Impact of social capital, entrepreneurship and resilience capability on performance of state capital enterprises in vietnam

the dissertation was completed at: HO CHI MINH CITY OPEN UNIVERSITY Academic advisor : Assoc prof Nguyen Thuan, PhD Reviewer 1:………………………………… Reviewer 2:………………………………… This dissertation will be presented at the dissertation committee at Ho Chi Minh City Open University Ho Chi Minh City, …………………………… , 2020 This dissertation can be found at Ho Chi Minh City Open University library i ABSTRACT After decades of establishment and development (1954 in the North and 1975 in the South), state-owned enterprises (SOEs) in Vietnam have contributed to the overall stability of the economy; However, SOEs have exposed too many weaknesses from capital management to the use of other physical resources such as land and factories The Government of Vietnam is making efforts to rearrange SOEs; There are many studies on restructuring and equitization of SOEs to form State-capital enterprises (SCEs); However, there is little research on combining three intangible resources such as social capital, entrepreneurship and resilience capability SCE is an enterprise in which the State holds less than 100% of charter capital or shares, the contributed capital may not dominate; organized and operated in the form of a jointstock company or a two-member limited liability company SCEs have the advantage of tangible resources but few exploitation of intangible resources; the use of intangible capital as social capital to indirectly increase tangible resources; to support, coordinate and share; and applying the "entrepreneurship" solution to be proactive, innovative, creative and willing to take risks; as well as using the ii "resilience capability" to respond positively, quickly and flexibly in allocating resources appropriately to maintain and promote sustainable, high-efficiency operations of SCEs is still limited No studies have looked at the aggregate resources (social capital combined with entrepreneurship and resilience capability) that have mutual influence and impact on the performance of SCEs in the Vietnamese context This study presents a structural model describing (i) the impact of social capital, entrepreneurship and resilience capability on SCE performance, (ii) social capital has indirectly affecting on SCE performance through entrepreneurship and resilience capability, and (iii) entrepreneurship has indirectly affecting on SCE performance through resilience capability After adjusting the scales through in-depth interviews with 10 experts; conduct quantitative research with sample of 568 SCEs in operation (overall sampling) to test Cronbach’s Alpha reliability, EFA, CFA and SEM; the research results showed that: - Social capital, entrepreneurship and resilience capability had a positive impact on the performance of SCEs (estimates: 0.127; 0.298 and 0.329), - Social capital indirectly positively affected on SCE performance through entrepreneurship (estimate: 0.176 = iii 0.591*0.298) and resilience capability (estimate: 0.070 = 0.214*0.329), - Entrepreneurship indirectly positively affected on SCE performance through resilience capability (estimate: 0.018=0.055*0.329), - Resilience capability had a strongest positive impact on the performance of SCEs (estimates: 0.329), entrepreneurship had a smallest positive impact on resilience capability (estimates: 0.055) iv TABLE OF CONTENT CHAPTER INTRODUCTION 1.1 Rationale of the study 1.2 Research objectives 1.3 Subjects of study and Research scope 1.4 Significance of the study 1.5 Dissertation structure CHAPTER LITERATURE REVIEW 2.1 Corporate social capital 2.2 Entrepreneurship 2.3 Resilience capability 10 2.4 performance 12 2.5 Relevant background theories 13 2.6 Develop hypotheses and model 21 CHAPTER RESEARCH METHODOLOGY 31 3.1 Research process 31 Managerial implications 32 3.2 Developing scale 33 3.3 Quantitative research 34 CHAPTER RESEARCH RESULTS 37 4.1 Data analysis 37 4.2 Research results 38 4.3 Discussion 51 CHAPTER IMPLICATIONS AND LIMITATIONS 60 5.1 Academic contributions of the research 60 5.2 Managerial implications 60 5.3 Limitations and future research 62 CHAPTER INTRODUCTION This chapter presents the following main contents in turn: (1) rationale of the study, (2) research objectives, (3) research subjects and scope, (4) research significance, and (5) the structure of the dissertation 1.1 Rationale of the study A State Capital Enterprise (SCE) is an enterprise in which the State does not hold the majority of charter capital or shares It is organized and operated in the form of a joint-stock company or a two-member limited liability company SCEs have been trending in Vietnam in recent years, in light of the mission of restructuring State-Owned Enterprises (SOEs) Though most of the SOEs report pre-tax profits, these mainly originate from favorable treatment granted by the government A variety of studies on this topic have