Business registration service quality at the department of planning and investment in hanoi

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL hợ p BUSINESS SCHOOL ng BUSINESS REGISTRATION SERVICE QUALITY AT THE tậ p tổ DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI Thesis Bá o cá o th ực Bachelor of Business Administration in English (E-BBA) Student: Pham Thuy Duong Class: EBBA4A Supervisor: PHAM SY LONG, MBA HANOI, 2016 ACKNOWLEDGEMENT Firstly, I would like to express my sincere gratitude to my supervisor, Mr.Pham Sy Long for the mentoring and continuous support of my thesis, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my thesis study Meanwhile, I also would like to express my deepest gratitude to all faculties, professors and coordinators of the NEU Business School The four-year studying p at NEU helped me to acquire all necessary insights and skills to accomplish the hợ thesis.  ng My sincere thank also goes to Mrs.Pham Thi Kim Tuyen, the Director of the tổ Business registration Department, who provided me an opportunity to intern at p the DPI in Hanoi, and who gave access to the research facilities Without her tậ precious support, it would not be possible to conduct this research ực Afterwards, I would like to give my regard to my friends of EBBA, especially th Nguyen Phuong Linh, Vu Dai Trang and Le My Khanh Huyen for helping me a cá o lot in this study They have contributed their knowledge and efforts to provide me data and information to finish the thesis Special thanks to them for standing Bá o by my side ups and downs  Last but not least, I would like to thank my family: my parents and my younger sister for supporting me spiritually throughout writing this thesis within the limited time frame and my life in general The thesis would not be completed without all of these supports Pham Thuy Duong, Hanoi, January 2016 TABLE OF CONTENT ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES ABBREVIATION EXECUTIVE SUMMARY .8 CHAPTER 1: INTRODUCTION 10 1.1 Rationale .10 p 1.2 Research Objectives 12 hợ 1.3 Research Question .12 ng 1.4 Research Methodology 12 tổ 1.4.1 Research method 12 p 1.4.2 Data analysis 13 tậ 1.4.3 Data collection 13 ực 1.4.4 Research Process 16 th 1.5 Research Scope 16 2: THEORETICAL cá CHAPTER o 1.6 Research Structure .17 BACKGROUND OF BUSINESS o REGISTRATION SERVICE AND SERVICE QUALITY 18 Bá 2.1 Basic concept .18 2.1.1 Definitions of Service 18 2.1.2 Definitions of Service Quality .19 2.2 Business Registration Service .20 2.2.1 Definition of Business registration Service 20 2.2.2 Characteristics of Business Registration Service 22 2.3 Model for measuring service quality 23 2.3.1 Customer satisfaction (Zeithaml, 2006) 23 2.3.2 SERVQUAL Model (Parasuraman et al, 1985) .25 2.3.3 SERVPERF Model (Cronin and Taylor, 1992) .30 2.3.4 Model used in thesis 30 2.4 Factors affecting Business Registration Quality 31 2.4.1 External factors .31 2.4.2 Internal factors 33 CHAPTER 3: FINDINGS ON BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 34 3.1 OVERVIEW OF DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 34 3.1.1 General information 34 3.1.2 Office of Planning and Investment in Hanoi 34 hợ p 3.2 Dimensions and Attributes to measure business registration service quality at the Development of Planning and Investment in Hanoi 45 ng 3.3 Evaluation of business registration service quality in DPI 47 tổ 3.3.1 Respondent profile 47 tậ p 3.3.2 Five-service-quality-dimension evaluation 48 3.4 Summary of gaps between enterprises’ perception and expectation towards ực business registration service quality at the DPI in Hanoi 70 th 3.5 Causes of gaps found between enterprises’ perceptions and expectations 71 cá o 3.5.1 The organizational structure of the business registration department is not really reasonable: 71 Bá o 3.5.2 Capacity and qualification of staffs and civil servants is uneven 72 3.5.3 System of legal documents specialized business registration overlap and is lack of clarity 73 3.5.4 Online information system to register is still developing and not complete 73 CHAPTER 4: SOLUTION FOR IMPROVING BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI .74 4.1 Orientation to develop business registration service quality of the DPI in Hanoi 74 4.2 Solutions to improve business registration service at the DPI in Hanoi 74 4.2.1 Improving infrastructure and facilities 74 4.2.2 Solutions for the organizational structure of business registration agency 75 4.2.3 Workforce development 75 CONCLUSION 77 LIST OF REFERENCES 78 APPENDICES 79 APPENDIX – SURVEY QUESTIONNAIRES 79 Bá o cá o th ực tậ p tổ ng hợ p APPENDIX – QUESTIONS FOR IN-DEPTH INTERVIEW 83 LIST OF TABLES Table 1-1: The Number Of Enterprises From 