Originated from the research tasks, the dissertation’s specific research objectives include: develop the analysis model of business environment impact on business of Vietnamese tourism enterprises versus the research assumption system; propose and recommend the solutions to perfect the business environment of Vietnamese tourism enterprises.
1 BACKGROUND Necessity of the study Surugiu (2009) unveiled that tourism significantly affects the foreign exchange flow, infrastructure development, management technique and training experience as well as other economic sectors, actively contributing to the socioeconomic development of a country Tasci &Knutson's study (2004) specified that not only in the developed countries, tourism is known as an increasingly developed industry both in developing countries and underdeveloped countries Tourism's fast growth is recently recorded and acknowledged as the key economic sector of the country Tourism activities are eventfully carried out from cities to rural areas, from coastal and island area to mountainous area and highland According to Phuong Lien (2017), Vietnam tourism was recorded with 13 million and 74 million of turns of international tourists and domestic tourists, increase in 30% and 20%, respectively Total direct income from tourism hit over VND 500,000 billion, equivalent to US$ 23 billion, contributing approximately 7.5% to GDP of Vietnam Tourism development facilitates the rural and urban appearance improvement, generating more jobs for the residential classes and the society Vietnamese business environment has been perfected for the tourism fussinesses to develop tourism as the key economic sector even though Vietnam tourism has just started since opening door policy since 1991 However, Vietnam tourism development is also recorded with non-sustainability and a series of weakness against that in other regional countries Tourism is still recognized as a young player The business environment is often impacted by the globalization factors; hence, tourism business environment is still available with an ocean of shortcomings, adversely affecting the tourism business performance Furthermore, Vu Khac Chuong (2015) emphasized that: Any country which joins this process shall become prosperous and civilized, vice versa, those reject it shall be subject to poverty and backward It is essential to investigate business environment in the cut-throat competition context of newly-born service industry to find out the feasible solutions to perfect the business environment for tourism enterprises That is why, the “Perfecting the business environment for Vietnamese tourism enterprises during globalization” topic selected for the study Tasks and objectives 2.1 Research tasks: The research tasks are originated from the above objectives, including: - Determine theoretical basis on business environment ’s impact on bussiness; - Investigate the existing conditions of business environment of available Vietnamese tourism enterprises; - Verify the impact of business environment on business performance of Vietnamese tourism enterprises - Propose the solutions to perfect the business environment of Vietnamese tourism enterprises 2.2 Objectives Originated from the research tasks, the dissertation’s specific research objectives include: - Develop the analysis model of business environment impact on business of Vietnamese tourism enterprises versus the research assumption system; - Propose and recommend the solutions to perfect the business environment of Vietnamese tourism enterprises Research questions According to the research objectives, the research questions are set forth as follows: - What are the affecting models of business environment factors on enterprise business? How factors in business environment affect Vietnam tourism enterprises? - Which possible solutions and recommendations are feasible to perfect the business environment of Vietnamese tourism enterprises? Subjects and scope of the research 4.1 Subjects of research The study’s subjects cover business environment of tourism enterprises 4.2 Scope of research The dissertation studies the business environment of tourism enterprises during globalization process However, there are many approaches to enterprise ’s business environment by different classification such as components, impact levels to enterprise’s business and business process Within this dissertation, the constituent-based approach to business environment is selected by the author Accordingly, the business environment shall be studied by specific factors as follows: economic environment, legal environment, socio-economic environment, political environment, technology