Faculté des sciences économiques et sociales

Functional competencies and their effects on performance of manufacturing companies in Vietnam

Nguyen, Thi Mai Anh ; Grünig, Rudolf (Dir.) ; Davoine, Eric (Codir.)

Thèse de doctorat : Université de Fribourg, 2008.

The manufacturing industry plays a key role in Vietnam (due to its labour advantage), generating jobs, contributing to social and political stability, and adding high value exports to help the balance payment. As Vietnam becomes more and more active in its pursuit of global economic integration, the entry of many foreign giants into its own domestic market will surely intensify the competition.... Plus

Ajouter à la liste personnelle
    Summary
    The manufacturing industry plays a key role in Vietnam (due to its labour advantage), generating jobs, contributing to social and political stability, and adding high value exports to help the balance payment. As Vietnam becomes more and more active in its pursuit of global economic integration, the entry of many foreign giants into its own domestic market will surely intensify the competition. Recognizing the importance of functional competencies to the firm’s performance will help the companies improve its competitiveness. In addition, many researchers had emphasized the importance of an integrative perspective study. Therefore, this study integrates four functions to investigate relationship between four functional competencies and firm performance of manufacturing companies in Vietnam. To address these issues, a field survey of manufacturing companies in Vietnam was conducted with the use of structured questionnaires and mail survey. A total of 725 questionnaires were sent by mail to manufacturing companies. Consequently 125 questionnaires were mailed back at gross response rate of 17.24%. The sample composed of 63.6 per cent limited or joint-stock companies, 27.3 per cent state-owned enterprises and 9.1 per cent foreign capital organizations. Various data analysis procedures were applied including factor analysis, descriptive analysis, single regression and multiple regression in order to accomplish the objectives of the study. The findings identified four set of items of functional competencies namely manufacturing, marketing, research & development (R&D), and human resource and two set of items of organizational performances called profitability and market performance. All of these factors had high loadings (all above 0.541) and high reliability (all above 0.794), indicating internal consistency. Although these dimensions retain a certain degree of similarity with others found in previous studies elsewhere, this collection of dimensions offers typical features of manufacturing companies in Vietnam. It found that in general, manufacturing companies in Vietnam do not perform very well their four functions: manufacturing, marketing, research & development and human resource. This expected result came from a long period where production and consumption were all planned and distributed by the Government. It was discovered that seven hypotheses out of eight were supported by the empirical research and there were no unexpected results. The study confirmed that those manufacturing companies in Vietnam putting more emphasis on marketing, research & development and human resource competencies can expect to earn higher profitability and market performance. The study also found the positive and significant relationship between manufacturing competency and profitability. These findings are consistent with some previous studies.