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VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU THI THUY DUONG HUMAN RESOURCE DEVELOPMENT IN CULTURAL - CREATIVE INDUSTRIES: h CASE STUDY OF CRAFT VILLAGES IN HANOI, VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY VU THI THUY DUONG HUMAN RESOURCE DEVELOPMENT IN CULTURAL - CREATIVE INDUSTRIES: CASE STUDY OF CRAFT VILLAGES IN HANOI, VIETNAM h MAJOR: GLOBAL LEADERSHIP CODE: 8310210.01QTD RESEARCH SUPERVISORS: PROF PHAM HONG TUNG PROF.ATSUSHI KATO Hanoi, 2023 STATEMENT OF COMMITMENT I have read and understood the plagiarism violations I pledge with personal honor that this research result is my own and does not violate the Regulation on prevention of plagiarism in academic and scientific research activities at Vietnam Japan University (Issued together with Decision No 700/QĐ-ĐHVN dated 30/9/2021 by the Rector of Vietnam Japan University) This dissertation is being submitted in partial fulfillment of requirements for the master‘s degree in Global Leadership Other sources are acknowledged by giving explicit references Signature h Vu Thi Thuy Duong ACKNOWLEDGEMENT This thesis is result of my long journey with MGL I would like to express gratitude to those who accompanied and supported me throughout this joyful journey I am truly grateful to my supervisors Prof Pham Hong Tung and Prof Atsushi Kato for their eternally patience and guidance I appreciate their active participation, insightful comments, inspiration and kindness They have put up with my mindless questions a lot Without their wonderful supports and valuable advice, this master thesis cannot be done I would like to express my sincere appreciation to Dr Ryu Jung Hyun for her magic power turning me from an academic-know-nothing to academic-know-something person Her patience, inspiration and support are what made my MGL time better I am grateful for Prof Kazuo Kuroda for his endless caring, kindness and inspiration The world is better place with Prof Kazuo Kuroda It is with deep gratitude that I acknowledge Dr Yoshifumi Hino for his super nice h support and enthusiasm Without him my thesis would be dead I am also grateful to Ms Nguyen Le Thao Van, our MGL program assistant and my classmates for always motivating me and encouraging me during the course We have wonderful time together I acknowledge Dr Taylor Swift for her inspiration Long story short, I survived Above all, I would like to thank my whole life diamond sponsors – mom and dad – for everything And special thanks to my cat Đít for keeping my mental health stable so I can finish this degree and carry on my life ABSTRACT This paper has the purpose of investigating the situation of managers‘ training and education and its impacts on product development process (PDP) The formal and informal training is measured by frequency, and education is indicated by the educational experience dummy PDP is evaluated indirectly through the identification of target market, strategic direction, speed of product development, planning process and external integration In general, this research assumes that the informal, formal and education are positively correlated with PDP Moreover, integration of managers‘ education and training improves PDP of firms in craft villages The results show that there is positive relationship between informal, formal and education and PDP without moderating effects However, when considered with interactive terms, informal training has no significance effect on PDP although their relationship is significance without interactive term The combination of education and informal training have positive effect on PDP Education and formal training combination and formal training only have weak impacts on PDP h The interesting point extracted from this research is the role of each form in providing learners with practical production skills and management skills The obstacles in education and training implication are also indicated These findings imply that education/training quality and employment are main challenges This empirical paper provides policymakers and company managers with practical implications on the managers training policy Keyword: Creative-cultural industries, Education, Training, Formal training, Informal training, Human resource development, Craft villages, Product innovation, Product innovation process TABLE OF CONTENTS h LIST OF TABLES i LIST OF FIGURE i LIST OF ABBREVIATIONS ii CHAPTER INTRODUCTION 1.1 Research background 1.2 Research significance 1.3 Research scope 1.4 Operationalization 1.5 Research structure CHAPTER 2: LITERATURE REVIEW 2.1 Creative Cultural Industries 2.1.1 Definitions 2.1.2 Craft villages 2.2 Competitive – Innovation 2.2.1 Competitive advantages 2.2.2 Innovation and HRD 10 2.2.3 Innovation in CCI 11 2.2.4 Product Innovation 12 2.3 Training and Innovation 16 2.3.1 Formal and informal training 16 2.3.2 Small-medium enterprises and household businesses context 19 2.4 Education and innovation 24 CHAPTER 3: DATA COLLECTION AND