The relationship between the industry competitiveness and factors supporting the development of cluster Case study of the cluster of the digital content industry in Vietnam

1 MINISTRY OF EDUCATION AND TRADING UNIVERSITY OF ECONOMICS OF HO CHI MINH CITY ……….  ………… NGUYEN VAN VEN THE RELATIONSHIP BETWEEN THE INDUSTRY COMPETITIVENESS AND FACTORS SUPPORTING THE DEVELOPMENT OF CLUSTER: CASE STUDY OF THE CLUSTER OF THE DIGITAL CONTENT INDUSTRY IN VIETNAM Major: Business Management Code:: 62.34.05.02 SUMMARY OF ECONOMIC DOCTORAL THESIS Ho Chi Minh City –2015 THE WORK HAS BEEN SUCCESSFULLY COMPLETED AT: UNIVERSITY OF ECONOMICS OF HO CHI MINH CITY Sience Instructors: Ph.D NGUYEN VAN DUNG Ph.D NGUYEN ĐINH LUAN Opponent 1: Opponent 2: The thesis has been defended at University, at (hour), ./ /…… This thesis may be found at: PUBLISHED SCIENTIFIC WORKS PUBLISHED SCIENTIFIC WORKS Nguyen Van Ven, 2013 Analysis of Progress of Global Digital Content Industry to apply in Viet Nam Busines Finance – corporate finance department - Ministry of Finance, ISSI: 1859-3887 (9): 33-37 Nguyen Van Ven, 2013 Cluster approach: To determined the Clustering Structure of digital content industry in Viet Nam Business Finance – corporate finance department - Ministry of Finance, ISSI: 1859-3887 (10): 16, 17, 18, 19, 23 Nguyen Van Ven, 2013 Cluster development of digital content industry in Viet Nam Economy and Forecast Review, ISSN 0866.7120 (18): 56, 57, 58 Nguyen Van Ven, 2015 Recognizing competition, competitiveness to contributing oriented, policy makers promote Vietnam's economic growth in the economic integration of the Asian community Proceedings of Scientific Conference Asian Economic Community, opportunities and challenges for Vietnam enterprises University of Economics and Finance HCMC, 8/2015 CHAPTER 1: OVERVIEW OF THIS RESEARCH 1.1 INTRODUCTION The need inevitable to use information for the personal making of decision has existed and has evolved along with the evolution of human society In the past, the communication of information among people without the assistance of information technology encountered many difficulties because of the geographical distances Since the information technology came to life the time for information communication has considerably improved for people; as a result, everyone may have opportunities to access information from distance in an easy manner The recent advances in technology resulting from the technological convergence of the three fiels including Information Technology, telecommunications, and communications has given to the birth of a new economic industry – Digital Content Industry (DCI) The birth of Information science has made our world become closer, the development information technology in a geometric progression has facilitated the growth of information communcation to serve the business of transportation and supply of goods and services to different remote places in the World (Friedman, 2005) DCI is quickly considered as an important economic industry with the function to supply digital content infrastructure to other interdisciplinary industries to contribute the whole development of every countries or nations The Government is fully aware of the importance of DCI to the national economy, so the Government (2007) issued the Decision No 901/QĐ-TTG, the Decision No.: 55/2007/QĐ-TTg, and the Decision No 56/2007/QĐ-TTg in a timely fashion to make consideration and approval of DCI as a key economic industry in the year 2007, which was the year of the creation of “Vietnam Institute of Software and DCI as a landmark to initiate many “studies of matters” concerning Cluster DCI, especially to research the relationship of Industrial Competitiveness and the assistance by the development of Cluster DCI in Vietnam, which will be presented in this Study 1.2 BASIC OF THIS RESEARCH 1.3 RESEARCH QUESTIONS (1) What are the main factors having impacts on industrial competitiveness of DCI? (2) How is the perceived total impacts of industrial competitiveness of DCI in Vietnam? (3) What are the main factor which may give support to the development of Cluster DCI? (4) Whether or not there is a relationship between Industrial competitiveness and the support to the development of Cluster DCI? 1.4 OBJECTIVES OF RESEARCH (1) To explore and measure the main factors which have impact on the competitiveness of DCI; (2) To explore and measure perceive the overall impacts of competitiveness of DCI in Vietnam; (3) To explore and measure the supports for cluster developments of DCI; (4) To measure the relationship between the industrial competitiveness