Chuyên đề tốt nghiệp: : A study on internal factors affecting operational efficiency of a joint stock company in hai phong

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

VU LAM TUNG

A STUDY ON INTERNAL FACTORS AFFECTING

Hanoi, February 2023

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NATIONAL ECONOMICS UNIVERSITYFACULTY OF FOREIGN LANGUAGESDEPARTMENT OF BUSINESS ENGLISH

VU LAM TUNG

COMPANY IN HAI PHONG

Instructor: Ass Prof Dr Pham Thi Thanh Thuy

Hanoi, February 2023

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Vũ Lam Tùng — 11195639 — Business English

Besides my own efforts, I received support and attention from many unions,individuals, and teachers inside and outside the school while I was a student at theNational Economics University as well as while I was writing my graduation

First of all, I want to thank all the teachers who have enthusiastically

taught me knowledge and experience over the past four years I wouldparticularly like to express my sincere gratitude to Ass Prof Dr Pham Thi ThanhThuy, who actively guided and helped me during the internship and thesis writingprocess with responsibility and excitement.

Finally, I would like to thank all my colleagues in Hong Bang investment

joint-stock company for their assistance and their advice.

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EXECUTIVE SUMMARY

The primary goal of doing this research was to delve deeply into the internalfactors that are associated with operational efficiency at Hong Bang Joint-stockCompany Some existing literature was analyzed and reviewed in order tohighlight some of the important concerns explored in this study The investigationwas handled deductively and quantitatively, with questionnaires used to perform asurvey Results revealed the operational efficiency of Hong Bang Investment Joint

Stock Company can be improved by focusing on four factors: training transferskill, management skill, working environment, and technology In conclusion,

results of the survey are discussed in an attempt to suggest some recommendationson the enhancement of operational efficiency at Hong Bang Joint-stock Company.

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TABLE OF CONTENTS

EXECUTIVE SUMMARYY (<5 << HH0 04008960896 iiLIST OF TABLES co << << s0 00000090050 MLIST OF FIGURES 2-5 << << << 5 SH 90096850850 850 84 86 viCHAPTER I: INTRODUCTION o5 <5 (G5 S0 9 890896 1

1.1 ]Ra(ionalle c5 s55 sS 5 99 9.99 9 9 0009500980016098005 006 11.2 Research Objectives o- 0G 5s 9 9 9 9 9 0.0 0.0 00600980650 11.3 Research QUSẨÏOTNS: d0 G5 5 5 S9 9 9.9.9.9 0000.000 06000098960 6096 2

1.4 Research SCOJD€ doc <0 G5 26 699 99.9999.0995 0604.0809404 08989408699406090966 21.5 Research metho(ÌỌO V d- 5s 5 5 9 9 99.99 996 90.09099689 58 2INNN(L 10 naốaaaee- 21.5.2 Research Instruments Đà HH HH ng tru 31.5.3 Data Collection Procedure - 5 + vn nh rưy 31.5.4, Datta An alySis nan e.e.ee 4

1.6 Research Structure c- o5 << 5G 5< 9 9 99196905 9356895695869360669680566 4CHAPTER II: INTRODUCTION OF HONG BANG INVESTMENT

JOINT STOCK COMPAINYY o G0000 90 50 6

2.1 Company JDTFOÍTÌC < << 5< s99 90990990090 96000400896 0890 62.2 BaCkỹrOU( G5 < S5 5 99 9 999.99 4.999.804 0809.09004.080098909 6080 72.3 Organizational Structure - 0< << 65 6 %9 9 5899 599899969989995669566956 50 7

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2.7 BUSINESS aCẦÏVÏÏ€S o- có 5s s9 cọ 0 0000080006096608 8.0 11CHAPTER ITI: THEORETICAL FRAMEWORK 123.1 Theoretical ÏÏt€TafUFC - <5 << << 5< << s95 655695656665665665586566 123.1.1 Efficiency theory QG TH HH SH HH kg re 123.2 Empirical literature <5 5 5 5< 9 899 5999 98959996959589959589968 133.2.1 Internndll F QCÍOTF -G- 5 5< vn HH HH HH hà 133.2.2 Internal factors affecting operational efficiency 133.3 Research Model <2 << 5 5< 5 2 9 5 999510909 05695056696606.ø 19

