Determinants of enterprise satisfaction The case of Long Hau industrial park

TRƯỜNG ĐẠI HỌC MỞ TP.HCM UNIVERSITÉ LIBRE DE BRUXELLES HO CHI MINH CITY OPEN UNIVERSITY SOLVAY BRUSSELS SCHOOL MBAVB4 DINH XUAN PHUC DETERMINANTS OF ENTERPRISE SATISFACTION: THE CASE OF LONG HAU INDUSTRIAL PARK MASTER PROJECT MASTER IN BUSINESS ADMINISTRATION (PART-TIME) Tutor’s Name: Dr. NGUYEN VAN PHUC Ho Chi Minh City, 2011 P a g e | i MBAVB4 – FINAL PROJECT - 2011 ACKNOWLEDGEMENTS OF COMMITMENT I hereby commit that I have prepared and conducted this research, “Determinants of Enterprise Satisfaction: The Case of Long Hau Industrial Park”, is my original work as the final project of MBA VB program and it has not been submitted anywhere for any degree or qualification. To the best of my knowledge, any help received in preparing this research and all used sources have been acknowledged. Ho Chi Minh City, February 15 th , 2012 DINH XUAN PHUC P a g e | ii MBAVB4 – FINAL PROJECT - 2011 ACKNOWLEDGEMENTS First of all, I would like to express my deepest gratitude and great appreciation to Dr. Nguyen Van Phuc, my advisor, for his guidance, valuable advices and great support in developing my final project. And, it’s very important for me to thank the professors, tutors, and my classmate for supporting me with many valuable references during my time studying at MBA program and difficult period of doing this research. Next, thanks to my manager and colleagues at Long Hau Corporation for their continuous support in general and particularly last half year. I would like to express my sincere thankfulness to Dr. Hoang Trong for inspiring me, giving me thoughtful guidance and sharing his valuable knowledge about SPSS program for the completion of my research. Last, but not least, I would like to thanks all my family members who have encouraged and sympathized with me during the study period as well as completing this research. P a g e | iii MBAVB4 – FINAL PROJECT - 2011 COMPANY’S COMMENTS P a g e | iv MBAVB4 – FINAL PROJECT - 2011 ADVISOR’S COMMENTS The topic of the thesis is interesting. The thesis tries to find out what determines enterprise satisfaction in an industrial park. Given that there are many industrial parks competing with each others to attract investment projects, the implications from the study help industrial parks attract be more successful. Within limited time and resources, the student has tried to address these questions with a good body of theory and quantitative analysis with survey data. The structure of the thesis is logically constructed. After introduction, Chapter 2 reviews various theories relating to industrial parks, service quality and customer satisfaction. The research model and hypotheses are proposed at the end of the chapter. Chapter 3 shows research design and sampling. Chapter 4 conducts quantitative analysis using survey data. The results show that four out five independent variables have significant effects on the dependent variable. The goodness of fit of the regression is quite high. Chapter 5 draws main conclusions and gives recommendations. In general, the thesis is well written although there are some limitations as the student admitted at the end of the thesis. Based on the above performance, I recommend the thesis for acceptance of public defense. Signature Dr. Nguyen Van Phuc P a g e | v MBAVB4 – FINAL PROJECT - 2011 TABLE OF CONTENTS ACKNOWLEDGEMENTS OF COMMITMENT i ACKNOWLEDGEMENTS ii COMPANY’S COMMENTS iii ADVISOR’S COMMENTS iv TABLE OF CONTENTS v ABBREVIATIONS and NOTIONS viii LIST OF FIGURES ix LIST OF TABLES ix ABSTRACT x CHAPTER 1 - INTRODUCTION 1 1.1 Vietnam Industrial Pak Introduction 1 1.2 Introduction of Long Hau Industrial Park 1 1.3 Problem statement 2 1.4 Research question 3 1.5 Research objectives 3 1.6 Scope of research 3 1.7 Research methods 3 1.8 Structure of the research report 4 CHAPTER 2 – LITERATURE REVIEW 5 2.1 Introduction 5 2.2 Industrial Park Activities 5 2.2.1 Industrial park 5 2.2.2 Establish an IP 6 2.2.3 Call for investment 7 2.2.4 The Role of IP in Vietnam 7 2.3 Place Marketing 8 2.3.1 Place marketing elements 9 2.3.2 Planning group 9 2.3.3 Target markets 9 2.3.4 Marketing factors 12 2.4 Service quality 13 2.4.1 Service definition 13 2.4.2 Service characteristics 13 P a g e | vi MBAVB4 – FINAL PROJECT - 2011 2.4.3 Service quality, perception and expectation definitions 14 2.4.4 Service Quality Model 15 2.4.5 Dimensions and determinants of service quality 17 