47% seen in the analysis of
secondary data. Finally, in Model 3 the interaction term was added.
This led to a significant increase in Adj. R2 to 58%. GDP and SCC
were significant. Unlike the regression with secondary data, however,
Governance and Trade Openness were not significant. As with secondary
data
the
interaction
term
was
significant
and
negative.
A
visualization of the impact of SCC at different levels of GDP can be
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had from contour
Figures 1 and 2.
profiler
and
surface
profiler
graphs
shown
in
While the overall R2 of the regressions with secondary and primary
data are very comparable, and GDP and SCC are significant in the
fully specified models (Model 3) in both cases, the findings with
respect to Governance and Trade Openness are different. This could be
because the two data sets are split differently between developed and
developing provinces. While developed provinces constituted 40% of
the sample in the secondary dataset, they make up only 19% of the
primary data set.
Figure 1. Contour Profiler
Figure 2. Surface Profiler
With only 8 developed provinces in the sample separate regressions on
the subset of developed provinces to test Hypothesis 2 was not
possible. The results of regression carried out on the subset of
developing provinces are, however, presented in Table 6. The results
are very similar to those obtained with the entire sample. This is
not surprising considering that the sample was pre-dominantly made up
of developing provinces.
The results of the regression on subset of developing provinces are
generally consistent with those obtained with the secondary data set.
In both the data sets (Model 3), GDP and SCC were significant while
Governance was not significant. Trade Openness had a negative
coefficient in both the analysis.
However, unlike the secondary data analysis, it did not turn out to
be significant in the analysis with primary data. The significant
difference in the standard deviation of Trade Openness in the two
samples (75 in case of secondary data and 44 in the case of primary
data) is a pointer to a possible explanation for the difference in
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results. Another difference with secondary data is that the
interaction term of GDP and SCC is not significant for developing
provinces.
Data on VEP FDI was available for only 28 provinces in the sample.
When the regression was run, the model turned out to be insignificant
and hence the results are not reported.
Model
Developing
Provinces
1 Model
Developing
Provinces
Dependent
Variable
Ln FDI Stock
GDP
0.18***
VIF: 1.06
2
Dependent
Variable
Ln FDI Stock
(4.05) 0.14***
VIF:1.14
Model
Developing
Provinces
3
Dependent
Variable
Ln FDI Stock
(3.60) 0.10* (1.98) VIF:
2.07
SCC
0.79**
VIF: 1.41
Governance
0.549 (1.36) VIF: 0.580 (1.44) VIF:
1.37
1.38
Trade
Openness
(2.28) 1.00** (2.5) VIF:
1.92
-0.003
(-0.65) -0.006
(-1.32) -0.006
(-1.30)
VIF: 1.06
VIF: 1.10
VIF: 1.10
-0.1204
(-1.04)
VIF: 2.15
GDP*SCC
Intercept
9.84
10.60
10.75
R2
0.38
0.57
0.59
Adj. R2
0.34
0.51
0.52
F-ratio
9.66***
9.88***
8.15***
6.61**1
1.091
28
28
FcStatistic
N
28
***p < 0.01; **p < 0.05, *p < 0.1; figures in parentheses are tstatistics
(1) FcStatistic with respect to Model 1
Table 7. Regression Analysis of Hypothesis 2 (Developing Provinces)
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4.3.2. REGRESSION ANALYSIS FOR HYPOTHESIS 3
Different regressions as suggested by Baron and Kenny (1986) were
carried out to test Hypothesis 3. The results are presented in Table
8. First Governance was regressed on SCC (Model 1). Then, Governance
was regressed on Ln FDI Stock (Model 2). In both the models
Governance was significant. Finally, SCC was introduced in the model
and both the variables were regressed on Ln FDI Stock. In the
presence of SCC, the coefficient of Governance was reduced
significantly and it was no longer significant. This suggests that
Governance is impacting FDI Stock in two ways. First, it impacts FDI
Stock directly and secondly, it impacts SCC which in turn influences
FDI Stock.
Model
1 Model
All Provinces
All Provinces
Dependent
Variable
SCC
Dependent
Variable
LnFDI Stock
2
Model
All Provinces
Dependent Variable
LnFDI Stock
0.99***
VIF: 2.54
SCC
3
Governance
0.82*** (7.96)
1.14*** (4.45)
0.31
2.54
Intercept
-0.18
10.19
10.38
R2
0.60
0.32
0.43
Adj. R2
0.59
0.30
0.40
F-ratio
63.29
19.78
15.35
FcStatistic
46
46
46
(2.78)
(0.84)
VIF:
***p < 0.01; **p < 0.05, *p < 0.1; figures in parentheses are tstatistics
Table 8.Regression Analysis of Hypothesis 3
4.3.3. Regression Analysis for Hypothesis 4
The ratio of export sales of local provinces affiliates to total
sales of Local Provinces’ affiliates is used as an indicator of
vertical and export-platform FDI (VEP FDI). Similarly, the ratio of
local sales of Province affiliates to total sales of Province
affiliates is taken as an indicator of horizontal FDI (HFDI). In the
regression analysis to test Hypothesis 4, namely that SCC is a
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predictor of VFDI but not HFDI, Trade Openness was not considered as
a variable since its measure is aligned with vertical and export
platform FDI.
Model
Model
1 Model
2 Model
3
All
All Provinces All Provinces All Provinces
Provinces
Dependent
Variable
VEP FDI
Ln GDP
Dependent
Dependent
Dependent
Variable VEP Variable VEP Variable
FDI
FDI
HFDI
-0.05***
(- -0.05***
(- 0.05***
-0.03***
(6.57)
VIF: 6.91)
VIF: (6.91)
4.10) VIF: 1
1.43
1.44
1.44
SCC
-0.03*
0.03
(1.65) 0.03* (1.65)
1.65)
VIF: 4.36
VIF: 4.36
4.36
Governance
0.05***
0.05 (3.05) (2.89)
VIF: 3.5806
3.59
Ln GDP*SCC
Intercept
1.17
1.72
1.81
-0.81
R2
0.05
0.23
0.25
0.25
Adj. R2
0.05
0.22
0.24
0.24
F-ratio
16.78***
29.34***
24.56***
24.56***
43.25**1
10.00**2
46
46
N
46
VIF:
(VIF:
-0.05***
(VIF: 2.89)
VIF:
3.59
-0.01***
(- 0.01***
2.83)
VIF: (2.83)
1.04
1.04
FcStatistic
4
VIF:
46
***p < 0.01; **p < 0.05, *p < 0.1; figures in parentheses are tstatistics
(1) Model 2 with Model 1
(2) Model 3 with Model 2
Table 7. Regressions Analysis of Hypothesis 4 (All Provinces)
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5. SUMMARY OF THE FINDINGS
5.1. THE IMPORTANCE OF SCC TO GDP, TRADE OPENNESS AND GOVERNANCE
One of the interesting findings of the study is the significance of
the interaction of GDP and SCC. The effect of SCC varies with the
size of a host province’s economy. SCC has a positive effect on VEP
FDI of developing provinces but not of developed provinces. Findings
also suggest that the effect of SCC on VEP FDI is limited to low GDP
provinces irrespective of the level of Governance. As was expected,
Trade Openness is a prerequisite for VEP FDI.