and supports for cluster development 1.5 SUBJECT MATTER AND SCOPE OF THIS RESEARCH 1.5.1 Subject matter of the research: The factors which may have impacts on the industrial competitiveness and supports for cluster development of DCI 1.5.2 Scope of the research: The study of Cluster DCI in Vietnam focuses on main factors having impact on the competitiveness of DCI and supports for cluster development of DCI The period for the study commenced in 2009 and ended in 2015 1.6 RESEARCH METHOD: Mixing qualitative and quantitative method 1.7 THE NOVELTY OF THIS TOPIC AND STRUCTURE OF THE RESEARCH 1.7.1 The novelty of this topic About the theory: The Thesis has developped the scales in a model of three main components, that is: (1) agent which has impact on the industrial competitiveness; (2) perceived of the total impacts of the industrial competitiveness, and (3) elements belongng to the groups supporting the Cluster development The Thesis has verified the relationship between “the industry’s competitiveness” and the support to the Cluster development in the DCI in Vietnam; in which the competitiveness has strong impacts on the support to the development of Cluster, and “the support to development” has a smaller impact on “the competitiveness” In addition, the Thesis has rejected the factor “geographic proximity” or “geographic concentrations of inter-connected companies” manifesting in the connotation of the Concepts of Cluster for it is not suitable to the circumstance of Cluster DCI in Vietnam A new factor which has been developed in the group of factors giving support to the Cluster development is “the soft factor – social capital” in the case of research of the Cluster of the DCI About the practice:, the outcome of the research of the Thesis has suggested implications for policies and management to help policy makers to have a reference to a proper direction in making decisions to enhance the competitiveness and the support to Cluster in the context of the development of the DCI in Vietnam 1.7.2 Structure of the research: The study consists of 05 chapters which are presented in the following order: Chapter 1- Overview of the study; Chapter 2- Theoretical Foundation and Model; Chapter 3- Research design; Chapter – Research result; Chapter – Discussion of Research result and implications for policies and management CHAPTER 2: THEORETICAL FOUNDATION AND MODEL 2.1 BASES OF THEORETICAL FOUNDATION 2.1.1 Competition: Traditionally competition attaches to the Classical theorists such as Smith (1776), Ricardo (1817); the neoclassical economists such as Marshall (1890), Walras (1874) and other school theorists like Robinson (1933) The nature of competition according to the traditional conception are shown by scholars through the aspects as summarized below Traditional conception of competition Group of Methods of Objectives of Competitive Consequences Market orientation competition competition space of competition mechanism theories Competition, Low prices, To obtain Market Win-Lose “Invisible Balance antagonism: the best more gains mode: hand” between Trade market quality than other Freedom, supply and is a battle field goods competitors perfect, demand monopoly Nature of competition Source: Author’s Result of Analysis A number of typical economists with a modern conception of competition are Friedman (2005), Porter (1990), Barney (1995), Prahalad & Hamel (1990), Gimeno (2004), Gnyawali & Park (2009), lado & đtg (1997), Peng & Bourne (2009), Luo (2007) who have pointed out that the nature of the modern conception of competition is “competition and cooperation” so that the economy can be impulsed in a global cooperation environment Modern conception of competition Nature of competition Methods of competition Competition Through innovation and to create a core cooperation capacity; Share Of in the market information will place is a speed up the game development of technologies Objectives Consequences Competitive of of space competition competition Share of value chain on a win-win basis The market should be regulated by the State WinWin Market mechanism “Visible Hand” Group of orientation theories Economic evolution Source: Author’s Result of Analysis 2.1.2 Competitiveness: In the work the typical studies of the industrial competitiveness represent the studies of porter (1990); Mataraarachchi & Heenkenda (2012), Joshi & Dixit (2011), Savić & đtg (2011), Padurean & Tuclea (2008), Bakan & Dogan (2012: 449), Mehrizi & Pakneiat (2008), Choe & Brian (2011a) and Choe & đtg (2011b) 2.1.3 Cluster In the world Cluster has attracted the attention of many