Ảnh hưởng của thể chế tới tinh thần doanh nhân nghiên cứu tại các doanh nghiệp nhỏ và vừa việt nam tt tiếng anh

1 2
CHAPTER 1 orientation: the case study of Vietnamese small and medium enterprises" has
been selected as the topic of this study.
GENERAL INTRODUCTION OF THE STUDY
1.2 Objectives of the study
1.1 The necessity of the study
The purpose of this study is to understand the influence of formal and informal
The important role of institutions to economic development of each country has institutions on each aspect of entrepreneurial orientation of SMEs. Besides, the
been recognized in previous studies around the world and in Vietnam. At the entrepreneurial orientation of SMEs in the context of developing countries is also of
organizational level, institutional theory shows that institutional factors affect this study’s concern. Obtained results can provide some suggestions to improve
organizational strategies and processes (Scott, 1995). Institutions as part of the institutions, promote entrepreneurial orientation of Vietnamese SMEs to enhance
business environment affecting the development of businesses including SMEs have competitiveness in the integration period.
attracted research interests from scholars. However, available institutional documents
mainly focus on formal institutions, while the effects of informal institutions are less of 1.3 Scope and objects of the study
a concern (Roxas and Chadee, 2012). 1.3.1 Scope of the study:
In recent years, Entrepreneurial Orientation has become a popular topic in the Research objects: Vietnamese SMEs according to the official definition in the
field of business studies in general and the entrepreneurial orientation in particular. Vij Government Decree No. 56/2009/ND-CP dated June 30, 2009. Research space: The
and Bedi (2012) argue that entrepreneurial orientation is a key determinant of the thesis has been done to collect data in three major cities of Hanoi, Da Nang and Ho Chi
success of a business. Many previous studies have explored entrepreneurial orientation Minh City. Study period: Collected data used for this thesis is across 5 years from 2012 to
in the context of SMEs (for example, Keh et al., 2007; Wang et al., 2015). In 2017.
developing countries like Vietnam, entrepreneurial orientation and and some of its 1.3.2 Study objects:
premises have also attracted the attention of researchers, but to a modest level
(Nguyen, 2009, 2011; Swierczek and Thai, 2003). The thesis examines the entrepreneurial orientation; the effects of formal and
of informal institutions on the entrepreneurial orientation of Vietnamese SMEs.
Institutions have effects on the expectations, awareness of risks and profits of
business activities (Avnimelech et al, 2014; Shane, 2003), and innovation capabilities 1.4 New contribution of the thesis
of businesses (Chadee and Roxas, 2013). However, there seems to be a lack of research Theoretical contribution
on the relationship between institutions, especially informal institutional groups and The effects of formal institutions and informal institutions on entrepreneurial
entrepreneurial orientation at firm level. It should be noted that the effects of informal orientation at firm level has not been much studied by scholars. Theoretical
institutions on risk-taking tendency, innovation and pioneering proactiveness are still framework used for research has not yet been clear and consistent. The informal
unclear (Roxas and Chadee, 2012). This requires more research to understand the relationship institution is only considered as national cultural element rather than informal
between informal institutions and the forms of entrepreneurial orientation.
institutional elements as defined by Helmke and Levitsky (2004). This thesis
SMEs play a very important role to Vietnamese economy. By the end of examines the effects of institutions on each aspect of SMEs’ entrepreneurial
December 2015, there was 500,000 SMEs in Viet Nam, accounting for 97.6% of the orientation (innovation, risk taking and pioneering proactiveness). Some specific
total number of active businesses, contributing over 40% of GDP and attracting over contribution of the study are as follows:
50% of the national labor force (General Statistics Office, 2018). However, since the
1 / To measure the quality of formal institutions regarding the mismatch of the
global economic crisis, the number of dissolved and closed businesses have
system of policies and regulations of the State, research needs to be added by two
continued to increase. Basic characteristics of SMEs are small-scaled, with low-
indicators. The first is the overlapping and lack of clarity, while the second is the
educated labor, backward technology, limited capital, low labor productivity, which
instability and inconsistency.
are barriers to SMEs in the process of development and integration to the global
economy. For above justifications, "The effects of institutions on entrepreneurial
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2 / To measure informal institutions regarding SMEs' institutional trust, research CHAPTER 2
needs to be added by an indicator which reflects general perception of positive RESEARCH OVERVIEW AND THEORETICAL FRAMEWORK
changes from regulations and policies of the state.