2012-2014 11 Table 2-1 Dimensions and attributes to measure service quality 26 Table 3-1: Table Of Attributes 46 Table 3-2 Mean score of reliability dimension 49 Table 3-3: Mean score of responsiveness dimension 54 Table 3-4: Mean score of empathy dimension 58 Table 3-5: Mean score of assurance dimension 62 hợ p Table 3-6: Mean score of tangibles dimension 66 Table 3-7: Overall assessment of business registration service at the DPI in Hanoi Bá o cá o th ực tậ p tổ ng 70 List of Figures Figure 1-1: The Process Of Conducting Survey 16 Figure 2-1: Customer Satisfaction – Zeithaml (2006) 24 Figure 2-2: Servqual Model To Assess Service Quality 27 Figure 3-1 Organizational structure of the department of planning and investment in hanoi 35 Figure 3-2 Inter-settlement process of business established registration dossiers within working days 42 hợ p Figure 3-3 Inter-settlement process of business edited registration dossiers 43 Figure 3-4 Author’s propose model 45 ng Figure 3-5: Gap (P-E) Of Reliability Dimension 53 tổ Figure 3-6: Gap (P-E) Of Responsiveness Dimension .57 p Figure 3-7: Gap (P-E) Of Empathy Dimension 61 tậ Figure 3-8: Gap (P-E) Of Assurance Dimension .65 ực Figure 3-9: Gap (P-E) Of Tangibles Dimension 69 Bá o cá o th Figure 3-10: Overall service quality dimensions 71 ABBREVIATION DPI: Department of Planning and Investment LGUs: Local government units OSS: One-stop system Bá o cá o th ực tậ p tổ ng hợ p ODA: Official development assistance EXECUTIVE SUMMARY Nowadays, it cannot be denied that enterprises have played a very important role in the development of economy in the city Every enterprise has to take in business registration in order to establish and operate a business As a result, the Committee of the city in general, the Department of Planning and Investment in Hanoi in particular, pay special attention to the business registration service p quality and narrow the gap between expectation and perception of enterprises hợ about that service ng Objectives: tổ  To identify the dimensions to evaluate the service quality of the DPI in tậ p Hanoi  To analyze the current business registration service quality situation at the ực DPI in Hanoi to find out the causes and gap between enterprises’ th perception and expectation cá o  To suggest recommendations to enhance the quality of business o registration service at the DPI in Hanoi Bá The research’s second data gathered from a variety of sources namely organizational reports, academic studies, authorized books, newspaper articles which related to service quality and business permit registration Besides, information from the Department of Planning and Investment in Hanoi’s official website and other related researches is also used and covered with sources at the end of this research Primary data is obtained through two ways included questionnaire survey and in-depth interview The research has analyzed five dimensions of customer service based on the SERVQUAL model of Parasuman: Reliability, Responsiveness, Empathy, Assurance and Tangibles After analyzing the data, the author’s survey has found out the gaps between enterprises’ perception and expectation After interviewing five people in the business registration department, the author can identify the reasons for those gaps and some recommendations to improve the business registration service quality at the DPI in Hanoi Among five dimensions, after surveying, Tangibles is the best dimension with the lowest gap (-1.23) and Empathy is the worst dimension with the highest gap (-2.05) Overall, business registration service quality at the DPI in Hanoi was evaluated at 2.85 in term of perception while the expectation of the service was hoped at 4.57 After findings about current situation about business registration p service quality at the DPI in Hanoi, the author found out some causes leading to hợ the gaps between enterprises’ perceptions and expectations, namely: The ng organizational structure of the business registration department is not really tổ reasonable; Capacity and qualification of staffs and civil servants is uneven; p System of legal documents specialized business registration overlap and is lack tậ of clarity; Online information system to register is still developing and not ực complete Therefore, the DPI in Hanoi should improve the business service Bá o cá o th quality and narrow the gap to bring satisfaction for enterprises in the city In term of Perceptions, Assurance was ranked the lowest at 2.56 and Tangibles was ranked the best at 3.17 In term of Expectations, enterprises expect the most in Reliability at 4.77 while the lowest is Assurance at 4.39 Finally, regarding GAP, Empathy dimension has the highest gap (-2.05) which means