practioners and academics whose typical researches are presented below: Summary of the process of development of the Cluster concept Group Academic authors Meaning column of concepts Marshall (1890), Krugman Industrial cluster definitions on the (1991a, 1991b) Rosenfeld basis of Marshall’s model of (1995: 12), Swann & Prevezer agglomeration economy, the content (1996:1139), Hill & Brennan of the concept manifests through the (2000: 67-68), NGA (2002), column “geographic concentrations Brenner (2004), Morosini of companies ” (2004), Rosenfeld (2005), Bekele (2006), Cortright (2006), Glaeser & Gottlieb (2009: 1005), Porter(1990) Isard (1959), Isard (1959: 33), Industrial cluster definitions which Roepke & đtg (1974: 15), are derived mainly based on Czamanski (1974), Ó “interindustry relationships” hUallacháin (1984: 421), found in input-output tables Saxenian (1994), Doeringer & Terkla (1995), Bergman & Feser (1999), Feser & Lugar (2002: 3), Porter (1990,1998a, 1998b, Industrial cluster definitions is 1998c, 2000, 2008) argued in a broader sense to explain (OECD, 1999: 5) explaining why establishments group in geographic distance, including economies of localization, value chain linkage, and technology innovation among others localization economies, value chain linkage, and technology innovation is explained on the basis of Porter’s research through the meaning column “geographic concentrations of companies, interindustry relationships, related and supporting industries” Source: Chen (2005) and the author’s researches 2.2 BASES OF THEORETICAL FOR MODEL BUILDING 2.3 MODEL AND PROPOSAL OF SUPPOSITIONS RESEARCH The model of research includes three elements : (1) groups of decisive factors having impact on the competitiveness as being built on four main pillars- namely including: (a) factor conditions; (b) demand conditions; (c) related and supporting industries; and (d) firm strategy, structure, and rivalry; (2) Perceived total impacts of the industrial competitiveness; (3) supports for cluster development, including: (a) Government;(b) chance; (c) soft factor – social capital; (e) geographic concentrations of companies Through the said description, the interrelation of the subject matters is modelled into a model of a research of the thesis conditions Source:Factor Author’s proposal Resourcese s Labour Infrastructure H1c Market size s H1b H1a H2a Conditions of New product demand H2b H5 H2c Business environment Supports Cluster Development Industrial competitiveness H6 H3a H3b H4a Structure Firm strategy, structure, and rivalry Cooperation H3c H4b Added value Supply chain Related and supporting Author’s proposal industries Summary of research suppositions: Ordinal Group Oriented technology Source: Suppositions 10 number Elements belonging to the group of factor conditions (group 1): - H1a: Labour having the same directional impact on the total impacts of the industrial competitiveness of DCI -H1b: Infrastructure having same the directional impact on the total impacts of the industrial competitiveness of DCI -H1c: Resources having the same directional impact on the total impacts of the industrial competitiveness of DCI Elements belonging to the group of Conditions of demand (group 2): - H2a: Digital content market size having the same directional impact on the total impacts of the industrial competitiveness of DCI - H2b: New products having the same directional impact on the total impacts of the industrial competitiveness of DCI - H2c: Business environment having the same directional impact on the total impacts of the industrial competitiveness of DCI Elements belonging to the group of firm strategy, structure, and rivalry (group 3): - H3a: Production structure having the same directional impact on the total impacts of the industrial competitiveness of DCI -H3b: Cooperation between Organizations/companies having the same directional impact on the total impacts of the industrial competitiveness of DCI - H3c: Technology orientation having the same directional impact on the total impacts of the industrial competitiveness of DCI Elements H4a: Supply chain having the same 15 preliminary research using the technical expertise to determine Cronback Apha scale reliability and preliminary studies using Exploring Factor Analysis To Explain (EFA) appropriate level of scale with concept studies The result of the collected slips meets the requirements of the size of a research sample 3.2.4.2 The main research: In the main research, the Confirmatory Factor Analysis (CFA) method was used to determine the reliability of the scale and the suitability to the