1 CHAPTER quantitative research 1.6 New contributions of thesis New theoretical and academic contributions: - The thesis has applied the theory of diffusion of innovation and the technology acceptance model to identified factors belonging to managers affecting the use of Balanced Scorecard (BSC) in Vietnamese hospitality firms These factors include: the management control system being used in firms; the managers’ ability to receive new knowledge; the managers’ methods applying to evaluate subordinates; the managers’ perception of the usefulness of the BSC; and the managers’ perception of the ease of the BSC - The thesis has applied BSC to identify the system of performance evaluation indicators according to BSC in Vietnamese hospitality firms The new findings, proposals drawn from the research: - The findings of the thesis have indicated that there are factors affecting the use of BSC in Vietnamese hospitality firms - The findings of the thesis have identified a system of operational efficiency evaluation indicators according to BSC suitable to Vietnamese hospitality firms including 30 indicators - The thesis has given some recommendations for the hotels, the owners of hotels, the State, and training facilities, and hotel association of Vietnam to promote using BSC and the system of operational efficiency evaluation criteria according to BSC 1.7 Dissertation structure The dissertation is organized into chapters, particularly as follows: Chapter 1: Introduction of research subject Chapter 2: Research overview and theoretical bases Chapter 3: Research methods Chapter 4: Research results Chapter 5: Discussion on research results, recommendation proposal and conclusions INTRODUCTION OF RESEARCH SUBJECT 1.1 Reason for choosing the subject Balanced scorecard (BSC) is a method of transforming an organization's visions and strategies into specific objectives and measures through the establishment of an operational efficiency evaluation system based on four perspectives which are financial, customer and internal process, learning and growth perspectives BSC gives managers a more balanced view of the entire operation of the organization, provides bases for the selection of operational efficiency evaluation targets, supplements non-financial targets, helps managers to evaluate the effectiveness of strategy implementation in a comprehensive way and connects short-term control activities with long-term strategies and visions BSC has been widely used in countries around the world including Vietnam Although BSC has been applied in Vietnam since 2003, the number of enterprises applying BSC has been still significantly limited so far, mainly focused on large corporations Hospitality service is a rapidly growing industry worldwide, making a leading contribution to the economy in creating foreign exchange and employment Hospitality business represents a service industry providing room, food and catering services These services require three different industrial activities and different cost structures The diversity of activities and cost structure requires a diverse collection of implementation measures, in which BSC is enabled to combine Doran and Chow (2002) provided a system of targets that managers find useful in evaluating the hotel operational efficiency Other researchers including: Evans (2005) in the UK, Huang et al (2007) and Chen et al (2011) in China, Kim and Lee (2009) in South Korea, Pavlatos and Paggios (2009) in Greece, Ivankovic et al (2010) in Slovenia confirmed that BSC is a successful methods of operational efficiency evaluation in hotels Deriving from superior advantages of BSC and the actual application of operational efficiency evaluation targets in Vietnamese hotels as well as gaps among researches, the author chooses “The management factors affecting to the application of Balanced Scorecard in Vietnamese hospitality firms” 1.2 Research objectives - To identify management factors affecting to the application of BSC in Vietnam hospitality firms - To propose recommendations in order to promote Vietnamese hospitality firms to use BSC 1.3 Research questions In order to achieve research objectives set out, the author poses research questions as follows: - Which management factors affect the use of BSC in the Vietnamese hospitality firms? - Which system of operational efficiency evaluation targets is suitable for Vietnam hospitality firms? - What suggestions and recommendations can be made to promote Vietnamese hospitality firms to use BSC? 1.4 Research objects and scope Research objects: Research object is the management factor affecting the use of BSC in Vietnam hospitality firms Research scope: - In terms of content: The dissertation focuses on two major contents: Firstly, the researcher studies the target system under BSC used for assessing the operational efficiency of Vietnamese hospitality firms The author considers that this research content is the basis to assert that Vietnamese hospitality firms are using BSC Secondy, the dissertaton studies the management factor affecting the use of BSC in Vietnamese hospitality firms - In terms of space: The investigation subjects must be limited in the scope of Vietnamese hospitality