the DPI in Hanoi should spend most effort on enhancing this dimension Following was Reliability being ranked (-1.85), Assurance (-1.83), p Responsiveness (-1.66) The average mean gap of all dimensions is -1.72 which hợ shows that the business registration service quality at the DPI in Hanoi not ng meet the expectation of enterprises As a result, it is necessary for DPI in Hanoi tổ to find the best way to improve their business registration service quality, satisfy p enterprises’ expectation ực tậ On Figure 3-9, comparing graph is provided to help reader visualize th o cá Bá Perception Expectation Gap (P-E) o Reliability Responsiveness Empathy Assurance Tangibles -1 -2 -3 Figure 3-10: Overall service quality dimensions (Source: Author’s survey) 70 3.5 Causes of gaps found between enterprises’ perceptions and expectations 3.5.1 The organizational structure of the business registration department is not really reasonable: According to Mrs Pham Thi Kim Tuyen who is the director of the Department of business registration, she stated that one of precursors of gaps between enterprises’ perceptions and expectations is unreasonable organizational structure of the business registration department Nowadays, there are existing three business registration rooms at the DPI in Hanoi which leads to some shortcomings: p Despite working coordination regulations between three rooms as well as hợ business registration procedures solving principle, there are still differences ng particularly in the process of performing the work in practice because the legislation is not clear Each room has different understanding, perspective and tổ different approach to enterprises which create inconsistency in settlement process tậ p work, while all of three rooms have same rights in business registration and ực perform the same tasks th Besides, she also stated that summarizing business information as well as o preparing reports for management of state becomes more difficult due to cá dispersed information between three rooms Business registration software has to o be separated for three rooms which bringing difficulty to summarize the Bá management reports 3.5.2 Capacity and qualification of staffs and civil servants is uneven After interviewing three office staffs in Business registration room, it is seen that capacity and qualification of staffs and civil servants is uneven Mr.Do Tuan Anh determined that capacity, handling skills and professional responsibilities of some staffs are not professional (do not actively cultivate, additional professional knowledge and laws to meet job requirements; less frequently exchange of information, exchange of experience between staffs ; not actively propose solutions in a positive direction to resolve, ) 71 Relating to some piece of slander, Mrs.Nguyen Bich Ngan and Mrs Nguyen Ngoc Dung supposed that aware of legal compliance of some staffs and civil servants are not really good to be the cause for this issue 3.5.3 System of legal documents specialized business registration overlap and is lack of clarity After reforming the Enterprises Law, legal system relating to corporate management is incomplete and clear up making it difficult in implementing management for staffs in solving administrative records having complex and sensitive content hợ p The volume of work to solve increasing and some operations being increasingly complex causes pressure for business registration agency to handle all the tổ ng documents on time 3.5.4 Online information system to register is still developing and not tậ p complete ực After three-month internship at the Business registration room of the DPI in th Hanoi, the author realized the unstable issue about online information system o software which causes slow solving records of staffs Whenever the software is cá unconnected, staffs in the Business registration department cannot solve the Bá o records at that time leading to the congestion of responding records Online information systems software sometimes overloads or has incidents on the transmission line, leading to the delay in process of solve entry record information dossier There are a lot of inadequate content on the system promptly interrupting business registration records resolve 72 73 o Bá o cá ực th p tậ ng tổ p hợ CHAPTER 4: RECOMMENDATION FOR IMPROVING BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 4.1 Orientation to develop business registration service quality of the DPI in Hanoi In the forthcoming period, removing difficulties for enterprises, promoting p production and business continue to be key tasks in business registration hợ department at the DPI in Hanoi ng  Enhancing awareness, perception of staffs to create a big change about