Governance impacts FDI stock both directly and through SCC. Thus, the
findings suggest that good governance is essentially an enabler of
supply chain capability of a province. SCC, as defined here, is the
primary determinant of FDI stock. To the extent that governance
facilitates the supply chain capability of a province, it also tends
add to the attractiveness of a location as a FDI destination.
The analysis of primary data provides empirical support for
Hypothesis 1. Hypothesis 2, however, could not be validated as the
model turned out to be insignificant. Partial empirical support is
provided for Hypothesis 3. The results of the regression on the
subset of developing provinces is consistent with Hypothesis 3;
because of insufficient sample size, however, regression analysis
could not be performed on the subset of developed provinces.
Hypothesis 4 which suggests that the effect of Governance on FDI
Stock is routed through SCC was validated.
The main aim of the primary data collection was to validate the
scores of SCC used in analysis. The high correlation between the SCC
score developed from primary research and that obtained from
secondary data corroborate each other. Additionally, R2 values
obtained from the two data sources are very close to each other. This
attests to the robustness of the explanatory power of the group of
variables both for the entire sample as well as for the subset of
developing provinces. Finally, the two datasets generate nearly
identical results with respect to the main variable of interest, SCC.
5.2. THE INFLUENCES OF SCC ON PROVINCES’ FDI
As discussed above the researcher has highlighted two sets of
provinces’ characteristics, the development of the technological and
organizational capability of the host industrial sector and the
environmental stability of the locations as affecting FDI. The result
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of Hypothesis 2 analysis has pointed out that the lack of
technological and organizational capabilities of some developing
provinces as the real problem in attracting FDI and suggests joint
collaboration of local governments, enterprises and international
development organizations (or MNEs) to promote the environmental
conditions conducive to the flow of inward FDI of that province.
Based on the discussion above, the findings of this research
persuaded
that
SCC
(defined
as
a
function
of
quality
of
infrastructure, maturity of the supply environment, and absorptive
capacity) as a determinant of provinces’ FDI flows. Alliances are
formed with foreign partners not just to share risk but increasingly
to encourage learning about new ways of doing things. This is
especially true now as flows of FDI are increasingly characterized as
efficiency seeking and asset seeking rather than market seeking or
asset exploiting. Thus, locations with the best local capabilities
will be preferred. Deficient SCC of a province adds to the
transaction cost and makes it unlikely that such investments will
generate a competitive advantage. Consequently, poor SCC limits the
attraction of a location as an FDI destination.
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transnational solution, Boston: Harvard Business School Press.
Birkinshaw, J., & Hood, N. (2000). Characteristics of Foreign
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Studies, 31 (1), 141-155.
Brouthers, L. E., Werner, S., & Wilkinson, T. J. (1996). The
Aggregate Impact of Firms FDI Strategies on the Trade Balances of
Host Countries. Journal of International Business Studies, 27 (2),
359-373.
Dunning, J. H. (1998). Location and the Multinational Enterprise: A
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45-66.
Dunning, J. H. (2003). The eclectic (OLI) paradigm of international
production: Past, present and future. In J. Cantwell, J., & R. Narula
(Eds.), International Business and the Eclectic Paradigm, London:
Routledge.
Hanson, G. H., Mataloni Jr., R. J., & Slaughter, M. J. (2010).
Vertical Production Network in Multinational Firms. NBER Working
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Paper 972.3. Retrieved on Sep 12, 2016, from www.nber.org.
Kogut, B. (1990). International sequential advantages and network
flexibility. In C. Bartlett, Y. Doz, & G. Hedlund (Eds.), Managing
the global firm. London, UK: Routledge.
Kogut, B., & Zander, U. (1993). Knowledge of the firm and the
Evolutionary Theory of the Multinational Corporation. Journal of
International Business, 24 (4), 625-645.
Lall, S. (1996). The investment development path: Some conclusions.
In J.H. Dunning & R. Narula (Eds.), Foreign Direct Investment and
Governments: Catalysts for Economic restructuring. London, UK:
Routledge.
Lall, S., & Narula, R. (2004). Foreign Direct Investment and its Role
in Economic Development: Do We Need a New Agenda? European Journal of
Development Research, 6 (3), 447-464.
Lipsey, R. E. (1999). The Role of FDI in International Capital Flows.
In M. Feldstein (Ed.), International Capital Flows (pp. 307-362).
Chicago, IL: University of Chicago Press.
Mentzer, J. T.
Publication.
(2001).
Supply
Chain Management. California: Sage
Phan M. Ngoc & Eric Ramstetter. (2006). Economic Growth, Trade and
Multinational
Presence
in
Vietnam's
Province.
Mimeo.
The
International Center for the Study of East Asia Development,
Kitakyushu University.
Rugman, A. M. (1981). Inside the multinationals: the economics of
internal markets. New York, NY: Columbia University Press.
Rugman, A., & Verbeke, A. (2001). Location, competitiveness, and the
Multinational Enterprise. In Rugman & Brewer (Eds.), The Oxford
Handbook of International Business (pp. 150-177). New York and
Oxford: Oxford University Press.
Schary, P. B., & Skjott-Larsen, T. (2001). Managing the Global Supply
Chain. Herndon, USA: Copenhagen Business School Press.
UNCTAD (2007). World Investment Report 2007. New York, NY: United
Nations.
Vernon, R. (1974). The location of economic activity. In J. Dunning
(Ed.), Economic Analysis and the Multinational Enterprise. London,
UK: Allen and Unwin.
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Article 8:
CONFIGURATION OF CORPORATE SOCIAL RESPONSIBILITY PRACTICES FOR HIGH
FINANCIAL PERFORMANCE: EVIDENCE FROM SERVICE FIRMS IN HONG KONG
HENRY SHIU; Hong Kong
Abstract
In this study, we examine the adoption of CSR practice configurations
with regard to five domains (i.e., employee, customer, investor,
community, and the environment) and their associations with high
financial performance among the service firms in Hong Kong.