been conducted However, these researches have only focused on favorable tangible resources while ignoring intangible ones Social capital, an intangible resource, has received acceptance from the research community for its role in performance at all levels from micro, meso, and macro Social capital can increase tangible resources through support, coordination, share, and cooperation for mutual benefit (Helliwell & Putnam, 1995; Putnam, 1993); maintaining and promoting the sustainable operation of the corporation with the leverage of entrepreneurship (Covin & Slevin, 1991); its impact on the resilience capability to rationally respond, adjust, and allocate resources (Weick, Sutcliffe, & Obstfeld, 2008) Social capital has proven to be a special resource that can grow with time It was studied in Vietnam during the 2000s (Huynh, Nguyen, Nguyen, & Nguyen, 2018) These previous researches have shown the benefits of social capital to enterprises, in particular, promoting innovation (Jiménez-Jiménez, Martínez-Costa, & Sanz-Valle, 2014; Landry, Amara, & Lamari, 2002), enhancing entrepreneurship, and raising the resilience capability (Aldrich & Meyer, 2015) It is useful for handling difficult situations; mitigating risks (Casey, 2002); and promoting entrepreneurship (Sambrook & Roberts, 2005) These factors have contributed to favorable operating results and competitive advantages for businesses Resilience capability also has had a positive relationship for performance periods of environmental turbulence The aggregate of these intangible resources, specifically social capital, entrepreneurship, and resilience capability are expected to have mutual influence and impact on the performance of SCEs in Vietnam This study will design a structural equation model to demonstrate (i) the impact of social capital, entrepreneurship, and resilience capability on SCEs performance and (ii) the mechanism through which social capital affects performance through entrepreneurship and the resilience capability Through a review of previous researches related to four concepts of social capital, entrepreneurship, resilience capability and performance, the writer found that there are many separate studies on each factor such as social capital, entrepreneurship or resilience capability has an impact on performance, however, no research has been found on the performance of SCEs in Vietnam improved due to the direct simultaneous impact of social capital, entrepreneurship, and resilience capability; as well as the indirect impact of social capital through entrepreneurship, resilience capability; and the indirect impact of entrepreneurship through resilience capability That is the reason that the writer chooses to the dissertation: “Impact of Social Capital, Entrepreneurship and Resilience capability on performance of Enterprises in Vietnam” State-capital 1.2 Research objectives − Study on simultaneous direct effects of social capital, entrepreneurship, resilience capability to the performance of SCEs in Vietnam; − Study the indirect effects of social capital through entrepreneurship and resilience capability to the performance of SCEs in Vietnam; − Study the indirect effects of entrepreneurship through resilience capability to the performance of SCEs in Vietnam; − The implications for administrators to improving the performance of SCEs in Vietnam 1.3 Subjects of study and Research scope - Subjects of study: The dissertation will focus on research (1) the direct simultaneous impact of social capital, entrepreneurship and resilience capability on the performance of SCEs in Vietnam, (2) indirect impacts of social capital through entrepreneurship and resilience capability to the performance of SCEs in Vietnam, and (3) the indirect effect of entrepreneurship through resilience capability to the performance of SCEs in Vietnam - Research scope: SCEs operating in Vietnam as of August 2019 Several tests were conducted to evaluate the model fitness The SEM result of the standardized structure model showed that the theoretical model was suitable for survey data (Chisquared / df = 1,831 ≤ 3; 0.8 ≤ GFI = 0.848 ≤ 1; 0.9 ≤ TLI = 0.923 ≤ 1; 0.9 ≤ CFI = 0.927 ≤ 1; RMSEA index = 0.038 Entrepreneurs hip > Social capital > Entrepreneurs hip > Social capital > Resilience capability > Estima te SE (1r)/S E 0.03 12.0 Pvalu e 0.00 Entrepreneurs hip 0.591 Resilience capability 0.055 0.04 22.5 0.00 2 Resilience capability 0.214 0.04 19.1 0.00 performance 0.298 0.04 17.5 0.00 0 performance 0.127 0.04 20.9 0.00 performance 0.329 0.04 16.9 0.00 0 49 Figure 4.1 SEM analysis model 50 4.3 Discussion - Regarding impact of social capital on performance of SCEs in Vietnam Social capital has a direct impact on performance with the coefficient of: 0.127, and has an indirect impact on performance through entrepreneurship with the coefficient of: 0.176> 0.127, has an indirect impact on performance through resilience capability with coefficient of: 0.018