tổ attitude, responsibility, manner in performing official duties p  Strengthening the proportion settling administrative procedures through ực business registration tậ online website creates openness and transparency in the management of th  Improving working environment for workforce as well as facilities to o increase service quality and encourage modernization process Bá o cá  Enhancing human resource and professional qualifications 4.2 Recommendation to improve business registration service at the DPI in Hanoi 4.2.1 Improving infrastructure and facilities - Gradually additional investing and replacing facilities of OSS department and the Business Registration Rooms to meet work requirements and step towards modernization 74 - Promoting the application of information technology to improve the efficiency of implementation of administrative procedures for business registration and the management of state business registration - Building database of online business registration information systems to link the state agencies in business management - Providing enterprises with clean, comfortable and convenient working environment during waiting for administrative procedure 4.2.2 Solutions for the organizational structure of business registration agency hợ p - Establishing of the Business Registration Management Office of the DPI in Hanoi: this is the model established uniform three current business registration ng rooms and a number of officials at the unit related, such as a OSS department, tổ storing department, IT, to be operational focus, unity and independence of p human resource and budget Model Management Office business registration tậ includes Branch Manager, Deputy Branch and departmental functions This is the th ực perfect model to implement the content set for business registration agency well - In case there are still three business registration rooms, the DPI in Hanoi should cá o develop criteria and regulations for each employment position of business o registration room, build capacity framework at each location Bá 4.2.3 Workforce development - Organizing and allocating sufficient quantity of staffs with quality assurance working directly in the OSS department as well as professional business registration rooms; - Improving the sense of responsibility and attitude of staffs in business registration service, especially the head - Improving the quality and efficiency of human resource operation 75 - Training and raising professional qualifications, ethical qualities, communication skill for civil servants guaranteed the best qualify dealing with work - Educating staffs directly interacting with enterprises such as staffs in the OSS department about how to behave or which attitudes are expected to perform so that they can satisfy enterprises - Treating well with staffs by having compensations and incentives to encourage Bá o cá o th ực tậ p tổ ng hợ p their dedication in work 76 CONCLUSION After surveying 56 enterprises, in-depth interview with five staffs and managers of the DPI in Hanoi in order to gather information, the author had a wide perspective about business registration service quality of the DPI in Hanoi hợ p From the research results of the thesis, it is showed that currently DPI in Hanoi just responds to basic requests of business registration As a result, DPI in Hanoi should really pay attention to the role and importance of management for business registration service so that there is a change in thinking and action, a reasonable investment of resources, strong leadership with the aim of improving the efficiency and effectiveness for business registration service quality th ực tậ p tổ ng Besides, in this thesis, the research has applied the well-known Gap Model with SERVQUAL instrument proposed by Parasuraman et al to assess current business registration service quality of the DPI in Hanoi The data bases were based on five dimensions (Reliability, Responsiveness, Assurance and Empathy These dimensions would indicate the enterprises’ expectation and perception about business registration service quality, which has been reported in previous parts Bá o cá o By evaluating data collected from the survey and in-depth interview with five dimensions based on SERVQUAL instrument as well as information gathered from DPI in Hanoi’s website, reports, Internet and newspaper, it is enunciated that the perception quality of business registration at the DPI in Hanoi has stayed at the middle level while enterprises’ expectation is really high Afterwards, the author also determines some limitations and the cause of them of the business registration service Then, some recommendations are also indicated in the Chapter of this thesis