model data A data set after which was created from such analysis and was processed resulted in a conclusion 3.2.4.3 Support Tools: The research also used SPSS Amos Version 20 to give assistance to our analysis of quantitative data, using the graphical technique for SEM model and exel software to process calculations and technical indexes collected from the qualitative and quantitative data, using the Excel processing software calculates the technical indicators from quantitative data and qualitative indicators and LQ index, using techniques Brainstorming and SWOT tool CHAPTER 4: RESULT OF RESEARCH 4.1 RESULT OF QUALITATIVE RESEARCH 4.1.1 Result of the research of group concentration discussions The research of group concentration discussions resulted in findings in the procedure of group discussion, which suggest an adjustment so that the position of elements can be suitable to the supposition model as follows: (1) The two elements “information and quality” should be designated as a scale belonging to the group of “the conditions of the elements necessary for production and service and conditions of demand”; (2) the eleven elements that are the elements belonging to the groups having the impacts on the total competitiveness of the industries should remain unchanged as stated the researches made in the past; (3) the three elements which the “Government’s role, soft elements and opportunities” should be changed into a scale of potential or latent factors of factors giving to support to the development as expected by the research design All the findings in the 16 research of the group discussions serve as a basis to complete the scale of the quantitative research, giving additional foundation to the theories of research models 4.1.2 Result of the research of semi-structural interviews The semi-structural interviews results in new findings including 05 elements (Business ethics and intellectual property, leaders’skills to use the computer, people’s inclination to new technologies and policy maker’s expert in as professional field) which overlap the elements in the design of research supposition model (“customer’s expert” and “Government’s role”) However, the 02 elements (business ethics and intellectual property) is not much characterized by the role of representative elements in this model (these elements may be eliminated in the model after there were solutions to remedy the real situation of this matter) so in this research model the consideration to these elements were not given The 03 elements ( leaders’ computer skills, people’s liking new technologies and the policy maker’s expert) were considered in the design as a common meaning for 02 scale (the user’s expert and the Government’s support role) Similar to the group discussion, all the findings in the semi-structural interviews helps us to complete the scale used in the research supposition model 4.1.3 Results of design scales The scales are established on the basis of expressions given and researches conducted in the past and the general qualitative research as follows: (1) The scale of the impact of the factor conditions Labour: DKYT_LD1: Availability of labour with a high skill level and creativity to guarantee the production of the DCI DKYT_LD2: Labour with skill in professional management of the DCI DKYT_LD3: Educational and training institutes able to supply well-qualified labour as required by the production and service of the DCI 17 DKYT_LD4: Quality in education and training to meet at all time the demand for the production and service of the DCI DKYT_LD5: High labour Efficiency and productivity Infrastructure: DKYT_CSHT1: High-speed link of telecommunication able to meet the demand for the production and service of the DCI DKYT_CSHT2: Quality of telecommunication service DKYT_CSHT3: Quality in the update service to upload information to internet websites to the customer’s satisfaction at all time DKYT_CSHT4: Reasonable costs for telecommunication services Resources: DKYT_NL1: Ready to provide the sources of rough information from individuals, organizations, businesses, industries and national data for the production and service of the DCI DKYT_NL2: It is easy for the companies operating in DCI to access to preferential capital source for production and service activities DKYT_NL3: Reasonable costs for source of rough information DKYT_NL4: The content of the rough information having good quality DKYT_NL5: Political Stability facilitating the activities of production and service of the DCI DKYT_NL6: Labour working in the DCI having good living environment DKYT_NL7: Good working