This
thesis proposes and the findings confirmed that CSR practices
concerned with the primary stakeholders (i.e., employees, customers,
and investors) that are closely related to the business function
should be present in configurations leading to high financial
performance. When compared to secondary stakeholders (i.e., community
and environment), primary stakeholders are regarded as more salient
in terms of making legitimate claims, holding more power, and
proposing urgent issues.
This study was based on company surveys
conducted in 2015–2016. Cross-sectional samples of 383 firms with 50
or more employees were systematic randomly selected from Hong Kong
listings in the Dun and Bradstreet (D&B) Global Million Dollar
database. The surveys were addressed to the most senior executive
(e.g., Chairman, CEO or CFO) named in the database.
Statistical
Package for Social Science (SPSS) version 22.0 was used to analyze
all the collected data in this study.
The findings revealed that
Hong Kong’s service firm’s financial performance has a significant
correlation with Customer CSR Practices as well as with the Employees
CSR Practices and Investor CSR Practices. However, Hong Kong’s
service firm’s financial performance is not significantly related to
Community CSR Practices and Environment CSR Practices.
Keywords:
Corporate
Social
Responsibility,
Corporate
Social
Responsibility Practices, Stakeholder, Service Firms, Hong Kong
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1. INTRODUCTION
Corporate social responsibility (CSR) is normally consented to be a
business idea that ought to be incorporated into standard business
procedure and operation around the world, not just in the
corporations' nation of source. CSR ought to concentrate on the
individuals who specifically or in a roundabout way influence or are
influenced by corporate exercises (Donaldson and Preston, 1995; Jones,
1995; Wood and Jones, 1995).
In the most recent ten years, the Corporate Social Responsibility
(abridged as "CSR" hereinafter) development remained for subjects,
for example, Corporate Governance (1), Environmental Management (2)
and Community Engagement (3) just to name three. CSR is being seen as
the new plans of action for corporations that need to be seen as more
capable corporations. In any case, it is not simply satisfactory any
longer to do a tiny bit of Environmental Management here, and some
Community Involvement there. Corporations are relied upon to build a
sounds structure of exercises that all upgrade their capable business
hone. As such, CSR is these days a vital and progressively
concentrated part of methodology and service. Over late decades, it
has turned into a need instead of a decision, due to:
1. Legal changes that have made a few parts of CSR necessary in
a portion of the nations
2. Increased open enthusiasm for natural and moral issues;
3. A compelling business case connecting CSR to better execution.
In the Hong Kong setting, taking after the chain of monetary
turbulence since the second from last quarter of 2008, its economy is
keeping on agony from the Global Financial Crisis where is as yet
confronting genuine rivalry. Money related focuses like Shanghai and
Singapore keep on emerging. High swelling rate, high property costs,
high work cost, banks fix the credit rein, high premium expense and a
questionable business viewpoint, which are all basic variables
influencing Hong Kong's corporations today and lead those to confront
an undeniably intense working environment. Numerous corporations are
thusly soliciting whether the interest from greatest quick returns is
an economical, reasonable and capable way to deal with business.
It is worth to watch a portion of the management of enterprises by
what approaches to do CSR. It is along these lines important to
investigate or re-examine over further the acts of CSR activities,
all together that to acquire bits of knowledge into its handy
ramifications for organizations in Hong Kong particularly with
regards to service firms which is the fundamental mainstay of Hong
Kong's economy.
Along
these
lines,
the
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accompanying
examination
questions
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resulted:
1. Would CSR be another challenge for the researched service
firms in Hong Kong?
2. What are the examples CSR practices of service firms in Hong
Kong?
With regards to consumer (primary stakeholder),
employee
(primary
stakeholder),
community
(secondary
stakeholder),
environment
(secondary
stakeholder),
and
investor (primary stakeholder).
3. What are the monetary advantages of different configurations
of CSR practices in service firms in Hong Kong?
4. Among the five independent variables, which have been
characterize as primary and secondary stakeholders, have
significant and consistent association with the Hong Kong's
service firms' high financial performance?
This study plans to add to current information about the development
and elements of CSR practices in various regards.
The extent of the paper will include the consumer, employee,
community, and environment and investors as the unit of analysis.
This study comprises of five independents variables as arrangement;
in particular: Customer CSR Practices, Employees CSR Practices,
Community CSR Practices, Environment CSR Practices, and Investor CSR
Practices.
2. REVIEW OF RELATED LITERATURES
2.1 CORPORATE SOCIAL RESPONSIBILITY (CSR)
The current CSR literature lists two definitions of responsibility
mostly from business ethicists. The first is “responsibility” in
terms of causal connections. For this first conceptualisation, there
is no need for a definition of responsibility based on some
independent
theoretical
account
of
the
conditions
of
being
responsible. One is not responsible because of a non-empirical
authority of right one chooses to acknowledge nor because society
demands certain things. Individuals are morally responsible because
their acts will provoke reactions. In this case, responsibility is
closely linked to a focus on the future and the connection of means
and ends.
2.2 CORPORATE SOCIAL RESPONSIBILITY AND HIGH FINANCIAL PERFORMANCE
Various
scholastic
studies
encompassing
a
company's
social
responsibility
and
financial
performance
have
been
finished.
Similarly as with most scholastic research addresses, the answers are
not as a matter of course straight forward. Recent studies on CSR
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have started to take an alternative non-index related variables that
could be utilized as an intermediary for CSR. Godfrey (2005) takes an
alternative at the relationship between corporate altruism and
shareholder riches. Godfrey states three centre speculations: 1)
corporate generosity can create positive good capital among groups
and stakeholder, 2) that ethical capital can furnish shareholders
with "protection like" security for a large number of a company's
peculiar elusive resources, and 3) that the protection like insurance
adds to shareholder riches. As per Godfrey, one of the fundamental
reasons this study utilizes generous movement as a variable of study
is on account of scientists, social records, and educators in the
field all consider altruism as a vital measure of corporate social
responsibility.
Research has demonstrated that if the reputationof the organization
is that of a pioneer in the field then that can decipher into better
budgetary results for the organization. Observational studies have
demonstrated that not just could reputation be critical and
straightforwardly identified with the organization's capacity to
expand the company's worth to its shareholders, additionally
corporate reputation could give the organization protection like
insurance in the event that it has any issues that may not be taken a
index at positively by its shoppers.
2.3 CONSUMER PERSPECTIVES OF CSR
Freeman's (1984) Stakeholder Theory clarifies that organizations are
capable to different gatherings of heroes inside the general public.