2.5. Place attributes 19 2.6 Enterprise satisfaction 20 2.6.1 Customer satisfaction 20 2.6.2 Enterprise satisfaction 21 2.7 Research model proposal and Hypotheses 21 2.8 Summary 23 CHAPTER 3 - RESEARCH DESIGN 24 3.1 Designing the research 24 3.1.1 Qualitative research 25 3.1.2 Quantitative data analysis processing 26 3.2 Official research 26 3.2.1 Proposal research model 26 3.2.2 Instruments 26 3.2.3 Participation 27 3.2.4 Translation and pre-test reliability of questionnaire 27 3.2.5 Method of analysis 27 3.2.6 Dimensions measuring industrial park services 29 3.2.7 Dimensions measuring enterprise satisfaction 31 3.3 Summary 32 CHAPTER 4 – DATA ANALYSIS 33 4.1 Sample characteristics 33 4.1.1 Sample 33 4.1.2 Type and Volume of enterprise 33 4.1.3 Nationality & Industrial field 34 4.1.4 Enterprise experience 34 4.2 Assessment of measurement scale 35 4.2.1 Reliability evaluation for Infrastructure and Assurance scales 35 4.2.2 Reliability evaluation for Policy scale 36 4.2.3 Reliability evaluation for Environment and Culture scales 36 4.2.4 Reliability evaluation for Satisfaction scale 37 4.3 Explore factor analysis for all scales 37 4.4 Testing model and hypothesis 39 4.4.1 Revising research model and hypothesis 39 4.4.2 Regression and correlative 40 4.5 Impact of enterprise characteristics on satisfaction 43 4.6 Findings and Discussion 44 P a g e | vii MBAVB4 – FINAL PROJECT - 2011 4.7 Summary 45 CHAPTER 5 – CONCLUSION AND RECOMMENDATION 47 5.1 Conclusion 47 5.2 Recommendation for IP to improve enterprise satisfaction 48 5.2.1 Improve infrastructure 48 5.2.2 Policy 49 5.3 Limitation of the study and future suggestion 49 REFERENCES 51 APPENDICES 54 Appendix A: The SERVQUAL instrument 54 Appendix B: Determinants of place attributes 55 Appendix C: Discussion outline 56 Appendix D: Questionnaire in English and Vietnamese 57 Appendix E: DESCRIPTIVE STATISTICS RESULT 61 Appendix F: CRONBACH’S ALPHA ANALYSIS RESULT 62 Appendix G: EFA RESULT 66 Appendix H: REGRESSION RESULT 68 Appendix I: ONE-WAY ANOVA TEST RESULTS 70 Appendix J: RESPONDENTS LIST 72 P a g e | viii MBAVB4 – FINAL PROJECT - 2011 ABBREVIATIONS and NOTIONS - CKEZ : Central Key Economic Zone (includes 5 provinces/cities: Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai and Binh Dinh) - EFA : Explore factor analysis - HCM : Ho Chi Minh - Investors : Clients who lease land or ready built factory from an industrial park - IP developer : the company who invests in IP infrastructure and manages IP operation, such as Long Hau Corp. - IP : Industrial park - IZ : Industrial zone - LAEZA : Long An Economic Zone Authority - LHC : Long Hau Corporation - LHIP : Long Hau Industrial Park - NDT : Nguyễn Đình Thọ - NKER : Northern Key Economic Region (covers 7 provinces and municipalities: Hanoi, Hai Phong, Vinh Phuc, Bac Ninh, Hung Yen, Quang Ninh and Hai Duong) - NTMT : Nguyễn Thị Mai Trang - PZB : Parasuraman, Zeithaml, Berry - RBF : Ready built factory - SKEZ : Southern Key Economic Zone (includes 8 provinces/cities: Ho Chi Minh City, Binh Duong, Dong Nai, Ba Ria-Vung Tau, Binh Phuoc, Tay Ninh, Long An and Tien Giang provinces) - SME : Small & medium enterprise - SPSS : Statistic Package for Social Science P a g e | ix MBAVB4 – FINAL PROJECT - 2011 LIST OF FIGURES Figure 1.2 Long Hau IP location 2 Figure 2.3.1 Levels of Place Marketing 10 Figure 2.4.4 Service Quality Model 16 Figure 2.7 Research model proposal 22 Figure 3.1 Research design 24 Figure 4.4.2 Revised model 43 LIST OF TABLES Table 2.4.5 Determinants of service quality in SERVQUAL 18 Table 2.6.1 Determinants of customer satisfaction 21 Table 2.6.2 Determinants of enterprise satisfaction 21 Table 2.7 Industrial park service quality dimension 22 Table 3.2.6a Measurement scales of infrastructure and assurance 30 Table 3.2.6b Measurement scales of policies 30 Table 3.2.6c Measurement scales of Environment 31 Table 3.2.7 Measurement scales of enterprise satisfaction 32 Table 4.3a KMO and Bartlett’s Test 38 Table 4.3b Total Variance Explained 38 Table 4.3c Rotated Component Matrix 39 Table 4.4.1 Revised research model 40 Table 4.4.2 Multiple regression result 40 Table 4.5 Summary ANOVA results of respondent 43 Table 4.6 Levels of importance factors on Enterprise satisfaction 44 [...]