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1 INTRODUCTION The neccesity of the topic The concept of performance measurement system (PMS) was first introduced in the US in 1976 when researchers searched for a tool that could better promote the management by objective (MBO) program with the goal to developing countries (Farashahi et al., 2005) However, the dynamic environment of these developing countries is a fertile land to test new theories, new techniques, new concepts in the field of business administration There are very few researchers questioning whether modern Western management tools work in emerging markets Researchers have acknowledged that cultural differences are track, evaluate and support employees to improve their working performance PMS has drawn attention of researchers in the last decades due to the changing business environment, management team tend to apply modern management tools to strengthen and enhance their business competitiveness There are three main reasons that PMS has been widely and effectively adopted in businesses (Needly, 1999) Firstly, The fierce competition pressure the main causes of differences in systems and measurement methods The performance measurement system can be considered as one of the theories that need to be verified in the context of developing countries, where the business environment could be more dynamic and different those of developed countries (André A de Waal, 2007) Manufacturing enterprises in Vietnam play an important role in the from the external environment that makes companies have to simultaneously find the ways to improve their governance capability through the application of a series of modern management tools to save cost, add value for customers, improve their competitive position through products and services differentiation, prompt response to customer demands Therefore, companies are forced to change their operational measurement systems to meet the requirements when economy and most of them are young businesses According to the General Statistics Office (2016), the number of manufacturing enterprises is increasing sharply from 45.742 enterprises in 2010 to 67.490 enterprises in 2015 This figure show that more than 32% of manufacturing enterprises are less than years old Although the number of manufacturing enterprises accounts for only 15,3% of total enterprises in Vietnam, revenue from manufacturing contributes 33,5% of the strategy changes Secondly, to meet the increasing demands of customers, many companies have been applying continuous improvement programs The modern tools to support improvement such as total quality management (TQM), lean production which all base on measuring activities for improvement When the organization decides to improve, at least that organization must have measures and know why and what to improve Finally, with the development of information technology, the data for the operational measurement system is collected and analyzed much easier and simpler than before These three reasons have promoted the research and implementation of comprehensive performance measurement systems, especially in recent years Many authors have studied PMS from different angles, in which the research direction of PMS according to the characteristics of enterprises in different countries is a popular research direction However, in the last 20 years, up to 95% of studies on applying economic theories have been studied in the context of developed countries and only 5% of studies in the context of the total turnover of all businesses In the difficult economic context and limitations in management capacity and qualifications, businesses are searching for appropriate motivation for sustainable growth in order to improve the their competitive advantage To strengthen and enhance their competitiveness, besides building strategies, investing in marketing activities, developing new products, investing in modern technology, improving corporate governance capacity, the application of modern corporate governance tools that are prioritized PMS has been effectively applied in developed countries but in Vietnam the application is limited So, how to apply PMS in manufacturing enterprises in Vietnam? How to apply PMS effectively? Under what conditions can PMS be applied? In an effort to seek the answers to these questions, the author conducted the research topic: "Factors influencing performance measurement system effectiveness in manufacturing enterprises in Vietnam" with the desire to help managers can make the right and rational decisions to apply PMS effectively in their businesses, thereby increasing competitiveness contributes to the overall development of the entire economy 3 Research objectives and research questions The objective of this study is to clarify the influencing factors and analyze the influencing level of each factor on PMS effectiveness in manufacturing enterprises in Vietnam Specific objectives are: - Identify factors influencing PMS effectiveness in manufacturing Manufacturing enterprises in Vietnam: Focusing on researching enterprises in manufacturing and processing industry with factories located in Vietnam and with scale of 10 employees and above - About research geography area: The author focuses on researching manufacturing enterprises with factories located in Northern Vietnam, focusing enterprises - Test the influence of these factors in the context of manufacturing enterprises in Vietnam - Propose solutions for stakeholders to be able to apply PMS effectively on Hanoi and neighboring provinces - About research time: The secondary data used in this study is synthesized from researches or documents published from 2017 onwards Primary data is collected by the author during the period from