Determinants for productivity improvement in hotel business the case of danang, vietnam

VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY TRAN TRONG VU LONG DETERMINANTS FOR PRODUCTIVITY IMPROVEMENT IN HOTEL BUSINESS: THE CASE OF DANANG, VIETNAM MASTER’S THESIS VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY TRAN TRONG VU LONG DETERMINANTS FOR PRODUCTIVITY IMPROVEMENT IN HOTEL BUSINESS: THE CASE OF DANANG, VIETNAM MAJOR: BUSINESS ADMINISTRATION CODE: 8340101.01 RESEARCH SUPERVISORS: Associate Professor Phan Chi Anh Associate Professor Kodo Yokozawa Hanoi – May, 2021 ACKNOWLEDGEMENT First and foremost, I would like to express my sincere thanks to my parents, my sister Tran Phuong Ly who always support me in any situation regardless of successful ones or difficult ones Moreover, the successful completion of this thesis might never be possible in time without the help of some persons whose inspiration and suggestion made it happen I want to thank my supervisor, Assoc Prof Phan Chi Anh and Assoc Prof Kodo Yokozawa, the supervision, support, and advice that they gave truly help the progression and smoothness of the program Thirdly, I would also like to give my gratefulness to faculty members and faculty staff of the Program of Business Administration in particular and the Vietnam Japan University and Yokohama National University in general Without these sources of support and encouragement, I would never be able to fully complete my study as a whole and this thesis specifically Last but not least, my genuine appreciation goes to all of my dear friends who give me enormous support and references Their unprecedented, countless, and undoubtedly helpful contributions have been a solid stepping-stone to all of my accomplishments Sincerely, Tran Trong Vu Long ABSTRACT Hotel industry in Vietnam has been explored and dramatically developed before the COVID-19 pandemic However, the hotel industry in Vietnam still has been existed obstacles and problems As a result, the hotel industry in Vietnam has lower productivity compared with other countries in South East Asia The current situation leads to the necessity of improving productivity in the hotel industry This research focuses on the determinants that influence productivity improvement in the hotel business in Danang, Vietnam, a famous tourist destination in Vietnam The data for this study was gathered using a pencil – paper – survey with the responses of 120 hotel managers or manager's representatives in Danang city Based on previous researches that are related to productivity improvement, a model is adapted to test the direct and indirect impact of waste reduction, process management, innovation, technology application, customer focus, employee satisfaction, customer satisfaction on productivity improvement Data were analyzed using linear regression and path analysis with the support of statistical software (free trial version of SPSS 16 and AMOS 24) The findings suggest that only Waste Reduction, Process Management, Innovation, and Employee Satisfaction have an impact on the dependent variable – Productivity Improvement Regarding practical implications, this study proposes several recommendations to improve productivity which helps to improve hotel competition and advantages Keywords: Hotel industry, productivity, productivity improvement TABLE OF CONTENT LIST OF TABLE i LIST OF FIGURE .ii LIST OF ABBREVIATION iii CHAPTER 1: INTRODUCTION 1.1 Background and necessity of the research 1.1.1 Why improving productivity is important in Vietnam context? 1.1.2 Why productivity improvement in hotel industry of Vietnam is necessary? 