CHAP IV: INTERNAL FACTORS AFFECTING TO OPERATIONAL

EFFICIENCY OF A JOINT STOCK COMPANY IN HAI PHONG 21

4.1 Sample Characteristic cccsscsssssssscsscssscsssccssccsssssssssscsssesssscssess 21

4.2 Internal factors affecting the operational efficiency of Hong Banginvestment jOint-StOcK COMPANY o 5G G5 <6 S5 559 95936959566995669568 23

4.2.2 Employees’ opinion on the Company’s Management skills 25

4.2.3 Employees’ opinion on the Company’s Working environment 264.3 Discussion Of the Study scsssscsssssssssscssssscsssccsssscsssssssssssssecssssesenes 28CHAPTER V: CONCLUSIONN G191 896856 30

5.1 Recommendation for Hong Bang companyy s- <5 5 «5s sss 30

5.2 Summa ry Of fINCING so 5- <5 << 5< << 5 94599 9589585686566 866 66 315.3 COIICÏUSÏOID 5 << 5< << 9 9 9 9.9 09.0 0 09.0 00000.9089000886 060 31

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LIST OF TABLES

Table 1.1 Basic information about HB company «« ««+<s«+<s 6Table 4.1: Respondents’ Demographic Information Summary 22Table 4.2: Mean Scores for Var1abÏ€S - . «xxx n n nưn 23Table 4.3: Mean Scores for Training Transfer skills variables 23Table 4.4: Mean Scores for Management skills variables - 25Table 4.5: Mean Scores for Working environment variables 26Table 4.6: Mean Scores for Technology variables . -<-«<<<+ 27

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LIST OF FIGURES

Figure 2.1: Organizational Structure of Hong Bang join stock Company 8

Figure 3.1 : Research mO(delL - «+ xxx vn ng trệt 20

VI

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CHAPTER I: INTRODUCTION

1.1 Rationale

According to Brian Levy (1993), businesses must constantly increase theeffectiveness of their operations in order to thrive and grow Business performanceis the comparison of the costs incurred to achieve the results obtained in theproduction and business processes These quantities are impacted by a wide rangeof variables at various levels, which has an impact on the enterprise's financialperformance Additionally, businesses need to plan out, manage, and run their

operations with accurate strategies and decisions As a result, it is essential to

thoroughly and methodically research the variables influencing an increase in anenterprise's business efficiency.

The operational effectiveness with which the business is run has a significantimpact on its success The amount of clients a company has reached with a givenamount of resources, the number of loans it has made, or the number of trainingcourses it has offered are all examples of how operational efficiency is determined.Other examples include the organization's ability to achieve repayment anddelinquency rates through its monitoring operations, as well as the number of clientswho have received services from it (Edgcomb and Cawley, 1993).

The success and sustainability of small and medium-sized businessesdepend on operational effectiveness Though it does have a greater effect on thesmall business sector, it should be noted that this increased efficiency does not, byitself, support the expansion of small businesses Organizational efficiencyindicators should make it clear if fixed or indirect costs are taken into account whencalculating costs.

When a small business is making sales and cutting costs, it is said to be

operating efficiently At this point, sales volumes are growing at the lowestpossible cost This is a crucial realization for small businesses because it showsthat they can last for a very long time without collapsing There are many differentoperational and development modes used by small and medium-sized businesses.(sanghavi, 1998).

1.2 Research objectives

The study's primary objective is to determine the internal factors affectingthe business at the Hong Bang Investment Joint-stock company The researchwould look into the existing scenario in HB Company then decide and analyze the

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issue that the project is experiencing So, several suggestions would be made inorder to improve the business efficiency of HB company.

(1) Evaluate the organizational structure of Hong Bang Investment Joint Stock

(5) Analyze the impact of internal factors on operational efficiency of Hong Bang

Investment Joint Stock Company.

Question 2: What solutions should be done to improve Operational

Efficiency in the company?

The study used a descriptive survey research approach to investigate the

internal factors affecting operational efficiency in Hong Bang Investment JointStock Company A descriptive survey, according to Orodho (2003), is a methodfor gathering data through interviews or the distribution of a questionnaire to asample of people This method helped the researcher gather crucial data on the

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state of the phenomenon and, when feasible, draw general conclusions from thefacts obtained The descriptive survey allowed the researcher to gather and presentdata in a systematic manner in order to investigate the factors affecting operational

efficiency in Hong Bang Investment Joint Stock Company.