April 2017 to 5/2018 New contributions (1) Synthesized the factors influencing PMS effectiveness in enterprises To achieve the above research objectives, the author conducts research to answer the following research questions: - How has PMS been studied and applied in the world and in Vietnam? - What factors influencing PMS effectiveness in manufacturing enterprises in the world in general and in Vietnam in particular? - What is the impact of these factors in the context of manufacturing enterprises in Vietnam? - What should businesses and stakeholders to be able to apply PMS effectively to improve their management level? Research object and scope  Object of this research is "Factors influencing PMS effectiveness in manufacturing enterprises in Vietnam"  Research scope - About the content Factors influencing PMS effectiveness: There are many factors influencing PMS effectiveness including internal factors and external factors This thesis focuses on researching internal factors including: (1) Multidimensional performance measures; (2) Top management support; (3) Training about PMS; (4) Employee participation; (5) The link of performance to rewards; (5) Employee attitudes towards PMS PMS effectiveness: The concept of "PMS effectiveness" in this thesis is understood as whether the application of PMS in the enterprise is effective or not through the outputs of the system (2) Developed a model of factors influencing PMS effectiveness in manufacturing enterprises and verified the model in the context of manufacturing enterprises in Vietnam (3) Confirmed the factors factors influencing PMS effectiveness in manufacturing enterprises in Vietnam and the impact level of each factor: These factors include: Multidimensional performance measures; Top management support; Training about PMS; Employee participation; The link of performance to rewards; Employee attitudes towards PMS (4) Discovered two new observed variables to complete the set of scales for two independent variables: "Employee participation" and "The link of performance to rewards" (5) Proposed a number of solutions to consult managers and stakeholders in the process of implementing PMS effectively in manufacturing enterprises in Vietnam Research structure In addition to the introduction, conclusion, list of references and annexes, the research is structured with chapters as follows: (1) Chapter 1: Literature review on PMS; (2) Chapter 2: Models and research methods; (3) Chapter 3: Analysis of research results on factors influencing PMS effectiveness in manufacturing enterprises in Vietnam; (4) Chapter 4: Recommendations and proposals 5 CHAPTER LITERATURE REVIEW ON PMS 1.1 Nature of PMS 1.1.1 PMS concept The concept of PMS used in this study is based on the definition of Neely (2003): Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action, including the process of selecting, designing metrics, collecting and analysising data, managing information, evaluating performance 1.1.2 Role of PMS The effective performance measurement system plays a very important role for the following reasons: (1) PMS can help implement the strategy, unify the goals of the individual with the goals of the organization, control the progress of the organization's objectives; (2) PMS can provide information that enables managers to monitor their own performance and evaluate employees performance, thereby providing solutions to build and develop human resources; (3) PMS can be used for internal and external communication 1.2 Factors influencing PMS effectiveness 1.2.1 PMS componants An organization is considered to have a performance measurement system when it has at least one set of metrics which are designed, applied, reviewed provided with relevant data PMS comes from strategy, links activities with strategic objectives, deployed as a tool to measure strategies and track results of Figure 1.1: PMS components Source: Franco – Santos et al (2007)_ 1.2.2 Factors influencing PMS effectiveness Contingency theory is applied in PMS research at different levels The main argument of contingency theory is that the design and application of a control system depends on the context of the organization including the internal and external factors of the organization Patrizia Garengo and Umit Bititci (2007) synthesized previous studies and divided the contingency factors influencing the PMS effectiveness into two groups: - Internal factors: Includes factors related to organizational structure and organizational scale; organizational culture and management style; leadership style, management skills, commitment of leaders: - External factors: The uncertainty of the external environment is one of the most business performance, can change flexibly when strategy changes PMS is defined studied aspects of the external factors (Chenhall, 2003) specifically, clearly, in accordance with the specific requirements of production 1.3 Literature review and research gap and business activities, long-term and easy to apply The three basic components of PMS are shown in the following figure: 1.3.1 International researches on PMS PMS is used in non-profit organizations, in different types of businesses PMS effectiveness in these types of organizations are different because of the different context, objectives and service objects of each type of organization International research on PMS can be grouped as: (1) researches on PMS in public organizations and non-profit organizations; (2) researches on PMS in non-manufacturing enterprises; CHAPTER RESEARCH MODEL AND RESEARCH METHODOLOGY (3) researches on PMS in manufacturing enterprises 1.3.2 Researches in Vietnam on PMS According to the author's research, the researches on PMS in Vietnam are very limited These researches mainly focus on designing