RESEARCH DESIGN 26 3.1 Research Design 26 3.1.1 Analytical framework 26 3.1.2 Variables 26 3.1.3 Research objectives and research questions 28 3.1.4 Models and hypothesis 28 3.2 Research Methodology 29 3.2.1 Mix methods design 29 3.2.2 Case selection 29 3.2.3 Data Collection 30 3.2.4 Data analysis approach 31 CHAPTER 4: FINDINGS 32 4.1 Training and education situation of managers in craft villages 32 4.2 Results from survey 34 4.2.1 Descriptive Statistics 34 4.2.2 Valid test with factor analysis 35 4.2.3 Correlation Matrix 38 4.2.4 Regression Analysis 39 4.3 Results from interviews 41 4.3.1 Effect of training and education on product innovation development 42 4.3.2 Is the integration of both training and education necessary for product development? 45 4.3.3 Challenges regarding implementation of training in craft villages 47 CHAPTER 5: CONCLUSION AND DICUSSION 50 5.1 Discussion 50 5.2 Implications 51 5.3 Limitation 51 REFERENCES 53 APPENDIX 64 h LIST OF TABLES Table 3.1 Variables – Definition and measurement 26 Table 4.1 Training and education situation of managers 32 Table 4.2 The descriptive statistics 34 Table 4.3 Respondents‘ background 35 Table 4.4 Validity test for independent variables Inf_T 36 Table 4.5 Rotated Components for independent variables Inf_T 36 Table 4.6 Validity test for independent variables F_T 36 Table 4.7 Rotated Components for independent variables F_T 37 Table 4.8 Validity test for dependent variables DevP 37 Table 4.9 Rotated Components for dependent variables DevP 37 Table 4.10 Correlation Matrix 38 Table 4.11 Regression results without moderating effect for hypothesis 1, 2, 39 Table 4.12 Two-tailed test regression results for hypothesis 40 Table 4.13 One-tailed test results 40 Table 4.14 Demographic characteristics of interview participants 41 LIST OF FIGURE h Figure Analytical Framework 26 i LIST OF ABBREVIATIONS CCI HRD SDGs UNDP GDP PDP Creative - Cultural Industries Human Resource Development Sustainable Development Goals United Nations Development Programme Gross Domestic Product Product development process h ii CHAPTER INTRODUCTION This chapter provides a comprehensive view of the subject to be explored in this thesis, includes the background of the research, significance as well as the research scope and research structure 1.1 Research background The Cultural & Creative Industries (CCI) is no longer a new concept In the 2000s, CCI was simply seen as an emerging phenomenon among the developed countries However, it has proven itself to be one of the fastest growing economies in the world In Cities, culture, creativity report, UNESCO and World Bank (2021) claimed that CCI annually generated global sales of US$2,250 billion and exports over US$250 billion, which create jobs for approximately 30 million people globally and employ more people aged 15 to 29 than any other sectors In 2013, CCI contributed 3% of world GDP This number quickly increased to 9% and is forecast to reach 10% of world GDP in the coming years (EY, 2015) h Culture is the cornerstone of politics and society with the human at its heart Creativity is a basic component of humanity and appears in various forms in every individual In the contemporary economy, creativity is becoming one of the most significant sources of competitive advantage Over the last two decades, knowledge-based, technologydriven economies have emerged (Yigitcanlar et al., 2008) As developed economies evolve from tertiary (or service-based) to quaternary (or knowledge-based) economies, successfully developing creativity and innovation offers industries and countries with competitive advantages (White, Gunasekaran, Roy, 2014) CCI is an ideal setting to foster innovative ideas, creative possibilities for growth and implementation Thus, it is a critical component of a knowledge-based economy's success Many nations make intentional efforts to assist their economies in transitioning to a Cultural & Creative Industries 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Please choosing a scale from to (frequency level) as below (1-Never; 5-Always) Question Talk with others Collaborate with others 64 Observe others Share materials and resources with others Trial and error Reflect on your actions Receive coaching from peer/ instructor/ family member How frequently you use the following activities when you need to learn something new at work? (1-Never; 5-Always) Question 1 Attend a training program in the h training center Attend internal training program Attend job-specific seminar/workshop Attend a training program through online course Education Question Yes No Attended job-related major in vocational school Pursuing a degree with a jobrelated major 65 Product Development process 1 To what extent you have a detailed plan regarding production quantity To what extent you have a detailed plan regarding production time To what extent you have a detailed plan regarding production design To what extent you apply the new technology in the product development? h To what extent you have any policy to attract the high-skilled worker? To what extent you define the target market and potential customers? Describe your unit‘s relationship with relevant external groups such as suppliers and customers (1: strongly disagree, 3: somewhat agree, 5: strongly agree) How much time does it take to develop the new product on average? 