in order to enhance the quality of business registration service quality at the DPI in Hanoi The thesis “Business registration service quality at the Department of Planning and Investment in Hanoi” still has some limitations as the scope of the research does not cover fully The author hopes to receive comments from other students, professors at the NEU Business School 77 78 o Bá o cá ực th p tậ ng tổ p hợ LIST OF REFERENCES Vietnamese: Phạm Thị Kim Tuyến (2015) – Quản lý nhà nước đăng ký doanh nghiệp địa bàn thành phố Hà Nội International: A.Parasuraman, Valarie S Zeithaml, Leonard L.Berry (1988) – SERVQUAL: A p Multiple-item Scale for Measuring Customer Perceptions of Service Quality, hợ page 12-40 ng LoveLock, Christopher H (1980) – “Towards a classification of Services” in tổ Emerging Perspective on Services Marketing, page 72-76 ực Mass: Lexington Books, page 27 tậ p Christian Gronroos (1990) - Service Management and Marketing, Lexington, th Earl Sasser R.Paul Olsen, and D.Daryl Wykoff (1987) - Management of Service cá o Operation, Boston: Allyn and Bacon, page o Phillip Kotler (1999) – Principles of Marketing page 40 Bá Roland T Rust (2004) – Service Quality: New Directions in Theory and Practice, Website: http://www.hapi.gov.vn 79 APPENDICES APPENDIX – SURVEY QUESTIONNAIRES Dear Mr / Ms I appreciate your assistance in filling out this survey very much It will take about a couple of minutes p This questionnaires aim to collect necessary information related to Business hợ Registration system The topic of this thesis is “Business Registration at the ng Department of Planning and Investment in Hanoi” The information you provide tổ by answering the following questions will be used for the above academic tậ National Economics University p purpose only I’m working on my bachelor thesis at the Business School of th ực Part 1: General information o Respondent’s Name: o cá Address: Bá Phone number: 80 Part 2: Evaluation of Business Registration Service Quality at the Department of Planning and Investment in Hanoi Please sincerely rank the extent to which you expect and perceived with these attributes by ticking score from to (1 for Strongly Disagree, and for Strongly Agree) No Expectation Dimension Perception Reliability p The service performs correctly and on time Information guidance of administrative tổ procedures is clear ng hợ DPI keeps trust and respond to enterprises, tậ p ực provides services in a timely manner The conditions required to implement th o administrative procedures are reasonably Bá o cá accurate and adequate Responsiveness Enterprises’ demand are response quickly Staffs are never too busy to response enterprises’ requirements Staffs are friendly, courteous and openedbehavior It is very easy and convenient when paying fees and the fees are reasonable 81 Empathy Staffs are enthusiastic when handling questions and complaints from enterprises 10 Staffs show good attitude when listening and understanding enterprises’ demand Assurance 11 DPI provides equal treatment to all p enterprises Staffs receiving records in the OSS have hợ 12 ng professional qualifications Enterprises can rely on staffs because they tổ 13 tậ p secure information of enterprises ực Tangibles Facilities serving enterprises at OSS are in th 14 o good condition and meet enterprises’ 16 Bá 15 o cá expectation Staffs are polite and dress professionally Online business registration system are accessible, understandable and clearly viewed 17 DPI has convenient working time 82 Part 3: Other opinions Please give your additional opinion to improve the quality of Business Registration at the DPI tậ This is the end of the survey p tổ ng hợ p Bá o cá o th ực Sincerely thank for your support and cooperation 83 APPENDIX – QUESTIONS FOR IN-DEPTH INTERVIEW Interviewees: Mrs Pham Thi Kim Tuyen, Director of the Department of business registration Mrs Le Hong Hanh, Deputy Director of the Department of business registration Mr Do Tuan Anh, officer of the Department of business registration p Mrs Nguyen Bich Ngan, officer of the Department of business registration hợ Mrs Nguyen Ngoc Dung, officer of the Department of business registration tổ ng Questions: p How you assess current business performance of the Business Registration tậ Department at the Department of Planning and Investment in Hanoi? ực In your own perspectives, what are attributes enterprises expect most from th Business registration service? Bá o service? cá o What are the most important factors affecting the quality of business registration What are the orientations and solutions you think would be taken in order to improve business registration service quality at the Department of Planning and Investment in Hanoi? 84