and building PMS in specific situations, which can be divided into groups: (1) Researches on improving the system of business performance measure criteria in Vietnamese enterprises; (2) Researches on the application of Balanced Scorecard and KPI in Vietnamese enterprises 1.3.3 Research gap PMS is a modern management tool and has been implemented in developed countries Researches on PMS are also conducted mainly in developed countries such as the US, Australia, and European countries and there are very few studies conducted in the context of transition economies such as Vietnam One of the research directions on PMS in the world is the research and application of PMS according to the characteristics of each country with different socio-economic characteristics and business environment Studies in the world have pointed out the 2.1 Research process The steps in the research process are built based on the research process of Nguyen Dinh Tho (2011), summarized as follows: - Identify the factors influencing PMS effectiveness in manufacturing enterprises based on the theory, review of previous studies, characteristics of manufacturing enterprises in Vietnam Then the author proposed the model and research hypotheses - Test the model and scales: Based on the model, scales and research hypotheses developed from the theory and literature review, the author conducted interviews with consultants to implement PMSvin manufacturing enterprises and other manufacturing business leaders to adjust the questionnaire for the first time, then the author conducts case studies at two specific manufacturing enterprises, one representing the large companies and enterprise represent small and medium companies The purpose of this case study is to examine the relevance of the model and scales, research hypotheses and find new points in the context of Vietnamese manufacturing enterprises factors influencing PMS effectiveness in enterprises but no author has studied these factors in terms and conditions of manufacturing enterprises in Vietnam In Vietnam, according to the author's knowledge, a number of factors influencing PMS effectiveness as well as the difficulties in the application process have been raised by researchers and consulting companies There has been no research on the factors influencing PMS effectiveness to help managers to implement PMS in the most effective way Therefore, studying factors influencing PMS effectiveness in the specific conditions of manufacturing enterprises in Vietnam helps to fill the above research gap, not only in terms of practicality but also contribute to supplement the theory of performance measurement system After revising the questionnaire from the literature review and the results of the case study at the two enterprises, the author adjusted the questionnaire the second time and conducted a pilot survey on 136 staff members from enterprises to check the reliability of the scales, complete the questionnaire before conducting the quantitative survey - Collect survey data: In this stage, the author sent questionnaires to the survey subjects and follow up to collect the answers - Analysis of survey results: After collecting the questionnaires, the author cleaned the data, removed invalid answer sheets and put into SPSS 20 software to analyze the data - Conclusions on the influencing factors, the impact level of each factor and research hypotheses based on the results of the survey data analysis - Propose solutions and conditions applicable in the context of manufacturing enterprises in Vietnam 2.2 Research model and hypotheses 10 Hypothesis H6: Employee attitudes towards PMS has positive impact on PMS effectiveness in manufacturing enterprises in Vietnam 2.2.1 Select research models and research hypotheses 2.2.2 Assessing the relevance of the research model Research model From two situational reseached of two businesses, North Kinh Do Company (NKD) and Novaco Pharmaceutical Joint Stock Company (Novaco) with the aim of examining models and factors influencing PMS effectiveness in manufacturing enterprises in Vietnam, the author discovered the following points: - There is a link between the factors influencing PMS effectiveness: Multidimensional performance measures; Top management support; Training about PMS; Employee participation; The link of performance to rewards; Employee attitudes towards PMS These findings are consistent with results from previous studies - In both companies, when referring to the performance measurement system, the leaders and managers participating in the interview are immediately connected to the KPI system they are applying In other words, the concept of PMS and KPI is understood by both businesses as quite similar and the KPI term is more frequent mentioned when referring to performance measurement system Figure 2.2: Research model Hypotheses: Hypothesis H1: Multidimensional performance measures has a positive impact on PMS effectiveness in manufacturing enterprises in Vietnam Hypothesis H2: Top management support has a positive impact on PMS effectiveness in manufacturing enterprises in Vietnam Hypothesis H3: Training about PMS has positive impact on PMS effectiveness in manufacturing enterprises in Vietnam Hypothesis H4: Employee participation has a positive impact on PMS effectiveness in manufacturing enterprises in Vietnam Hypothesis H5: The link of performance to rewards has a positive impact on PMS effectiveness in manufacturing enterprises in Vietnam - When referring to the "Employee participation" factor in PMS effectiveness, at both companies, employees are involved in designing, selecting their own measures, participating in the discussion of KPI results Thus, the set of scales includes independent variable "Employee participation" consisting