environment, ecology environment and global environment The study is also focused on macro environment study, rather than in-depth study on industrial environment and business environment, to make contributions to the State management authorities to successfully control the tourism management policies Scope of venue: Study at tourism enterprises in Vietnam (focusing on main cities such as Hanoi, Hai Phong, Hue, Da Nang, Ho Chi Minh City) Scope of time: Data are collected in the period of 2010-2017 Research methodology In order to launch the study, a series of basic research methodologies are applied, concretely: Desk research methodology, synthesis and analysis methodology, comparison methodology, dialectic logical methodology, statistics methodology, etc., especially, the econometric model is also employed Such research methodologies are applied to collect and process: (1) Secondary data, including: Literature review, theoretical basis on enterprise’s business environment, constituents of business environment, tourism enterprise's business, experience in perfecting business environment in the regional countries, concept on globalization, characteristics and nature of globalization, existing conditions of Vietnam tourism business, impacts of Vietnam tourism industry's business environment, etc Secondary data is collected through books, newspapers, reports, course books, magazines, Internet, etc., provided by Vietnam National Administration of Tourism, the World Tourism Organization (UNWTO), tourism managers and researchers (2) Quantitative research and qualitative research methodologies are combined Concretely: - Quantitative research: Group discussion and direct interview with the tourism experts, administrators and officials working in the departments and industries to design, develop and adjust the scale to ensure the content value for the qualitative research - Qualitative research: + Apply the survey method by delivering the questionnaire to collect the primary data from the subjects of the research, i.e., the administrators in Vietnam tourism enterprises + Analyze the statistics with SPSS 20 software to evaluate the impacts of business environment factors on Vietnamese tourism enterprises’ performance New contributions of the Dissertation 6.1 Academic and theoretical contributions By studying over 120 documents related to business environment, tourism, and academic, new contributions of the dissertation are recorded: - Design the new research model in good harmony with theoretical system to explain the relations between the business environment factor with business performance of tourism enterprises - Design the questionnaires with scientific basis and reliability to collect the primary data to verify the relation between the business environment factors and business performance of tourism enterprises - Affirm the business environment factors, i.e., political, economic, ecology, socio-cultural, technology and global environment (equivalent to positive) affect the enterprise's business performance There is insufficient background to confirm the relation between the legal environment and business performance of the tourism industry 6.2 New recommendations originated from the findings The analysis of existing conditions of Vietnam tourism enterprise's business environment unveiled that: The good international environment and ecological environment actively and significantly affects the tourism enterprise's business Good and stable economic environment, political environment, technology environment actively and significantly affect the technology environment's business activities Moreover, no basis is found to conclude that the stable legal environment actively affects the tourism enterprises ’ business even though the excessive and unplanned tourism exploitation as well as the State management measures are recorded as the weaknesses of available Vietnamese tourism enterprises’ business environment Furthermore, the shortcomings on disqualified tourism human resources, poor marketing as well as infrastructure and service physical facilities for the tourism development must be specially concerned By analyzing existing conditions of business environment where Vietnamese tourism enterprises operate and conducting quantitative analysis of relation between business environment factors and business performance of enterprise, solution groups are proposed to perfect the tourism enterprise’s business environment in the coming time Structure In addition to the background, conclusions, list of references, list of figures and appendix, the study is divided into chapters: Chapter 1: Overview of dissertation-related studies Chapter 