AN ANALYSIS ON THE WORK ENGAGEMENT OF VIETNAMESE MIDDLE MANAGERS THE CASE OF FDI ENTERPRISES BAC NINH PROVINCE

MISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS AN ANALYSIS ON THE WORK ENGAGEMENT OF VIETNAMESE MIDDLE MANAGERS: THE CASE OF FDI ENTERPRISES - BAC NINH PROVINCE Specialization: Master of Research in International Economics NGUYEN DIEU LINH Ha Noi, 2020 i MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS AN ANALYSIS ON THE WORK ENGAGEMENT OF VIETNAMESE MIDDLE MANAGERS: THE CASE OF FDI ENTERPRISES - BAC NINH PROVINCE Major: International Economics Specialization: Master of Research in International Economics Code: 8310106 Full name: Nguyen Dieu Linh Supervisor: Dr Nguyen Hai Ninh Ha Noi, 2020 DECLARATION I hereby declare that the master thesis is my own research It was written with the thorough guidance of my supervisor – Dr Nguyen Hai Ninh …… Hanoi, May,22 May 2020 Author Nguyen Dieu Linh ACKNOWLEDGEMENT The master thesis has been completed with the great guidance of Dr Nguyen Hai Ninh I would like to express my sincere thanks for his patience and massive help with reading the whole of the thesis and making valuable comments for my research By this occasion, I am much grateful to the Department of Graduate Studies and Foreign Trade University - who have always create most favorable conditions for Morie students in completing our study Thank you so much for their generosity and I owe a debt of gratitude to all helpers TABLE OF CONTENTS LIST OF ABBREVIATIONS vi LIST OF FIGURES vii LIST OF TABLES viii CHAPTER INTRODUCTION 1.1 Emergence of study 1.2 Purpose of study 1.3 Subject and scope of the study 1.4 Research methodology and research questions 1.5 Structure of thesis CHAPTER THEORETICAL FRAMEWORK 2.1 Theoretical famework 2.1.1 Literature review 2.1.2 Classification of work engagement 14 2.1.3 The importance of work engagement on FDI enterprises 15 2.1.4 Factors influence employees’ work engagement 17 2.1.5 Previous researches of work engagement 17 2.2 Snapshot of FDI enterprises - Bac Ninh province 24 2.2.1 FDI enterprises in Vietnam 24 2.2.2 The whole picture of FDI enterprises in Bac Ninh 25 CHAPTER RESEARCH METHODOLOGY 35 3.1 Research design and procedure 35 3.2 Suggested research model and hypotheses 36 3.3 Research methodology 37 3.3.1 Questionnaire design: 38 3.4 Sampling method 42 3.5 Data collection method 43 3.6 Data analysis process 44 CHAPTER MAIN FINDINGS 47 4.1 Demographical Analysis 47 4.2 Assessing work engagement level of Vietnamese middle level managers in FDI enterprises - Bac Ninh province 49 4.3 Factors affecting work engagement of Vietnamese middle level managers in FDI enterprises - Bac Ninh 50 4.3.1 Reliability test (CR) .50 4.3.2 Exploratory Factor Analysis (EFA) 51 4.3.3 Multiple regression analysis 57 4.3.4 ANOVA test 61 4.3.5 Hypothesis test result 66 CHAPTER RECOMMENDATIONS .68 5.1 Conclusions and answering the research questions 68 5.2 Recommendations 70 REFERENCE 80 APPENDIX 01: SURVEY FORM FOR MIDDLE MANAGERS AT FDI ENTERPRISES IN BAC NINH 86 APPENDIX 02: LIST OF FDI ENTERPRISES IN BAC NINH 93 APPENDIX 03: REGRESSION ANALYSIS 95 APPENDIX 04: RELIABILITY TEST RESULT 96 APPENDIX 05: T- TEST RESULTS 100 LIST OF ABBREVIATIONS No Acronym Explanation FDI Foreign Development Investment GDP Gross Domestic Product NWW New Way of Working KPI Key Performance Indicator LIST OF FIGURES Figure 2.1: Effectors creating employees’ satisfaction 18 Figure 2.2: Utrecht Work Engagement Scale (UWES) 19 Figure 2.3: Model of Torp et al (2012) about work engagement 20 Figure 2.4: Model of work engagement Stan et al 21 Figure 2.5: Relationship of Structural Determinants and Organizational