1.1.3 Research about productivity improvement in hotel business 1.2 Aims of research 1.2.1 Common purposes 1.2.2 Specific purposes 1.3 Research questions 1.4 Research scope 1.5 Process and methodology 1.5.1 The research process 1.5.2 Methodology CHAPTER 2: LITERATURE REVIEW 2.1 Concepts of productivity 2.1.1 Productivity concepts and definitions 2.1.2 Productivity measurement 2.1.3 Productivity and determinants in manufacturing 10 2.2 The difference between productivity in manufacturing sector and service sector 12 2.3 Productivity in hotel sector 13 2.3.1 Productivity concept in the hotel sector 13 2.3.2 Productivity measures in the hotel sector 14 2.3.3 Determinants for productivity in the hotel sector 15 2.4 Productivity improvement 16 2.4.1 Productivity improvement in hotel sector 16 2.4.2 Determinant for productivity improvement in hotel sector 17 2.5 Research Gap and Research Questions 19 2.6 Hypothesis development 25 2.6.1 Waste reduction and productivity improvement 27 2.6.2 Process management and productivity improvement 28 2.6.3 Innovation and productivity improvement 29 2.6.4 Technology application and productivity improvement 30 2.6.5 Customer focus and productivity improvement 30 2.6.6 Employee satisfaction and productivity improvement 31 2.6.7 Customer satisfaction and productivity improvement 31 2.7 Final proposed research model 33 CHAPTER 3: RESEARCH METHODOLOGY 34 3.1 Sampling and data collection 34 3.1.1 Sample of research 34 3.1.2 Questionnaire design 34 3.1.3 Data collection 35 3.2 Analyzing data plan 39 3.2.1 Scale evaluation 39 3.2.2 Factor analysis 40 3.2.3 Correlation analysis 40 3.2.4 Regression analysis 40 3.2.5 Path analysis 41 CHAPTER 4: DATA ANALYSIS 42 4.1 Data description 42 4.2 Measurement test 42 4.2.1 Reliability test 42 4.2.2 Validity Test 43 4.3 Hypothesis testing 45 4.3.1 Correlation analysis 46 4.3.2 Regression analysis 47 4.3.3 Path Analysis 49 CHAPTER 5: RESULT DISCUSSION 52 5.1 Result discussion and implications 52 5.1.1 Result discussions 52 5.1.2 Research implications 55 5.2 Limitations and future research 56 Reference 58 LIST OF TABLE Table 2.1: Summary of empirical study about determinants for productivity improvement in service sector…………………………… Table 3.1: Measuring items for survey………………………………… Table 4.1: Characteristics of the research sample…………………… Table 4.2: Reliability test……………………………………………… Table 4.3: Factor analytical results: eigenvalue value (% variance)… Table 4.4: Pearson's Correlation Coefficient………………………… Table 4.5: Regression analysis results………………………………… Table 4.6: Decompositions of Path Analysis………………………… Table 4.7: Model Fit Summary……………………………………… Table 4.8: Hypothesis tested results…………………………………… 19 36 42 43 44 46 48 50 50 51 i LIST OF FIGURE Figure 1.1: Productivity of Vietnam and some other countries In 2018………………………………………………………………… Figure 2.1: Proposed research model………………………………… 33 Figure 4.1: Model Summary………………………………………… 49 ii LIST OF ABBREVIATION APO: Asian Productivity Organization GDP: Gross domestic product OECD: Organization for Economic Co-operation and Development WR: Waste Reduction PM: Process Management In: Innovation TA: Technology Application CF: Customer Focus ES: Employee Satisfaction CS: Customer Satisfaction PI: Productivity Improvement iii Gurau, G., & Ranchod, A (2002) Measuring customer satisfaction: A platform for calculating, predicting and increasing customer 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General information I1 Hotel’s name: ……………………………………………………………… I2 Hotel’s address: ……………………………………………………………… I3 Phone number: ……………………… I4 Email: ………………………… I5 Years of Operation: ………………………………………………………… I6 Information of the respondent Name: ………………………………………… Position: …………………… Phone number: ……………………………… Email:………………………… Hotel’s information I7 Types of ownership: State ownership Private ownership Foreign-invested I8 Hotel’s star rank: Less than stars stars stars stars 69 I6 Years of Operation: Less than years From to 10 years More than 10 years 3, Productivity improvement survey Please rate the improvement of productivity of the hotel in the last years (2017-2019) (Circle one appropriate code according to the level of consent from to 5, level 1: Totally disagree, level 5: Totally agree) N o Question There is a trend in increasing hotel productivity over the financial years The hotel's average revenue per employee has grown significantly The hotel's average profit per employee has grown significantly The hotel's business market share has been significantly expanded The hotel's