1.5.2 Research Instruments

Questionnaires were used as the research tool for gathering data The part questionnaire, which was divided in accordance with the study's objectives,was distributed using the drop-and-pick method The questionnaire was chosen fordata collection because it offers significant administrative advantages, includingthe ability to provide an equal stimulus to potentially large numbers of people atonce and facilitate the easy collection of data (Borg & Gall, 1989) Arcording toGay (1982) respondents can express their opinions and offer suggestions by

three-answering questionnaires.

All internal factors were measured by using a five-point Likert scaleranging from | ("Totally disagree") to 5 ("Totally agree").

Scale 5: Totally agree/ Very high

Scale 4: Agree/ High

Scale 3: No comment/ Normal

Scale 2: Disagree/ Low

Scale 1: Totally disagree / Very low

1.5.3 Data Collection Procedure

In order for the survey and information gathering process to take place mosteffectively, the author was instructed by the instructor on data collection method.

Step 1: Using Google Form to design the survey questionnaire and thankyou notes for employees of Hong Bang Company

Step 2: Send the questions to employees

Step 3: Follow up: Politely send emails to remind/ thank the employees forhaving responded to the survey

Step 4: Collect the answered questionnaire; for those who do not answer thequestionnaire, the author may consult with them 1:1

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The data was collected from 35 employees who are currently working in Hong

Bang investment joint stock company.

1.5.4 Data Analysis

1.5.4.1 Descriptive statistic

The statistical package for social science computer program was used forthe final analysis (SPSS version 17) Data gathered from a sample will be describedusing frequencies (percentages, proportions), descriptive statistics (the mean,median, percentages, and standard deviation), and frequency distributions Theresults were displayed as tables and pie charts.

1.5.4.2 Testing the scale’s reliability

The reliability of a scale or measure was tested by using the Cronbach'sAlpha test This test measures the reliability of a measure by assessing the internalconsistency of the items on a scale.

The author does this by measuring the average correlation among the itemsin the scale The higher the Cronbach's Alpha, the more reliable the measure is:

0.6 and higher: acceptable

0.7 to 0.8: good usability

0.8 to 1: very good

In SPSS, the Cronbach's Alpha test can be conducted by first selecting thedescriptive statistics option from the analyze menu Then, select the ReliabilityAnalysis option Finally, enter the items on the measure in the Items box and selectthe Cronbach's Alpha option in the Statistics box SPSS will then calculate theCronbach's Alpha for the measure and output a table providing the results.

Chapter 2: Introduction of the company

This chapter aims to provide general and exclusive information of the Hong Banginvestment Joint-stock Company including its history of development, business

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characteristics, organizational structure These precious data will help the authoranalyze and compose the following parts of the research.

Chapter 3: Theoretical framework

This chapter presents both theoretical and empirical literature review in regard tointernal factors affecting operation efficiency of an entrepreneur.

Chapter 4: Findings and discussion

This study sought to determine internal factors affecting operation efficiency of

Hong Bang investment joint-stock company in Hai Phong The study sought to

investigate the effects of Technology, Working environment, Training andBusiness management skills on operational efficiency of Hong Bang company.The findings are presented in tables.

Chapter 5: Recommendations

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CHAPTER II: INTRODUCTION OF HONG BANG

INVESTMENT JOINT STOCK COMPANY

This chapter aims to provide general and exclusive information of the Hong Banginvestment Joint-stock Company including its history of development, businesscharacteristics, organizational structure These precious data will help the authoranalyze and compose the following parts of the research.

2.1 Company profile

In brief, according to the website of HB company, general information about HBCompany is listed as following.

Table 1 1 Basic information about HB company

Company English Name Hong Bang Investment Joint-Stock Company

Company Vietnamese Công ty Cô phan dau tư Hong Bang

Abbreviation Name HongBang., JSC

Tax code 0200841698

Address 58 Pham Minh Duc, May To Ward, Ngo Quyen

District, Hai Phong City

Type of company Joint-stock company

Source: Internet

According to the website of HB company, Hong Bang Investment JointStock Company is a member unit of Him Lam Joint Stock Company - a largeeconomic group that takes an important role in Vietnam's real estate market Thecompany was established and officially put into operation on November 5, 2008with the main task of implementing real estate development projects in Hai Phong.

After 15 years of striving and growing up, Hong Bang Investment JointStock Company is not only an experienced and reputable enterprise in providing

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materials for construction works, but has gradually grown up, firmly step-by-stepdevelopment in the field of real estate.