Commitment/Job Satisfaction 23 Figure 2.6: Hierarchical view of management in organizations .31 Figure 2.7: Middle management roles 34 Figure 2.8: Vietnam's FDI total capital registered and average capital per project 24 Figure 3.1 Research design and procedure 35 Figure 3.2: Suggested research model 36 Figure 3.3 The 5- point Likert scale 42 LIST OF TABLES Table 3.1 Available options for demographic questions in Section A 39 Table 3.2 Measurement of Current Job/ Task 40 Table 3.3 Measurement of Working Conditions 40 Table 3.4 Measurement of Salary and Income 40 Table 3.5 Measurement of Leadership 41 Table 3.6 Measurement of Colleagues 41 Table 3.7 Measurement of Training and Promotion .41 Table 3.8 Measurement of Organizational Structure 42 Table 3.9 Measurement of Work Engagement 42 Table 4.1 Mean of variables 49 Table 4.2 Reliability Statistics Summary .50 Table 4.4 Model summary .57 Table 4.5 ANOVA 57 ABSTRACT This master examines the factors that influence and shape employee engagement in the context of FDI enterprises in Bac Ninh province It does this by studying multilevel factors at two values: Spiritual values and Physical values Specifically, the thesis focuses on seven independent factors affecting work engagement of employees To achieve this objective, this study adopted a mixed-method approach including: Quantitative and Literature review For quantitative method, the study employed the quantitative method to determine the relationship between work engagement and seven independent variables, as well as the relationship between work engagement and each demographic factor After being collected, survey results were analyzed by the Statistical Package for the Social Sciences (SPSS) Version 26 By conducting a comprehensive survey with a sample size of 144 middle-level managers at largest industrial zones in Bac Ninh, a number of tests were performed on the collected data, namely Kaiser -Meyer-Olkin (KMO) Measure of Sampling Adequacy, Bartlett’s test of sphericity, Cronbach’s alpha reliability test, Exploratory Factor Analysis, Multiple regression analysis and One -way ANOVA test In terms of Literature review, by reviewing previous researches to analyze core meanings and principal of work engagement, therefore we can identify main effectors affecting employees work engagement The thesis aims to measure work engagement and look at the areas where management interventions can be implemented to increase the overall level of employee engagement drafting several solution and recommendation for locality in Bac Ninh to attract and maintain more high qualified middle managers within FDI enterprises Type of your industry Electrics Foods and beverages Leather and Textile Logistics Others …………… SECTION B: LEVEL OF WORK ENGAGEMENT Please select the consent level that best suits your current job Statement I totally engage to this job SECTION C: Give your opinions on current job/tasks The values of all comments are the same and for statistical purposes only, please select the answer that best fits each statement in your opinion No Criteria Strongly disagree Disagree Neutral Agree Strongly agree About current job/tasks Generally, my current job/task is interesting No Criteria Strongly disagree My current job allows me to develop my competencies I totally feel free when doing this job I easily gain work life balance with my current job I have many good experience with my current job About work conditions Disagree Neutral Agree Strongly agree 5 5 I feel comfortable with my work condition Facilities and equipment for performing the work are fully equipped The working environment is very safe The company provides daily shuttle bus 5 