3 / Experimental evidence shows that the mismatch of the State's policy/regulation
2.1 Overview of the relationship between institutions and entrepreneurial
systems, institutional trust and corruption are all related to every aspect of
orientation of SMEs.
entrepreneurial orientation (innovation, risk taking and proactiveness) in the context
of SMEs in developing countries like Vietnam. 2.1.1 Research overview and gaps
4 / The relationship between execution quality and entrepreneurial orientation of While entrepreneurial orientation has been studied by scholars, informal
SMEs may change towards opposite direction depending on the context. institutional factors are mainly considered as national culture and only formal
institutions are scholars’ interest. However, informal institutions are not necessarily
Practical contribution
cultural elements from the views of Helmke and Levitsky (2004). Some studies have
While formal institutional barriers and corruption remain at a high level that confirmed that the influence of informal institutions on enterprises' strategic choices
negatively affects the entrepreneurial orientation, institutional trust of many SMEs is independent (Peng, 2002). Meanwhile, typically informal institutional factors in the
does not seem to be as such. Therefore, the positive role of institutional trust to context of transition and developing economies such as corruption and trust have not
entrepreneurial orientation is a finding with many practical implications in seem to be much examined. Although research has already attempted to asssess the
Vietnamese context. In addition to solutions to eliminate formal institutional institutional impact on entrepreneurial orientation at national level, there is still a lack
barriers and constrain corruption, those aimed at strengthening institutional trust of research on the relationship between institutions, especially informal ones and
will be an important driving force to promote the entrepreneurial orientation of entrepreneurial orientation at firm level. More importantly, the effects of institutions
Vietnamese SMEs. on risk-taking, innovation and pioneering proactiveness are unclear (Roxas and
Chadee, 2012). This requires more research to explore the relationship between
formal and informal institutions and patterns of entrepreneurial orientation. Effects of
1.5 Structure of the thesis informal institutions, particularly corruption, institutional trust at firm level in the
The thesis "Effects of institutions on entrepreneurial orientation: case context of SMEs will be an interesting research gap. Interpretation of these
study of Vietnamese small and medium enterprises" consists of 159 pages, relationships will help contribute to further clear the role of informal institutions to
including the list of tables and figures, Table of content, main section of five entrepreneurial orientation at corporate level, in the context of a transition and
chapters, references and appendices. Five chapters include Chapter 1 which generally developing country.
introduces the study, Chapter 2 on research overview and theoretical framework of Literature review indicated that research on entrepreneurial orientation in the
institutional effects on entrepreneurial orientation of enterprises; Chapter 3 on context of Vietnam has only been done by few scholars, and there are still many
research methodology; Chapter 4 on research findings; Chapter 5 on Evaluation of different opinions about entrepreneurial orientation (Hoang Van Hoa, 2010 ). In
research findings and some suggestions. There are 20 tables and 5 figures in total. addition, studies so far have just mainly examined the relationship between
entrepreneurial orientation and business results of Vietnamese SMEs (Nguyen, 2009;
Swierczek & Thai, 2003). Those on the relationship between institutions and
entrepreneurial orientation have not almost done.
2.1.2 Theoretical framework and research hypothesis on the relationship between
institutions and entrepreneurial orientation of SMEs
2.1.2.1 Concepts used in the research
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Table 2.2: Concepts used in the research The execution quality of state management agencies is defined as barriers to
Determinants Definition Source businesses' activities such as tax rates, tax administration, inspection activities
imposed by the State (Chadee and Roxas, 2013). These institutional barriers also
Institution "Play rules" in a society. North (1990) include a lack of State support to business development of businesses such as finance
Formal institutions refer to the system of and support services (Hashi and Krasniqi, 2011; Zhu et al., 2012). Execution quality
laws, regulations, policies, contracts and refers to the rigidity and bureaucracy that businesses face when dealing with
enforcement. Along with the whole legal representative state agencies, for example when going to business registration or
Formal institution and policy documents is the enforcement North (1992) granting a business license to conduct a specific business activity (Norton, 1998).
mechanism, regulation and oversight of the This concept also refers to rules, procedures, processes and level of suitability to the
relevant agencies to help policy provisions of the current laws, which leads to unreasonable cost burden on
implementation. businesses. This increases the cost for businesses to deal transactions with state
agencies. These costs could be financial costs, time and effort spent to complete
Informal institutions refer to shared values
procedures (Fogel et al., 2006). These barriers also increase transaction costs and
in a society, usually those that are not Helmke and
uncertainty, thereby preventing access to resources to support innovation activities
Informal institution expressed in writing, communicated and Levitsky (2004,
(Chadee and Roxas, 2013). Most research in the context of transition and developing
enforced outside officially recognized 2006)
economies has indicated that execution quality negatively effects the ability of
channels.