of items (employees are allowed to participate in PMS design; employees are allowed to participate in the selection of measures) is incomplete in previous studies One more item (employees are involved in discussion, explain their KPI performance results) should be added in to complete the scales of this variable - When referring to the " The link of performance to rewards ", in NKD and Novaco, achievement is not only associated with financial and non-financial benefits but also an important factor to consider in the process of task assignment, salary increase, career path Similar to the above, the set of scales for independent variables consists of two items (Performance is linked to financial benefits; 11 Performance is linked to non-financial benefits) from previous studies should be added more items on the connection between achievement and career development in the long term The findings from the case study at the two companies helped the author finalize the model, scale and questionnaire to conduct the next step of the study 2.2.3 Scales Scales used are multi item scales These scales have been proven in value and reliability from previous studies on PMS in manufacturing companies Observed variables in the model are measured by the 5-point Likert scale (representing the level of agreement from the lowest (1) to the highest (5)) 2.3 Survey method 2.3.1 Sample design This study selected a convenient probability sampling method Due to limited resources, the author focuses on surveying manufacturing enterprises in Northern Vietnam, including 700 manufacturing enterprises as potential partners and partners of the CEO program - the key to success and 415 manufacturing enterprises have staff members participating in CEO professional training programs that the author has direct access, via email and phone to follow up the answer 12 of main parts: - The introduction refers to the purpose of the study - The main part is the content related to the statement in order to record the opinion of the respondent The content of the statements is designed based on the scales and research model - The personal / business information section includes information related to the respondents themselves and the businesses they are working for the purpose of statistics as well as further explanation for the main information in case needed 2.3.3 Data collection Data collection was conducted by online survey method and hard copies The author designed the online questionnaire with the help of Google docs and posted it to the address: https://goo.gl/forms/4YwxIBmQwmlPgm382, then send an email with this link to businesses participating in the survey Besides sending online questionnaire via email, the author also takes additional method to increase the response rate such as direct phone calls, attended training sessions / seminars where target respondents participated and asked them to answer questionnaires in hard copies According to Hair et al (1998), the minimum sample size for EFA exploratory factor analysis must be at least times the size of the propositions in the scale There are 41 observed variables used in this study, so the minimum sample size must be 41 * = 205 observed The minimum sample size for multivariate regression is 50 + * m (m is the number of independent variables), in this study, the number of independent 2.3.4 Data analysis variables is 6, the minimum sample size should be: 50 + * = 98 observations Thus, to meet these two requirements, the minimum sample size must be 205 observations EFA factors, finally multivariate regression analysis 2.3.2 Questionnaire design In this study, the questionnaire was first designed based on the rationale and literature review, revised the first time after consulting with experts and business leaders Then, through the situational study at the two companies (NKD and NOVACO), the author has made the second revision The questionnaire consists After collecting the questionnaires, the author screened questionnaires, removed incomplete answer sheet, coded and imported data into SPSS software version 20 After data entry, the author conducted the descriptive statistics, assessing the reliability of the scales with Cronbach’s Alpha coefficient, testing the value of variables by analyzing 13 14 CHAPTER ANALYSIS OF RESEARCH RESULTS ON FACTORS INFLUENCING PMS EFFECTIVENESS IN MANUFACTURING ENTERPRISES IN VIETNAM 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item Total Correlation of observed variables ranges from 0,711 to 0,844, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if Item Deleted are smaller than Cronbach's Alpha coefficient of 0,962 scale, so there is no need to remove any variables for better measurement scale Thus, the scales of the 3.1 Descriptive statistics The data collection process through questionnaires was conducted as described above The total number of questionnaires sent via email is 3.030, the number of hard copy questionnaires sent is 315, the total number of answers collected is 262, of which there are 231 online answers and 31 paper answer sheet, accounting for 8% of return rate Out of 262 answers collected, after the cleaning process, 43 answers were rejected due to lack of information at the required questions or sent from nonmanufacturing enterprises The number of qualified answers to be analyzed is 219 (accounting for 84%), sent from 185 businesses 3.2 Testing results of factors influencing PMS effectiveness in manufacturing enterprises in Vietnam To test the factors influencing PMS effectiveness in manufacturing enterprises in Vietnam, the author conducted (1) Test the reliability of the scale to check whether the scale is suitable for independent variables or dependent variable or not; (2) Test the value of the variable to