MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY SUMMARY OF PH D THESIS HUMAN RESOURCES DEVELOPMENT OF SOCIAL ENTERPRISES IN VIETNAM Major Business Administration Code 9340101 LE HONG VAN H[.]
MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY SUMMARY OF PH.D THESIS HUMAN RESOURCES DEVELOPMENT OF SOCIAL ENTERPRISES IN VIETNAM Major: Business Administration Code: 9340101 LE HONG VAN Hanoi – 2023 The thesis is completed at: Foreign Trade University Science Instructor: Prof.Dr Nguyen Thi Thu Ha Prof.Dr Nguyen Tien Hoang Reviewer 1: Reviewer 2: Reviewer 3: The research will be protected in front of the council meeting at Foreign Trade University INTRODUCTION Background and rationale 1.1 Literature rationale It is captured from literature and empirical evidence of vast developed countries worldwide that human resources play a vital role in economic growth and development The United Nations recommendations and dominant leaders' viewpoints reveal the significant role of human resource development in the country's development Human resource development is the leading factor determining the success or failure of nations and peoples From an enterprise perspective, human resources are crucial because sustainable values result from human resources which cannot be imitated This is consistent with the firm vision-based resource theories developed by Penrose (1959) and Barney (1991) According to this theory, it is imperative to maintain and develop human resources to become valuable, rare, and difficult to imitate, thereby enhancing an organization's competitive advantage 1.2 Practical rationale In recent years, social enterprise in Vietnam has been established with various forms of organizations and legal status (such as non-profit organizations, charity organizations, social enterprises registered under the Enterprise Law 2014, and enterprises creating social impacts ) This model is increasingly proving the role of an effective supportive partner in solving social and environmental issues with a sustainable approach Many social enterprises with creative ideas have been significantly successful in solving significant problems such as poverty reduction, support for disadvantaged people and ethnic minorities, nature conservation, and environmental protection, to name but a few However, social enterprises often operate under resource constraints and weak institutions (e.g., limited infrastructure, technological, legal, economic, and education) Social enterprises often face significant challenges in building and developing human resources compared with the other types of enterprises in the economy Given that the human resources of social enterprises mainly come from groups of disadvantaged and unlucky people at the bottom of society, people with disabilities, vulnerable people such as HIVinfected people, children, women, the poor who are low-quality labor sources poor stability Therefore, the labor productivity of the organizations is not high The cost of training this human resource is also higher than usual In general, human resource development in social enterprises in Vietnam is facing many difficulties in both awareness and support policies of the government Concerning the above issues, the author chose the topic "Human resource development of social enterprises in Vietnam" as the research topic for the doctoral thesis in Business Administration This is a new research direction, without duplication, and necessary for increasing the benefits that social enterprises bring to Vietnamese human resources, contributing to solving social problems and benefiting Vietnamese people and community Research objectives 2.1 General objective The thesis aims to evaluate the influence of human resources development on the organizational effectiveness of Social Enterprises in Vietnam thereby proposing solutions to human resource development to improve the performance of these enterprises in the current context 2.2 Specific objectives - Review the current literature on human resource development (HRD) in enterprises, organizational effectiveness (OE) and impact of HRD on OE - Analysis and assessment of the current state of human resource development of Vietnamese social enterprises - Building a conceptual model to discover the influence of human resource development on the performance of social enterprises in Vietnam directly and indirectly through employee competency - Suggest solutions to develop human resources in Vietnamese social enterprises to improve their performance based on the research result Research question Question 1: What is the theoretical background for human resource development of enterprises? Question 2: The current situation of human resource development in Vietnamese social enterprises? Question 3: How does human resource development affect the organizational effectiveness of Vietnamese social enterprises? Question 4: What role does employee competency play in the relationship between human resource development and the performance of Vietnamese social enterprises? Question 5: What Vietnamese social enterprises need to to develop human resources? Thesis subjects and scope 4.1 Thesis subjects The research subject of the thesis is the impact of human resources