To achieve the set goals when established, the company has successfullyimplemented the investment project to build Him Lam Hung Vuong commercialhousing area in Hung Vuong ward - Hong Bang district - Hai Phong city with an

area of 12.3 hectares.

2.2 Background

According to the website of HB company, Hong Bang Investment JointStock Company, formerly known as Him Lam Hai Phong Joint Stock Company,was established in August 2008 As one of 26 member companies under Him LamJoint Stock Company Since joining from August 2008 until now, Hong Bang

Investment Joint Stock Company has always been developing step by step in all

aspects: organization, economy, external relations, and especially, graduallydeveloping the brand name, affirming the prestige and position of the Company inthe real estate market and trading in building materials.

According to the public document of HB company, Hong Bang Investmentwas founded on November 5th, 2008, in Hai Phong, under the leadership of Mr.Nguyen Thanh Khoa, chairman of the Management Board, with the vision of

establishing a multi-sector economic group with a large network of membercompanies, multinational markets, and thousands of employees that wouldcontribute to the country's socio-economic development To make the foundingchairman's goal a reality, a group of highly qualified and accomplishedentrepreneurs banded together Indeed, they all established themselves as the mostsuccessful stars in their respective industries via their hard work, intellect, and

entrepreneurship talent This firm has achieved a stable and distinct place in the

building material manufacturing sector in terms of performance, development, andoutstanding management via their pragmatic decision-making and managerialdirectives in operational activities.

2.3 Organizational structure

Hong Bang Investment company comprises one Chairman, one ViceChairmen who support directly to the Chairman and five departments eachspecialize in a specific area.

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Vũ Lâm Tùng — 11195639 — Business English

& Technical

*r- = =

Figure 2.1: Organizational Structure of Hong Bang join stock Company

Five departments of Hong Bang Investment includes:

The Chairman of the Management Board of Hong Bang Investments Mr.

Nguyen Thanh Khoa He is responsible for giving all employees general andcomprehensive instructions on how to carry out all of the group's and company'stasks, as well as for making decisions and finding solutions regarding theMinistry's and the sector's strategies, policies, and major tasks.

One Vice Ministers is: Vice Minister Dang Van Tien

2.4 Mission

According to the website of HB company, Hong Bang Investment

company’s mission gives emphasis to:

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1 Satisfying customers’ wishes is the top criterion that the Company sets tobuild the value chain that the Company provides.

2 To be the most trusted supplier of products to our customers thanks to ourability to provide a full range of products and services on a customer-centricbasis.

3 Creating the best working environment for employees with manyopportunities to develop their capacity, contribute value and createsuccessful careers.

4 The basic and long-term interests of the Company, employees, partners,community and shareholders are based on the principle of honest and fair

In order to promote investment activities, the implementation of the SocialHousing Project has many possibilities to concretize the Company's actionprograms The company set a goal by 2025 to invest in the construction of about1000 to 1500 apartments, in 2025 will complete 1000 social housing apartments.Partially solve the housing difficulties for a part of employees with low and middleincome, contributing to the social security that Hai Phong city has set out,achieving the overall goal of the Company.

From the solutions and development orientation that the Company has set

out, Hong Bang Investment Joint Stock Company has gradually applied in practicethe Company's investment and business activities as follows: Continuing to

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implement the policy of strengthening and maintaining the Building Materialsbusiness, developing, and taking care of customers to stabilize revenue andsustainable profit, creating a premise for other long-term investment activities ofthe Company The close combination of investment and business creates a closedsupply and demand, thereby creating strength in competition and sustainable

development in the market.

Investment capacity focuses on on-going projects of large, medium and

small scale in line with the Company's capacity Special attention is paid to theSocial Housing Project that the Company is implementing, which is interested bythe City as well as the Departments.

The compatibility of the Company's development orientation with thedevelopment orientation of the real estate industry in the policy orientation,research and development of the Government, the City, Him Lam Joint Stock

Company Hong Bang Investment Joint Stock Company has built a strategy in linewith the direction of the industry, the city

During the past five years, the real estate and construction industry have hadslow growth The capital flow to invest in Real Estate of investors and speculatorsis also exhausted and very limited The demand for housing and office rentals hasalso decreased significantly, especially housing for low- and middle-incomeemployees Therefore, the orientation to focus on developing investment in

Building Materials Business and implementing the Social Housing Project in thenext five years is in line with the needs of the Hai Phong city market as well as theGovernment's policy.