firms ranked from 3- stars (collectively called hotels) - In terms of time: Research duration is from 3/2015 to 9/2018 1.5 Overview of research methods The dissertation uses a combination of qualitative and quantitative research methods - Qualitative research results are the basis for the construction of questionaire and interpretation of quantitative research results - Quantitative research is conducted through steps: preliminary quantitative research and official CHAPTER RESEARCH OVERVIEW AND THEORETICAL BASES 2.1 Research overview of the system of operational efficiency evaluation indicators and factors affecting the application of balanced scorecard 2.1.1 Research on targets used for operational efficiency evaluation according to balanced scorecard in hospitality firms The overview shows that there are 95 indicators used to evaluate the operational efficiency in hotels, in which, there are 32 indicators in financial indicators, 16 indicators in customer perspective, 28 indicators in internal process perspective, 19 indicators in learning and growth perspective In particular: Philips and Louvieris (2005) pointed out that there are indicators in financial perspective; indicators in customer perspective; targets in internal process perspective; indicators in learning and growth perspective Chen et al (2011) indicated that there are indicators in financial perspective; indicators in customer perspective; 11 indicators in internal process perspective; indicators in learning and growth perspective Elbanna et al (2015) established a structure of BSC views in hotel industry, including aspects: financial perspective, customer perspective, internal process perspective, innovation and learning Additionally, there are indicators in financial perspective, indicators in customer perspective, indicators in internal process perspective, indicators in learning and growth perspective Nguyen Ngoc Tien (2015) built a system of targets analyzing the operational efficiency in tourism firms in Binh Dinh province with four major contents: (i) analysis on operational capacity by business lines (44 indicators ), (ii) analysis on operational efficiency and effectiveness of enterprises (11 indicators ), (iii) analysis on the profitability of enterprises (9 indicators) and (iv) analysis on social effects of enterprise (11 indicators ) In 2014, Ministry of Culture, Sports and Tourism promulgated Circular No 26/2014/TT-BVHTTDL dated 31/12/2014 stipulating Basic Statistical Report regime applied for tourism facilities, enterprises and Circular No 27/2014/TT-BVHTTDL stipulating General Statistical Report regime applied tourism managing agencies under Central provinces, cities Accordingly, the target system of accommodation facilities used for report including targets; tourism managing agencies under Central provinces and cities would report targets related to managed tourism accommodation facilities 2.1.2 Research on targets affecting the application of balanced scorecard The research overview shows that factors affecting the use of BSC are divided into groups: factors belonging to organization and managers Research group on factors belonging to organization Hoque and James (2000) pointed out the scale and life cycle of products affecting the use of BSC Kevinhendric et al (2004) conducted a survey on senior executives of 579 Canadian companies who are closely related to the application and implementation of BSC in organizations Results showed that there are factors affecting the BSC acceptance including business strategy, organization size and environmental uncertainty Braam and Nijssen (2008), basing on Diffusion of Innovation of Rogers (1995), pointed out the participation level of senior managers, centralization level and internal communications positively affects the BSC acceptance; the formalization negatively affects the BSC acceptance Quesado et al (2014), basing on Institutional theory and Contingency Theory, provided factors affecting the application of BSC in organizations in Portugal, including: Type of capital ownership; vertical difference level; hierarchy level; standardization, organizational culture; qualifications of managers and staff Research group on factors belonging to managers Wiersma (2009) indicated purposes for managers to use BSC which are to Decision making, Coordination, Self- Monitoring and simultaneously determined factors affecting the use of BSC, Other control systems used in the organization, Manager’s receptiveness to information, Evaluative style of the Managers Tanyi (2011), basing on research results of Wiersma (2009) and Technology Acceptance Model of Davis (1989), showed that: Manager’s receptiveness to information and Perceived ease of use of the BSC have positive relationships and significant effects on the use of BSC for decisions making; Manager’s receptiveness to information, Other control systems used in the organization positively affect the use of BSC to Self- Monitoring Applying the research model of Tanyi (2011), Hongfei and Rui (2016) pointed out that: subordinate evaluation methods of managers have no effects on dependent variables (decision making, coordination, self- Monitoring); there are factors