These stakeholders are said to have a ''case, possession, rights, or
interests in a company and its exercises, past, present, or future''
(Clarkson, 1995, p. 106). Like Maignan (2001), we are keen on what
could be the biggest stakeholder bunch, i.e. the customer. In
particular, we consider the Chinese buyers' view of the four
responsibility’s of firms as laid out via Carroll.
2.4 EMPLOYEE PERSPECTIVES OF CSR
Corporate social responsibility has additionally been credited for
drawing in and holding employee. CSR can be an imperative device in
supporting representative enrolment and maintenance. Rochlin and
Christoffer contend that the relationship amongst CSR and client
enrolment has been around for quite a while. Numerous enterprises
utilize the connections built up from business contribution in city
undertakings to overflow into new customer and client improvement.
Various studies demonstrate a relationship between corporate social
execution and the capacity to pull in and look after employee.
Rochlin and Christoffer (2000) audit various studies that demonstrate
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that CSP helps fascination, enlistment, and maintenance of workers.
They contend that the ebb and flow research underpins the speculation
that workers are attracted to an organization that has a solid
reputation for CSP/CCI, and are more faithful to organizations that
are dynamic corporate residents.
2.5 COMMUNITY PERSPECTIVES OF CSR
A 1995 Boston College study entitled, "Representative Assessment of
Corporate Image and Organizational Commitment", accomplished for the
Centre for Corporate Community Relations in Boston, finds that an
organization's reputation in the group influences worker devotion.
Likewise in the study they observe that eighty four percent of
workers reviewed showed that group is "critical" and with fifty four
percent trusting it is "essential". The study closes these
characteristics are more grounded for the organization if employee is
acquainted with the organization's group relations exercises.
2.6 ENVIRONMENT PERSPECTIVES OF CSR
Recently,
firms
consider
corporate
social
and
environmental
responsibility as legitimate and voluntary activities that could
bring firm’s competitiveness and reputation under the pressure of
different social and economic agents. It is clear that, the corporate
environmental responsibility (CER) is a fundamental issue with
regards to adopting green environmental policies in developing new
products. Empirical evidence showed that Chinese firms have not
practiced responsibility since they employ cost-cutting as their main
competitive strategy, meanwhile multinational firms operating in
China do tend to obtain competitive advantages by practicing CER in
their daily practices (He and Chen, 2009; Kolk et al., 2010).
2.7 INVESTOR PERSPECTIVES OF CSR
A reaction by numerous investors to the late accounting and money
related outrages is an expanded significance in their venture
determination procedure of firms that are seen as socially
responsible. Common assets have been made that put just in firms who
are considered socially responsible. Not having any desire to be
connected with associations that are in the news for carrying on
deceptively, numerous potential workers view Corporate Social
Responsibility (CSR) as an alluring element in their choice procedure
while current representatives view it as an imperative wellspring of
employment fulfilment. A hotly debated issue in the scholastic fund
and business literature for as far back as decade has been
investigating the potential advantages and expenses connected with an
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organization's CSR. CSR is utilized as a part of industry to
characterize and assess the organization's inclusion in its corporate
group. Contingent upon your perspective, CSR can either be an
essential segment of the organization's system or it can be a misuse
of shareholders' cash.
Monetary studies tend to analyze the profits of organizations who
rank profoundly in these records contrasted with organizations
excluded. Ideal stock comes back with organizations likewise high in
the Domini record would suggest a positive relationship and backing
the contention of good corporate citizenship.
2.8 PATTERNS OF CSR PRACTICES
In order to succeed in a turbulent and globalized business
environment, firms need to actively engage with a variety of social
issues in their own nations as well as outside their geographic
boundaries (Scherer et al. 2009). These expectations pose challenges
to firms in dealing with a variety of stakeholder interests and
demands (e.g., Campbell 2007; Freeman 1984, 1994; Graves and Waddock
2000; Hillman and Keim 2001). In this regard, Mitchell et al. (1997)
proposed that the degree of stakeholder salience (perception of
importance) is a function of the power, legitimacy, and urgency of
different stakeholders.
This study of CSR practices configurations associated with different
levels of financial performance is grounded in configurational
theories
of
organizations
which
emphasize
the
notion
of
complementarities or wholeness (Fiss 2007, 2011; Ketchen et al. 1997;
Milgrom and Roberts 1995).
Our approach differs from previous
studies of the relationship between CSR and financial performance
that focused on an individual type of CSR practice or aggregated CSR
practices scores (Hillman and Keim 2001; Wang et al. 2008). We argue
that such approaches have masked the nature of relationships across
various CSR practices and their differential impact on firms’
financial performance. While complementarities exist between some
types of CSR practices (e.g., generous employee benefits may motivate
employees to increase product quality, which is associated with
customer practices), trade-offs may be the true for other CSR
practices (e.g., more environmental friendly practices may not
directly benefit investors). Thus, a comprehensive examination of the
relationship between CSR practices and firm performance should
recognize that multiple CSR practices work as a whole in the form of
configurations rather than separately.
In sum, a configurational perspective of the concept of CSR practices
recognizes that managers prioritize different types of stakeholders
and thus may selectively focus on one or more primary CSR practice
domains to the exclusion of secondary ones. The configurational
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perspective allows for the possibility that managers may take a
holistic approach toward these primary stakeholders because attention
toward one type of stakeholder does not necessarily prevent a firm
from being actively involved in other social domains. Hence, we
expect that high financial value should accrue to firms that have a
consistently high level of responsiveness to the full spectrum of
primary stakeholders rather than according differential treatment to
these groups.
3. RESEARCH METHODS
The primary goal of leading this study is decide the relationship
that may exist between three variables which contain Customer CSR
Practices,
Employees
CSR
Practices,
Community
CSR
Practices,
Environment CSR Practices, and Investor CSR Practices with Hong
Kong's administration firms' high monetary execution.
3.1 RESEARCH HYPOTHESES
In order to answer the research questions of this study, the
following research hypotheses were developed based on the given
research framework (see Figure 2.1). The main purpose is to examine
the relationship between Customer CSR Practices, Employees CSR
Practices, Community CSR Practices, Environment CSR Practices, and
Investor CSR Practices with Hong Kong’s service firms’ high financial
performance. Hence, based on the research framework of this study as
seen in Figure 4, the followings are the research hypotheses of the
study.