businesses to innovate (Chadee and Roxas, 2013; Xheneti and Bartlett, 2012). Zhu et
This concept refers to "processes, practical al. (2012) have pointed out that innovation activities of SMEs are hampered by
activities and decision-making activities
Miller (1983); innovation-related costs such as tax burdens, financial costs, etc., or compliance with
Entrepreneurial that lead to the birth of new things in the
business." Entrepreneurial orientation Lumpkin and bureaucracy and rigidity of state agencies. This barrier leads to the escalation of
orientation
consists of three elements: risk- taking, Dess (1996) uncertainties and costs, preventing the ability of businesses to access resources to
pioneering proactiveness and innovation. support or stimulate innovation. In addition, enterprises’ awareness of opportunities
Source: Author’s synthesization and risks affects innovation and pionnering proactiveness of enteprises (Haro et al.,
2011). When the level of uncertainty and cost increases, the ability of risk
Concepts of components of entrepreneurial orientation: management is limited, especially for SMEs. This will make businesses not dare to
Innovation refers to the willingness of enterprises to support creativity and take risks that may lead to business opportunities. Facilitation of procedures and
experimentation, participation in creative processes, testing ideas such as applying support services of state agencies for SMEs to exploit new business opportunities will
new production methods, new technologies or developing new products and services positively affect risk taking level of businesses (Haro et al., 2011). Therefore,
for current or new markets. increasing costs and time as well as troubles faced by businesses when carrying out
Risk taking refers to the willingness of enterprises to invest a significant resource in business procedures will negatively affect their risk taking level. Thus, execution
exploiting business opportunities and implement high-risk business strategies. Risk quality may negatively affect all three aspects of entrepreneurial orientation.
taking does not mean that it is "doing without knowing" ignoring the consequences, Operational quality barriers to SME operations have also been addressed by local
studies (CIEM et al., 2016; VCCI, 2016). Inspection and various types of costs have
but it reflects enterprises‘ boldness, dare to grasp business opportunities.
discouraged enterprises, making them hesitant to invest and eliminate their
Proactiveness reflects the willingness of businesses to act ahead of competitors.
motivation for innovation (Nguyen Thi Luyen, 2018; Le Du Phong and Le Huynh
Proactiveness may include actions such as: recognise and evaluate new opportunities,
Mai, 2018). Based on the overall results, the thesis proposes following research
identify and track market trends and establish new business groups.
hypotheses:
2.1.2.2 Theoretical framework and research hypotheses on the relationship between
H1a: Execution quality is negatively correlated with the level of innovation.
formal institutions and entrepreneurial orientation
H1b: Execution quality is negatively correlated with risk taking level.
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H1c: Execution quality is negatively correlated with proactiveness. 2.1.2.3 Theoretical framework and research hypotheses on the relationship
The mismatch of the policy and regulation systems is defined as the between informal institutions and entrepreneurial orientation
complexity/ overlapping, lack of clarity and volatility/instability and inconsistency of While there are different opinions to identify informally institutional elements
the state system of policies and regulations. These barriers are addressed by Lajqi and (Helke and Levisky, 2006; Sayoum, 2011), informal institutions could be defined in
Krasniqi (2017). These are also two typical characteristics of formal institutions in three groups of key elements: the first group includes national cultural elements,
Vietnam. State policies refer to the issuance and enforcement of laws, ordinances, social norms (Busenitz et al., 2000); the second group is social factors such as trust,
regulations with any form of legislations and/or government decisions, especially reputation (Wicks and Berman, 2004; Seyoum, 2011); and the third group are factors
those affecting business field (Forgel, 2001). State policies could be considered as a that were born as a result of the lack and weakness of formal institutions such as
pipeline through which SMEs can participate in business activities in accordance with networks of relations (Aslanion, 2006), corruption and political connectivity (Li,
external rules and regulations, thus reducing the level of uncertainties in their 2009). All three groups of informal institution are directed towards achieving
businesses (Roxas et al., 2008). Institutional documents, both theoretical and "acceptance" when it comes to "playing rules" in a society. Covin and Miller (2014)
empirical ones have indicated that state policies and regulations have a direct effect and Miller (2011) who specialise in studying entrepreneurship have suggested that
on entrepreneurial orientation (Dickson and Weaver, 2008; Roxas et al., 2008 ; entrepreneurial orientation can be shaped by social power, related parties or
Alvarez and Urbano, 2012). Most studies have found that comprehensive and government pressure to imitate or stand out from competitors or promote its
developed regulations ensuring full compliance with market mechanism have a organization to be accepted. In the context of transition and developing economies,
positive relationship with the development of enterprises through ability of studies have introduced some informal institutional factors, such as corruption (Li,
innovation and strategic decisions (Roxas et al., 2008). The relationship will be 2009, Zhghenti, 2017), trust (Nguyen et al., 2005; Seyoum, 2011), and networks of
negative if legal regulations become barriers to businesses‘ operations (Chadee and relationship (Aslanion, 2006; Steer and Sen, 2010). However, studies have a high
Roxas, 2013; Liu, 2011; Zhu et al., 2012). State regulations and policies can promote consensus on the regulatory role of the relation network to relationship between
or hinder opportunities for SMEs to pursue more risky but promising innovative entrepreneurship and business results of enterprises (Chin et al., 2016; Zhang and
projects (Zhu et al., 2012). The instability and complexity of the regulation and Zhang, 2012; Walter et al., 2006). Therefore, this thesis only studies the relationship
policy systems cause policy risks, business risks, loss of motivation to innovation and between informal institutions and entrepreneurship by understanding the effects of
affect investment and development decisions of enterprises (Nguyen Thi Luyến, two informal institutional factors which are corruption and institutional trust.