positively and significantly affecting BSC using purposes for managers to make decisions, which are Perceived usefulness of the BSC, Other control systems used in the organization, Manager’s receptiveness to information; there is factor positively affecting coordination purpose which is Perceived ease of use of the BSC; Perceived usefulness of the BSC positively affecting purposes of supervision on Self- Monitoring Bui Thi Hai Van (2009) indicated the usefulness towards the Company; user – friendliness feeling; general attitude affecting the planning of BSC application at Vietnamese small and medium enterprises Tran Quoc Viet (2012) showed factors influencing the adoption level of Balanced Scorecard in strategic management of enterprises in Vietnam, which are: (1) Top management involvement, (2) centralization, (3) power of finance department, (4) formalization, (5) interdepartmental communication, (6) products – market dynamics 2.1.3 Research gaps The research overview shows that: - The number of researches on the system of operational efficiency evaluation targets in Vietnam in hotel business is still small and the target mainly developed is financial perspective This is the gap for the author to build a system of operational efficiency evaluation targets in hotels according to BSC - The number of researches on factors affecting BSC application is not much and they mainly focus on organizational factors but enter into factors belonging to managers although managers are those performing targets of organizations Managers are an important factor in the successful application of organizational innovations including the application of BSC (Shutibhinyo, 2013) This is also the gap for the author to study the management factors affecting the use of BSC in Vietnamese hotels 2.2 Theoretical issues on balanced scorecard and operational efficiency evaluation target system according to balanced scorecard 2.2.1 Methods for operational efficiency evaluation Padhaya (2014) considered that the operational efficiency evaluation is "the collection and analysis process of operational efficiency information of an individual, group or organization" Operational efficiency evaluation is a prerequisite for any innovation efforts in organizations (Digalwar and Metri, 2005) Models for operational efficiency evaluation include: Dupont, SMART pyramid, Performance Prism and BSC model With advantages of BSC and the conformity in the field of research, the author uses the BSC model as a theoretical basis to develop the operational efficiency evaluation targets in Vietnamese hotels 2.2.2 General overview of balanced scorecard and system of operational efficiency evaluation targets according to balanced scorecard 2.2.2.1 General overview of balanced scorecard BSC was originally described as an operational efficiency evaluation system including both financial and non-financial targets Then, BSC is improved from an operational efficiency evaluation system to a strategic management system (Kaplan and Norton, 1996a, b) 5 Figure 2.5 Balanced Scorecard model Source: Kaplan and Norton (1996) 2.2.2.2 System of operational efficiency evaluation targets according to balanced scorecard - Indicators in financial perspective: Financial targets indicate is revenue growth and labor productivity growth, so the targets that can be used are revenue growth rate, employee productivity, revenue from new customer ratio - Indicators in customer perspective: When choosing targets for this perspective, organizations must answer important questions which are: Who are targeted customers? What is the organization’s statement in serving customers? What are customers’ needs? - Indicators in internal process perspective include targets on professional management, customer management, innovation, impacts on environment and society - Indicators in learning and growth include targets of human capital, information capital and organizational capital 2.2.3 Balanced Scorecard model and system of operational efficiency evaluation targets according to balanced scorecard for hospitality firms 2.2.3.1 Balanced Scorecard model for hospitality firms Based on BSC model of Kaplan and Norton (2004), Chen (2011) proposed the balanced scorecard model applied for hotels as follows: Achieve financial effects Customer loyalty Hotel brand Service quality FINANCIAL Customer satisfaction Increase hotel management effect Employee professionalism CUSTOMER INTERNAL PROCESS LEARNING AND GROWTH Figure 2.6: Balanced Scorecard for hotels Source: Chen et al (2011) 2.2.3.2 Operational efficiency evaluation targets The hotel industry has its own particular characteristics associated with the provision of the "hotel product." Therefore, the measurements used to assess hotel performance should reflect the specific activities and kinds of products and services offered (Harris & Monglello, 2001) 2.3 Theoretical bases 2.3.1 Contingency Theory Applying the Contingency theory, based on an overview of operational efficiency evaluation targets according to BSC and management factors affecting the use of BSC of previous researches, the author proposes a system of operational efficiency evaluation targets appropriate to Vietnamese