H1: There is a significant
Practices and Hong Kong’s
performance
relationship between Customer CSR
service
firm’s
high
financial
H2: There is a significant
Practices and Hong Kong’s
performance
relationship between Employees CSR
service
firm’s
high
financial
H3: There is a significant relationship between Community CSR
Practices and Hong
Kong’s
service
firm’s
high
financial
performance
H4: There is a significant relationship between Environment CSR
Practices and Hong
Kong’s
service
firms’
high
financial
performance
H5: There is a significant relationship between Investor CSR
Practices and Hong Kong’s service firms’ high financial
performance
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3.2 RESEARCH FRAMEWORK
Based on the above literature review, below is the research framework
(Figure 2) which shows the hypothesized model for the current study.
Figure 2: Research Framework
3.3 RESEARCH DESIGN
This study used the quantitative approach with a specific end goal to
decide the imaginative work conduct amongst the information laborers
in the KIBS. The quantitative research configuration is proper for
creating hypothetical builds of the measurements and inventive work
conduct being considered. It tries to clarify the reasons for changes
in social truths, principally through target estimation and
quantitative examination.
So as to explore the relationship between Customer CSR Practices,
Employees CSR Practices, Community CSR Practices, Environment CSR
Practices, and Investor CSR Practices with Hong Kong's administration
firms' high money related execution, an engaging Correlation
configuration was picked. A spellbinding research is for the most
part portraying a circumstance that is clarified through the measure
of an occasion or movement and this can be accomplished by utilizing
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illustrative insights.
The expressive research that is utilized as a part of this study is a
cross-sectional sort where the information gathered depicted the
business exercises at a given timeframe instead of over a day and age
as in the longitudinal studies (Hair, Money, Samouel and Page, 2007).
Since this is a cross-sectional study, an example reviews is utilized
as studies strategy will permit the portrayal of the qualities of the
population and estimations can be taken through surveys or whatever
other type of organized reaction (Hair et al., 2007).
The overview technique has likewise moderately large amounts of
legitimacy since inquiries can be postured straightforwardly tending
to the hidden way of a build (Lyon, Lumpkin and Dess, 2000).
3.4 RESEARCH POPULATION
This study depended on organization studies conducted in 2015–2016.
Cross-sectional samples of 383 firms with 50 or more workers were
deliberate randomly chosen from Hong Kong postings in the Dun and
Bradstreet (D&B) Global Million Dollar database. The reviews were
tended to the most senior official (e.g., Chairman, CEO or CFO) named
in the database. Thus, 150 organizations reacted to the review (in
the wake of representing undeliverable studies, the reaction rates
were 39.16 %). Chi squared tests demonstrated that the authoritative
qualities (organization size, possession sort, and industry) of the
last sample were illustrative of organizations in the D&B database.
3.5 DATA GATHERING PROCEDURE
This study took a cross-sectional quantitative methodology. A
methodical irregular testing procedure was connected to choose the
potential respondents by picking kth component from the fundamental
populace of the study (Creswell, 2003).
This study created client, worker, financial specialist, and group CR
hone things identifying with four group of social partners (e.g.,
Aupperle et al. 1985; Clarkson 1995; Maignan et al. 1999) and
ecological CR hone things identifying with proactive corporate
natural administration (Branzei and Vertinsky 2002; Egri and Hornal
2002). Each of the 28 things measured the degree to which a CR hone
has been received in a respondent's association utilizing a sevenpoint Likert scale (1 = strongly disagree to 7 = strongly agree).
Table 3.1: Summary of Dependent & Independent Variables’ Measures and
Sources
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Variable
Items
Sources
Reliability
Alpha Value
0.924
High Financial
Performance
4
Samiee
& Roth (1992)
Customer CSR Practices
4
0.950
Employee CSR Practices
5
Aupperle et al.
(1985)
Clarkson (1995)
Community CSR Practices
4
0.873
Environment CSR
Practices
4
Investor CSR Practices
4
Maignan
et al. (1999)
Branzei &
Vertinsky
(2002), Egri &
Hornal (2002)
Maignan
et al. (1999)
0.879
0.887
0.911
4. FINDINGS
Generally, this research is to establish the relationship between
Customer CSR Practices, Employees CSR Practices, Community CSR
Practices, Environment CSR Practices, and Investor CSR Practices with
Hong Kong’s service firms’ financial performance. At the end of data
collection period, 150 usable questionnaires were obtained which
resulted in 39.16% response rate.
All the important statistical
screenings were undertaken to ensure that the collected data are fit
for further analysis. Data analysis was performed using descriptive
and inferential statistics using the SPSS version 22.0.
Overall summary of the findings are as the followings:
1. Based on the t-test for equality of means, at p value < 0.05,
it was found that there was no significant difference between
those responses that were obtained from the first wave with
those that were obtained from the second wave as the
significance value is greater than 0.05.
Levene's Test for t-test for Equality of Means
Equality
of
Variances
F
Sig.
t
df
Sig. (2- Mean
tailed)
Difference
Journal of Global Merit Management
Std.
Error 95%
Confidence
Difference
Interval
of
the
Difference
Lower
Upper
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Equal
variances
Service firms’ high assumed
financial
Equal
performance
variances not
assumed
Equal
variances
Customer CSR
assumed
Practices
Equal
variances not
assumed
Equal
variances
assumed
Employee CSR
Practices
Equal
variances not
assumed
Equal
variances
Community CSR
assumed
Practices
Equal
variances not
assumed
Equal
variances
Environment CSR assumed
Practices
Equal
variances not
assumed
Equal
variances
assumed
Investor CSR
Practices
Equal
variances not
assumed
4.070
3.919
2.751
.823
1.122
3.724
.046
.051
.100
.367
.292
.057
.152
98
.879
.01167
.07654
-.14023
.16357
.146
70.308 .885
.01167
.08017
-.14822
.17156
.331
98
.741
.02619
.07914
-.13086
.18324
.317
71.630 .752
.02619
.08250
-.13829
.19067
.844
98
.401
.07500
.08887
-.10136
.25136
.817
74.386 .416
.07500
.09176
-.10782
.25782
.054
-.33958
.17396
-.68479
.00562
78.165 .059
1.915
-.33958
.17731
-.69257
.01340
98
1.572
.119
-.29167
.18553
-.65984
.07651
80.245 .124
1.553
-.29167
.18777
-.66533
.08199
-.715
98
.476
-.05208
.07285
-.19665
.09248
-.775
97.977 .440
-.05208
.06717
-.18537
.08121
98
1.952
2. Based on Table 4.5, it shows that mean value are ranged from
2.50 to 5.65. The mean level of service firms high financial
performance was moderate (mean=4.23, sd =0.37). Meanwhile the
mean level for Customer CSR Practices was moderate (mean =
4.26, sd =0.39). It is also found that the respondents also
had moderate mean for Employee CSR Practices (mean =4.23, sd
=0.43) and Investor CSR Practices (mean=4.21, sd=0.36).