2018). Because policies are not appropriate, environment becomes contrary to Corruption is the abuse of power entrusted to personal interests (Bardhan,
business growth and entrepreneurs find it difficult to predict future economic 1997, Transparency International, 2010). Corruption is defined as ways of self-
prospects to establish contractual relationships. This may prevent SMEs from taking enriching, self-rewarding money from state officials from the highest to the lowest
risks for investments (Lajqi and Krasniqi, 2017). In addition, the complexity and level, to obtain money and gifts for individuals from any state transaction whenever
volatility of state regulations and policies will make it difficult for businesses to possible. This concept of corruption has been used in many previous studies,
predict as well as how to conform to regulations when they want to pioneer in the including those for the context of transition and developing economies (Avnimelech
market. This may negatively affect the pionnering proactiveness of businesses. Based et al., 2014, Chadee and Roxas, 2013), and is also used in this study. In fact,
on overall results, the thesis proposes following research hypotheses: corruption exists in all countries. However, in transition economies, it has been
H2a: The mismatch of the state system of policies and regulations is negatively considered as a common phenomenon and its level is significantly higher than in
correlated with the level of innovation. developed economies (Tonoyan et al., 2010). Although the government's anti-
H2b: The mismatch of the state system of policies and regulations is negatively corruption efforts and anti-corruption campaigns are different in developing
correlated with the risk-taking level. countries, corruption is still a big challenge to businesses' operations and it has been
suggested to be an important factor affecting businesses' behaviour (Chadee and
H2c: The mismatch of the state system of policies and regulations is negatively Roxas, 2013; Le, 2017).
correlated with proactiveness.
Regarding the effects of corruption on businesses’ behavior, literature review
has shown that corruption affects immediate or future resource allocation (Macrae,
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1982) and may have some positive effects in the short term but it will hinder Institutional trust fosters cooperation and will have a positive impact on outcomes
innovation and sustainable development of businesses (Avnimelech et al, 2014; when encouraging actors to engage in business partnerships with a range of potential
Nguyen et al., 2016). At the national level, the negative impact of corruption has been partners thus expanding business opportunities and resource availability (Rus & Iglic,
widely recognised in previous studies such as causing negative incentives for 2005). Thus, possible impacts of institutional trust on entrepreneurship as a
entrepreneurs to engage in value creation opportunities from doing business and thus relationship needs to be examined by both theoretical and empirical studies. In this
lead to a reduction in entrepreneurship activities (Avnimelech et al., 2014). At the study, based on research objectives, the author focuses on institutional trust, which is
corporate level, some previous studies have shown the negative impact of corruption considered as the most central in the function of modern and very important socio-
on corporate innovation (Chadee and Roxas, 2013, Nguyen et al., 2016). Corruption economic systems in early period of the relationship between companies (Rus and
has contributed to shaping entrepreneurial behavior of small businesses in the context Iglic, 2005). Similar to corruption, institutional trust has been found to play an
of transition economies (Tonoyan et al., 2010). Corruption is identified as a huge important role in creating an institutional environment. The activities of
obstacle to the performance of SMEs (Aidis, 2005; Hashi & Krasniqi, 2011). When entrepreneurship require a fundamental foundation of institutional trust (Karmann et
corruption is at high level, enterprises tend to do short-term business, little investment al, 2016). In particular, entrepreneurship and innovation of enterprises can be reduced
and snatching (Nguyen Van Thang, 2015). Thus, the level of risk taking and or developed (Anokhin and Schulze, 2009; Ellonen et al., 2008). Based on the
pioneering proactiveness may be negatively affected because they neither intend to literature review, the thesis proposes following research hypotheses:
do long-term investment nor focus on innovation. However, effects of corruption on H4a: Institutional trust is positively correlated with the level of innovation.
all aspects of entrepreneurial orientation (innovation, risk taking, and pioneering
proactiveness) does not seem to be much studied. Based on the overall framework, H4b: Institutional trust is positively correlated with risk taking level.
the thesis proposes following research hypotheses: H4c: Institutional trust is positively correlated with proactiveness.