hospitality firms and managerial factors affecting the use of BSC 2.3.2 Stakeholder theory Stakeholder theory is used to explain the use of the evaluation targets for the satisfaction of stakeholders such as employees, customers, in addition to the use of financial targets to evaluate the operational efficiency 2.3.3 Diffusion of Innovation According to Rogers (1995), there are three factors affecting the possibility of an organization to approve in innovation such as BSC, including: personal characteristics of managers; characteristics inside the organization; characteristics outside the organization Applying this theory, the author researches factors affecting the use of BSC that derive from personal characteristics of managers 2.3.4 Technology Acceptance Model Technology Acceptance Model (TAM) was introduced by Davis in 1986, based on the Theory of Reasoned Action (Ajzen and Fishbein, 1980) and the theory of planned behavior (Ajzen, 1985) The final TAM version was built in 1996 7 CHAPTER RESEARCH METHODS 3.1 Research process and data 3.1.1 Research process The process of research consists of steps: (1) identifying research objectives, (2) Overview of research, (3) qualitative research, (4) preliminary quantitative research, (5) official qualitative research, (6) Report the research results 3.1.2 Collection of research data The author uses information through two main data sources: primary data source and secondary data source 3.2 Qualitative research design Purposes of intensive interview Intensive interview aims to prepare questionnaires before carrying out the quantitative research Contents of intensive interview The interview outline consists of open-ended questions regarding the target system of operational efficiency and management factors affecting the application of BSC in Vietnamese hotels Objects of intensive interview Interviewees are hotel managers; BSC consultants and selected by the convenient method which means sampling based on the accessibility of the object Collection and processing of information - The author collects information through interviews, documents, reports on business situation of hotels - Conclusions are provided based on the selection, summarization of opinions from interviewees 3.3 Quantitative research design 3.3.1 Preliminary quantitative research design Objectives of preliminary survey are to remove non-statistical operational efficiency evaluation targets and inappropriate measures in order to complete questionnaires before the delivery on a large scale Step 1: Preparation of preliminary questionnaires (based on the research overview and qualitative research results) Step 2: Implementation of preliminary survey Step 3: Processing of preliminary survey data: After collecting questionnaires, the number of collected questionnaires is 55, the number of valid ones is 53 The authorconducted the Cronbach Alpha test to evaluate the reliability of the measuring scale 3.3.2 Official qualitative research design Step 1: Preparation of official questionnaires Step 2: Sample design Step 3: Collection of research data Step 4: Data processing For the data on the system of operational efficiency evaluation targets, the implementation steps include: (1) analysis on descriptive statistics; (2) checking the scale reliability; (3) Exploratory Factor Analysis; (4) Anova analysis on the importance level of target groups For data on management factors affecting the use of BSC, the above steps (1), (2) and (3) and multivariate regression analysis will be carried out 3.4 Research model and hypotheses on management factors affecting the application of BSC Research model The management control system being used in firms The managers’ ability to receive new knowledge H1(+) Decision making H2 (+) H3( The managers’ methods applying to evaluate subordinates Managers’ perception of the usefulness of the BSC Coordination H4 (+) H5 (+) SelfMonitoring Managers’ perception of the ease of the BSC Figure 3.5 Research model of the author 3.4.1 Research hypotheses The author proposes following research hypotheses: H1: The management control system being used in firms has positive effects on the use of BSC H2: The managers’ ability to receive new knowledge has positive effects on the use of BSC H3: The managers’ methods applying to evaluate subordinates has positive effects on the use of BSC H4: Managers’ perception of the usefulness of the BSC has positive effects on the use of BSC H5: Managers’ perception of the ease of the BSC has positive effects on the use of BSC CHAPTER RESEARCH RESULTS 4.1 Hospitality characteristics and Vietnamese hospitality efficiency 4.1.1 Overview of hospitality characteristics affecting the operational efficiency The hotel service business has basic characteristics including: cyclicality, continuity, direct and high aggregate, large investment capital, large number of direct employees, and operations of divisions relative independence, diverse customers 4.1.2 Actual situation of in Vietnam The system of hotels with all sizes from affordable to high-end is constantly being opened, especially in big cities and key tourist sites The number of visitors and Total revenue achieved, daily room occupancy have all