extract the observed variables corresponding to each factor (1) Testing results of the scale reliability The reliability test of the scale is to test whether the scales are appropriate for independent or dependent variables Cronbach’s Alpha values reflect the correlation level of observations with the total items This larger value indicates that this relationship is more closely and meaningful The reliability of the scale is evaluated by the author for each group of observed variables of each different factor a Assessing the reliability of the scale for variable "Multidimensional performance measures " With the scale of the variable "Multidimensional performance measures", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,962 greater than variable "Multidimensional performance measures" include 15 observed variables b Assessing the reliability of the scale for variable "Top management support" With the scale of the variable "Top management support", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,693 greater than 0,6 Thus, it can be said that the scale is suitable for measurement Corrected Item coefficient Total Correlation of observed variables ranges from 0,488 to 0,514, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if Item Deleted are smaller than the Cronbach's Alpha coefficient of the scale of 0,693, so no need to remove variables for better measurement scale Thus, the scales for the "Top management support" variable consist of observed variables c Assessing the reliability of the scale for variable "Training about PMS" With the scale of the variable "Training about PMS", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,854 greater than 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item coefficient Total Correlation of observed variables ranges from 0,666 to 0,859, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if coefficient Deleted items are smaller than Cronbach's Alpha coefficient of 0,854, so there is no need to remove any variables for better measurement scale Thus, the scales of the variable "Training about PMS" include observed variables d Assessing the reliability of the scale for variable "Employee participation " With the scale of the variable "Employee participation", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,852 greater than 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item - Total Correlation coefficient of observed variables ranges from 0,683 to 0,746, greater 15 16 than 0.3, so observed variables can be retained for measurement Cronbach's Alpha if coefficient Deleted are all smaller than Cronbach's Alpha coefficient of 0.852, so there is no need to remove any variables for better measurement scale Thus, the scales for variable "Participation of employees" include observable variables Correlation of observed variables ranges from 0,457 to 0,695, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if coefficient Deleted are all smaller than Cronbach's Alpha coefficient of 0,878, so there is no need to remove the observed variable for better measurement scale Thus, the scales of the "PMS effectiveness" variable include 10 observed variables e Assessing the reliability of the scale for variable "The link of performance to rewards” With the scale of the variable "The link of performance to rewards", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,894 greater than 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item coefficient - Total Correlation of observed variables ranges from 0,740 to 0,891, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if coefficient Deleted items are smaller than Cronbach's Alpha coefficient of 0,894, so there is no need to remove variables for better measurement scale Thus, the scales for the variable "The link of performance to rewards" include observed variables f Assessing the reliability of the scale for variable "Employee attitudes towards PMS” With the scale of the variable "Employees attitudes towards PMS", when running SPSS, the value of Cronbach’s Alpha coefficient is 0,865 greater than 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item coefficient - Total Correlation of observed variables ranges from 0,649 to 0,833, greater than 0,3, so observed variables can be retained for measurement Cronbach's Alpha if coefficient Deleted are smaller than Cronbach's Alpha coefficient of 0,865 scale, so there is no need to remove any observed variables to measure better Thus, the scales of the variable "Employees attitudes towards" include observed variables g Assessing the reliability of the scale for variable "PMS effectiveness” With the scale of the "PMS effectiveness" variable, when running SPSS, the value of Cronbach’s Alpha coefficient is 0,878 greater than 0,7 Thus, it can be said that the scale is suitable for measurement Corrected Item coefficient - Total (2) Testing results of variable value by EFA method After testing the reliability of the scale, 31 observed variables are included for factor analysis Factor analysis to group the original observed variables into new factors that are meaningful for research Factor analysis also finds new structures, potential structures between research concepts The factor of loading value represents the correlation between the main factors extracted with each observed variable, so the factor of loading of each observed variable for each factor is extracted should be greater than or equal to 0,5 to ensure the correlation between the variables observed with the extracted factor, the observed variables with the value of loading less than 0,5 will be excluded from the analysis to ensure the explanatory meaning of the factors Analysis results show that with 31 criteria for assessing scales on PMS, main factors can be extracted The factor of