2: Literature review on business environment of tourism enterprises Chapter 3: Research methodology Chapter 4: Existing conditions of business environment of available Vietnamese tourism enterprises Chapter 5: Solutions to perfect the business environment of Vietnamese tourism enterprises CHAPTER LITERATURE REVIEW ON PREVIOUS STUDIES 1.1 Overview of studies 1.1.1 Overview about the studies on globalization Globalization is a trend that the investment funds and domestic enterprises are required to overcome the domestic market to successfully penetrate into other global markets because a better competitive position and lower operating costs are offered to the organizations to archive the great bulk of products, services and consumers (Incekara & Mesut 2012, p.23-30) 1.1.2 Overview about the studies on business environment Chi (2009, p.545-555) summarized the studies on business environment, shown in table below: Author Contributions (Duncan 1972, pg.313-327) Identify customers, rivals, technology and managers as key factors of business environment (Howard 1979) Develop the theoretical framework on environment-based aspects in accordance with two viewpoints on natural resources and population ecology of the organizations (Mintzberg 1979) Firstly propose a 4D framework, demonstrating the overall characteristics of business environment: Noteworthy is their level on diversification, complication, dynamics and threatening (Van Dierdonck & Miller 1980, pg.3746) Propose a concept model on affiliating the competitive strategy and design the production management system, detect the important standby environment, suggest on significance of considering uncertainty and complication of environment as context for the operating strategy (Dess 1984, pg.5273) Propose and test essential characteristics of environment: Threat, dynamics and complication (Wernerfelt & Karani 1987, pg.187-194) Indicate that environment uncertainty is an important issue and suggest aspects of environment uncertainty: demand, supply, competition and inclusive unforeseeable cases Instability is increasingly high, resulting in more unforeseeable and dynamic business environment (Swamidass & Neweli 1987, pg.509-524) Setup the significance of business environment as a key causal factor in operating strategy - successfully connecting with business performance Prove that the dynamic environment shall be dynamic for the enterprises to focus more on flexible production (Kotha & Orne 1989, pg.211-223) Assume that suppliers, customers and geographical scope are important factors to master the environmental conditions (Ward/Duray…1995, pg.99-115) Remarkable impacts of dynamics and disadvantages from environment with application of competition strategies and business performance (Fine 1998) Business environment condition varies; company chain and competition priorities must be properly adjusted Otherwise, business performance may be adversely Author Contributions affected (Smith & Reece 1999, pg.145-161) Environment-associated strategies aim to obtain the high performance (Tan/Ghosh…1999, pg 1034-1052) Prove that the competition environment may directly affect the enterprise’s business performance (Ward & Duray 2000, pg.123-138) Prove that consideration of competition strategies and production strategies of a company must be in dynamic environment An inappropriateness between business environment and competition strategy of the company and production strategy shall result in lower performance (Randal & Morgan 2003, pg.430-443) Business environment is characterized by remarkable statistic impact on selecting supply chain of company and overall performance Source: Chi (2009) Two main study forms on business environment are available in Vietnam (Nguyen Duc Thanh/ To Trung Thanh 2009, p.4) The first form is the annual report, evaluating various items of business environment The second form is the in-depth surveys on some main aspects of business environment 1.2 Gap and research issue The study focuses on synchronously investigating all business environment factors available in a study model and evaluating the impacts of business environment factors to the tourism enterprise's performance The study is applied for the Vietnam tourism enterprises CHAPTER LITERATURE REVIEW ON BUSINESS ENVIRONMENT OF TOURISM ENTERPRISES 2.1 Enterprise’s business environment 2.1.1 Concept and viewpoint on enterprise’s business environment 2.1.1.1 Tourism enterprise Tourism enterprises refer to the special corporate and business forms, mainly involving in the organization, construction, selling and launching the package tourism program for the tourists Moreover, it may initiate the intermediary