grown 4.1.3 Actual situation of using operational efficiency evaluation targets in Vietnamese hospitality firms Results show that the average value of targets in perspectives which are financial, customers, internal processes, learning and growth perspectives varies from 2.74 to 4.07 In particular, financial targets have the largest average value, followed by the customer, learning and growth, internal process targets This indicates that hotels regularly use financial targets, followed by hospitality firms customer, learning and growth, internal process targets, to evaluate the operational efficiency 4.2 Research results of operational efficiency evaluation targets according to the balanced scorecard in Vietnamese hospitality firms 4.2.1 Qualitative research results - In financial perspective, 22 indicators are considered appropriate and the author supplement extra targets - In customer perspective, indicators are considered appropriate 10 - In internal process perspective, indicators are considered appropriate - In learning and growth perspective, indicators are considered appropriate, indicator is supplemented and indicator is replaced by another one 4.2.2 Preliminary quantitative research results Preliminary test results on the reliability of measuring scale show that: - Finacial perspective (TC) has 18 indicators, Cronbach alpha coefficient reaches 0.964, item total correlation is over 0.3 so these indicators meet requirements - Customer perspective (KH) has7 indicators, Cronbach alpha coefficeint reaches 0.853, item total correlation is over 0.3 so these indicators meet requirements - Internal process perspective (QTNB) has indicators, Cronbach alpha coefficient reaches 0.913, item total correlation is over 0.3 so these indicators meet requirements - Learning and growth perspective (HTPT) has 10 indicators, Cronbach alpha coefficient reaches 0.880; item total correlation is over 0.3 so these indicators meet requirements 4.2.3.1 Descriptive statistics Descriptive statistics on the research sample Descriptive statistics on the importance level of operational efficiency evaluation targets according to BSC Table 4.8: Summarization of descriptive statistics on the importance level of operational efficiency evaluation targets Content Financial Customer Internal process Learning and growth Average value 2.55 – 4.04 2.97 – 3.56 2.74 - 2.98 2.90 - 3.64 Source: Summarization of the author from Appendix 10 Analysis results points out that the average value of financial targets is the highest, followed by customer targets, learning and growth targets, and finally internal process targets This shows that financial and customer targets are assessed important, internal process and learning and growth targets are considered less important in the evaluation of hotel operational efficiency 4.2.3.2 Official evaluation on the reliability of measuring scale - Finacial perspective has13 indicators , Cronbach alpha coefficient is 0.943; item total correlation is over 0.3 so these targets meet requirements - Customer perspective has indicators, Cronbach alpha coefficient is 0.878; item total correlation is over 0.3 so these targets meet requirements - Internal process perspective has indicators, Cronbach alpha coefficient is 0.812; item total correlation is over 0.3 so these indicators meet requirements - Learning and growth perspective has indicators, Cronbach alpha coefficient is 0.89; item total correlation is over 0.3 so these indicators meet requirements 4.2.3.3 Exploratory Factor Analysis (EFA) - EFA results has drawn factors with 30 observed variables: The first one is financial factor with 13 observed variables; The second factor is customer with observed variables; The third factor is internal process with observed variables; The fourth factor is learning and growth with observed variables Table 4.15: EFA results for operational efficiency targets 11 KMO and Bartlett's Test results Kaiser-Meyer-Olkin Measure of Samling Adequacy Bartlett's Tst of Sphericity 0.861 6305.507 435 0.000 Source: SPSS Analysis results of the author Approx Chi-Square df Sig 4.2.3.4 Tests on the difference among importance level of operational efficiency evaluation targets according to perspectives of balanced scorecard Test results indicate that when being evaluated the importance level of perspectives belonging to BSC to evaluate the operational efficiency, financial targets have no difference and the remaining perspectives have differences among groups of 3-star, 4-star and 5-star hotels 4.3 Analysis results on management factors affecting the use of balanced scorecard in Vietnamese hospitality firms 4.3.1 Qualitative research results Qualitative research results show that variables brought to the research model are appropriate Nonetheless, there are changes in measuring scales of control system variables on managers of hotels in use, from measuring scales decreased to measuring scales and changes in dependent variable for decision making, from measuring scales decreased to measuring scales 4.3.2 Preliminary quantitative research results - The management control system being used in firms (CS) has measuring scales, Cronbach alpha coefficient reaches 0.869; item