competitiveness is significantly enhanced The rate of wasting investment capital per employee in business is significantly reduced The efficiency of using input materials has increased significantly Totally disagree ➔ Totally agree 1 1 2 2 3 3 4 4 5 5 5 4, It is assumed that the following mediator factors have the potential to positively impact on productivity Please indicate your level of agreement on the following statements: (Each question should have a code that is appropriate to the level of consent from to 5, level 1: Totally disagree, level : Totally agree) 10 11 12 13 14 15 16 17 Employee satisfaction Employee satisfied with the nature of their job within hotel Employee satisfied with the salary of hotel Employee satisfied with salary increase policy of hotel Employee satisfied with bonus policy of hotel Employee satisfied with the welfare regimes of hotel Employee satisfied with the promotion opportunities within hotel Employee satisfied with the supervision of my supervisors within hotel Employee satisfied with their relationships with fellow workers within hotel Employee satisfaction increases year by year The rate of employees changing jobs, quitting their jobs does not affect business activities Customer satisfaction 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 5 5 70 18 19 20 21 Customers satisfaction with hotel’s products and services The level of customer complaints has decreased significantly in recent years The level of customers with positive feedback has increased significantly in recent years The percentage of customers retention has increased in recent years 5 5 Please rate measures to improve labor productivity at the hotel (Circle one appropriate number for each question according to the level of consent from 15, level 1: Totally disagree, level 5: Totally agree) 22 Waste Reduction Hotel actively reviews functions, tasks, job descriptions, and assigns jobs to access lean organizational and human resources Hotel actively optimizes management and business processes to reduce waste in all business processes Hotel actively implements strict service quality controls to eliminate waste caused by poor service quality Hotel actively exercises control over input purchases & supplies to eliminate waste in inventory The hotel actively works to save and prevent wastefulness of energy, fuel and raw materials The hotel actively practices reduce waste in business expansion and investment Customer Focus 5 5 5 28 Satisfying our customers, and meeting their expectations, is the most important thing we Hotel implemented several measures to improve the process, renovate 29 equipment, employee training,… to improve customer satisfaction Hotels actively market research and analyze customer data to better 30 understand customer needs and expectations Processes and business standards, the hotel employee job KPIs are 31 built on the basis of market research and customer information Feedbacks and complaints from customers about the service are 32 always handled quickly, promptly and accurately to satisfy customers Our employee training programs are designed to develop the skills 33 required for acquiring and deepening customer relationships Process Management 5 5 5 34 Hotel staffs are trained in skills to enhance the customer experience 35 Hotels build a unique process for customer experience 36 Hotel offers flexible booking policies for customers Hotel answers questions and gives full information when contacting 37 customers Interaction and communication activities between employees and 38 customers are done professionally, accurately, friendly, and satisfy customers 4 5 5 23 24 25 26 27 71 Internal interaction activities between employees in front of customers professionally and effectively Internal interaction activities between employees in the absence of 40 professional and effective customers 41 Hotel offers personalized products and services for each customer 42 Hotel’s facilities to meet the needs of customers 39 43 Hotel focuses on after sale services 5 5 5 5 5 5 1 1 1 4 4 4 5 5 5 Technology Application 44 45 46 47 48 