development on the performance of social enterprises in Vietnam Scope of content: The thesis focuses on analyzing theories of human resource development, organizational effectiveness and building a conceptual model for the influence of human resources development on the performance of social enterprises in Vietnam; the role of staff capacity in the relationship between human resources development and performance of Vietnamese social enterprises; solutions for human resource development in Vietnamese social enterprises to 2025 with a vision to 2030 Geographical scope: The study was conducted in Vietnam Time scope: Secondary data collected from 2015 to present, primary data collected in 2021, directions and solutions are proposed towards 2025 with a vision to 2030 Research methods and data The thesis uses primary and secondary data sources In which, secondary data is collected from sources of documents, reports, summaries on SE, data from the General Statistics Office, and reliable sources Primary data is collected through questionnaires and interviews with 267 people who are employees and managers at all levels of Vietnamese social enterprises Data processing method To achieve the research objectives, the thesis uses quantitative methods To evaluate the impact of human resources development on organizational effectiveness of Vietnamese social enterprises, with the research variables being reflective constructs, the PLS-SEM model is used by researchers considered appropriate (Coltman, Devinney, Midgley, & Venaik, 2008; Hair, Ringle, & Sarstedt, 2011; Lowry & Gaskin, 2014), so the author uses SmartPLS software to perform the structural model analysis architecture for this study In this study, Human Resource Development is a quadratic concept of Training, Career Development, Performance Appraisal, Organizational Development and Employee Engagement components Next, Employee competency is the quadratic concept of Work Ethic, Personal capacity, Communication capacity and Capability to change Organizational effectiveness is the quadratic concept of measurement by goal, measurement by system of resources and measure against competitive value Therefore, to evaluate the model's relevance, the author focuses on the following indicators: quality of observed variables, reliability, convergent value and discriminant value In addition, in order to analyze the fluctuations in quantity, quality and human resource structure of social enterprises over time to see the impact of these factors on the performance of the enterprise, the author uses the comparative method, comparison and descriptive statistics Contribution Literature contribution: - The thesis contributes to systematizing and clarifying theoretical issues related to human resource development in enterprises - The thesis focuses on analyzing the influence of human resource development on organizational performance with employee's capacity as a mediator From that, the Thesis reveals a new perspective to conduct further studies on this topic in the future Empirical contribution: - The thesis provides empirical evidence for human resource development practices in social enterprises in Vietnam - The thesis clarifies the influence of human resources development on the performance of social enterprises in Vietnam with the role of Employee competency as a mediator - Base on the research result and data, the author proposes solutions and suggestions associated with the practice of establishing and developing Vietnamese social enterprises in the past period Consequently, the Government will gain additional advices, timely modify and adjust policies suitably for this relatively new type of business Thesis outline Chapter 1: Overview of current research and scholar Chapter 2: Human resource development in social enterprises literature Chapter 3: Research Methods Chapter 4: Research results and discussion Chapter 5: Conclusions and recommendations on human resource development in social enterprises in Vietnam CHAPTER 1: OVERVIEW OF CURRENT RESEARCH AND SCHOLAR 1.1 Research on organization human resource development Human resources are the priority leading to the development and prosperity of every organization, country and society It is the only renewable and sustainable resource available and the primary condition for success and collaborative development (Saeed and Batool, 2004) Human resource development is an attractive topic, but at the same time it is a difficult subject to understand because of the broad and integrative aspect (Arya & Tandon, 1998) As a subject, human resources development is interdisciplinary and combines many topics of social science and public management (Jayagopal, 1990) Therefore, when researching on the topic of human resource development, domestic and foreign scholars have implemented many different approaches at macro and micro levels, approaching from economic, political and culture or focus on factors affecting human resource development in small and medium-sized enterprises, in enterprises belonging to a specific industry or geographical area Some research topics include related to human resource development in organizations that the author learns include: studies on the concept of human resource