(Luận văn) the effect of suppliers market orientation and suppliers environmental conditions on manufacturers trust

MINISTRY OF EDUCATION AND TRAINING t to UNIVERSITY OF ECONOMICS HOCHIMINH CITY ng hi ep w n lo ad ju y th yi CHUNG NGOC HIEU pl ua al n THE EFFECT OF SUPPLIER’S MARKET va n ORIENTATION AND SUPPLIER’S ENVIRONMENTAL fu ll CONDITIONS ON MANUFACTURER’S TRUST oi m at nh z z ht vb : Business Administration Major Code : 60.34.05 k jm Major om l.c gm n va Supervisor: Dr Nguyen Dinh Tho an Lu MASTER OF BUSINESS ADMINISTRATION THESIS ey t re HOCHIMINH CITY - 2012 ACKNOWLEDGEMENTS t to ng hi ep First gratefulness to, Dr Nguyen Dinh Tho, w n This thesis would not have been possible unless his helps to supervise me lo ad For his wise knowledge and kindly patience, he remained forever in my respect ju y th yi Second gratefulness to, pl My colleagues & benefactors in Nestle, Unilever, Coca Cola, Rich, Masan, Doan Ket, al n ua Vinamilk, Vina Australia Packaging Labels Co, InterPet Group, Van Don Plastic, va Rang Dong Plastic, VinaPlast, Imperial Tobacco, BAT, Kimberly Clark, Tracimexco, n Hapro Group, Binh Vinh, Crown, Hercules, Ngoc Nghia Plastic, Bao Van… fu ll For their dedicated supports in questionnaire surveying and answering oi m at z My family, for always being in my side nh Last but not least, gratefulness to, z k jm ht vb om l.c gm an Lu n va ey t re ABSTRACT t to ng hi This study is desired to investigate about the effect of supplier‘s market ep orientation and environmental conditions on manufacturer’s trust and was taken the w survey in Ho Chi Minh and some South province markets The main variables n included supplier’s market orientation with three inside variables as customer lo ad orientation, competitor orientation, and inter-functional coordination; and y th environmental conditions contained two variables as market turbulence and ju yi competitive intensity pl From many previous researches about supplier’s market orientation and trust on al n ua manufacturer, some main variables have been extracted and selected to synchronize n va with Vietnamese conditions and after passing the pilot interview with the quantitative fu method, main variables have been selected for taking the survey for this study About ll 300 questionnaire forms have been sent out to 300 respondents who are managing m oi their enterprises in Ho Chi Minh city and south provinces, included Long An, Binh nh at Duong, Dong Nai, about 180 sets have been answered and returned in which 150 sets z have satisfied the purpose of the research The findings from a sample of 150 sets have z jm positive influence on manufacturer’s trust ht vb revealed that the supplier‘s market orientation and environmental conditions has a k After analyzing by the Reliability between variables (Cronbach Alpha), gm l.c Correlation (Exploring Factor Analysis) and test Multiple Regression Model, the research’s results indicated that the supplier’s customer orientation variable and om environmental conditions affect significantly on manufacturer’s trust an Lu n va ey t re i CONTENTS t to CHAPTER 1: INTRODUCTION ng 1.1 Research background hi ep 1.2 Problem statement 1.3 Research question and objective w n 1.3.1 Research question lo ad 1.3.2 Research objective y th 1.4 Research delimitation ju 1.5 Research methodology yi pl 1.6 Research implications ua al 1.7 Thesis structure n CHAPTER 2: LITERATURE REVIEW va n 2.1 Market orientation and supplier’s market orientation ll fu 2.1.1 Customer orientation m oi 2.1.2 Competitor orientation 10 at nh 2.1.3 Inter-functional coordination 10 2.2 Environmental conditions - Market turbulence and Competitive intensity 11 z z 2.3 Trust and manufacturer’s trust 12 vb jm ht 2.3.1 Trust 12 2.3.2 Manufacturer’s trust 12 k l.c gm 2.4 Theoretical model 12 2.4.1 Independent Variables 13 om 2.4.2 Dependent Variable 13 an Lu 2.4.3 Theoretical model and Hypotheses 14 2.4.3.1 Theoretical model 14 ey t re 2.5 Summary 15 n va 2.4.3.2 Research hypotheses 14 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research design 16 ii 3.1.1 Pilot test 16 3.1.2 Main survey 16 t to 3.1.2.1 Sample size 17 ng 3.1.2.2 Research process 17 hi ep 3.2 Measurement validation 18 3.2.1 Measures of Customer orientation 18 w 3.2.2 Measures of Competitor orientation 18 n lo 3.2.3 Measures of Inter-functional coordination 19 ad 3.2.4 Measures of Market turbulence and Competitive intensity 19 y th ju 3.2.5 Measures of Trust 20 yi 3.3 Summary 21 pl ua al CHAPTER 4: DATA ANALYSIS AND RESULTS 4.1 Descriptive data analysis 22 n n va 4.2 Testing factors of research model 23 ll fu 4.2.1 Cronbach Alpha Reliability Analysis 24 oi m 4.2.2 Exploring Factor Analysis (EFA) 25 