About salary and income Salary is commensurate 10 with the results of work, Middle managers get fair 11 wages 12 5 13 Wages are paid in on time I’m satisfied with the current total income Strongly disagree Disagree Neutral Agree Strongly agree 14 I am often trained management skills professionally 15 Effective training courses help employees manage their jobs better 16 Creating more promotion opportunities for qualified people 5 No Criteria Overall physical values including current job/tasks, work conditions and income are good enough to keep staying work engagement About training and promotion Company provides the transparent promotion 16 policies About leadership 17 My boss are always supportive subordinates 18 Recognizing the talents of employees fairly 5 5 Always being motivate 19 towards employees Having deeply intensive 20 knowledge About colleagues (staffs and same level managers in the department / division) 21 My colleagues are good No 22 23 Criteria teammates Follow the plan and the assigned work Coordinate well while working Management qualifications are enhanced when working 24 with colleagues About organizational structure 25 26 27 Appropriate organization of apparatus The levels of reporting are clearly transparent Mission of every departments in company is clear Effective coordination 28 between departments Overall spiritual values are good enough to keep staying work engagement 10 About work engagement 29 30 31 32 I endeavor to advance in higher position I am proud to work at the company Maintaining the loyalty when working at the company Will stay with the company for a long time although there are other Strongly disagree Disagree Neutral Agree Strongly agree 5 5 5 5 5 5 No Criteria Strongly disagree places offering more attractive salaries Sincerely thank you for your cooperation Wish you always be success !!! Disagree Neutral Agree Strongly agree APPENDIX 02: LIST OF FDI ENTERPRISES IN BAC NINH Number of selected middle manager to survey questionnaire No Company Name Công Ty Pepsico Việt Nam CÔNG TY TNHH NƯỚC GIẢI KHÁT VÀ THỰC PHẨM SUNTORY VIỆT NAM Công ty TNHH Samsung Electronics Việt Nam Công ty TNHH Fusan Technology Công ty TNHH Canon Việt Nam Chi nhánh Tiên Sơn Công ty TNHH Sumitomo Electric Interconnect Product Vietnam CÔNG TY TNHH BUJEON VIETNAM ELECTRONICS CÔNG TY TNHH EUNSUNG ELECTRONICS VINA CÔNG TY TNHH MJ INNO HANOI SEJOO Công ty TNHH Samsung SDI 10 Việt Nam 11 Công ty TNHH Seiyo Việt Nam Công ty TNHH Canon Việt Nam 12 Chi nhánh Quế Võ Công ty I Sheng Electric Wire & 13 Cable Việt Nam 14 Công ty TNHH Maxturn Apparel Công ty TNHH Funing Precision 15 Component Cơng ty TNHH Mitac Precíion 16 Technology Việt Nam Công ty TNHH Toyo Ink 17 Compounds Việt Nam Address KCN VSIP - Tỉnh Bắc Ninh Number of selected middle manager 20 KCN VSIP - Tỉnh Bắc Ninh Khu Công Nghiệp Yên Phong,Bắc Ninh 10 KCN VSIP - Tỉnh Bắc Ninh 20 KCN Tiên Sơn - Tỉnh Bắc Ninh 10 KCN Tiên Sơn - Tỉnh Bắc Ninh Khu công nghiệp Quế Võ mở rộng, Xã Phương Liễu, Huyện Quế Võ, Bắc Ninh Lô K-01, Khu công nghiệp Quế Võ (Khu vực mở rộng), Xã Nam Sơn, Thành Phố Bắc Ninh, Bắc Ninh Lô H-04, KCN Quế Võ ( Khu vực mở rộng) KCN Quế Võ - Tỉnh Bắc Ninh Lô D1 - KCN Quế Võ - Tỉnh Bắc Ninh 30 2 2 KCN Quế Võ - Tỉnh Bắc Ninh 10 KCN Quế Võ - Tỉnh Bắc Ninh KCN Quế Võ- Tỉnh Bắc Ninh 2 KCN Quế Võ - Tỉnh Bắc Ninh Lô G1-4-6-8 KCN Quế Võ - Tỉnh Bắc Ninh Lô G9 - KCN Quế Võ - Tỉnh Bắc Ninh 2 No Company Name Công ty TNHH Mitsuwa 18 Vinaplast Công ty TNHH Longtech 19 Precision Việt Nam Công ty TNHH Elegant Team 20 Manufacturer Công ty TNHH Yamato Industries 21 Việt Nam Công ty TNHH Jenway 22 Technology Việt Nam CÔNG TY TNHH ACE CUT 23 SYSTEM CÔNG TY TNHH YOUNG ONE 