2.6 Core values

According to the website of HB company, HB company’s core values are:

(1) Honesty is the highest value that always comes first, the foundation forthe long-term development of the Company Company always strives to bringproducts and services that best meet the needs of customers.

(2) Cooperation is building together towards a common goal, bringing thebest benefits to both parties together.

(3) Development is towards the goal of sustainable development to ensurethe interests of the Company and Customers

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2.7 Business activities

According to the public document of HB company, HB company is the

supplier of building materials in the domestic market: Hong Bang Investment isone of the largest building material distributor in Haiphong with various types:

High quality plastic pipes for water supply and drainage

Genuine, high-quality construction is supplied to Vietnam market.

Beside, Hong Bang is also the investor of many housing and real estate projects inHai Phong Built and invested by Him Lam Hai Phong Group, the Him Lam HungVuong area project is designed with the most comfort According to the plan, theproject is built with 3 component projects That is:

1 A traffic route connecting the new national highway 5 and the old nationalhighway 5 Construction area is 28,163m2 The investment cost is up to 110billion VND.

Construction of social housing: Him Lam Hong Bang was built with a totalarea of 31,921m2 Total investment cost is 700 billion VND The house is

built with a maximum height of 6.5 floors With social housing, the plots

are arranged backwards, behind the business housing areas In the future,the project will provide 1,345 social houses to the market.

Construction of commercial housing: Commercial housing is built with atotal area of 23,279m2 The maximum floor height is 21 floors, with more

than 1,100 high-end commercial buildings.

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CHAPTER II: THEORETICAL FRAMEWORK

This chapter presents both theoretical and empirical literature review in regardto internal factors affecting operation efficiency of a entrepreneur.

3.1 Theoretical literature.3.1.1 Efficiency theory.

The term "efficiency theory" refers to a variety of parametric and parametric techniques for estimating production and cost frontiers, such as DataEnvelopment Analysis (DEA), which has numerous uses in management scienceand operations research (Sengupta, 2003) The inputs and outputs of a firm are themain areas of focus when measuring the efficiency of one company There arenumerous ways to accomplish that They can be categorized into 3 maincategories: indicators of the ratio, parametric and nonparametric techniques (Bai

semi-& Dai, 2006; Vincova, 2005).

Ratio of outputs to inputs: Numerous ratio indicators can be added byconsidering various resource inputs, including labor, capital, material, and energy.But since they are only a few indicators, they cannot accurately capture corporate

efficiency as a whole The main disadvantage is that they concentrate only on asmall number of variables that do not sufficiently affect the production unit'soverall efficiency However, they are helpful for providing a fundamentalunderstanding of how the monitored unit operates Then, more sophisticatedeconomic analysis tools based on mathematical modeling are required for a morein-depth analysis of efficiency (Braglia, Zanoni, & Zavanella, 2003).

Parametric methods: The Stochastic Frontier Approach (SFA), Thick

Frontier Approach (TFA), and Distribution Free Approach are some of thesetechniques for measuring efficiency (DFA) These techniques must define theproduction function based on various hypotheses and estimate the parameters (Bai& Dai, 2006) They are a tool for gauging economic effectiveness Technicalefficiency is a more narrow concept than economic efficiency, which includesselecting the level and makeup of inputs and outputs in the most advantageous waypossible in response to market prices (Vincová, 2005) The given methods’

drawback is that they specify a particular functional dependence, which determines

the form and progression of the efficiency limit The final results may be harmed

by specific errors and the final results are distorted if these assumptions don'tmatch reality and the functional dependence isn't defined properly.

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Nonparametric methods: These include Free Disposal Hull (FDH) andData Envelopment Analyses (DEA), do not require defining a particularproduction function or estimating parameters They are used to assess the level ofinputs or outputs in order to gauge technical (technological) efficiency It meansto maximize outputs at a given level of inputs or to minimize inputs at a given levelof outputs in order to be technically efficient DEA is a linear programming modelused to assess the relative effectiveness of The Decision Making Unit (DMU) withmultiple inputs and outputs When compared to other firms in the test group,efficient firms are those that produce at the frontier of best practices This meansthat effective businesses use the same amount of inputs or less to produce the samenumber of outputs, or they use the same amount of inputs or less to do so.