development; research related to the goals and beneficiaries of human resource development; Studies related to factors affecting human resource development, Researches on inputs, outputs, implementation programs of human resource development and studies related to human resource development results in organizations 1.2 Research on human resource development in social enterprises Human Resource Development in enterprises has been taken into account by many scholars worldwide and researched under different angles and scopes Many research works have mentioned human resource development activities in small-scale enterprises, however, according to the author's research, there are no works referring to human resource development in social enterprises (social enterprises) This is a challenge for the author when the references are limited, but it is also an important contribution to perfecting the novelty of the topic that the author researches However, these studies will form the basis of the research method for the author's thesis For example, studies show that knowledge sharing as an attribute of organizations creating social impact (Brief & Motowidlo 1986; Chieh - Peng Lin 2007) is positively related to teamwork performance (Brief & Motowidlo 1986; Chieh - Peng Lin 2007) Flinchbaugh et al., 2016) Information sharing and training can contribute to the development of social enterprises in achieving social and financial goals (Lee & Moon 2008) Employee involvement in decision making and close communication between management and employees increases employees' commitment to Social Enterprises and employees' efforts to achieve the mission (Ohana, Meyer & Swaton 2013) ) Regarding rewards, some studies show that social enterprises reward employees not only based on non-financial incentives (Doherty, Haugh & Lyon 2014), but also using financial incentives related to performance evaluation performance (Battilana & Dorado 2010) 1.3 Literature gaps The topics related to evaluating human resource development activities and organizational effectiveness is popular to many scholars (Wright et al., 2003) Many studies have focused on analyzing the relationship between individual human resource development activities or performing a combination of these activities as a system and strategy (Marler, 2012) The relationship between human resources development and employee performance focuses on employee performance or on factors that promote innovation (Kabanoff and Brown, 2008; Song et al 2008) However, there is no work that specifically discover how different competencies are developed by individuals involved in human resource development activities and the relationship of human resources laboratory, and the capacity of employees with organizational performance Some foreign studies have provided a number of criteria as a measure of human resource quality (perception, work skills, technology application, attitude, trust, sensitivity, personal characteristics) .) when considering the issue of human resource development However, the conditions and environment applied between countries and continents are not the same, so the criteria are mainly for reference In general, the research topics on domestic human resources have mentioned qualifications, qualities, ethics, skills, health, attitudes but have not identified each specific component development of human resources of a country in general, or of an industry or an enterprise in particular The system of solutions of the above studies also stops at proposing solutions to develop human resources at the national, geographical or industry level, but there are no specific solutions for human resources development in social enterprises Badri and Davis (1995) emphasized the role of human resource development as a key element of social enterprises Unlike normal businesses, social enterprises' human resources are mainly disadvantaged and unlucky people from the bottom class of society, people with disabilities, and vulnerable people such as HIV-infected people, children and young people Children, women, the poor are a source of low-quality labor with poor stability, so labor productivity is not high Along with that, the cost of training this human resource is also higher than usual Therefore, it can be seen that the development of social enterprises in general and human resource development in social enterprises in particular in Vietnam is facing many difficulties both in terms of awareness and support policies of the state Therefore, the research topic "Human resource development in Vietnamese social enterprises" is a new research direction, without duplication, proposed for the purpose of increasing the benefits that social enterprises bring for Vietnamese human resources, contributing to solving social problems and for the benefit of the community CHAPTER 2: HUMAN RESOURCE DEVELOPMENT IN SOCIAL ENTERPRISES LITERATURE 2.1 Social enterprises literature 2.1.1 Definition Social enterprise is an enterprise established and operating under the provisions of the Enterprise Law 2014 with the purpose of serving the community and society and deducting 51% of the total annual profit of the enterprise for reinvestment in order to achieve the target