However Community CSR Practices (mean =5.16, sd= 0.860) and
Environment CSR Practices (mean = 5.10, sd=0.92) had both
recorded a high mean respectively.
Table 4.5 Descriptive Statistics
N
Service Firms High Financial
Performance
Customer CSR Practices
Employee CSR Practices
Minimum
Maximum
Mean
Std. Deviation
150
3.00
5.00
4.23
0.37
150
150
2.86
2.50
5.00
5.00
4.26
4.23
0.39
0.43
Journal of Global Merit Management
Level
moderate
moderate
moderate
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169
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Vol. 3, No. 1, 12/2016
Community CSR Practices
Environment CSR Practices
Investor CSR Practices
Valid N (list wise)
150
150
150
150
2.25
1.67
2.50
6.00
6.00
5.00
5.16
5.10
4.21
0.86
0.92
0.36
high
high
moderate
3. Table 4.6 indicates that Hong Kong’s service firms financial
performance has a significant correlation with Customer CSR
practices (r = 0.992, p<0.01) as well as with the Employee
CSR practices (r = 0.929, p<0.01) and Investor CSR practices
(r = 0.617, p<0.01). However, Hong Kong’s service firms
financial performance is not significantly related Community
CSR practices (r = -0.117, p>0.01) and Environment CSR
practices (r= 0.28, p>0.01). Based on this analysis, it can
be acknowledged that Hong Kong’s service firm’s financial
performance had a strongest association with Customer CSR
practices and Employee CSR practices followed by Investor CSR
practices among the investigated service firms in Hong Kong.
Table 4.6 Correlation Matrix
Correlations
CSR_Finanacial
Performance
Customer
Practices
Employee
Practices
Community
Practices
CSR
CSR
CSR
Environment CSR
Practices
Investor
Practices
CSR
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
Pearson
Correlation
Sig. (2-tailed)
N
CSR_Finanacial
Performance
Customer
Practices
1
.992**
.929**
.117
.028
.617**
150
.000
150
.000
150
.248
150
.781
150
.000
150
.992**
1
.964**
.118
.033
.648**
.241
150
.744
150
1
.099
.016
150
.325
150
.877
150
.000
150
150
CSR Employee CSR Community CSR Environment
Practices
Practices
CSR Practices
.000
150
Investor
CSR
Practices
.000
150
.929**
.964**
.000
150
.000
150
.117
.118
.099
1
.631**
.094
.248
150
.241
150
.325
150
150
.000
150
.354
150
.028
.033
.016
.631**
1
.017
.781
150
.744
150
.877
150
150
.868
150
.617**
.000
150
.648**
.000
150
.676**
.000
150
.000
150
.676**
.000
150
.094
.017
1
.354
150
.868
150
150
4. Inspection of Table 4.12 however shows that only three
independent variables can be a significant indicator to Hong
Kong’s service firms financial performance, that are Customer
CSR Practices (B= -.384, t=-13.947, p<0.01), Employee CSR
Practices (B= -.288, t= -12.721, p<0.01) and Investor CSR
Practices (B= -.198, t= -11.851, p<0.01). The other two
variables were found to be insignificant.
Customer CSR
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Practices was also found to have higher ‘B’ value compared to
Employee CSR and Investor CSR Practices. Hence, this study
suggests that among all the 5 independent CSR practices
studied, Customer CSR Practices gave the most effect towards
the Hong Kong’s service firm’s financial performance.
Table 4.12:
Customer CSR Practices, Employees CSR Practices, Community CSR Practices,
Environment CSR Practices and Investor CSR Practices with Hong Kong’s service firms’ financial
performance
Model
(Constant)
Unstandardized
Standardized
Coefficients
Coefficients
Interval for B
B
Beta
Lower
Upper
Bound
Bound
.086
Std. Error
.038
t
Sig. 95.0% Confidence
2.237
.028 .010
.163
a
1
HK
service
firms
1.324
financial performance
.026
1.369
51.356
.000 1.273
1.375
Customer CSR Practices
-.329
.024
-.384
-13.947
.000 -.376
-.283
Employee CSR Practices
-.247
.022
-.288
-12.721
.000 -.256
-.275
Investor CSR Practices
-.116
.021
-.198
-11.851
.000 -.195
-.206
.004
.001
.093
.926 -.008
.005
.004
-.011
-1.255
.212 -.012
.003
Community CSR Practices .000
Environment CSR Practices
-.005
R2 =0.995
F =3985.238
Sig. = 0.000
a. Dependent Variable: Hong Kong Service Firms’ Financial Performance
In this study, the author investigated the prevalence of different
CSR practices and their relation to high financial performance in
Hong Kong.
By using a novel methodology, we found the presence of
five configurations of CSR practices that provided strong support for
the instrumental role of different patterns of CSR practices for
engendering high financial performance.
In respect to Hypothesis 1,
Hypothesis 2 and Hypothesis 5, which proposed the emphasis on primary
stakeholder CSR practices in configurations leading to high financial
performance, the results provided strong support in the service firms
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of Hong Kong. Specifically, high levels of customer, employee, and
investor CSR practices were significantly related to high financial
performance in Hong Kong.
As predicted, for Hypothesis 3, secondary stakeholder CSR practices
had inconsistent associations with high financial performance among
the service firms in Hong Kong. Configuration of Community CSR being
an irrelevant factor (i.e., nonsignificant) for Hong Kong
Similarly
for Hypothesis 4, the set of configurations for high financial
performance also showed low levels of environment CSR for Hong Kong
service firms.
Table 4.12 Summary of hypotheses testing
Hypotheses
H1
H2
H3
H4
H5
Explanation
There is significant relationship between Customer CSR
Practices and Hong Kong’s service
firm’s
financial
performance (Primary Stakeholder)
There is a significant relationship between Employees CSR
Practices and Hong Kong’s service
firm’s
financial
performance (Primary Stakeholder)
There is a significant relationship between Community CSR
Practices and Hong Kong’s service firm’s financial performance
(Secondary Stakeholder)
There is a significant relationship between Environment CSR
Practices and Hong Kong’s service firms’ financial performance
(Secondary Stakeholder)
There is a significant relationship between Investor CSR
Practices and Hong Kong’s service firms’ financial performance
(Primary Stakeholder)
Result
Supported
Supported
Rejected
Rejected
Supported
This study finding of the presence of different configurations of CSR
practices
associated
with
positive
financial
performance
is
consistent with the literature exploring the impact of CSR activities
on financial performance (Barnett and Salomon 2006; Hillman and Keim
2001).