total correlation is over 0.3 so measuring scales meet requirements - The managers’ methods applying to evaluate subordinates (DG) has measuring scales, Cronbach alpha coefficient reaches 0.858; item total correlation is over 0.3 so measuring scales meet requirements - Managers’ perception of the usefulness of the BSC (HI) has measuring scales, Cronbach alpha coefficient reaches 0.863; item total correlation is over 0.3 so these targets meet requirements - Managers’ perception of the ease of the BSC (SD) has measuring scales, Cronbach alpha coefficient reaches 0.911; item total correlation is over 0.3 so these targets meet requirements - Decision making (QD) has measuring scales, Cronbach alpha reaches 0.911; item total correlation is over 0.3 so these targets meet requirements - Coordination (DP) has measuring scales, Cronbach alpha coefficient reaches 0.898; item total correlation is over 0.3 so these targets meet requirements - Self- Monitoring (GS) has measuring scales, Cronbach alpha coefficient reaches 0.771; item total correlation is over 0.3 so these targets meet requirements 4.3.3 Official quantitative research results 4.3.3.1 Statistics on the research sample according to management factors affecting the use of balanced scorecard in Vietnamese hospitality firms Independent variables The lowest average value of independent variables is 2.38 and the highest one is 3.36, which indicates that these factors have average effects on the use of BSC Table 4.23: Summarization table of statistic results describing independent variables 12 Content Average value CS 2.38- 3.12 KT 3.12-3.36 DG 2.63- 2.84 HI SD 3.14 – 3.27 2.47- 2.91 Source: Summarization from Appendix 23 Dependent variables The lowest average value of decision making factor is 2.75 and the highest one is 3.35, the lowest average value of work coordination is 2.83 and the highest one is 3.17, the lowest average value of supervision on working efficiency is 3.02 and the highest one is 3.29 This shows that the use of BSC for decision making, work coordination and supervision on working efficiency is not high Content Average value Table 4.24: Summarization table of statistic results describing dependent variables QD DP GS 2.75 - 3.35 2.83 - 3.17 3.02 - 3.29 Source: Summarization from Appendix 24 4.3.3.2 Official evaluation on the measuring scale reliability of independent and dependent variables - CS has measuring scales, Cronbach alpha coefficient reaches 0.861; item total correlation is over 0.3 so these targets meet requirements - DG has measuring scales, Cronbach alpha coefficient reaches 0.883; item total correlation is over 0.3 so measuring scales meet requirements - HI has measuring scales, Cronbach alpha coefficient reaches 0.851; item total correlation is over 0.3 so these targets meet requirements - SD has measuring scales, Cronbach alpha coefficient reaches 0.897; item total correlation is over 0.3 so these targets meet requirements - QD has measuring scales, Cronbach alpha reaches 0.878; item total correlation is over 0.3 so these targets meet requirements - DP has measuring scales, Cronbach alpha coefficient reaches 0.872; item total correlation is over 0.3 so these targets meet requirements - GS has measuring scales, Cronbach alpha coefficient reaches 0.814; item total correlation is over 0.3 so these targets meet requirements 4.3.3.3 Exploratory Factor Analysis (EFA - Exploratory Factor Analysis for independent variables: Analysis results have drawn factors - Exploratory Factor Analysis for dependent variables: EFA results with dependent variables, one after the other, have drawn factors 4.3.3.4 Hypothesis test 1) Hypothesis test with independent variables of decision making factor Results shown in table 4.41 point out: - Variables of subordinate evaluation methods of hotel managers have no impact on the use of BSC for decision making with the Significance level of 5% Remaining variables including: CS, KT, HI, SD affect dependent variables using BSC for making decisions Particularly, HI has the highest impact on the use of BSC for decisions making The relationship between independent and dependent variables is presented in the form of regression equation as follows: QD = 0.308 CS +0.291 KT + 0.309 HI + 0.123 SD 13 Table 4.41: Regression analysis results on QD dependent variables Unstandardized coefficient B Std error -0.124 0.182 0.336 0.045 0.272 0.044 0.016 0.036 0.318 0.046 0.134 0.047 Model Constant CS KT DG HI SD R square Standardized coefficient Beta 0.308 0.291 0.019 0.309 0.123 T Sig -0.680 7.557 6.106 0.451 6.892 2.865 0.497 0.000 0.000 0.652 0.000 0.004 Collinearity Statistics Tolerance 0.905 0.664 0.864 0.751 0.812 VIF 1.105 1.506 1.158 1.331 1.232 0.534 Source: SPSS analysis results of the author 2) Hypothesis test with independent variables of coordination - DG variables have no impact on deciding to use BSC for coordination with the significance level of 5% Remaining variables including: KS, KT, HI, SD have significance level of Sig = 0,000, which is under 0.05 so these variables affect dependent variables using BSC for coordination Particularly, the awareness of user-friendliness has the highest impact The relationship between independent