H3a: Corruption is negatively correlated with innovation. 2.2 Proposed research models
H3b: Corruption is negatively correlated with risk taking level. The theoretical model is based on formal and informal institutional factors that
H3c: Corruption is negatively correlated with proactiveness. can affect every aspect of entrepreneurial orientation. Although there is no central
theoretical framework for this study, the research model is proposed in Figure 2.4
Trust which is an important informal institution and commonly used based on literature review and inherited from the empirical evidence and suggestions
(Williamson, 1993; Dixit, 2009; Seyoum, 2011) has become an important principle of from previous studies.
the organization when there is a shortage of a strong market institution ( Nguyen et
al., 2005) and developing trust will result in better performance (Wicks and Berman, Figure 2.4: Research model
2004; Nguyen and Rose, 2009). Trust is often perceived as a substitution for a Mismatch of
policy and
developed market institution (Redding, 1990; Peng & Heath, 1996). There are many regulation systems
studies of different types of trust and many concepts of trust. In general, trust is
considered as an informal institution that refers to established belief systems of the
Innovation
behavior of other people. It is necessary to identify specific types of trust in the study
Execution quality
to make appropriate comparisons. Rus and Iglic (2005) have examined the trust of
SMEs including institutional trust and inter-personal trust. Institutional trust in this
study is defined as shared expectations derived from formal social structures through - Operation
Risk taking period
signals such as members of professional associations or intermediary mechanisms - Type of
such as legal regulations, banking, government bureaucracy (Fuglsang and Jagd, ownership
2015), which is generally beyond a certain transaction and beyond specific exchange Institutional trust
partners (Zucker, 1986; p. 63).
Proactiveness
Corruption
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CHAPTER 3 businesses, ownership, size (capital and number of employees), and diversed areas of
RESEARCH METHODOLOGY activity. An important note for the author to choose respondents is that
entrepreneurial orientation often follows the perspective of senior managers (Wiklund
3.1. Overall research design & Shepherd, 2003). They are often those who highly influence company strategy
The thesis uses both qualitative and quantitative approaches. The qualitative (Keh et al, 2007). This approach has been accepted in studies, especially in the
one was done in phase 1 (before quantitative research) while the quantitative context of SMEs (Keh et al., 2007, Wiklund & Dean 2003). Therefore, in this
approach is implemented in phase 2 to test models and research hypotheses. research, General Director/Director or Deputy General Director/Deputy Director or
Regarding qualitative approach, in-depth interviews are done to clarify and Member of the Board of Directors / Board of members of each company has been
examine the relevance of the concept and content of the 'entrepreneurial orientation' selected as interviewees. All of the top selected managers are those who have worked
in the context of Vietnam. In addition, since the informal institution is controversial, with their companies for many years so have good understanding of their operations.
sensitive, difficult to measure, it needs to be explored. In addition, qualitative All businesses in the sample have been in active for at least 3 years. This way of
research also helps suggest an overview of the relevance of the model and the sampling can ensure the whole representativeness and has been done by a number of
relationships in the proposed research model before conducting quantitative research previous studies on entrepreneurial orientation of SMEs in Vietnam (Nguyen, 2011;
with large sample size. In addition, qualitative research contributes to detecting and Swierczek & Thai, 2003).
supplementing indicators for research variables. Enterprises selected for the first qualitative research are 5 SMEs in Hanoi,
which is one of the two cities with the largest number of SMEs in Vietnam. This
Quantitative research was conducted through a sample survey of Vietnamese
sampling method has also been carried out by previous studies using qualitative
SMEs in three big economic centers (Hanoi, Da Nang and Ho Chi Minh city). The
research methods (Nguyen, 2009). Business name is coded to keep confidential as
model and research hypotheses are tested with survey data collected from the
required.
research sample. The use of both quantitative and qualitative approaches helps us
deeply understand the research problem and give more reliable research findings. Businesses selected for the second qualitative research are 21 SMEs from three
of the country's largest economic centers, representing the three regions of North-
3.2 Qualitative research Central-South (Hanoi, Da Nang and Ho Chi Minh city). The number of SMEs in
3.2.1 Objectives these three cities accounts for more than 80% of the total SMEs of the country (GSO,
There is still a number of different views on the entrepreneurial orientation of 2018).