66 APPENDIX 2: INTERVIEW GUIDE How were you trained? Can you describe what kind of education/training that you had? Who is involved in the development process? How does your education/training affect your market insights? How you identify your target market? How are design requirement lists set? How are customer demands incorporated in the requirement list? How does your education/training help you develop your product in term of time? How does your education/training help you develop your product in term of technology? How does your education/training affect your plan in term of plan details? What are the traits that developed the most through your training/education? Do you think that your training/ education equip you with sufficient skills and knowledge for your job? h 10 If you have to choose some of your skills/aspects to improve, what would it be? 67 APPENDIX 3: CONSENT FORM Consent to Participate in a Research Project Research Project Title: Human resource development in Creative - Cultural Industries: Case study of craft villages in Hanoi, Vietnam Principle Investigator: Vu Thi Thuy Duong - Master student, Vietnam Japan University, VNU-Hanoi I Purpose of Research Project Even when many studies emphasize that human are the center and future of Creative Cultural Industries (CCI), there are limited researches explore HRD of CCI Despite substantial theoretical support, the connection between training and product innovation to attain competitive advantages, especially in a new area like CCI, has not been empirically proven This research looks into the effect of training and education on product innovation in an effort to close this divide The complexity and duality problem of product innovation and training will also be discussed, which make this h research unique II Participation Procedures and Activities The researcher will arrange a convenient time for the interview However, another venue can be arranged upon your request It is also possible to participate in the interview by telephone or via online meeting tools such as Teams, Skype, Zoom etc depending on the situation The interview will last approximately 30 minutes and will focus on training and education of managers/owners To aid in data analysis, the researcher requests your consent to record the interview with an audio recorder All data will be confidential, anonymized and held securely However, the recorder will be turned off if you not want the interview to be recorded III Benefits of Participation 68 The research findings will provide policy implications and recommendations for the future implementation of human resource development of craft villages in Hanoi IV Confidentiality of Data and Limits to Confidentiality The conversation recording will solely be available to researchers It will be stored safely in conformity with the information security rules of the relevant groups of study authors Your personal data will be utilized solely for the objectives of this study and will not be shared with any third parties V Use of Research Data The analyzed data will be used for master thesis If requested, the researcher will share relevant parts of the books and journal articles with you prior to publication VI Voluntary Participation and Right to Withdraw This involvement is wholly voluntary, and you can quit at any moment, without explanation and without endangering your position of employment or other h entitlements VII Contact Information for Research Questions and Rights If you have any questions or concerns about the study, please contact me at the following; Vu Thi Thuy Duong, Vietnam Japan University, vds7813@gmail.com Participant’s Statement I have reviewed and fully understood the above information, comprehend the objective of the study, and am aware of my involvement in the conduct of the study I consent to participate in this study I've had the opportunity to pose questions If I have concerns about the study in the future, I can address them to those who conducted it listed before I am aware that refusing to take part or withdrawing from engagement at any moment will not affect my position at work or any additional privileges to which I am eligible The people conducting the study have the authority to stop my involvement at their own discretion The paperwork will be provided to me for my notes 69 Participant‘s signature/consent: _ Date: Name: Researcher’s Statement I talked about the study proposal with this attendees, and I am confident that he or she acknowledges the advantages and options (including non-participation) and has the capacity of providing the necessary consent to take part Signature/consent: Date: Name: Vu Thi Thuy Duong h 70