and dependent variables is presented in the form of regression equation as follows: DP = 0.196 KS + 0.196 KT + 0.262 HI + 0.281 SD Table 4.44: Regression analysis results on DP independent variables Unstandardized coefficient B Std error Constant 0.140 0.193 CS 0.205 0.047 KT 0.176 0.047 DG 0.041 0.038 HI 0.260 0.049 SD 0.294 0.050 R square 0.437 Model Standardized coefficient T Beta 0.725 0.196 4.364 0.196 3.738 0.051 1.103 0.262 5.332 0.281 5.930 Sig 0.469 0.000 0.000 0.271 0.000 0.000 Collinearity Statistics Tolerance VIF 0.905 0.664 0.864 0.751 0.812 1.105 1.506 1.158 1.331 1.232 Source: SPSS analysis results of the author (3) Regression analysis on dependent variables of the supervision on self- monitoring Regression analysis DG, SD variables have Sig value of over 0.05 so these two variables have no impact on the use of BSC for the supervision on self- monitoring with the significance level of 5% CS, KT, HI variables have positive effects on deciding to use BSC for the supervision on self- monitoring The relationship between independent and dependent variables is presented in the form of regression equation as follows: GS = 0.179 KS + 0.203 KT+ 0.391 HI 14 Table 4.47: Regression analysis results on GS independent variables Unstandardized coefficient Standardized coefficient Collinearity Statistics T Sig B Std error Beta Tolerance VIF Constant 0.234 0.216 1.086 0.278 CS 0.206 0.053 0.179 3.911 0.000 0.905 1.105 KT 0.200 0.053 0.203 3.805 0.000 0.664 1.506 DG 0.048 0.042 0.054 1.145 0.253 0.864 1.158 HI 0.425 0.055 0.391 7.787 0.000 0.751 1.331 SD 0.090 0.055 0.079 1.626 0.105 0.812 1.232 R square 0.413 Source: SPSS analysis results of the author As a result, regression analysis results indicate management factors positively affecting the use of BSC in hotels and factor with no statistical significance These four factors: the management control system being used in firms,the managers’ ability to receive new knowledge, managers’ perception of the usefulness of the BSC, managers’ perception of the ease of the BSC, in which managers’ perception of the usefulness of the BSC has the highest effect on the use of BSC This is also a new contribution of the dissertation Model CHAPTER DISCUSSION ON RESEARCH RESULLTS, RECOMMENDATION PROPOSAL AND CONCLUSIONS 15 5.1 Discussion on research results 5.1.1 The system of performance evaluation indicators in Vietnamese hospitality firms according to balanced scorecard Research results pointed out 30 indicators for the operational efficiency evaluation in Vietnamese hospitality firms Financial perspective has 13 indicators, customer perspective has indicators including those on customer satisfaction and service quality, internal process perspective has indicators, learning and growth perspective has indicators The author also supplemented indicators that have not been used or have been used but not stated in reports to evaluate the operational efficiency or have not been concerned properly in mostly hotels; for examples: indicators in employee satisfaction rate, targets in building relationships with stakeholders, the quantity of products and cretative services/initiatives for yearly process innovation 5.1.2 Management factors affecting the use of balanced scorecard in Vietnamese hospitality firms In order to examine and explain quantitative research results, the author conducts qualitative research because this method is most suitable to elicit more in-depth information about research issues The research results once again reaffirmed the quantitative research results on the impact of each factor on the use of BSC in Vietnamese hospitality firms 5.2 Recommendation proposal 5.2.1 In terms of the system of operational efficiency evaluation targets in Vietnamese hospitality firms 5.2.1.1 For hotels Firstly: managers need to have proper awareness on roles of targets in internal process, learning and growth; then diffus to employees of departments Secondly: with 30 performance evaluation indicators proposed above by the author according to perspectives of BSC, hotels may apply the entire indicators or add, reduce indicators depending on characteristics and strategic objectives of each hotel Thirdly: improve indicator results to improve the operational efficiency 5.2.1.2 For hotel owners In order for BSC to be applied, owners need to ask the management team to apply BSC, require managers to make annual reports related to the system of 30 indicators as proposed in the previous section 5.2.1.3 For the State The system of indicators proposed by the author is the supplementary reference for the system of non-financial indicators in order to evaluate business performance closer to the reality, thereby contributing to the management and policy making of the industry 5.2.1.4 For training facilities, hotel associations - Training facilities may study to put the system of these indicators in teaching - BSC consulting facility may consult hotels and encourage them to use these indicators in operational efficiency evaluation - Hotel association may use the system of evaluation indicators to have business situation of hotels in hand, since then providing measures to remedy weaknesses and promote strengths on