social, environmental as registered 2.1.2 Social enterprises characteristics Social enterprises have some basic features that are widely recognized as follows: Hybridity; Participating in production and business activities; Social goals are core values of Social Enterprises; Profits are reinvested for social projects; Social property; Serving the needs of the bottom society group; Open and connected and Sticking 11 2.5.1 Conceptual model Goal Approach Training activities in SE Career development OE in SE HRD in SE Performance Appraisal Employee Competencies Organizational development Self competencies Communication ability Ability to change System resource approach Competitive value approach Work ethics Figure 1: conceptual model 2.5.2 Hypothesis H1: Human Resources Development has a positive effect on employee performance in Vietnamese social enterprises H2: Human resource development has a positive effect on the performance of Vietnamese social enterprises H3: Employee competence is positively related to the performance of Vietnamese social enterprises H4: There is a positive relationship between human resource development and the performance of Vietnamese social enterprises through the mediating influence of employees capacity CHAPTER 3: RESEARCH METHOD 3.1 Research process The thesis is conducted research through two main phases: the 12 preliminary research phase and the formal research phase The study was conducted using a quantitative method, whereby research data was collected through face-to-face and online surveys The author used the preliminary quantitative research method in the preliminary study and the official sample in the formal study 3.2 Research design 3.2.1 Interview and consult through group discussion To evaluate the influence of human resource development on the performance of social enterprises in Vietnam, the author conducted group discussions and in-depth interviews with five people currently working in social enterprises to determine the content of human resource development activities in social enterprises The author asked about the practical HRD activities in enterprises, the influence of HRD on each employee's capacity, and the organization's performance This discussion helps the author be more confident about using secondorder scales for the first-order variables in the model and getting the consensus of representatives from social enterprises At the same time, the author also received comments on adding the Employee Participation variable to measure the practical activities of human resource development in social enterprises from the representatives of social enterprises The author realized the reasonableness and necessity of This variable should have been added to the research model Therefore, in addition to the four elements constituting human resource development activities, namely Training, Career Development, Performance Appraisal, and Organizational Development, the author has added variable Employee participation and an effective research model Adjust as follows (figure 2) 13 Goal Approach Training activities in SE Career development OE in SE HRD in SE Performance Appraisal Employee Competencies Organizational development System resource approach Competitive value approach Employee involvement Self competencies Communication ability Ability to change Work ethics Figure 2: Modified conceptual model 3.2.2 Mesurement The study uses two main measurement scales, the nominal and the Likert scales For the nominal scale, the author uses it to manage data on demographic factors (gender, income, education level) of respondents who are employees from Vietnamese social enterprises For the variables Human Resource Development, Employee Capability, and Operational Efficiency of Social Enterprises, the author uses a Likert scale with increasing levels from "Strongly disagree" to (Strongly agree) In the literature review, the three main variables of the model are considered as three quadratic structures in the reflective-formative form Indicators are considered reflective measures because measuring the same latent factor produces the individual scales interchangeably, and removing any of the scales does not change the meaning of the structure as long as the structure has sufficient reliability At the first level, 14 the author measures the human resource development variable by five variables (In-company training, Performance evaluation, Career Development, Employee involvement, and Organizational development) through 23 observed variables of this factor Employee competency includes four variables at level and 20 observed variables Organizational efficiency is measured by three first-order variables and 12 observed variables 3.3 Data source and collecting method 3.3.1 Sampling method and sample size The author applies the convenient sampling method to the nonprobability sampling methods presented in the textbook "Scientific research methods in business" by Nguyen Dinh Tho (2011) Specifically, the author selects the target audience for the survey who currently work in social enterprises and businesses that create social impacts, including employees and business administrators Regarding sample size determination, according to Hair et al (1998), the minimum sample size of the study should be from 100 to 150 samples In addition, there are three sample sizes for the SEM linear structural model: small sample ≤ 100, medium sample 100-200, and large sample ≥ 200 According to another convention of Hair et al (2014), the sample size needs ten times the number of paths in the PLSSEM structural model This study has 15 links, so the minimum sample size is 150 After giving the official survey, the author obtained 300 questionnaires, a careful selection process to eliminate unsatisfactory votes (have not started a social enterprise, answered the same answer throughout the survey…) the author collected 267 valid votes This is the number of samples suitable for linear structural model analysis 3.3.2 Collecting data method The author used an online survey with the help of Google Forms tool to collect primary data due to the stressful time of data collection during the epidemic The survey period begins on June 22, 2021, and ends on August 31, 2021 With the registration to participate in the Social Impact Business Forum 2021, the topic of the Resilience Challenge takes place On June 22, 2021, on the Hopin platform, the author logged in right from the opening session and left a link In 15 addition, the Forum set up Booths - where the Organizing Committee supported and answered questions for attendees during the Summit 2021 event and Amazing Box - to experience Social Enterprises products At Amazing Box, the author visited the booth and left a link to ask for support in surveying to learn more about the human resource development situation of social enterprises participating in the event In addition to the above event, the author is also a member of the Community of Social Impact (Social Impact Vietnam) and the Community of Entrepreneurs, creating a social impact (Vietnam Impact Entrepreneur) Through these channels, the author shares research ideas and questionnaires to collect survey information to receive support from the community of experts, researchers, and businesses, creating a social impact in Vietnam Summarizing the whole process of collecting primary data for official research, the author has all 300 survey results with 267 satisfactory questionnaires, satisfying the sample size conditions (n) > 150) mentioned above and exceeding the original author's expectations 3.4 Data Analysis Methods 3.4.1 Descriptive statistics method This method helps to describe the essential characteristics of data obtained in different forms In this study, the descriptive statistical method is used to synthesize, analyze and represent the data collected through the Excel tool to assess the current state of human resource development in Vietnamese social enterprises through popular parameters such as frequency, ratio, mean, standard deviation on the survey sample and the scales 3.4.2 Structural model analysis (SEM) When considering human resource development activities at an enterprise in general or social enterprises in particular, it can be seen that the organization will operate more effectively based on the close connection between the elements of Training, Career Development, Performance Appraisal, Organizational Development, and Employee Engagement The same goes for Employee Competence and Organizational Performance variables because the observed variables are assumed to be caused by the latent variable With this feature, the 16 research variables are reflective constructs defined by Jarvis, MacKenzie, Podsakoff (2003), and Rossiter (2002) When the research model includes the outcome structure, PLS-SEM is considered by the researchers to be more suitable than CB-SEM (Coltman, Devinney, Midgley, & Venaik, 2008; Hair, Ringle, & Sarstedt, 2011; Lowry & Gaskin, 2014), so the author uses SmartPLS-3 software to perform structural model analysis for this study CHAPTER 4: RESEARCH RESULTS AND DISCUSSION 4.1 Current status of Social Enterprises and Human Resources Development in Vietnamese Social Enterprises 4.1.1 Current status of Social Enterprises in Vietnam The number of social enterprises has increased significantly, including those registered under the Enterprise Law (about 300) and those with similar models to social enterprises (about 30,000 enterprises) Karma) As can be seen, social entrepreneurship has become popular Social enterprises with a similar model have existed for a long time in small and medium enterprises, but the nature of enterprises has not yet realized that it is a social enterprise model Second, vocational education and training are still one of the three main areas of activity of the social enterprise sector, which has existed since before the Enterprise Law took effect in 2014 In the previous period, the handicraft industry was Fine arts is a relatively popular field of activity that social enterprises choose (mainly in the form of craft cooperatives) However, in recent years, agriculture, forestry, food, incredibly sustainable agriculture, safe, organic food, and forest protection are the main areas in which social enterprises want to invest 4.1.2 Current situation of human resources in social enterprises in Vietnam The human resource scale of social enterprises is still tiny, about 44% of enterprises have