conditions for the labour in the DCI 18 (2) Scale measuring the impact of the demand conditions Market size: DKNC_TT1: Domestic Expansion of DCI is good DKNC_TT2: Expansion of DCI to foreign countries is good DKNC_TT3: Expansion of the size of domestic and foreign markets for DCI attracts capital for the industrial business and production DKNC_TT4: Expansion of markets for customers who have knowledge and expert about the products and services of DCI New Product: DKNC_SP1: Capable of well - developing new products and service of DCI to meet market demands DKNC_SP2: Businesses reacting quickly to and having creativity before the changes in the demand of the products and services of DCI DKNC_SP3: High Quality and Reliability in the products and services of DCI done and supplied by domestic companies Business environment: DKNC_MTKD1: Businesses having profound knowledge of their business environment and receiving sustainable support to their DCI products and services DKNC_MTKD2: Businesses in the DCI in Vietnam showing a strong business spirit DKNC_MTKD3: Businesses in the DCI in Vietnam ready to be faced with risks (3) Scale measuring the impact of firm strategy, structure, and rivalry Structure (Industrial structure): CL_CT1: The presence of many big foreign companies in the DCI 19 in the market in Vietnam CL_CT2: Flexibility in the system of industrial production and business of DCI services CL_CT3: Businesses with DCI production and service continuously improving their production models to meet market demands at all time Cooperation: CL_HT1: Close cooperation among business in the Cluster of this industry CL_HT2: Businesses actively improving their general knowledge of Cluster DCI CL_HT3: Rapid development of the network of businesses carrying on production and services of DCI in the Cluster CL_HT4: Positive cooperation and participation in the activities of civil society and community concerning the supply of digital content Orientation of technology: CL_DHCN1: High degree in applying new technologies to exploit the resources of digital content so that such resources can serve production activities of businesses in Vietnam CL_DHCN2: Efficient Transfer of digital technology to business in Vietnam CL_DHCN3: Vietnamese leaders in businesses having high awareness of the benefits to be gained from the continuous improvement of technologies for the exploitation of digital resources to serve their production and business activities CL_DHCN4: High degree in applying and improving continuously new technologies in business operating in the activities of DCI production and service in Vietnam 20 (4) Scale measuring the impact of related and supporting industries DCI Supply Chain: CN_CCC1: Capacity for providing supporting services by supporting and related industries to meet the demands or DCI Production and Business is good CN_CCC2: Ability of supporting services to meet the demands of DCI production and business is good CN_CCC3: Quality of the supporting services provided by supporting and related industries to the activities of production and business in the Cluster of DCI in Vietnam is good CN_CCC4: Model of the structure of scientific supply chain which is sustainable and suitable to the types of products and service of DCI Added value of DCI: CN_GTGT1: Capacity of the supporting and related industries for contributing added value to the DCI supply chain is good CN_GTGT2: Understand and knowledge of supporting and related industries about the possibility to add value to the DCI Supply chain is good CN_GTGT3: Readiness of supporting and related industries for participating in and sharing value and knowledge is good (5) Scale measuring the total impact of the industrial competitiveness TD_NLCT1: General impact of the competitiveness of the DCI in Vietnam is strong (Type C) TD_NLCT2: Determining that benefits are more than costs payable for enhancing the competitiveness of this Industry (Type A) TD_NLCT3: Do you agree or not that the competitiveness of the DCI in Vietnam can meet the domestic and international demands? (Type A) 21 (6) Scale measuring the impact of the supporting factors for the development of the Cluster of Supporting and related industries HTPT1: Government’s supporting role in planning the policies to enhance the competitiveness of this industry and to speed up the development of Cluster? HTPT2: Role of soft factors –social capital of businesses in the DCI in their rapid deployment of conversion from the present social connecting networks to digital connecting networks like virtual networks Zing me, Facebook, Twitter, Zalo, working websites…? HTPT3: Chane factors for businesses (such as specific characteristics (weather), good location (terrain), special talent (People’s unity), lucky factors; new invention, political decisions made by foreign Governments…)? HTPT4: Factor of the Geographical concentration of DCI (businesses in the same industry will be located close to each other geographically)? 