loading value of 31 criteria included in the EFA are in the range of 0,629 to 0,971, (all larger than 0,5), satisfying the conditions for conducting subsequent tests 3.3 Analysis of the factors influencing PMS effectiveness in manufacturing enterprises in Vietnam To analyse the factors influencing PMS effectiveness in manufacturing enterprises in Vietnam, the author conducted: (1) regression analysis to determine the causal relationship between independent variables and dependent variables; (2) testing research hypotheses; (3) check whether there is a difference in the impact level of the independent variables on the dependent variable between different research groups Results of regression analysis 17 18 To determine the causal relationship between 06 independent variables and variables depending on PMS effectiveness in manufacturing enterprises, the author uses regression analysis The regression model will show which independent variables affect the dependent variable and which independent variables not affect the dependent variable This research model consists of 06 independent variables and Table 3.12: Results of regression analysis Coefficientsa Unstandardized Standardized Model one dependent variable, so the author uses multivariate regression analysis with the support of SPSS 20 software Model Summaryb Model R ,777a R Square ,603 Adjusted R Square Std Error of the Estimate ,592 ,29948 B Table 3.11: Summary of regression model Durbin-Watson 1,681 a Predictors: (Constant), TD, DC, DT, LI, NV, LD b Dependent Variable: AD Coefficients Coefficients Std Error Collinearity t Sig Beta Statistics Toleranc e VIF (Constant) ,682 ,197 3,466 ,001 DC ,099 ,037 ,144 2,709 ,007 ,660 1,515 LD ,140 ,044 ,168 3,181 ,002 ,674 1,484 DT ,206 ,030 ,331 6,960 ,000 ,828 1,207 NV ,091 ,026 ,182 3,546 ,000 ,711 1,407 LI ,156 ,036 ,218 4,391 ,000 ,759 1,317 TD ,130 ,030 ,212 4,323 ,000 ,780 1,281 a Dependent Variable: AD According to the results in the table above, R Square = 0,603, the explanatory ability of the research model is 60,3% This means that independent variables explain 60,3% of the variation of the dependent variable "PMS effectiveness" Results of hypothesis test Test results show that the hypotheses H1, H2, H3, H4, H5, H6 are accepted because the statistical significance value is less than 0,05 This means factors including “Multidimensional performance measures”; “Top management support”; “Training about PMS”; “Employee participation”; “The link of performance to rewards”; “Employee attitudes towards PMS” has an impact on the "PMS effectiveness" in manufacturing enterprises in Vietnam Regarding the sign and magnitude of the Beta values with the variables, all the independent variables are positively correlated with the dependent variable "PMS effectiveness", which is consistent with the research hypotheses proposed from beginning Summary of research results: Based on previous theories and researches, the author applied two methods of qualitative research and quantitative research Case studies were conducted to examine research models and discover new findings according to the characteristics of manufacturing enterprises in Vietnam Quantitative research 19 20 method was conducted through online surveys and paper copies to collect information from 185 businesses The author used multivariate regression methods to test the hypotheses of the model as discussed above, the results summarized as follows: it will not be able to evaluate the whole process of implementing the plan of the whole company, from it will not promptly make timely corrective actions when the goal is not implemented as expected A set of performance measurement indicators is considered comprehensive and multidimensional when there are sufficient indicators to measure four aspects of the organization: finance, customers, internal processes, (1) There are factors identified that influence PMS effectiveness in manufacturing enterprises in Vietnam: “Multidimensional performance measures”; “Top management support”; “Training about PMS”; “Employee participation”; “The link of performance to rewards”; “Employee attitudes towards PMS” These six factors positively affect PMS effectiveness, consistent with results from previous studies (2) The influencing degree of each factor is different, in terms of specific values showing the degree of impact of the factors that are different from previous studies Multivariate regression models are shown as follows: AD =f(x) = 0,144 DC + 0,166 LD + 0,331 DT + 0,182 NV + 0,218 LI + 0,212 TD + ε The interpretation ability of the model is 60.3% (R square = 0.603), which means that the independent variables explain 60.3% of the variation of the dependent variables training and development Second, leaders demonstrate their determination in a practical way to implement PMS The development and application of PMS requires determination and consensus from leaders to employees Leaders must create an atmosphere and motivation, and at the same time, help individuals to have proper awareness about KPIs Among successful companies in deploying PMS, the leader is always the one who has a clear stance of management, who understands the organization, is the person who expresses the determination and perseverance with the set plan, always encourage employees in the implementation process The results of this study show that " Top management support " is one of the most important factors influencing PMS effectiveness in manufacturing enterprises in Vietnam Third, employees are involved in the process of designing, implementing CHAPTER RECOMMENDATION AND SUGGESTION 4.1 Development orientation of manufacturing enterprises in Vietnam Manufacturing and processing industry plays an important role in the economy and is prioritized