activities, i.e., selling products offered by the tourism product/service providers or other general business activities to ensure that the tourist ’s demands are successfully satisfied from the first phase to the last one during their tourism journey Tourism service refers to provision of services on travel, transportation, residence, foods, entertainment, information, guideline and others to satisfy the tourist demands 2.1.1.2 Enterprise’s business environment Enterprise’s business environment is known as a collection of (intrinsic and extrinsic) mutually affected factors, directly and indirectly affecting the enterprise’s business activities (Ngo Kim Thanh 2013, Nguyen Ngoc Huyen 2015) 2.1.2 Characteristics of business environment Business environment is characterized by the following: - Objective necessity - Generability - Diversity - Dynamic features - Complexity - Systematicality 2.1.3 Constituents of enterprise’s business environment 2.1.3.1 Economic environment 2.1.3.2 Political and legal environment 2.1.3.3 Socio-economic environment 2.1.3.4 Technology environment 2.1.3.5 Natural environment 2.1.3.6 Global environment 2.1.4 Role of business environment for enterprise 2.2 Tourism enterprise's business 2.2.1 Concept on business activities 2.2.2 Tourism enterprise's business 2.2.3 Factors affecting the tourism business performance 2.2.4 Business environment impact on enterprise’s business activities 2.3 Experiences on perfecting business environment for tourism enterprises 2.3.1 Experience of Thailand 2.3.2 Experience of Singapore 2.3.3 Experience of China 2.3.4 Some lessons for Vietnam 2.4 Globalization 2.4.1 Concept on globalization 2.4.2 Concept on tourism globalization 2.4.3 Nature and characteristics 2.5 Research model and assumptions 2.5.1 Research model According to the literature review, the research model is proposed as follows: Economic environment Political environment Global environment Business performance Socio-economic environment Technology environment Natural environment Figure 2.2 Research model Source: Collection by the author 2.5.2 Research assumptions Fig 1: Stable economic factor actively impacts on tourism enterprise ’s business activities Fig 2: Stable political factor actively impacts on tourism enterprise ’s business activities Fig 3: Good technology factor actively impacts on tourism enterprise ’s business activities Fig 4: Good socio-economic factor actively impacts on tourism enterprise ’s business activities H5: Transperant and clear legal factor actively impacts on tourism enterprise’s business activities Fig 6: Good international environment factor actively impacts on tourism enterprise’s business activities Fig 7: Good natural environment factor actively impacts on tourism enterprise’s business activities CHAPTER RESEARCH METHODOLOGY 3.1 Research process 3.2 Data collection method 3.2.1 Primary source 3.2.2 Secondary source 3.2.2.1 Questionnaire design 3.2.2.2 Sampling method 3.3 Data processing method 10 CHAPTER EXISTING CONDITIONS OF BUSINESS ENVIRONMENT OF AVAILABLE VIETNAMESE TOURISM ENTERPRISES 4.1 Overview about Vietnam tourism environment 4.1.1 Introduction about Vietnam tourism Vietnam is a country with diversified and abundant tourism potential It is recognized as a great potential to successfully develop the tourism, supported by a diversified natural landscape, a series of beauty spots, long-time cultural tradition with various festivals and good and unique habits and customs, regional and historical relics, unique art architecture deeply submerged with humanism, abundant, intelligent, hardworking and kind-hearted human resources 4.1.2 Vietnam tourism development policy The Law on Tourism (amended) was officially ratified in 2017 by the National Assembly, creating the favorable legal corridor for Vietnam tourism development in the new area 4.1.3 Vietnam tourism potential 4.1.4 Socio-economic impacts of tourism economic development - Vietnam is offered with great opportunities by tourism during transforming from an agricultural economy to service-based economy - Tourism improves the budget income for the tourism development areas, actively facilitating the improvement of national income and redistribution of national income among regions - Tourism accelerates development of other economic sectors - Tourism makes use of other economic sector’s physical facilities - Tourism not only offers jobs to many female but a great chance for the advancement of women 4.2 Existing conditions of business of available Vietnamese tourism enterprises 4.2.1 Tourism infrastructure Table 4.1 International travels in the period of 2005 - 2017 Year j 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 