the basis of sharing knowledge and experience from successful hotels 5.2.2 In terms of management factors affecting the use of balanced scorecard in Vietnamese hospitality firms This research has pointed out that: manger’s awareness on usefulness and user-friendliness of BSC, ability of manager to absorb new knowledge and control system in use have effects on the use of BSC in Vietnamese hospitality firms Managers’ perception of the usefulness of the BSC, Managers’ perception of the ease of the BSC 16 - First of all, mangers must aware the importance role of current operational efficiency evaluation methods such as; BSC consultants need to emphasize the usefulness, user-friendliness of BSC in order to promote managers to use - Regarding hotels, consulting companies may be hired for better understanding of BSC and more assistance during the implementation as well as use of BSC The managers’ ability to receive new knowledge has decisive meaning to the use of BSC - Managers must have an inquiring mind to constantly improve their knowledge; consciousness in testing new management methods, by which they can advance to change and apply modern methods such as BSC - Hotels should hire creative, qualified managers who always support innovations when recruiting - Hotel associations should regularly organize seminars, talk shows; hire domestic and foreign leading specialists in the industry to share management-related knowledge in order to improve capacity for leaders The management control system being used in firms - Research results show that the control system is combined with BSC for the improvement of management efficiency and operational efficiency evaluation As a result, it is necessary to simultaneously use BSC with controlling tools in use 5.3 Research limitations The dissertation has only focused on management to determine factors affecting the use of BSC in Vietnamese hospitality firms; the research model has only explained 54.3% Limitations in processing date: there is factor only having measuring scales; therefore, it is insufficient to test the reliability of these measuring scales 5.4 Conclusion The dissertation titled “Management factors affecting to the application of Balanced Scorecard in Vietnamese hospitality firms” is conducted with two major contents, including (1) establishment of financial and non-financial targets according to balanced scorecard necessary for the operational efficiency measurements of hotels; (2) determination and measurement on effect level of manager factors affecting the application of balanced scorecard in Vietnamese hospitality firms On the basis of research overview, the author has summarized major financial and non-financial targets used by domestic and foreign scholars for the operational efficiency evaluation By qualitative research method combined with quantitative research method, the dissertation has built 30 operational efficiency evaluation indicators in Vietnamese hospitality firms under perspectives of BSC: (1) Financial perspective has 13 indicators; (2) Customer perspective has indicators; (3) Internal process perspective has indicators, (4) Learning and growth perspective has indicators Also on the basis of research overview, the Diffusion of Innovation,Technology Acceptance Model, Contingency Theory and Stakeholder Theory, the dissertation has built the research model determining factors affecting the BSC application in Vietnamese hospitality firms The dissertation has determined factors, which affect managers when applying balanced scorecard in hospitality firms, including: (1) the management control system being used in firms; (2) the managers’ ability to receive new knowledge; (3) managers’ perception of the usefulness of the BSC; (4) managers’ perception of the ease of the BSC Among these factors, managers’ perception of the usefulness of the BSC has the highest impact on the use of BSC for decision making, coordination and self- monitoring The dissertation has proposed recommendations in order to promote the application of the system of operational efficiency evaluation targets in Vietnamese hotel according to BSC and improve indicators results for the operational efficiency enhancement from the hotel perspective The dissertation has also proposed recommendations on removing management barriers to promote the BSC application in Vietnamese hospitality firms The dissertation has also determined some limitations in terms of research scope, survey objects, research model, etc The author of the dissertation considers them as opened directions for further researches in the future ... promulgated Circular No 26/2014 /TT- BVHTTDL dated 31/12/2014 stipulating Basic Statistical Report regime applied for tourism facilities, enterprises and Circular No 27/2014 /TT- BVHTTDL stipulating General... usefulness towards the Company; user – friendliness feeling; general attitude affecting the planning of BSC application at Vietnamese small and medium enterprises Tran Quoc Viet (2012) showed factors... in Vietnam, which are: (1) Top management involvement, (2) centralization, (3) power of finance department, (4) formalization, (5) interdepartmental communication, (6) products – market dynamics