by the government for development in the coming time One of the key tasks being implemented is the application of management tools to improve productivity and product quality in order to improve the competitive position of manufacturing enterprises 4.2 Proposal of solutions to apply PMS in manufacturing enterprises in Vietnam First, the set of measuring indicators should be designed in a complete, balanced manner, reflecting all aspects of the enterprise's activities The parts of the business are organized to perform a specific task to serve the common goals of the company and are closely related If the enterprise is only interested in the results of the sales department or the production department, regardless of the remaining parts, and applying PMS: The role of employees is very important in the success of businesses in general and in the process of applying PMS in particular Employee involvement in business decisions helps employees understand and commit to perform required tasks Fourth, members of all levels in the enterprise are trained to understand the principles, how to it, measure the evaluation of PMS as well as the responsibilities that they must perform The members of the organization who are well trained about PMS will have the following benefits: Mobilizing knowledge and experience of many people; Increasing the level of employee understanding of the content and principles of PMS because they themselves are the ones who perform the work and produce results, which will lead to a higher level of commitment to implementation The resistance to the change brought about by PMS is less and the organization will be more likely to achieve the desired goals Fifth, link the results of PMS with benefits Linking performance results to benefits will create better motivation for employees Employees in the enterprise 21 will be encouraged to work when it is assumed that his efforts will lead to outputs or goals are fulfilled and this result will make him able to receive the desired reward However, it is advisable to avoid measuring results of job results to punish employees because this can lead to some consequences such as employees avoiding responsibility, trying to hide when not completing tasks This will negatively affect 22 (1) Specific programs need to be strengthened to support enterprises to raise awareness about PMS and provide effective implementation methods from state management agencies: Under the project "Improving productivity and quality of industrial goods" under the national program "Improving productivity and product quality of Vietnamese enterprises by 2020 ", chaired by the Ministry of the overall performance of the whole organization Industry and Trade, the PMS / KPI is one of the tools applied in manufacturing Sixth, promote the positive attitude of employees towards PMS: When employees have a positive attitude, they will always create a way to complete the job with high performance instead of dealing, blame or justify when the result is not complete In order for employees to have a positive attitude to PMS, businesses should not use PMS as a discipline or punishment tool, but should communicate the benefits brought by PMS enterprises to improve productivity and quality Specific programs need to be In addition to the above six factors, investing in information systems to Vietnam, organizing training courses, visiting domestic and foreign enterprises to provide useful reports for PMS is essential In parallel with the design of exchange experience, developing human resources, especially management multidimensional measures, investing in the data collection system for such capability for key employees of the enterprise Besides, there should be research and measures is extremely important because without information reflecting the consultancy projects to improve the effectiveness of PMS application for performance results, the measurement system becomes useless Therefore, Vietnamese enterprises in general and manufacturing enterprises in Vietnam in enterprises need to consider the issue of investing a cross-information system to particular further invested to replicate this tool (2) Enhance the role of business associations, organizations to support and development enterprises: The role of these organizations can be explored through their host of workshops on experience in applying PM in real enterprises in collect data, synthesize reports automatically, helping managers to get results as (3) Universities, research institutes and other training institutions should soon as possible Data should be compiled from different sources to get accurate actively participate in active research, training and development projects of results on the performance of the business effective management models such as PMS It is very necessary for the support 4.3 Recommendations to stakeholders of the consulting units and training units to develop a source of guidance on PMS effectiveness in the conditions and circumstances of Vietnamese enterprises so that In order to implement PMS effectively in manufacturing enterprises in Vietnam, besides the efforts of the enterprises themselves, the support of relevant associations and organizations is required, specifically as follows: managers can explore and apply by themselves, because in fact, the fee for consulting the application of the system is very high and not affordable to all business, especially small and medium enterprises (1) Specific programs need to be promoted to support enterprises to raise awareness about PMS and support effective methods from state agencies: CONCLUSION In the framework of the project "Improve quality of industrial products" under the By combining qualitative research methods and quantitative research methods