nh 4.2.2.1 EFA results of the independent variables 25 at 4.2.2.2 EFA results of the dependent variables 27 z z 4.3 Hypotheses Testing 27 vb jm ht 4.3.1 Testing Assumptions of Multiple Regression 27 4.3.2 Testing hypotheses between Independent Variables and Dependent variable 28 k l.c CHAPTER 5: CONCLUSIONS gm 4.4 Summary 31 om 5.1 Overview 32 an Lu 5.2 Main findings 32 5.3 Theoretical Implications 35 va 5.4 Managerial Implications 35 n 5.5 Further research 41 References 42 ey 5.4.2 Supplier market turbulence 39 t re 5.4.1 Supplier’s customer orientation 35 iii Appendices 51 Appendix 1: Questionnaire Form for Pilot Test 51 t to Appendix 2: Questionnaire in Vietnamese 52 ng Appendix 3: Questionnaire in English 54 hi ep Appendix 4: EFA results of independent variables 56 Appendix 5: EFA results of dependent variable 58 w Appendix 6: Testing assumptions of multiple regression 59 n lo Appendix 7: Multiple Regression Line results 60 ad Appendix 8: Histogram, Normal P – P plot and Scatter plot 61 ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re iv LIST OF FIGURES t to Figure 2.4: The conceptual model of the effect of supplier’s market orientation and ng hi supplier’s environmental conditions on manufacturer’s trust 14 ep Figure 3.1: Research process 17 Figure 4.4 Histogram, Normal P – P plot and Scatter plot of Dependent Variable - w n Trust 57 lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re v LIST OF TABLES Table 3.1: Scale of Customer orientation 18 t to Table 3.2: Scale of Competitor orientation 19 ng Table 3.3: Scale of Inter-functional coordination 19 hi ep Table 3.4: Scale of Environment conditions .20 Table 3.5: Scale of Trust 20 w n Table 4.1: Sample characteristics 23 lo ad Table 4.2: Cronbach Alpha of observed variables 24 y th Table 4.2.2: EFA for independent variables 26 ju Table 4.3: Multi regression between independent variables and dependent variables 28 yi pl Table 4.4: Anova between independent variables and dependent variables 29 n ua al Table 4.5: Coefficients between independent variables and dependent variables 29 n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re vi ABBREVIATIONS t to MO: Market Orientation ng hi EFA: Exploring Factor Analysis ep MRL: Multiple Regression Model w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re t to CHAPTER 1: INTRODUCTION ng hi ep The introduction chapter identify the research background, present the problem statement, the research questions, and introduce the research methodology, the objectives as w n well as limitation of the study Furthermore, the significance of the research problem and thesis lo ad structure is also outlined ju y th yi 1.1 Research background pl Market Orientation is one of the most important concept in modern marketing (Pandelica et al ua al., 2009) This concept has been researching and developing during past two decades (Brettel et n al., 2008) Most of these researches and studies are concentrated on the components of market va n orientation and the relationship between market orientation and the firm’s business results fu ll Although these researches were studied from variety of fields and categories, many developed m oi and developing countries, many results founds that market orientation had such positive effects nh with business results (Pandelica et al., 2009) In Vietnam, the research also record that market at z orientation can explain up to 30% the firm business results (Hung and Hau, 2007) Vietnam z ht vb economic policies nowadays have been re structuring and developing as market orientation This jm step brings for Vietnam to become such very brilliant business environment, attracts the foreign k investments to innovate the technique in many fields so far to impulse the development of gm economy, especially for the transitional economy in Vietnam now However, from the past two l.c decades, the market orientation concepts has not been populated correspondingly in Vietnam ( om Hac and Nghi, 2006) This is considered such as big challenge for Vietnam’s enterprises both an Lu are private or government companies, especially when Vietnam is joining WTO va In the literature, market orientation is born from the western – where these concepts n nowadays are continuing and leading in the world Kohli and Jaworski (1990) conceptualized functions Narver and Slater (1990: 21) offer a similar view, suggest that market orientation th competitive information, market intelligence, and the sharing information among organizational ey (Kohli et al., 1993) that focused on the firm’s activities and behaviors regarding customer needs, t re Market orientation as the implementation of the marketing concept and developed a measure