The Stateown 119 94 85 69 68 58 13 9 5 enterprise Liability limited 222 276 350 389 462 527 621 731 845 949 1,012 1,081 1,164 company Joint Stock 74 119 169 227 249 285 327 371 428 474 475 489 556 Company Private 4 4 10 10 11 12 4.2.5 Tourism business performance in the period of 2008 - 2017 Table 4.3 Total income from tourism in the period of 2008 - 2017 Unit: VND 1,000 billion Items 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Gross income 60.00 68.00 96.00 130.00 160.00 200.00 230.00 338.00 400.00 510.90 from tourism Growth rate 7.1 13.3 41.2 35.4 23.1 25.00 15.0 46.9 18.4 27.78 (%) Source: Vietnam National Administration of Tourism 4.3 Shortcomings - Travel information management is concerned - Excessive exploitation and unplanned development are found in many provinces and cities where fail to thoroughly consider the advantages of the tourism resources - Vietnam is kept further behind the developed countries regarding number of hospitality management human resources - Tourism management models and methods are found with a series of weakness - Legal system is not perfected - Vietnam tour operator’s competitiveness is much poorer than that of foreign tour operators 4.4 Investigate the business environment of Vietnamese tourism enterprises 4.4.1 Descriptive statistics Various evaluations in terms of independent variables’ factor roles and impacts are caused by differences between the subgroups of study samples (Kotler & Keller 2012) 4.4.1.1 Gender The analysis results in the chart unveiled that the study sample includes 198 males (accounting for 63%) and 118 females (accounting for 37%) The research samples were characterized by remarkable difference in gender It was implied the difference in attitude and evaluation of the interviewee against the factors ’ impact on dependent variables 13 Gender Male Female Figure 4.1 Sample statistics by gender Source: The author's calculation from survey data 4.4.1.2 Age Analysis results in Fig unveiled that the age group of 30-40 (group 2) makes up 55% of samples This age range was suitable for managers Because the respondents focused on business managers and researchers, the number of respondents within the age of less than 30 only made up 14% which was completely suitable Age Over 50 Figure 4.2 Sample statistics by age Source: The author's calculation from survey data 4.4.1.3 Qualification 14 The survey results revealed that the respondent qualification is relatively high, up to 62% of respondents had university qualification and 21% of postgraduate qualification This was extremely advantage for the survey Qualification High school Vocational school/college Figure 4.3 Sample statistics by qualification Source: The author's calculation from survey data 4.4.1.4 Income The survey results unveiled that majority of respondents have income of over VND 10 million/month Only respondents had income of less than VND 10 million (accounting for 1%) Comparing with the average income in Hanoi (VND 60 million/year), income of respondent was relatively high 15 Income Less than VND 10 million VND 10 -20 million VND 20 -40 million VND 40 -60 million Over VND 60 million Figure 4.4 Sample statistics by income Source: The author's calculation from survey data 4.4.1.5 Operating experience With operating experience in the fields of tourism, over 66% of surveyed enterprises had operating experience of over years Number of surveyed enterprises operating less than year made up small rate (only 7%) With such survey sample, the survey quality would be successfully assured Operating experience Less than year 1-3 years 3-5 years Over years Figure 4.5 Sample statistics by operating experiences Source: The author's calculation from survey data 4.4.2 Exploratory factor analysis and scale test 4.4.2.1 Scale verification Table 4.5 Summary of variables’ Cronchbach’s Alpha coefficient 16 Item-Total Statistics Code Scale Mean if Item Deleted Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Total Correlation if Item Deleted Legal environment scale Cronbach’s Alpha = 0.703 leg1 10.64 3,927 489 leg2 10.82 3,437 588 leg3 10.65 4,128 497 leg4 10.74 3,926 395 Economic environment scale Cronbach’s Alpha = 0.810 eco1 13.67 8,432 538 eco2 13.56 8,228 573 eco3 13.69 8,265 642 eco4 13.80 8,076 644 eco5 13.73 7,840 595 Ecological environment scale Cronbach’s Alpha = 0.713 env1 10.87 3,381 501 env2 10.88 3,414 570 env3 11.00 3,470 554 env4 11.08 4,286 383 Political environment scale Cronbach’s Alpha = 0.808 pol1 20.80 15,250 543 pol2 20.83 14,932 570 pol3 21.20 14,556 559 pol4 21.15 15,098 495 pol5 21.35 15,047 510 pol6 21.03 14,545 551 pol7 21.04 15,033 576 International environment