SMEs (Hoang Van Hoa, 2010), and the relationships between institutional factors and 3.2.2.2 Data collection and analysis
aspects of entrepreneurial orientation are not really clear. Based on the general Before collecting data, a guideline for in-depth interview was designed based on
research objectives and some highly sensitive institutional factors, the thesis uses research model (see appendix 01A and 01B), which will help pre-shape required
qualitative methodology to explore and clarify research concepts being concerned. information. This study uses many data sources. Data was collected from desk review,
The first qualitative study is to explore and understand the nature of observations and in-depth interviews, of which the latter was mainly used in the study.
entrepreneurial orientation concept and its aspects. After identifying aspects of Specifically, the author has searched for websites and documents related to SMEs,
entrepreneurial orientation in the context of Vietnamese SMEs, the second qualitative their characteristics and recent performance. Observations were made by the author
study was carried out to explore and understand formal and informal institutional during visits to companies based on good relationship with these companies. During
factors that affect the entrepreneurial orientation of SMEs. each visit, the author regularly works and discusses directly with the top leaders of
3.2.2 Implementation each company. Therefore, the author can observe the performance of companies, the
behavior of company leaders and may have a better view of the level of
3.2.2.1 Research sample
entrepreneurial orientation of each of them. The focus of the interviews was to
Enterprises selected for this research are Vietnamese SMEs as defined
understand the formal and informal institutional factors, as well as their effects on the
according to Government’s Decree No. 56/2009/NĐ-CP, dated June 30, 2009. The
aspects of entrepreneurial orientation of SMEs. In particular, the respondents were
selection of businesses ensures the diversity of research sample regarding types of
13 14
firstly asked to provide an overall picture of the company's performance over the past • Corruption and institutional trust are two informal institutional elements which
five years and identify key barriers to their business, especially from the institutional are considered to have critical impacts on the entrepreneurial orientation of
environment. Then, the level of proactiveness, innovation and risk-taking level of the SMEs. Initially, corruption is found to negatively affect entrepreneurial
company (ie three aspects of entrepreneurial orientation) were examined and the orientation while institutional trust having positive impact. This finding is also
factors affecting the entrepreneurial practices of these companies were explored. consistent with the proposed research model. Institutional trust is felt and
During interviews, effects of institutional elements, especially informal institutions shared positively by some businesses, so one additional indicator is suggested
(corruption and institutional trust) on each aspect of entrepreneurial orientation have to relect this content.
been carefully studied. Each interview lasted for between 45 and 60 minutes. 3.3 Quantitative research
Interviews were conducted at the office of the interviewee or at places which were
suggested by interviewees as long as they were comfortable. The interviews were Sau khi thực hiện nghiên cứu định tính, tác giả tiến hành nghiên cứu định
recorded, then converted to texts for analysis. lượng thông qua một cuộc điều tra các DNNVV nhằm mục đích kiểm định mô hình
và các giả thuyết nghiên cứu. Phần sau đây sẽ trình bày một số nội dung chính như
All interviews were recorded. After tape processing was completed, interview
sau: các thang đo sử dụng trong luận án và quá trình xây dựng bảng hỏi, mẫu điều tra
information was typed and analysed. Content coming out from each interview was
và cách thức thu thập dữ liệu điều tra. After conducting qualitative research,
noted and analyzed. After each interview, information was carefully reviewed in order
quantitative exercise was done through a survey of SMEs for the purpose of testing
to change and prepare for the next rounds.
models and research hypotheses. This section presents following items: scales used in
Then, to analyse the evidence obtained from the first qualitative research,
the thesis and the process of developing questionnaires, survey forms and data
content collected has been coded based on the theoretical concept of entrepreneurial
collection methodology.
orientation and its aspects. Then codes were calculated to come up with frequency
from each interviewer and used as a basis for aggregating for each topic at all 3.3.1 Scales and questionnaire development
interviewees. Similar to the first qualitative round, the main topics that appeared in 3.3.1.1 Scales
each interview of the second qualitative one were carefully identified and analyzed. Most of the scales in this study are inherited from previous studies, are
After each interview, the contents were reviewed for possible changes and prepared for screened and adjusted to adapt to the research context in Vietnam. The screening and
the next interviews. Based on the identification of institutional elements and aspects of adjustment of these scales is done under the guidance of the two experienced experts
entrepreneurial orientation from the desk review and some possible effects, data coding in training, teaching and research of entrepreneurial orientation and institutions. The
was conducted to find out relationships. thesis was also added by five indicators for three variables as a result of previous
studies and qualitative research findings. All scales inherited from previous studies
3.2.3 Research findings are 5-point Likert-type. Therefore, the 5-point scale has also been used for this thesis
with 1 being fully disagree, 2 is disagree, 3 is normal (neutral), 4 is agree, 5 is fully
Based on the research objectives, the qualitative exercise has come up with the
agree.
following findings:
Based on the findings of previous studies and of qualitative research, the
• Entrepreneurial orientation of Vietnamese SMEs includes three outstanding
analysis used in this thesis with two control variables: operating period and type of
aspects, which are: innovation; risk taking; proactiveness. This is the basis to
ownership. The detailed coding of the control variables can be found in Appendix 02.
identify the relevance of studying entrepreneurial orientation with 3 aspects in
Operating period means the duration from the point enterprises start its production
the proposed research model.
and business activities to the current point. This variable is divided into 02 sub-
• Formal institutions affect entrepreneurial orientation through one of the typical periods including: less than 6 years; 6 years or more. Type of ownership are divided
barriers, which is the volatility and complexity of the State system of into two categories: enterprises with and without state capital.
regulations and policies. This is the basis for adding 2 indicators regarding the
appropriateness of the policy and regulations system.