4.2 Result of quantitative research 4.2.1 Result of the preliminary research The result of the preliminary research demonstrates the following things: (a) The set of scales measuring the reliability is a basis for creating a Questionnair which will be used in the main research; (b) the data set suitable for an analysis of the factors model and scales measuring the orientation explains the classification of groups of factors; (c) The scale measuring exclusive observation variables of DKYT_LD4, DKYT_CSHT3, DKYT_TT3, CL_DHCN2, CN_CCC2, has not impact on the research concept; (d) the scale measuring the implicit variable HTPT4 – Geographical concentration of businesses in Cluster has a general low correlation coefficient 0.143 0.05, If P=0.5 requirements extracted Result: (1) In spite of the Chisquare (P = 000) other indexes ensure the research standards; (2) The model is suitable to the market data set; (3) The scales attained high degree of reliability 24 Result of verification of the research model: Source : Author’s researches 25 The summary of the main research as shown in the table below: correlation Impact index Degrees of impact Weak Average Strong (+) (++) (+++) NLCT< - Labour β3=0.069 X NLCT< - Infrastructure β4=0.115 X NLCT< Resources β5=0.152 X NLCT< Market β6=0.199 X NLCT < -Product β7=0.078 X NLCT < - Business environment β8=0.115 X NLCT < - Structure β9=0.105 X NLCT < - Cooperation β10=0.130 X NLCT < - Oriented technology β11=0.199 X NLCT < - Supply chain β12=0.182 X NLCT< -Added value β13=0.123 X HTPT < - Competitiveness β1=0.561 X NLCT< - Support development β2=0.460 X Ratio 84.6% 15.4% 0% Result of General evaluation: The decisive elements of the competitiveness of the DCI has low rate (β2-> β13=< 0.5) The awareness of the general impact of the competitiveness of the DCI having an impact on the factors supporting to the development of the Cluster of the DCI is at an above-average degree (β1 =0.561) The supporting factors having impact on the competitiveness of the DCI is at a near-average degree (β2=0.460) 26 CHAPTER 5: DISCUSSION AND IMPLICATION OF THE RESEARCH 5.1 DISCUSSION OF THE RESULT OF RESEARCH The data set which was collected from the research program after a course of analysis and process resulted in the outcome and conclusiona as follows: (1) The qualitative research demonstrate that the research model is suitable to the market data set; the scales measuring the factors forming the research model ensure a good degree of reliability; the bi-directional impacts between the relationship of the general competitiveness and the factors supporting the Cluster development which is at an average degree are found to be suitable to the research suppositions and to the qualitative research (Result of the correlation of factors giving supports to the development HTPT < - competitiveness NLCT: β1 =0.561; competitiveness NLCT < - factors giving supports to the development HTPT: β2 =0.460), so this data demonstrates that the competitiveness of the DCI in Vietnam is at the average degree, which implies that the policies must be implemented properly to enhance the industrial competitiveness and to give support to the development of the Cluster of DCI in Vietnam Among the decisive agents having affect on the industrial competitiveness, the factor “market size” has a highest degree (competitiveness NLCT < Market: β6=0.199) and the skilled-labour factor has the lowest degree of competitiveness (competitiveness NLCT < - Labour: β3=0.069); with this result, the deployment of strategies for participating in markets must be speeded up, and the deployment of strategies for developping high-quality human resources is urgent Among the factors giving support to the Cluster development, the model of research suppositions is exclusive of the factor “geographical centration” of the business operating in the same industry from the stage of the preliminary research, which proves that Porter’s definition of Cluster is not true in all cases of research of industrial Cluster From this conclusion, this is to propose that the priority policy to build 27 industrial zones in the fashion of “ geographical centration” for the developmnet of the Cluster of DCI in Vietnam should be