scale Cronbach’s Alpha = 0.769 gob1 10.34 5,026 514 gob2 10.17 4,610 625 gob3 10.27 4,376 616 gob4 10.22 4,700 528 Socio-economic environment scale Cronbach’s Alpha = 0.760 soc1 17.30 10,161 493 soc2 17.70 9,514 594 soc3 17.56 9,803 542 soc4 17.33 10,108 465 soc5 17.45 9,588 511 soc6 17.29 10,596 402 639 571 638 702 791 780 761 759 775 652 606 616 713 783 778 780 791 789 781 777 741 685 688 736 727 699 714 734 722 749 17 Item-Total Statistics Code Scale Mean if Item Deleted Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Total Correlation if Item Deleted Technology environment scale Cronbach’s Alpha = 0.717 tec1 9.63 5,510 400 713 tec2 9.69 5,060 506 653 tec3 9.94 4,467 602 591 tec4 9.82 4,880 513 649 Business activity scale Cronbach’s Alpha = 0.759 eff1 11.26 3,182 472 749 eff2 11.25 2,923 536 717 eff3 11.21 2,704 671 636 eff4 10.93 3,348 574 702 Source: The author's calculation from survey data The calculation results of Cronchbach’s Alpha coefficient unveiled that reliability is secured, the Cronchbach’s Alpha coefficient of variables is over 0.7 and variable- total correlation coefficient obtained over 0.3 Therefore, data collected through the study’s questionnaires was completely reliable to conduct the next steps 4.4.2.2 Exploratory factor analysis 18 Table 4.6 Component eco3 730 eco4 708 eco2 633 eco5 624 eco1 616 gob2 712 gob3 683 gob1 570 gob4 567 pol7 750 pol6 731 pol4 545 soc6 624 soc2 575 leg1 765 leg2 712 leg3 647 eff4 836 eff3 833 eff2 632 tec3 778 tec4 622 tec2 555 pol2 756 pol1 741 pol3 553 env3 env2 env1 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 18 iterations Source: The author's calculation from survey data 607 592 520 19 Table 4.7 KMO and Barlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of Sphericity df Sig .888 5012.411 703 000 The testing results unveiled that Sig = 0.000 < 5% (corresponding to value of KMO Test of 0.888), the original assumptions may be rejected This meant that the sufficient statistics evidences prove that EFA application is suitable for data analysis Moreover, the results of Total Variance Explained (TVE) from the model were also reflected in table below: Table 4.8 (TVE) (TVE) Initial Eigenvalues Compone nt Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings % of % of % of Cumulativ Cumulativ Tota Cumulativ Total Varianc Total Varianc Varianc e% e% l e% e e e 10.46 27.551 27.551 10.46 27.551 2.434 6.406 33.957 2.434 6.406 2.045 5.383 39.340 2.045 5.383 1.843 4.851 44.191 1.843 4.851 1.594 4.194 48.385 1.594 4.194 1.407 3.704 52.088 1.407 3.704 1.285 3.381 55.469 1.285 3.381 1.214 3.196 58.665 1.214 3.196 3.33 2.87 33.957 2.73 39.340 2.62 44.191 27.551 2.53 2.53 52.088 2.38 55.469 2.27 58.665 48.385 8.777 8.777 7.572 16.349 7.193 23.542 6.913 30.455 6.676 37.131 6.657 43.788 6.275 50.064 5.978 56.042 20 1.028 2.705 61.370 1.028 10 969 2.549 63.920 2.705 61.370 2.02 5.329 61.370 Extraction Method: Principal Component Analysis Source: The author's calculation from survey data 4.4.3 Regression analysis and assumption test Upon exploratory factor analysis, factors were drawn out, corresponding to environment variables (2 factors generated for the political environment variables alone: “Political environment demonstrating the impact of the Government ’s policies; “Political environment demonstrates the Government’s transparency, less corruption and bribe) and enterprise’s business variables: X1: Economic environment X2: Global environment X3: Political environment (political policies) X4: Socio-economic environment X5: Legal environment X6: Technology environment X7: Political environment (transparency) X8: Ecological environment EFF: Tourism enterprise's business The regression analysis results were shown as follows: Table 4.9 Regression analysis results Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig 140,051 000 B Std Error Beta (Constant) 3,720 027 X1 072 027 128 2,690 008 X2 116 027 208 4,376 000 X3 132 027 236 4,952 000 X4 166 027 296 6,221 000 X5 -.007 027 -.013 -.274 784 X6 063 027 113 2,380 018 21 X7 074 027 132 2,770 006 X8 150 027 268 5,625 000 a Dependent Variable: EFF The regression analysis results unveiled that the variables with the highest impact on tourism enterprises’ performance included X4 (Socio-economic environment), X8 (Ecological environment), X3 (Political environment 1), X2 (Global environment) This result was used as the basis to set up the solutions to perfect the business environment for tourism enterprises Table 4.10 Summary of conclusion on research assumptions Mark of With statistic Conclusions on respective Assumptions meanings at research regression 50% assumptions coefficient H1 + Yes Accept H2 + Yes Accept H3 + Yes Accept H4 + Yes Accept H5 - No Reject H6 + Yes Accept H7 + Yes Accept Assumed that H5 (X5 variable) due to sig = 0.784 > 5%, therefore it was rejected It is possible to conclude that the legal environment has impact on tourism enterprises’ business performance Table 4.11 Anova analysis ANOVAa Model Sum of Squares df Mean Square F Sig Regression 30,022 3,753 16,833 000b Residual 68,442 307 223 Total 98,464 315 a Dependent Variable: EFF b Predictors: (Constant), X8, X7, X6, X5, X4, X3, X2, X1 Results in ANOVA analysis table with statistics F = 16.833 and value Sig = 0.000 < 5%, all variables in the regression model have the same impact on 22 dependent variable (Gujarati, D N., & Porter, D C , 2009) Moreover, variables in the model explained 66.4% change in dependent variables According to the standards on model appropriateness proposed by (Gujarati & Porter 2009), the research model was assumed to be extremely suitable for explanation of dependent variable behavior Above regression analysis specified factors (considered to be variables) used to explain 66.4% fluctuation of dependent variables (due to R2 = 0.664) This implied that the model’s explanation level or the model appropriateness is high This fact was shown in table below Table 4.12 Model summary Model R R Square Adjusted R Square Std Error of the Estimate 815a 664 643 47216322 a Predictors: (Constant), X8, X7, X6, X5, X4, X3, X2, X1 Therefore, 6/7 assumptions set forth in Chapter were accepted; only assumption was rejected Moreover, due to positive mark of regression coefficient, the business performance of tourism enterprises may be successfully improved if the business environment factors are completed 4.4.4 Discussion of main findings According to the regression model results, some conclusions on assumptions are drawn out as follows: First, Stable economic factor actively impacts on tourism enterprise ’s business activities This result is well matched with the main findings of Griffin (1997) Second, Stable political factor actively impacts on tourism enterprise ’s business activities Third, Good technology environment factor actively impacts on tourism enterprise’s business activities This result is well matched with the main findings of Adeoye (2012) Forth, Good socio-economic environment factor actively impacts on tourism enterprise’s business activities Fifth, No reliable backgrounds are available to conclude that transparent and clear legal environment has positive impact on tourism enterprise's business 23 performance (The assumption is not accepted) Sixth, Good international environment factor actively impacts on tourism enterprise’s business activities According to the regression results, such factor's significant impact is found on the tourism enterprise’s activities Seventh, good ecological environment factor actively impacts on tourism enterprise’s business activities Ecological environment factor is found with sharp impact on tourism enterprise’s business activities Conclusions: Through the analysis of Vietnam tourism enterprise's business environment from primary and secondary data sources with various collected data processing methods, it is realized that: The good international environment and ecological environment actively and significantly affects the tourism enterprise's business Good and stable economic environment, political environment, technology environment actively and significantly affect the technology environment's business activities Moreover, no basis is found to conclude that the stable legal environment actively affects the tourism enterprises’ business even though the excessive and unplanned tourism exploitation as well as the State management measures are recorded as the weaknesses of available Vietnamese tourism enterprises’ business environment Furthermore, the shortcomings on disqualified tourism human resources, poor marketing as well as infrastructure and service physical facilities for the tourism development must be specially concerned This is a reliable basis for the author to recommend the solutions described in Chapter herein CHAPTER SOLUTIONS TO PERFECT THE BUSINESS ENVIRONMENT OF VIETNAMESE TOURISM ENTERPRISES 5.1 General evaluation on viewpoints and objectives to develop Vietnam tourism industry 5.1.1 Viewpoints and objectives to develop Vietnam tourism industry The Decision No 2473/QD-TTg on approving “Vietnam tourism development strategy to 2020 with vision to 2030 ” was approved on 30 December 2011 by the Deputy Prime Minister Nguyen Thien Nhan The strategy specifies the 24 main contents, relating to viewpoints, objectives, solutions and specific action plan 5.1.2 Analysis of strength, weakness, opportunities