3.3.1.2 Questionaire development
15 16
In order to ensure the quality of the collected data being used for the research, enterprises, big enterprises and newly established ones (Operating time of less than 3
the questionnaire design was carried out through a rigorous and scientific process. years), the number of remaining enterprises is 1,269.
The development of the questionnaire followed 5 steps as: 1 / Identify the concept of According to Mangione (1995), the rate from 50% to 59% is acceptable, while
variables and scales of variables in the research model based on previous studies and the response rate of many current studies is only 30% (Nguyen Thi Tuyet Mai and
qualitative research results; 2 / Develop Vietnamese version of the questionnaire; 3 / Nguyen Vu Hung, 2015). Therefore, based on the minimum sample size requirement,
Check the accuracy, clarity and coherence of the Vietnamese version with the support all 1,269 survey questionnaires were used.
of experts in the research field; 4 / Pilot a small sample to ensure the accuracy and
readability. The process was carried out in two steps, including direct interviews with In order to conduct data collection, 10 enumerators were trained on how to
3 businesses and followed by pilot interview with 50 SMEs; 5 / Finalise the distribute and collect questionnaires. These enumerators are able to communicate
questionnaire, with all color print hardcopies of A3 size paper. In addition, the well and have certain experience to work with businesses, including: 4 marketing
questionnaire also includes sections of business information, respondents' staff in the tourism and hotel sector in Ha Noi; 2 from a research institute in Da
information. Nang; 4 final-year marketing students in Ho Chi Minh city. In order to increase the
response rate, all the questionnaires were color printed attached with an open letter
3.3.2 Research sample and data collection from the Vice Rector of National Economics University (see Appendix 2). In
The survey was conducted in Hanoi, Da Nang and Ho Chi Minh city. These are addition, in each region, there was also support from SMEs Association who sent
the three most dynamic economic centers of the country and account for more than letters or follow-up calls to request their members to fill in the questionaires. After
80% of all SMEs operating in Vietnam (General Statistics Office, 2018). This collecting data from each region, random check was done with some businesses to
research sample was also selected to be representative for the whole Vietnamese verify reliability of the collected data.
SMEs (for example, Swierczek and Thai, 2003). The survey period was carried out from April 2018 to the end of July 2018.
The sample size was based on the number of observed variables of the study The number of questionaires distributed was 1,269 and the number of response was
and the research space. According to Hair et al. (1998), the minimum sample size is 5 486, with the response rate of 39%, and there was 138 invalid questionaires. Low
to 10 times higher than the number of observed variables that can be used for factor number of distributed questionnaire was due to mis-contact with businesses of which
analysis and regression analysis. Thus, with 24 observed variables, then the sample some have relocated or refused to respond. The number of enterprises who did not get
size should be at least 240 enterprises. the questionaires were mainly micro enterprises.
The sampling framework of the study is expected to meet the following In general, the characteristics of the sample met most of the criteria set in the
requirements: sampling framework. Specifically, the share of micro and small enterprises in the
1 / SMEs in accordance with the definition in Government Decree No. 56/2009 sample was 90.2% compared to 98.5% as required, the proportion of enterprises
/ ND-CP, dated June 30, 2009; 2 / Having at least 3 years in operation; 3 / Enterprises operating in the service/trade sector reached 71.6% compared to required ratio of
working in 5 areas including: industry/manufacturing; service/trade; mineral 70.6%, the non-state enterprises accounts for 93.7% compared to set ratio of 99.5%.
extraction; construction; agriculture/ forestry/fishery. In which service/trade Given the research sample methodology, the characteristics of the research sample
enterprises accounts for 70.6% (General Statistics Office, 2018); 4 / The share of and data collection methodology were explained above, it is expected that collected
micro and small enterprises out of the total number of SMEs in each region based on data can ensure the reliability and generalization for the overall study.
official statistics of 98.5% (GSO, 2018); 5 / Type of ownership of both state and All collected data was made with high quality for data analysis. Results of data
private enterprises. Of which, private businesses accounts for 99.5% (GSO, 2018). analysis and justification of research results will be presented in the next chapter.