a labor force of 10 to a maximum of 49 people, and about 19% of enterprises have a labor force of 5-9 people More than 10% of businesses have 50-99 employees The group of enterprises with 100 employees is less than 25% of the total number of social enterprises The unique point is that the surveyed social 17 enterprises in Nghe An and Kien Giang have less than 50 employees The proportion of a diverse workforce is reflected in the significant number of social enterprises that employ volunteers (volunteer workers in 2018 accounted for only 27% of the total workforce, and in 2020, up to 57%) Volunteers mainly come from university students and international volunteers from international organizations This could lead to a significant increase in global resources and universities supporting the social enterprise sector The social enterprise sector gained more recognition, and the concept of social enterprise became more popular and known in universities 4.2 Human resource development activities in social enterprises in Vietnam 4.2.1 Sample Descriptive statistics Survey data was coded and entered using Microsoft Excel software and analyzed using SMART PLS 3.0 software Through the data entry process, the author discovered that 33 survey questionnaires appear that the respondents not answer or choose the same option for all questions These questionnaires will therefore be eliminated In the end, the author obtained a total of 267 questionnaires From the statistics and analysis of demographic variables, it can be concluded that the sample chosen by the author for this study is appropriate and representative to learn about the impact of human resources development on the performance of Vietnamese social enterprises 4.2.2 Measurement Descriptive statistics Firstly, the analysis using SPSS software shows that all observed variables presented in the study have values greater than or equal to 3.35 Thereby, it can be concluded that most respondents basically agreed and rated quite well the scale measuring the influence of human resource development on the performance of Vietnamese social enterprises Second, the analysis results using SPSS software also show that all observed variables receive Skewness and Kurtosis coefficients with absolute values less than Thereby, all variables can be concluded The observations mentioned in the study are normally distributed In other words, the standard curve distribution of the observed variables 18 in the research model has a bell shape, and the research data is distributed relatively evenly to both sides (Nguyen Dinh Tho, 2012) 4.3 Quality of observed variables The results of the PLS Algorithm analysis show that the observed variables of quadratic variables are: Training (DT1, DT2, DT3, DT4, DT5), Performance evaluation (PA1, PA2, PA3, PA4), Career development Industry (PTNN1, PTNN2, PTNN3, PTNN4), employee participation (TG1, TG2, TG3, TG4, TG5), Organizational development (OD1, OD2, OD3, OD4, OD5) all give value for outer loadings higher than 0.7 – the threshold is suitable for many cases (Hair et al., 2010; Bagozzi & Yi, 1998) Meanwhile, according to Chin (1998), the external load coefficient of 0.7 or more means that the quality of the observed variable is good, and latent variables explain more than 50% of the variation of the observed variable The coefficient of outer loadings of the observed variables measuring the dependent variable The performance of social enterprises includes CVA (CVA1, CVA2, CVA3, CVA4); GA (GA1, GA2, GA3, GA4), SRA (SRA1, SRA2, SRA3, SRA4) with values from 0.795 to 0.871, more significant than 0.7, demonstrating high levels of association between observed and latent variables mom Most of the Outer loadings coefficient values of the intermediate variable Employee competence also reach the upper threshold of 0.7 except for two observed variables, GT2 (value 0.608) and SC5 (0.387) These two observed variables are not qualified because the latent parent variable has not explained at least 50% of the change of that observed variable, so the author removes these two variables from the research model and reruns the system The results of running Outler loadings after removing variables GT2 and SC5 show that the values of Outer Loadings of the observed variables of the independent variable, the dependent variable, and the intermediate variable are all greater than 0.7, so All observed variables are significant in the model (Hulland, 1999) so that further evaluations can be made 4.4 Evaluation of the measurement model by PLS-SEM 4.4.1 Reliability, convergence of the scales Cronbach's Alpha coefficient of all scales is more significant ... Vietnam; the role of staff capacity in the relationship between human resources development and performance of Vietnamese social enterprises; solutions for human resource development in Vietnamese... development of Vietnamese social enterprises - Building a conceptual model to discover the influence of human resource development on the performance of social enterprises in Vietnam directly and... human resource development in Vietnamese social enterprises? Question 3: How does human resource development affect the organizational effectiveness of Vietnamese social enterprises? Question