3.2 Empirical literature3.2.1 Internal Factor

An aspect of a company's operations that they are in charge of managing isreferred to as an internal factor The three primary categories of internal factorsconcern a company's capital-raising methods, workplace culture, and technology.These elements are crucial for understanding how a business operates profitably(Indeed, 2018)

In contrast to external factors, which are those that affect a business fromthe outside, internal factors are the primary operational factors that a business cancontrol Both can affect market position, so it's crucial for businesses to set asidetime to consider each potential factor and any potential effects This enablesmanagement to create plans for handling both kinds of variables and achieving thebest outcome Internal factors are frequently examined at a microscopic level and

are typically much simpler to address (Indeed, 2018).

3.2.2 Internal factors affecting operational efficiency

3.2.2.1 Training Transfer skills factor and operational efficiency

Training transfer skills refer to the ability to transfer knowledge and skillsacquired during training to the workplace Research has shown that trainingtransfer skills have a positive effect on organizational performance, as improved

skills enable employees to become more efficient and productive A study by van

der Klink (2001) found that training transfer skills are positively related to jobsatisfaction and organizational commitment Furthermore, a study by Lisa A

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(2007) found that training transfer skills are associated with higher organizational

performance, as employees with higher levels of these skills are able to betterutilize their knowledge and skills in the workplace.

Training transfer is the ability of the trainee to use what he or she haslearned in a different context and to recognize and expand its application in newcircumstances (Hansen, 2001) When the trainees are inspired to apply theirknowledge without being coerced, the transfer process takes place (Holton et al.,2003) It can also be defined as the extent to which trainees applied their trainingoutcomes on a consistent basis in terms of knowledge, skills, behavior, andattitudes acquired during training in which they have participated (Velada &Caetano, 2007) Although there are numerous definitions of training transfer, it isgenerally accepted and is consistently used by other researchers to refer to theextent to which training outcomes in terms of knowledge, skill, and abilities aresuccessfully applied to the job and maintained over time after the training session(Baldwin & Ford, 1988).

Research has identified a number of factors that can affect the effectivenessof training transfer skills These include the type of training, the quality of training,

the support provided for transfer, and the relationship between the trainer and the

(i) Type of Training

The type of training provided can have an effect on the effectiveness oftraining transfer skills A study by Scott (2010) found that the use of experientiallearning was associated with improved training transfer skills This suggests that

providing training that focuses on experiential learning can have a positive effect

on the effectiveness of training transfer skills.

(11) Quality of Training

The quality of training is also an important factor to consider Researchhas shown that the quality of training can have a significant effect on theeffectiveness of training transfer skills (Yang Hi, 2016) This suggests that

providing high-quality training is important in order to ensure the effectivenessof training transfer skills.

(iii) Support for Transfer

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Providing support for the transfer of knowledge and skills from training tothe workplace can also have an effect on the effectiveness of training transferskills A study by Paul Lyon (2008) found that providing support for transfer canlead to improved transfer skills This suggests that providing support for transfer

is important in order to ensure the effectiveness of training transfer skills.

(iv) Relationship between Trainer and Trainee

The relationship between the trainer and the trainee can also affect

training transfer skills A study by Scott (2010) found that a positiverelationship between the trainer and the trainee can lead to improved training

transfer skills This suggests that it is important to ensure that a positive

relationship exists between the trainer and the trainee in order to ensure theeffectiveness of training transfer skills.

Many owners and managers of small to medium-sized businesses lackmanagerial training and experience Through a process of trial and error, thetypical owner or managers of small businesses develop their own managementstyle Because of this, their management style is probably more intuitive thananalytical, more focused on short-term issues than long-term ones, andconceptually more opportunistic than strategic (Hill, 1987) This attitude maypresent issues when difficult decisions need to be made, despite the fact that it isthe key strength during the startup phase of the business because it fosterscreativity The owners of small to medium-sized businesses are less equipped todeal with changes in the business environment and to plan appropriate changes inas a result of poor managerial ability Therefore, the proposed hypothesis has beenformulated to estimate the associations between the training transfer skills andoperational efficiency in the context of Hong Bang Joint-stock Company.

HI Training transfer skills has a positive impact on operational efficiency.

3.2.2.2 Management factor and operational efficiency

There is a growing body of literature addressing the role of management inoperational efficiency Studies have consistently shown that good management

practices can lead to improved operational efficiency and cost efficiency Forexample, one study found that firms with effective management practices hadhigher cost efficiency than those with weaker management practices (Komninos,2004) This indicates that management plays a significant role in determining thesuccess of a joint stock company

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