Based on the research objectives of the thesis and the sampling framework, the
Legal Department of VCCI was contacted to get a list of businesses which was
engaged in PCI 2016 survey in Hanoi, Da Nang and Ho Chi Minh city. This is the list
selected by VCCI based on random stratification method. After eliminating backup
17 18
CHAPTER 4 <.05). During the analysis, the risk-taking variable (CR3) and the proactiveness variable
RESEARCH FINDINGS (CD3) were dropped since the correlation coefficient of the total variable was too low
and the alpha coefficient improves significantly to the required level (> .70) when these
This chapter presents research findings with a focus on model testing and
variables were dropped out. The EFA results with the remaining variables show that the
proposed research hypotheses. Before doing this test, a preliminary assessment of
three factors are extracted as expected, ensuring the distinct and convergence value of
scales through an analysis of the exploratory factor analysis (EFA) and the
the scales, with the total variance extracted of 76.721%.
Cronbach’s alpha coefficient was made. After that, confirmatory factor analysis
(CFA) was done through the evaluation of the full measurement model. Research 4.1.2 Evaluation of scales through affirmative factor analysis (CFA)
model and hypotheses were tested by structural equation modeling (SEM) analysis The results of the CFA analysis with the full measurement model show that the
technique. The affirmative factor analysis (CFA) and the structural equation model measurement model fits well with the data after eliminating an observed variable of
(SEM) were carried out with the support of AMOS software integrated in SPSS 21. 'corruption' (TN1) because this variable is associated with several standardized
4.1 Evaluation results of scales residual covariances> 2.58 (Hair et al., 1998). Specifically, the results of the model's
relevance index are as follows: χ2 (167) = 350.707, χ2 / df = 2.10, p <.001, RMR =
4.1.1 Preliminary assessment of scales through EFA and Cronbach’s alpha
.046, RMSEA = .056, GFI = .915 , CFI = .94, and TLI = .924. All t-tests have
Evaluation of scale of independent variables
reached the significance level of 0.001. The results of CFA analysis with full
EFA analysis was firstly done simultaneously for all indicators measuring the measurement model, using AMOS software are presented in Appendix 03. Thus, the
independent variables in the research model (two elements of formal institutions and scales with indicators are satisfactory and used for further analysis: descriptive
two elements of informal institutions). Before analyzing the factor, KMO and analysis to assess the status of institutional and entrepreneurship factors of
Bartlett's Test were done. The results showed that Kaiser-Meyer-Olkin Measure of Vietnamese SMEs (from the perspective of SMEs), and SEM analysis to test research
Sampling Adequacy is equal to 0.836 (value from 0.6 is acceptable) and Bartlett's hypotheses.
Test of Sphericity has a significant level of under 0.05 (see annex 03). This result
4.2 Current situation of institutional factors and entrepreneurial orientation of
indicates eligibility for EFA implementation. EFA was then conducted with the
Vietnamese SMEs
Principal Component Analysis and the Varimax rotation. EFA results show that 4
factors are extracted at eigen value> 1.00 and the total variance extracted is 65.836% 4.2.1 Descriptive statistics of institutional factors and entrepreneurial orientation of
(see Appendix 03). In addition, observed variables have high coefficient (factor SMEs
weight) on the concept they they measure (from 0.547 or more) and low coefficient Statistical results of formal and informal institution factors
on the concept they do not measure. Therefore, the scales of four institutional factors Statistical results show the level of the two formal institutional factors at a slightly above
all achieve convergent values and distinct values. the average point (> 3.2) on a scale of 5. This reflects SME’s perception of formal
The thesis evaluates the reliability of each scale of independent variables through institution elements being as vicious barriers to their business, especially the volatility,
the Cronbach’s alpha coefficient. All scales have coefficient alpha above the normal inconsistency and overlapping of government policies and regulations (mean = 3,544,
threshold of .70, except alpha of institutional trust scale of .672. Although it has not S.D) = .744).
reached the level of .70, the value is also higher than .60 and so is also acceptable (Hair Descriptive results also show that the average score of the two elements of the
et al., 1998). informal institution is also just above the average. Specifically, institutional trust was not
high (mean = 3.662 on a scale of 5; S.D. = .6268). Corruption is assessed at a slightly
Evaluate the scale of dependent variables above average level (mean = 3,351; S.D. = .8321). This reflects the fact that SMEs often
The thesis continues to perform EFA analysis simultaneously for all indicators have to pay informal costs when working with state agencies and this is also a barrier to
measuring the three dependent variables in the research model (three aspects of businesses’ operations.
entrepreneurial orientation). KMO and Bartlett's Test results show that it is satisfactory Statistical results of entrepreneurial orientation aspects
to implement EFA (KMO> .60 and Bartlett's Test of Sphericity with significance level