24 CHEMICAL CÔNG TY TNHH FINE TECH 25 VIỆT NAM Total Address Lô B8 - KCN Quế Võ - Tỉnh Bắc Ninh Lô E1 - KCN Quế Võ - Tỉnh Bắc Ninh Number of selected middle manager 2 KCN Quế Võ - Tỉnh Bắc Ninh KCN Quế Võ - Tỉnh Bắc Ninh KCN Quế Võ - Tỉnh Bắc Ninh Khu công nghiệp Quế Võ, Xã Phương Liễu, Huyện Quế Võ, Bắc Ninh KCN Tiên Sơn, xã Tương Giang, thị xã Từ Sơn, tỉnh Bắc Ninh Khu công nghiệp Quế Võ, Xã Phương Liễu, Huyện Quế Võ, Bắc Ninh 2 2 144 APPENDIX 03: REGRESSION ANALYSIS Perform calculations of new variables representing each group of variables (average value) with independent and dependent variables including: 1) WC=(WC1+ WC2+ WC3+ WC4)/4 2) C=(C1+C2+C3+C4)/4 3) LS=(LS1+LS2+LS3+LS4)/4 4) TP=(TP1+TP2+TP3+TP4)/4 5) CJ=(CJ1+CJ2+CJ3+CJ4)/4 6) SI=(SI1+SI2+SI3+SI4)/4 7) OPV=( OPV1 + OPV2+OPV3+OPV4)/4 8) OSV= (OSV1+OSV2+OSV3+OSV4)/4 9) WE = (WE1+ WE 2+ WE 3+ WE4)/4 Correlation coefficient analysis of WE in the model: The linear correlation between the dependent variables OPV and OSV with the dependent variable WE, also evaluated by the correlation matrix results, showing the degree of correlation between these variables Specifically, the results are as follows by the Pearson correlation coefficient matrix as follows: Variable WE OPV WE OPV 0,451 OSV 0.552 0,103 OSV The table above shows that Physical Conditions (OPV) and Spiritual Values (OSV) relate to Work Engagement and the relationship with the 1% significance level The components are still distinctive when the correlation coefficients are all different from (Tho, 2011) In addition, the correlation coefficient between the independent variables is not high so the data are completely suitable for inclusion in the regression analysis APPENDIX 04: RELIABILITY TEST RESULT Reliability Statistics Cronbach's Alpha N of Items 773 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted CJ1 8.28 3.608 636 702 CJ2 7.95 4.751 775 645 CJ3 8.42 4.993 473 771 CJ4 8.22 5.117 514 750 CJ5 5.42 4.143 292 382 Reliability Statistics Cronbach's Alpha N of Items 895 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted WC1 9.70 8.756 783 860 WC2 9.51 9.145 786 859 WC3 9.65 9.011 753 871 WC4 9.58 9.053 752 871 Reliability Statistics Cronbach's Alpha N of Items 904 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted SI1 9.25 6.888 831 860 SI2 9.19 7.253 779 879 SI3 9.25 7.241 757 887 SI4 9.36 7.424 775 880 Reliability Statistics Cronbach's Alpha N of Items 899 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted TP1 8.77 8.452 807 858 TP2 9.00 9.732 769 873 TP3 8.71 9.059 801 860 TP4 8.81 9.346 731 885 Reliability Statistics Cronbach's Alpha N of Items 875 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted LS1 8.33 9.243 611 892 LS2 8.69 8.284 840 794 LS3 8.63 7.980 802 812 LS4 8.75 10.824 760 851 Reliability Statistics Cronbach's Alpha N of Items 701 Item-Total Statistics C1 Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted 10.29 3.638 450 696 C2 9.82 4.754 643 568 C3 9.63 4.958 460 650 C4 10.28 4.619 479 635 Reliability Statistics Cronbach's Alpha N of Items 790 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted OS1 9.57 3.744 810 614 OS2 8.95 5.180 605 735 OS3 9.07 5.442 507 784 OS4 9.10 6.364 545 776 Reliability Statistics Cronbach's Alpha N of Items 773 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted OPV1 8.28 3.608 636 702 OPV2 7.95 4.751 775 645 OPV3 8.42 4.993 473 771 OPV4 8.22 5.117 514 750 Reliability Statistics Cronbach's Alpha 875 N of Items Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted OSV1 8.33 9.243 611 892 OSV2 8.69 8.284 840 794 OSV3 8.63 7.980 802 812 OSV4 8.75 10.824 760 851 Reliability Statistics Cronbach's Alpha N of Items 909 