based on case studies in manufacturing enterprises and surveying through questionnaires 185 manufacturing enterprises in Vietnam on factors influencing PMS national program "Improving productivity and quality of Vietnamese products by 2020", chaired by the Ministry of Industry and Trade, the PMS / KPI is one of the tools applied in manufacturing enterprises to improve productivity and quality Specific programs need to be further invested to replicate this tool effectiveness in manufacturing enterprises in Vietnam, the author's research has drawn new points and important conclusions Specifically, there are influencing factors and 23 24 the influencing level of each factor is different, which are: (1) Multidimensional performance measures; (2) Top management support; (3) Training about PMS; (4) Employee participation; (5) The link of performance to rewards; (6) Employee attitudes towards PMS In particular, the study has developed two observable variables to supplement and complete the set of scales for two independent variables: "Employee In the model, there are observed variables developed by the author from qualitative research, which have been tested for reliability and added to the scale of independent variables: “Employee participation”; “The link of performance to rewards” However, these scales should be tested in future researches participation" and " The link of performance to rewards " In practice, the study has also pointed out important points to help manufacturing enterprises in Vietnam to apply PMS effectively PMS is a modern management tool, in order to apply and promote the effectiveness of PMS, in addition to the efforts of enterprises, there is a need for simultaneous participation of state management agencies, associations and focuses on studying the factors influencing PMS effectiveness in manufacturing enterprises in Vietnam but not in non-manufacturing enterprises, public organizations and non-profit organizations This study also does not mention the factors influencing the design of measurement indicators (KPI) as well as the impact of PMS on the performance of enterprises Although developed on the basis of contingency theory, this study has not studied all the elements that the theoretical supporting organizations Business support, training units through specific and practical solutions framework refers to as the group of factors related to the strategy and external environment Besides the above achieved results, this study also has some limitations: PMS has been frequently studied in the world but in Vietnam, the level of deep and large-scale research on PMS is very limited, so the next research direction is quite diverse Based on the findings from the study and the limitations mentioned above, the author proposes the following three research directions: (1) Research on (1) Limitations on research samples: In the quantitative research section, the author conducted research at two different production companies Although these two companies represent large companies and small companies, they are not enough to represent the manufacturing enterprises in Vietnam Quantitative research to select non-probability sampling methods, focusing on businesses in the CEO program network With the number of 219 samples satisfying the conditions for regression analysis, however, this sampling method and the number of research samples are limited compared to the total number manufacturing enterprises in Vietnam (2) Limitations on data collection and processing methods: For qualitative research methods, although the author has conducted in-depth research in two enterprises, data collection and direct interviews with related people However, not all the desired information can be gathered, some of the information needed for the study may be missed For quantitative research, the data collection method is mainly implemented online through questionnaires with a low response rate, although additional measures have been taken to increase response rates such as phone, email urging, face-to-face meetings with businesses to collect data through printed questionnaires (3) Limitations on the scope and content of the study: This study only PMS design: although the concept of PMS is not new in the world, but due to the fact that most businesses in Vietnam are still very young and initially apply modern management systems KPI implementation programs have become quite popular in recent years The design of a set of measuring indicators suitable to the conditions and circumstances of their enterprises is a matter of great concern for enterprises; (2) Research on the level of PMS impact on business performance: PMS is considered an important management tool and research to determine the importance of PMS to operational efficiency It is essential for managers to be more confident when using the system; (3) In-depth study of PMS according to specific field of manufacturing enterprises, this research direction will give more accurate results and higher application levels because of the characteristics of the different production sectors which may cause the different in the influencing factors on PMS effectiveness  ... enterprises in Vietnam 2.2 Research model and hypotheses 10 Hypothesis H6: Employee attitudes towards PMS has positive impact on PMS effectiveness in manufacturing enterprises in Vietnam 2.2.1 Select... in Vietnam and with scale of 10 employees and above - About research geography area: The author focuses on researching manufacturing enterprises with factories located in Northern Vietnam, focusing... studied and applied in the world and in Vietnam? - What factors influencing PMS effectiveness in manufacturing enterprises in the world in general and in Vietnam in particular? - What is the impact