and challenges for Vietnam tourism enterprise STRENGTH WEAKNESS Diversified tourism resources Poor management of tourism resource Abundant resources for tourism development operation Tourism development policies focused by the State infrastructure and physical facilities Long-year experience in tourism development Poor and disqualified technical Insufficiency of high quality tourism human resources Poor tourism marketing Insufficient capital and technology Poor State management on tourism OPPORTUNITIES THREATS Intensive economic integration Knowledge-based development trend economy Sharp development of the global tourism Favorable geographical position Increasingly cut-throat international competition Climate change Ever-changing world tourism demand Unstable politics and economics in the partnership markets countries and traditional 5.2 Solution for perfecting business environment for Vietnamese tourism enterprises in globalization process 5.2.1 Solution group to perfect the global environment 5.2.1.1 Focus on improving international competitiveness to plan and launch the development of tourism resources and products 5.2.1.2 Improve the awareness on tourism globalization 5.2.1.3 Enhance the tourism management connection with the world 25 5.2.1.4 Continue launching open policies 5.2.2 Solution group on ecological environment and tourism environment protection 5.2.3 Solution group to perfect socio-economic environment First, acquire the cultural integration by selecting values from other cultures Second, prevent and fight against intrusion of hazardous cultural products Third, introduce Vietnam history, country, people and culture to the world 5.2.4 Solution group on application of science and technology Improve the quality of science and technology in Tourism Enhance application of science and technology for tourism operation 5.2.5 Solution group to perfect the legal environment - Amend the Law on Tourism to be well matched with the practice on tourism development and international commitments - Review and strengthen the legal documents on tourism 5.2.6 Solution group on human resources 26 CONCLUSIONS Over 30 past years witnessed the great renovation of enterprises in general and tourism enterprises in particular Such enterprises have been restructured and basically transformed to business accounting in the market economy under the State management A wide range of tourism enterprises have successfully overcome the difficulties, challenges and stabilized and obtained profit However, the others’ competitiveness is lost upon transformation to the new mechanisms with new business environment It is subject to suspension, dissolution, merger or bankruptcy This condition is resulted by an ocean of impacts However, it is possible to assume that Vietnamese tourism enterprises have been significantly affected by the change in business environment As far as we concerned, business environment is essential for enterprises to survive and develop However, business environment is not only embedded with advantages, creating business opportunities, stimulating the enterprise ’s business development, but also factors preventing, restricting the enterprise development, resulting in challenges for the enterprises That is why the question for us is to ceaselessly improve the business environment, advantageous for the enterprises in general and tourism enterprises in particular This issue is received with the great concern on study from the ministries and industries at all levels to work out the orientations and solutions to facilitate perfecting the business environment for the Vietnamese tourism enterprises nowadays According to the previous studies, the study has systematized the theories on business environment, designed the model on analyzing business environment component impacts on tourism business performance, and analyzed the existing conditions of Vietnamese tourism enterprise’s business environment, releasing some solutions to successfully perfect the future business environment for Vietnamese tourism enterprises ... - Verify the impact of business environment on business performance of Vietnamese tourism enterprises - Propose the solutions to perfect the business environment of Vietnamese tourism enterprises. .. perfect the business environment of Vietnamese tourism enterprises? Subjects and scope of the research 4.1 Subjects of research The study’s subjects cover business environment of tourism enterprises. .. evaluating the impacts of business environment factors to the tourism enterprise's performance The study is applied for the Vietnam tourism enterprises CHAPTER LITERATURE REVIEW ON BUSINESS ENVIRONMENT