49 50 51 52 53 54 55 56 Hotels are always actively looking for technologies to apply in business activities to better serve customers Hotels have a developed application type Customer Relationship Management The hotel's website supports multiple functions (booking, payment, information )in providing services to customers Hotels use information systems dedicated to bookings (TripADvisor, Agoda, Hotel.com, Booking, etc) Extension of the hotel's products and services (Wi-Fi, Lan Network video game consoles and/or electronic books in the rooms…) Hotels store and analyze customer information to learn customer behavior, forecast customer needs The hotel is oriented towards the 4.0 hotel model (automation applications, Internet of Things, smart hotels) Innovation Hotels have introduced many new products/services onto the market Hotels develop the environment-friendly products/services Hotels increase the variety of products/services Hotels improve the qualities of products/services Hotels improve the flexibility in products/services delivery Hotels improve the speed of product / service delivery Hotels improves the efficiency and speed of product / service delivery 57 for urgent needs 2 2 2 3 3 3 This is the end of the survey, thank you so much for your participation! 72 KHẢO SÁT VỀ CÁC NHÂN TỐT QUYẾT ĐỊNH ĐẾN CẢI THIỆN NĂNG SUẤT TRONG KHÁCH SẠN Xin chào! Tôi Trần Trọng Vũ Long, học viên chương trình Thạc sĩ Quản trị Kinh doanh, Đại học Việt Nhật (VJU) Để thực luận án: “Các yếu tố định đến việc nâng cao suất kinh doanh khách sạn: trường hợp Đà Nẵng, Việt Nam”, mong anh / chị trả lời khảo sát Tất thông tin anh/chị cung cấp bảng câu hỏi sử dụng cho mục đích nghiên cứu hồn tồn bảo mật Cảm ơn rât nhiều! Thơng tin chung I1 Tên khách sạn: I2 Địa khách sạn: I3 Điện thoại: I4 Email: I5 Số năm hoạt động: I6 Thông tin người trả lời: Họ tên: .Vị trí/chức vụ: Điện thoại: Email: Thơng tin khách sạn I7 Loại hình sở hữu: Nhà nước Tư nhân Có vốn đầu tư nước I8 Hạng khách sạn:  Khách sạn  Khách sạn  Khách sạn I9 Thời gian hoạt động khách sạn: Dưới năm Từ năm đến 10 năm Hơn 10 năm Vui lòng đánh mức độ cải thiện suất lao động khách sạn 03 năm gần (2017-2019) (Mỗi dòng khoanh mã số phù hợp theo mức độ đồng ý từ - 5, mức 1: Hồn tồn khơng đồng ý, mức 5: Hoàn toàn đồng ý) 73 T T Nội dung Năng suất lao động liên tục tăng trưởng qua năm tài Doanh thu bình qn số lao động khách sạn tăng trưởng đáng kể Lợi nhuận bình quân số lao động khách sạn tăng trưởng đáng kể Thị phần kinh doanh khách sạn mở rộng đáng kể Năng lực cạnh tranh khách sạn nâng cao đáng kể Tỷ lệ lãng phí nguồn vốn đầu tư kinh doanh giảm đáng kể Hiệu suất sử dụng nguyên liệu đầu vào tăng lên đáng kể Hoàn tồn khơng đồng ý ➔ Hồn tồn đồng ý 5 1 2 3 4 5 5 Mặc định nhân tố trung gian có khả tác động tích cực đến suất lao động Vui lịng cho biết mức độ đồng ý Ông/Bà nhận định đây: (Mỗi câu hỏi khoanh mã số phù hợp theo mức độ đồng ý từ - 5, mức 1: Hồn tồn khơng đồng ý, mức 5: Hoàn toàn đồng ý) 10 11 12 13 14 15 16 17 18 19 20 21 Sự hài lòng người lao động Người lao động hài lòng với cơng việc KS Người lao động hài lịng với tiền lương phụ cấp KS Người lao động hài lịng với sách tăng lương KS Người lao động hài lịng với sách thưởng KS Người lao động hài lòng với chế độ phúc lợi1 KS Người lao động hài lòng với chế độ thăng tiến KS Người lao động hài lòng với mối quan hệ với lãnh đạo KS Người lao động hài lòng với mối quan hệ với đồng nghiệp Sự hài lịng cơng việc người lao động tăng theo năm Tỷ lệ người lao động chuyển việc, bỏ việc không làm ảnh hưởng đến hoạt động kinh doanh KS Sự hài lòng khách hàng Khách hàng hài lòng với sản phẩm dịch vụ KS Tỷ lệ khách hàng khiếu nại giảm đáng kể năm vừa qua Tỷ lệ khách hàng có phản hồi tích cực tăng đáng kể năm vừa qua Tỷ lệ khách hàng quay lại mua sản phẩm dịch vụ tăng lên năm vừa qua 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 5 5 5 Vui lòng đánh giá biện pháp nâng cao suất lao động khách sạn (Mỗi câu hỏi khoanh mã số phù hợp theo mức độ đồng ý từ - 5, mức 1: Hoàn tồn khơng đồng ý, mức 5: Hồn tồn đồng ý) Chế độ phúc lợi bao gồm chế độ chăm sóc sức khỏe, du