This study lends support to proposals that CSR practices may
effectively enable firms to minimize risks associated with business
operations, obtain legitimacy from different types of stakeholders,
and differentiate them from competitors.
More interestingly, this
study found that a balanced profile of CSR practices contributes to
high financial performance in that none of the five; found
configurations are comprised of a single stakeholder group.
The
findings indicate that various CSR practices need to be implemented
simultaneously. In other words, it is the configurations of CSR
practices that count.
Consistent
with
the
Journal of Global Merit Management
literature
on
stakeholder
salience
(e.g.,
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ISSN: 2411 – 6742
Mitchell et al. 1997), this study found variation in the contribution
of different CSR practices to financial performance. Specifically,
high levels of stakeholder CSR practices related to customers,
employees, and investors jointly contribute to high financial
performance for firms in Hong Kong.
Further, our findings showed
consensus across all configurations on the key role of customer and
employee CSR practices for high financial performance. Our study thus
confirms the primary status of these two stakeholder groups in Hong
Kong societies (Kolk et al. 2010; Xun 2012).
As for Community CSR Practices in Hong Kong firms, these
insignificant results of CSR may be attributed to Chinese cultural
factors. The cultural roots of community engagement or philanthropy
across the Hong Kong societies are related to the familialism base
within Confucianism (Ip 2009). It is more critical for private owners
to protect their family wealth and heritage than to give back to the
society. Therefore, the ‘love’ is more toward people with close
blood-ties rather than others. Further, the fear of being frequently
requested for more philanthropy from various stakeholder groups in
local Chinese culture may also explain the inconsistent relationships
between community CSR practices and financial performance for the
firms in this study.
5. CONCLUSIONS
A
holistic
and
integrative
CSR
strategy
recognizes
the
interconnections among various stakeholder interests. In this study,
we examine the adoption of CSR practice configurations with regard to
five domains (i.e., employee, customer, investor, community, and the
environment) and their associations with financial performance. This
thesis proposes and the findings confirmed that CSR practices
concerned with the primary stakeholders (i.e., employees, customers,
and investors) that are closely related to the business function
should be present in configurations leading to high financial
performance. When compared to secondary stakeholders (i.e., community
and environment), primary stakeholders are regarded as more salient
in terms of making legitimate claims, holding more power, and
proposing urgent issues.
One reason is that primary stakeholder groups play significant roles
in providing key resources in the value chain system of the firm and
enabling it to achieve high financial performance, whereas secondary
stakeholder groups are less likely to have direct and immediate
impact on business operations. For example, the application of CSR
practices related to customers could enhance customer satisfaction
and loyalty, which then creates financial value for the firm.
Similarly, organizations may accord higher priority to employee
groups because strategic HR configurations that focus on enhancing
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employee
well-being
engender
employee
commitment
to
their
organizations.
Investors are a salient stakeholder group because
they provide financial capital and resources for firms.
In sum, a configurational perspective of the concept of CSR practices
recognizes that managers prioritize different types of stakeholders
and thus may selectively focus on one or more primary CSR practice
domains to the exclusion of secondary ones. The configurational
perspective allows for the possibility that managers may take a
holistic approach toward these primary stakeholders because attention
toward one type of stakeholder does not necessarily prevent a firm
from being actively involved in other social domains. Hence, we
expect that high financial value should accrue to firms that have a
consistently high level of responsiveness to the full spectrum of
primary stakeholders rather than according differential treatment to
these groups.
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APPENDIX 1 – QUESTIONNAIRE
Section A
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Disagree (1).
1. High Financial Performance
Over the past three years, relative to our most relevant competitors:
1.
Our return on investment has been substantially better.
7
2.
4
3
2
1
6
5
4
3
2
1
Our profit growth has been substantially better.
7
4.
5
Our sales growth has been substantially better.
7
3.
6
6
5
4
3
2
1
Our return on assets has been substantially better.
7
6
5
4
3
2
1
Please indicate the extent of your agreement as to your organization
adopts specific practices of Customer CSR
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Disagree (1).
2. Customer CSR Practices
1.
Adapts products or services to enhance the level of customer
satisfaction.
7
2.
5
4
3
2
1
Provides all customers with a very high quality service
7
3.
6
6
5
4
3
2
1
Provides all customers with the information needed to make sound
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Vol. 3, No. 1, 12/2016
purchasing decisions.
7
4.
6
5
4
3
2
1
Satisfies the complaints of all customers about the company’s
products or services.
7
6
5
4
3
2
1
Please indicate the extent of your agreement as to your organization
adopts specific practices of Employee CSR.
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Disagree (1).
3. Employee CSR Practices
1.
Financially supports all employees who want to pursue further
education.
7
2.
5
4
3
2
1
Provides all employees with compensation (salaries, wages) that
properly and fairly reward them for their work.
7
3.
6
6
5
4
3
Provides for equal
promotion of women.
7
6
5
4
for
5
the
4
2
1
opportunity
3
2
the
hiring,
training,
and
1
4.
Provides
7
6
5.
Treats all employees equitably and respectfully, regardless of
ethnic or racial background.
7
6
5
4
training
3
2
in
3
2
and
1
development
of
all
employees.
1
Please indicate the extent of your agreement as to your organization
adopts specific practices of Community CSR.
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Journal of Global Merit Management
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Vol. 3, No. 1, 12/2016
Disagree (1).
4. Community CSR Practices
1.
Financially supports community activities (e.g., arts, culture,
sports).
7
2.
6
5
Financially
operate.
7
6
5
4
3
supports
4
2
1
education
3
2
in
the
communities
where
we
1
3.
Gives money to charities in the communities where we operate.
7
6
5
4
3
2
1
4.
Helps improve the quality of life in the communities where we
operate.
7
6
5
4
3
2
1
Please indicate the extent of your agreement as to your organization
adopts specific practices of Environment CSR.
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Disagree (1).
5. Environment CSR Practices
1.
Conducts environmental life-cycle and risk assessments of all
organizational activities.
7
2.
4
6
5
4
Issues a formal
performance.
7
4.
5
3
2
1
Incorporates
environmental
organizational plans.
7
3.
6
6
5
4
3
2
report
3
2
performance
objectives
in
1
regarding
corporate
environmental
1
Measures the organization’s environmental performance.
7
6
5
4
3
2
1
Please indicate the extent of your agreement as to your organization
Journal of Global Merit Management
December 2016
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Vol. 3, No. 1, 12/2016
adopts specific practices of Investor CSR.