synchronously converted into both the vertical integrated direction and horizontal integrated direction in the whole Cluster, to enable all people, small-and medium-sized businesses to have opportunities to participate in the Cluster of DCI; (2) The qualitative research discovered that the findings are suitable to the position of the model; the importance of the “soft elements- social capital” shall become strong with the participation of the whole civil society and communities, which have had contributions to the enhancing of the competitiveness of the industries and the supports to the development of the Cluster of DCI; almost experts and specialists are of the opinion that the benefits will be more than the total cost payable to the enhancing of the competitiveness of the industries, which implies the reasonableness of the foundations with the implication that it is necessary to propose policies to enhance the competitiveness of industries and to support and speed up the development of the Cluster of the DCI Most experts and specialists have the same point of view that “the Government has not had a full role” in giving supports to the development of the Cluster of DCI in Vietnam during this period; (3) the approach to Cluster to determin the structure of the Cluster of the DCI with different factors is manifested in a specific manner to create an overall picture of the Cluster of the DCI in Vietnam 5.2 IMPLICATION OF THE RESEARCH 5.2.1.This is to imply that the policies relating to factors having impacts on the competitiveness of the DCI The policies should be built with the approach to Cluster in both the vertical integrated and horizontal integrated directions The policies of goverment should be to focus on the development high-quality Human Resources, on the guarantee of good infrastructure for production and services, on the guarantee of resources for activities of production and service, on the effective enhancing of the penetration into and expansion of 28 markets, on the making of decisions on the choice of what products and services of the DCI to supply to markets, on improvement of the knowledge of business environment to enhance the efficiency and flexibility of the structure of production and service (industrial structure), to make good use of cooperation of business networks, to make good use of the impact of the orientation of technology to reinforce the strength of the supply chain of the Cluster of the DCI, and to speed up the added value of the supply chain 5.2.2.Implication of the policies relating to the support to the development of Cluster It is necessary to focus on the Government’s role, to reinforce the role of soft elements (social capital and belief), to make good use of opportunity element to enhance the competitiveness 5.2.3 Implication of the shortcomings in Porter’s Cluster Concept It is necessary to focus on the planning of policies to develop businesses in the Cluster of the DCI in a complete manner, not only focusing on the geographical concentration of businesses 5.3 LIMITATION OF THE RESEARCH There are a certain limitations of the research: (1) The research only focusing on the businesses which have activities of production and supply of DCI Services conducted a survey in the south of Vietnam (From Da Nang City to Ca mau Province) which serves as data base to give a general conclusion of the Cluster of DCI in whole country The result of the research would had a greater degree of reliability if the research were conducted with a structure of samples including all business operating in all industries in Vietnam and the Clusters of other industries; (2) the collection of information was made from research materials such as scientific journals, reports, conferences, seminars, and from business representatives and experts through the author’s personal network, so the accuracy of the research may have some certan limitations; (3) this research chose the Cluster of the DCI as a new field to study, the concepts in the 29 scales measuring the values are fairly new, which may contains subjective element, so this may have an impact on the result of the thesis research; (4) the scope of research was limited to the businesses carrying on the production and business activities in the Cluster of the DCI in Vietnam, so this result may be different if the research was conducted in the context of other industries; (5) The degree of attaining the objectives of the research is affected by the time limit because it is found that this research reflected the market of the DCI in Vietnam during the time of the global crisis