lịch nghỉ dưỡng, đào tạo người lao động, hỗ trợ chi phí lại lễ tết, hỗ trợ gia đình người lao động chịu ảnh hưởng từ đau ốm, thiên tai,… 74 22 23 24 25 26 27 Giảm lãng phí hoạt động kinh doanh Khách sạn tích cực thực rà sốt chức nhiệm vụ, mơ tả cơng việc, bố trí cơng việc để tinh gọn máy tổ chức nhân lực Khách sạn tích cực thực tối ưu hóa qui trình quản lý nghiệp vụ để cắt giảm lãng phí q trình kinh doanh Khách sạn tích cực thực kiểm sốt chất lượng dịch vụ nghiêm ngặt để loại bỏ lãng phí gây chất lượng dịch vụ Khách sạn tích cực thực việc kiểm soát tối ưu việc mua hàng & cung ứng đầu vào nhằm loại bỏ lãng phí tồn trữ Khách sạn tích cực thực việc việc tiết kiệm & chống lãng phí lượng, nhiên liệu, nguyên liệu Khách sạn tích cực thực việc tiết kiệm chống lãng phí đầu tư mở rộng kinh doanh Phát triển tổ chức định hướng vào khách hàng Sự hài lòng khách hàng xác định mục 28 tiêu quan trọng khách sạn 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Khách sạn thực nhiều biện pháp cải tiến qui trình, đổi trang thiết bị, đào tạo nhân viên… nhằm nâng cao hài lịng khách hàng Khách sạn tích cực nghiên cứu thị trường phân tích liệu khách hàng để hiểu tốt nhu cầu mong đợi khách hàng Các quy trình tiêu chuẩn nghiệp vụ, KPI công việc nhân viên khách sạn xây dựng dựa thông tin nghiên cứu thị trường khách hàng Các phản hồi & khiếu nại khách hàng dịch vụ xử lý nhanh chóng, kịp thời, xác để làm hài lịng khách hàng Khách sạn tích cực đào tạo nhân viên chất lượng dịch vụ, kỹ chăm sóc khách hàng, kỹ giao tiếp khách hàng… Quản trị trình khách sạn Người lao động khách sạn đào tạo kỹ nâng cao trải nghiệm khách hàng Khách sạn xây dựng trình riêng biệt trải nghiệm khách hàng Khách sạn cung cấp sách đặt phịng linh hoạt cho khách hàng Khách sạn giải đáp thắc mắc tư vấn đầy đủ thông tin khách hàng liên hệ Các hoạt động tương tác giao tiếp nhân viên khách hàng thực chuyên nghiệp, xác, thân thiện, làm hài lịng khách hàng Các hoạt động tương tác nội nhân viên trước mặt khách hàng chuyên nghiệp, hiệu Các hoạt động tương tác nội nhân viên khơng có mặt khác hàng chuyên nghiệp, hiệu Khách sạn cung cấp sản phẩm dịch vụ mang tính cá nhân hóa theo đối tượng khách hàng Cơ sở vật chất đáp ứng nhu cầu khách hàng 5 5 5 5 5 5 5 5 5 5 75 43 Khách sạn trọng cơng tác chăm sóc khách hàng sau bán 5 5 5 5 5 5 5 Ứng dụng công nghệ 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Khách sạn ln tích cực tìm kiếm cơng nghệ để ứng dụng vào hoạt động kinh doanh nhằm phục vụ tốt khách hàng Khách sạn sử dụng phần mềm quản lý quan hệ khách hàng CRM để nâng cao chất lượng dịch vụ Website khách sạn hỗ trợ đa chức (đặt phòng, trả tiền, cung cấp thông tin…) cung cấp dịch vụ tới khách hàng Khách sạn ln có mặt ứng dụng đặt chỗ trước TripADvisor, Agoda, Hotel.com, Booking … Hệ thống WIFI mạng nội LAN khách sạn hoạt động tốt thường xuyên nâng cấp Khách sạn lưu trữ phân tích thơng tin khách hàng để tìm hiểu hành vi khách hàng, dự báo nhu cầu khách hàng Khách sạn hướng đến mô hình khách sạn 4.0 (ứng dụng tự động hóa, Internet vạn vật, khách sạn thông minh) Đổi sáng tạo Khách sạn cung cấp nhiều sản phẩm/dịch vụ lần có mặt thị trường Khách sạn phát triển sản phẩm/ dịch vụ thân thiện với môi trường Khách sạn mở rộng danh mục sản phẩm/dịch vụ cung cấp cho khách hàng Khách sạn cải thiện chất lượng sản phẩm/dịch vụ Khách sạn cải thiện tính linh hoạt cung ứng sản phẩm/ dịch vụ Khách sạn cải thiện tốc độ cung ứng sản phẩm/ dịch vụ Khách sạn cải thiện hiệu tốc độ cung ứng sản phẩm/ dịch vụ nhu cầu khẩn cấp 76 ... leads to the necessity of improving productivity in the hotel industry This research focuses on the determinants that influence productivity improvement in the hotel business in Danang, Vietnam, ... purposes With the title ? ?DETERMINANTS FOR PRODUCTIVITY IMPROVEMENT IN HOTEL BUSINESS: THE CASE OF DANANG, VIETNAM? ??, the purpose of this research is to determine the influence of the variables:... productivity in Vietnamese, the author chooses the topic: ? ?DETERMINANTS FOR PRODUCTIVITY IMPROVEMENT IN HOTEL BUSINESS: THE CASE OF DANANG, VIETNAM? ?? as thesis research 1.2 Aims of research 1.2.1