... presents basic theory of industrial park marketing as basis of the research This chapter includes 4 main parts, (1) Industrial park activities, (2) Place marketing theory, (3) Service quality, (4) IP service quality, and (5) Enterprise satisfaction 2.2 Industrial Park Activities To study the enterprise satisfaction of investors who invest in industrial parks, this study first presents the concept of IP, describe... information of Long Hau Industrial Park, the objectives, the way to conduct the research, the scope and methodology of the study Chapter 2 - Literature review: This chapter gives the concepts of industrial park activities, including the role of IP in Vietnam Economy; the definition of industrial real estate products and services; the concepts of customer satisfaction; and the model would be used to study... with current services? That leads to the research Determinants of Enterprise Satisfaction: the Case of Long Hau Industrial Park The report will firstly concentrate on reviewing the quality of customer service to understand customer’s positive or negative assessment about the value of using services in LHIP Secondly, the research will give recommendation on improving the services in order to satisfy existing... on the satisfaction of investors Factor analysis method used to reduce variables, and regression was used to determine the satisfaction of the place attributes in the enterprise satisfaction SPSS software is used to analyze data collected by quantitative research 1.8 Structure of the research report Chapter 1 – Introduction: this chapter gives an overview of the research, information of Long Hau Industrial. .. impact on enterprise satisfaction in Vietnam IPs However, the scope of this research is at one IP only It leads to the judge within small area Therefore, it is necessary to conduct more researches for group of IP in different regions in order to have an overview of factors impact on IP enterprise satisfaction Key words Industrial park, industrial zone, industrial real estate, enterprise satisfaction. .. LHIP The aim is to explore the attitudes and opinions of the IP developer, the MBAVB4 – FINAL PROJECT - 2011 Page |4 investors about the enterprise satisfaction attributes Also set the scale of place attributes used for quantitative research Quantitative research is done by the questionnaire that designed based on results of previous steps The goal is to measure the place attributes as well as their... information In which, it is important and requirement to answer the question that what are key determinants of enterprise satisfaction in LHIP 1.5 Research objectives The research is to find out the factors which impact enterprise satisfaction in LHIP and then find the answers for below objectives: - To measure enterprise satisfaction in Long Hau IP This is a part to analyze company’s business environment... who invest in industrial parks, this study first presents the concept of IP, describe the formation and operation of an industrial park 2.2.1 Industrial park An industrial park is an area zoned and planned for the purpose of industrial development Industrial parks are usually located outside the main residential area of a city and normally provided with good transportation access, including road and... this information, the Committee will get opinions from Department of Planning and Investment, Department of Natural Resources, Provincial Military Command, etc to consider MBAVB4 – FINAL PROJECT - 2011 Page |7 In case the project of industrial park is already in the master plan on development of industrial parks or in the general planning of economic development zones approved, Chairman of PPC decided... shown by the level of business performance (turnover, profit) Moreover, enterprise tends to continue long- term business in the locality, and they introduce local to other investors as details in Table 2.6.2 Table 2.6.2 Determinants of enterprise satisfaction Dimension Variable 1 Company operates effectively in Tien Giang 2 Company revenue growth as desired 3 Company profits as expected Enterprise satisfaction . information of Long Hau Industrial Park, the objectives, the way to conduct the research, the scope and methodology of the study. Chapter 2 - Literature review: This chapter gives the concepts of industrial. Whether investors who have already been at LHIP are satisfied with current services? That leads to the research “ Determinants of Enterprise Satisfaction: the Case of Long Hau Industrial Park COMMENTS The topic of the thesis is interesting. The thesis tries to find out what determines enterprise satisfaction in an industrial park. Given that there are many industrial parks competing