Please read the following statement and circle the number that most
accurately reflects your opinion on each statement based on these
scales:
Strongly Agree (7), Agree (6), Slightly Agree (5), Neither Agree nor
Disagree (4), Slightly Disagree (3) Disagree (2), and Strongly
Disagree (1).
6. Investor CSR Practices
1.
Incorporates
decisions.
7
6
5
the
4
interests
3
2
of
all
our
investors
in
business
1
2.
Meets the information needs and requests of all our investors.
7
6
5
4
3
2
1
3.
Provides all investors with timely
information about the organization.
7
4.
6
5
Seeks the
decisions.
7
6
5
4
input
4
3
2
1
of
all
our
3
2
1
and
investors
accurate
financial
regarding
strategic
THANK YOU FOR PARTICIPATING IN THIS SURVEY
Journal of Global Merit Management
December 2016
182
ISSN: 2411 – 6742
Vol. 3, No. 1, 12/2016
LETTER FROM THE EXECUTIVE EDITOR
First and foremost, as a member of the editorial advisory board of
Journal of Global Merit Management (JoGMM), I am deeply honored to
have been selected for the position of Executive Editor. This is the
first issue of the journal and we are all excited of this issue.
Furthermore, I would like to express my sincere appreciation to our
reviewers in terms of their
cooperation, support and significant
remarks within the framework of the current issue of Journal of
Global Merit Management (JoGMM). We hope more academic scholars and
management practitioners will participate their research works in our
future issues. We also thanks the valuable contributions from the
Editorial Advisory Board Members that come from different parts of
the world with their extensive experiences and expertise in own field.
This
issue
concentrates
on
variety
of
themes
connected
with
managerial and intercultural matters. At first, Dr. LA TUAN HUNG
examine
the
relationship
between
the
current
Human
Resource
Management (HRM) practices, and the macro-environmental factors in
this
sector
of
the
Vietnamese
construction
business
in
order
to
assess their impact upon HRM outcomes. The results of interviews show
that
rewards
create
the
greatest
job
satisfaction
for
employees
within the firms while the organizational characteristics (internal
factor)
were
environmental
ranked
as
factors
secondary
(external
factors.
factor)
The
study
influenced
showed
that
managers
of
medium-sized firms because they were seen as beneficial to employees
and promoted organizational growth while the non-managers stated that
these
factors
were
less
important
and
did
not
influence
their
decision to remain with a particular firm.
Secondly, the paper written by DR. DUONG TON THAI DUONG, attempts to
assist
Vietnamese
educational
Journal of Global Merit Management
institutions
in
identifying
December 2016
and
183
ISSN: 2411 – 6742
Vol. 3, No. 1, 12/2016
evaluating the effectiveness and quality of the educational process
through the student’s perceived value attributes. The outcome of this
study is to help education management to determine core factors and
construct
the
overall
solutions
to
improve
the
quality
of
the
educational process and individual academic units.
Moreover, NGUYEN KY TRUNG of PEDAGOGY UNIVERSITY, Ho Chi Minh City,
Vietnam, presents the factors affecting the quality of training in
educational management focusing
on the post graduate students
of
Pedagogy University, Ho Chi Ming City.
Following, Dr YEOH KHAR KHENG & GARBA MUDDAHA of College of Business,
Universiti Utara Malaysia, Malaysia propose a research framework for
looking at directing impact of
relationship
state
between
funded
total
universities
corporate entrepreneurship on
quality
in
management
Nigeria.
The
and
performance
framework
which
the
of
if
validated will be of worth to the state funded universities, students
and employers; as well as the Nigerian economy in general.
Next, PHAM NGOC SON of Vung Tau Teacher Training College, Vietnam
investigates
the
relationship
between
leadership
models
and
employee’s job satisfaction among SMEs within the context of Vietnam
is preparing to join TPP agreement. The Ohio State Leadership studies
and the Michigan Leadership Studies were used as the theoretical
foundation and used survey instruments from permissions of the three
sets
of
self-reported
questionnaires,
including
Demographic
Characteristics, Multifactor Leadership Questionnaire (MLQ) (Bass &
Avolio, 1995) and Employee Satisfaction Survey (ESS) (Spector, 1985).
The results of
the study indicated that transactional leadership
style and laissez-faire leadership style significantly and inversely
predicted overall employee satisfaction.
Journal of Global Merit Management
December 2016
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Vol. 3, No. 1, 12/2016
Worth mentioning is also the paper written by TRAN VIET PHU of Ho Chi
Minh Vocational College to identify workshop management techniques
needed to improve the teaching of welding technology in Ho Chi Minh
Vocational College. Specifically the study determined five techniques
namely planning, organizing, coordinating,
implementing workshop instruction and evaluating techniques needed by
welding technology teachers for good workshop management system in Ho
Chi Minh Vocational College.
PHAM TAN ANH clarifies the importance of infrastructure and location
factors which define the overall production and logistic environment
of
provinces
investment
in
(FDI)
Vietnam
on
and
the
the
inflow
competitive
level
nation.
of
foreign
A
new
direct
conceptual
framework was created to help figure out how fundamental Vietnamese
level factors impact aggregated level inflows of FDI attraction. The
focus of the study is to determine the impact
of the logistics
environment of Vietnam to the attraction of FDI. A new variable,
Supply Chain Capability (SCC) of provinces is proposed as a measure
of the production and logistics environment of provinces.
Finally article written by HENRY SHIU from Hong Kong examines the
adoption of CSR practice configurations with regard to five domains
(i.e., employee, customer, investor, community, and the environment)
and their associations with high financial performance among
the
service firms in Hong Kong.
Dr. Justin See
Journal of Global Merit Management
December 2016
185
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Vol. 3, No. 1, 12/2016
EDITORIAL ADVISORY BOARD
 Prof. Dr. Ferguson Rea
- Dublin, Ireland
 Prof. Dr. Perry Haan
- Ohio, USA
 Prof. Dr. Ian Murray Mackechnie
- Melbourne, Australia
 Dr. Mark Doctoroff
- Manitoba, Canada
 Mr. Michael McGowen
- Manchester, England
 Mr. Leslie Cohen
- Washington, USA
 Dr. Balbir Singh
- Singapore
 Dr. Mohd. Salleh
- Singapore
 Dr. Brian Kok
- Penang, Malaysia
 Dr. Justin See (Secretary)
- Hong Kong
Published by:
Global Merit Management Ltd
Unit 1010, Miramar Tower
132 Nathan Road, Kowloon, Hong Kong
www.gmmgt.net
Endorsed by:
Global Merit Management Research Institute
United State of America
The Association of Certified Professional Managers
United KIngdom
Journal of Global Merit Management
December 2016
186