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted WE1 9.17 7.951 758 910 WE2 8.64 6.130 860 859 WE3 8.87 6.903 759 895 WE4 9.29 5.006 906 852 APPENDIX 05: T- TEST RESULTS Test on the difference in the median values of the influencing factors by gender of middle managers by T-test: This test aims to find out and test whether the difference in gender makes a difference in making assessments about factors affecting the workflow of middle managers to the organization On that basis, the author conducted T-test with the assumptions as following: H0: There is no difference between men and women when assessing the factors that influence the work engagement of middle management H1: There is a difference between men and women when assessing the factors that influence the work engagement of middle managers T-test result of gender Factor WC CJ SI OPV Average Male Female 3,27 3,41 3,32 3,34 3,16 3,26 3,58 3,47 Leneve Test F Sig 2,606 0,109 1,283 0,259 2,389 0,124 1,431 0,234 t-Test T Sig 0,928 0,355 0,137 0,891 0,753 0,453 1,103 0,231 Factor TP LS C OSV Average Male Female 3,50 3,31 3,38 3,41 4,11 4,08 3,44 3,57 Leneve Test F Sig 0,081 0,776 2,577 0,131 0,379 0,539 1,331 0,235 t-Test T 1,546 0,423 0,208 1,203 Sig 0,125 0,673 0,835 0,341 Based on the results of testing the variance homogeneity, we observed that the observed variables have Sig value in the F> 0.05 test and Sig of the T test> 0.05 so with 5% of the sex variance is uniform, so the hypothesis H0 is accepted, meaning that there is no difference between the gender when evaluating the factors affecting the work engagement of middle managers Test of the difference in the median value of the factors affecting employee's marital status by T-test: In order to find out and test whether the difference in marital status makes a difference in making assessments about factors affecting work engagement of middle managers for organizations and authors T-test test execution On that basis, the assumptions were made: H0: There is no difference between married and single people when assessing factors affecting the work engagement of middle managers H1: There is a difference between married and single people when assessing factors affecting work engagement of middle managers T-test result of Marital status Factor WC CJ SI OPV Factor TP LS C OSV Average Married Single 3,38 3,40 Leneve Test F Sig 1,228 0,251 t-Test T Sig 0,675 0,501 3,25 3,35 0,042 0,868 0,624 0,436 3,12 3,44 0,570 0,452 1,959 0,062 3,48 3,48 1,331 0,254 1,105 0,221 Leneve Test F Sig 0,950 0,331 t-Test T 1,958 Sig 0,052 Average Married 3,38 Single 3,65 3,28 3,67 0,458 0,500 2,206 0,029 4,10 4,08 0,995 0,320 0,168 0,867 3,44 3,57 1,331 0,235 1,203 0,341 Based on the results of testing the variance homogeneity, we observed that the observed variables have Sig value in the F> 0.05 test and Sig of the T test> 0.05 so with the error of 5% of the state variance marriage is homogeneous so the H0 hypothesis is accepted, meaning that there is no difference between married and single middle managers when evaluating factors affecting work engagement ... Understanding the situation of work engagement of middle managers in FDI enterprises in Bac Ninh industrial zones - Assessing the level of work engagement of middle managers in FDI enterprises – Bac. .. leaders Therefore, their work engagement determines the performance of FDI enterprises For these reasons, the author chooses the topic: "AN ANALYSIS ON THE WORK ENGAGEMENT OF VIETNAMESE MIDDLE MANAGERS: ...i MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS AN ANALYSIS ON THE WORK ENGAGEMENT OF VIETNAMESE MIDDLE MANAGERS: THE CASE OF FDI ENTERPRISES - BAC NINH PROVINCE Major: