Business registration service quality at the department of planning and investment in hanoi

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL BUSINESS SCHOOL BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI Bachelor of Business Administration in English[.]

NATIONAL ECONOMIC UNIVERSITY

Firstly, I would like to express my sincere gratitude to my supervisor, Mr.Pham

Sy Long for the mentoring and continuous support of my thesis, for his patience,motivation, and immense knowledge His guidance helped me in all the time ofresearch and writing of this thesis I could not have imagined having a betteradvisor and mentor for my thesis study

Meanwhile, I also would like to express my deepest gratitude to all faculties,professors and coordinators of the NEU Business School The four-year studying

at NEU helped me to acquire all necessary insights and skills to accomplish thethesis. 

My sincere thank also goes to Mrs.Pham Thi Kim Tuyen, the Director of theBusiness registration Department, who provided me an opportunity to intern atthe DPI in Hanoi, and who gave access to the research facilities Without herprecious support, it would not be possible to conduct this research

Afterwards, I would like to give my regard to my friends of EBBA, especiallyNguyen Phuong Linh, Vu Dai Trang and Le My Khanh Huyen for helping me alot in this study They have contributed their knowledge and efforts to provide

me data and information to finish the thesis Special thanks to them for standing

by my side ups and downs

 Last but not least, I would like to thank my family: my parents and my youngersister for supporting me spiritually throughout writing this thesis within the

limited time frame and my life in general.

The thesis would not be completed without all of these supports

Pham Thuy Duong,

Hanoi, January 2016

TABLE OF CONTENT

ACKNOWLEDGEMENT 1

LIST OF TABLES 5

LIST OF FIGURES 6

ABBREVIATION 7

EXECUTIVE SUMMARY 8

CHAPTER 1: INTRODUCTION 10

1.1 Rationale 10

1.2 Research Objectives 12

1.3 Research Question 12

1.4 Research Methodology 12

1.4.1 Research method 12

1.4.2 Data analysis 13

1.4.3 Data collection 13

1.4.4 Research Process 16

1.5 Research Scope 16

1.6 Research Structure 17

CHAPTER 2: THEORETICAL BACKGROUND OF BUSINESS REGISTRATION SERVICE AND SERVICE QUALITY 18

2.1 Basic concept 18

2.1.1 Definitions of Service 18

2.1.2 Definitions of Service Quality 19

2.2 Business Registration Service 20

2.2.1 Definition of Business registration Service 20

2.2.2 Characteristics of Business Registration Service 22

2.3 Model for measuring service quality 23

2.3.1 Customer satisfaction (Zeithaml, 2006) 23

2.3.2 SERVQUAL Model (Parasuraman et al, 1985) 25

2.3.3 SERVPERF Model (Cronin and Taylor, 1992) 30

2.3.4 Model used in thesis 30

2.4 Factors affecting Business Registration Quality 31

2.4.1 External factors 31

2.4.2 Internal factors 33

CHAPTER 3: FINDINGS ON BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 34

3.1 OVERVIEW OF DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 34

3.1.1 General information 34

3.1.2 Office of Planning and Investment in Hanoi 34

3.2 Dimensions and Attributes to measure business registration service quality at the Development of Planning and Investment in Hanoi 45

3.3 Evaluation of business registration service quality in DPI 47

3.3.1 Respondent profile 47

3.3.2 Five-service-quality-dimension evaluation 48

3.4 Summary of gaps between enterprises’ perception and expectation towards business registration service quality at the DPI in Hanoi 70

3.5 Causes of gaps found between enterprises’ perceptions and expectations 71

3.5.1 The organizational structure of the business registration department is not really reasonable: 71

3.5.2 Capacity and qualification of staffs and civil servants is uneven 72

3.5.3 System of legal documents specialized business registration overlap and is lack of clarity 73

3.5.4 Online information system to register is still developing and do not complete 73

CHAPTER 4: SOLUTION FOR IMPROVING BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI 74

4.1 Orientation to develop business registration service quality of the DPI in Hanoi 74

4.2 Solutions to improve business registration service at the DPI in Hanoi 74

4.2.1 Improving infrastructure and facilities 74

4.2.2 Solutions for the organizational structure of business registration agency .75

4.2.3 Workforce development 75

CONCLUSION 77

LIST OF REFERENCES 78

APPENDICES 79

APPENDIX 1 – SURVEY QUESTIONNAIRES 79

APPENDIX 2 – QUESTIONS FOR IN-DEPTH INTERVIEW 83

LIST OF TABLES

Table 1-1: The Number Of Enterprises From 2012-2014 11

Table 2-1 Dimensions and attributes to measure service quality 26

Table 3-1: Table Of Attributes 46

Table 3-2 Mean score of reliability dimension 49

Table 3-3: Mean score of responsiveness dimension 54

Table 3-4: Mean score of empathy dimension 58

Table 3-5: Mean score of assurance dimension 62

Table 3-6: Mean score of tangibles dimension 66

Table 3-7: Overall assessment of business registration service at the DPI in Hanoi .70

List of Figures

Figure 1-1: The Process Of Conducting Survey 16

Figure 2-1: Customer Satisfaction – Zeithaml (2006) 24

Figure 2-2: Servqual Model To Assess Service Quality 27

Figure 3-1 Organizational structure of the department of planning and investment in hanoi 35

Figure 3-2 Inter-settlement process of business established registration dossiers within 3 working days 42

Figure 3-3 Inter-settlement process of business edited registration dossiers 43

Figure 3-4 Author’s propose model 45

Figure 3-5: Gap (P-E) Of Reliability Dimension 53

Figure 3-6: Gap (P-E) Of Responsiveness Dimension 57

Figure 3-7: Gap (P-E) Of Empathy Dimension 61

Figure 3-8: Gap (P-E) Of Assurance Dimension 65

Figure 3-9: Gap (P-E) Of Tangibles Dimension 69

Figure 3-10: Overall service quality dimensions 71

DPI: Department of Planning and Investment

LGUs: Local government units

OSS: One-stop system

ODA: Official development assistance

EXECUTIVE SUMMARY

Nowadays, it cannot be denied that enterprises have played a very important role

in the development of economy in the city Every enterprise has to take inbusiness registration in order to establish and operate a business As a result, theCommittee of the city in general, the Department of Planning and Investment inHanoi in particular, pay special attention to the business registration servicequality and narrow the gap between expectation and perception of enterprisesabout that service

 To suggest recommendations to enhance the quality of businessregistration service at the DPI in Hanoi

The research’s second data gathered from a variety of sources namelyorganizational reports, academic studies, authorized books, newspaper articleswhich related to service quality and business permit registration Besides,information from the Department of Planning and Investment in Hanoi’s officialwebsite and other related researches is also used and covered with sources at theend of this research Primary data is obtained through two ways includedquestionnaire survey and in-depth interview

The research has analyzed five dimensions of customer service based on theSERVQUAL model of Parasuman: Reliability, Responsiveness, Empathy,Assurance and Tangibles After analyzing the data, the author’s survey has found

out the gaps between enterprises’ perception and expectation After interviewingfive people in the business registration department, the author can identify thereasons for those gaps and some recommendations to improve the businessregistration service quality at the DPI in Hanoi

Among five dimensions, after surveying, Tangibles is the best dimension withthe lowest gap (-1.23) and Empathy is the worst dimension with the highest gap(-2.05) Overall, business registration service quality at the DPI in Hanoi wasevaluated at 2.85 in term of perception while the expectation of the service washoped at 4.57 After findings about current situation about business registrationservice quality at the DPI in Hanoi, the author found out some causes leading tothe gaps between enterprises’ perceptions and expectations, namely: Theorganizational structure of the business registration department is not reallyreasonable; Capacity and qualification of staffs and civil servants is uneven;System of legal documents specialized business registration overlap and is lack

of clarity; Online information system to register is still developing and do notcomplete Therefore, the DPI in Hanoi should improve the business servicequality and narrow the gap to bring satisfaction for enterprises in the city

CHAPTER 1: INTRODUCTION

1.1 Rationale

It cannot be denied that business registration is the first step that everyentrepreneur has to take in order to establish and operate a business in aparticular area As a result, it is the first interaction between the businessmen andLGUs and as such

The Ninth Congress of the Party was highlighted that: "The State will create a favorable regulatory environment, bring equality for businesses to compete and cooperate to develop; by strategies, planning, plans and policies, combined with the use of physical force by the State to shape economic development - social, rational exploitation of the resources of the country, ensuring balanced macro- economy, regulating incomes; inspection, control and inspection of all business activities in accordance with law ". Since 1991, with the introduction of theCompany Law, the Law on Private Enterprises, and after that the Law onEnterprises (1999) and the Law on Enterprises (2005) marks a strong stepforward in promoting the investment, meets the need of economic development.The main improvement in market entry procedures has created great appeal to thebusiness environment of Vietnam in the eyes of investors

In recent years, the management of State for enterprises has made big changes,especially in creating a favorable business environment for enterprises of alleconomic sectors and activities launched In order to provide better services tothe business sector, LGUs have strived in recent years to improve the businesspermit registration systems

Open investment environment has created conditions to increase continuously thenumber of businesses in the city over the years Specifically, for 5 years (2010-2014), the number of registered enterprises was established by 85% compared tothe total number of registered enterprises in the province after 18 years (from

1992 to 2009) with a registered capital increase more than 112% Businesses

have played a very important role in economic development - society of the City;every year, contributing 60% of gross average city's budget, year after year.Hanoi always ranks the second in the country (behind Ho Chi Minh City) withthe number of enterprises accounts for 1/5 of registered businesses in the country.

Table 1-1: The Number Of Enterprises From 2012-2014

No

Time The number of

enterprises inVietnam

The number ofenterprises inHanoi

The proportion of thenumber of enterprises inHanoi among country

(Source: DPI’s report)

In 2014, Hanoi has now registered 14 656 new establishment, down 1.4% on thenumber of businesses over the same period last year

Therefore, the Department of Planning and Investment in Hanoi must constantlyimprove and enhance the quality of business registration services with the hopefor making satisfaction for businesses to sign up business But businessregistration service must meet the criteria laid yet to be treated as good qualityservice? The objective of this study was to explore the components of servicequality for business registration at the Department of Planning and Investment inHanoi to evaluate customer satisfaction

The theme: “Business registration service quality at the Department of Planning

and Investment in Hanoi” has been chosen to be my thesis topic.

 To propose solutions and recommendation in order to enhance the servicequality of business permit registration.

1.3 Research Question

Based on the above research objectives, this research has been designed toanswer the following questions:

What are the dimensions affecting service quality perceived by customers?

How is the current situation of business permit registration service quality at theDepartment of Planning and Investment in Hanoi? What are the gaps and causes

Excel to see how impact each factor has on Service Quality of Businessregistration at the Development of Planning and Investment in Hanoi

Primary data: It is obtained through two ways included questionnaire survey andin-depth interview

Questionnaire survey:

Respondents: The respondents were customers who have worked in variety of

enterprises and have been experiencing the business permit registration service atthe Department of Planning and Investment in Hanoi

Sample size: The survey was designed to interview with a sample size of 56

respondents

Questionnaire design: The survey questions are designed by using combination

between structured and open questions Structured questions consist of answerwith 5 dimensions to measure the quality This is the Liker scale, which iscommonly made a choice in quantitative research To be more specific, thesequestions included of answers in numerical form ranging from 1 (Stronglydisagree) to 5 (Strongly agree) Therefore, with each part, the customer’sexpectation and satisfaction will be scored from 1 to 5 The feedback gathering

from this questionnaire is the most fundamental source of data to analyze anddraw conclusion by taking results of perception section minus customers’expectation to show the gap between customer’s perception and expectation ofbusiness permit registration service quality at the Department of Planning andInvestment in Hanoi Using the data collected from the survey, these data will beanalyzed with the help of Excel tool and other analyzing methods namelycalculation, comparisons and statistical analysis After that, raw input data will beanalyzed to produce charts, graphs and to draw conclusion in Chapter III.

Meanwhile, open questions in the questionnaire also carry out in-depthinformation about customers’ expectation and some solutions to enhance theservice quality, which is mentioned in Chapter IV

In-depth interview:

There are in-depth interviews with five people in different empirical situations ofthe department of business registration at the DPI in Hanoi, including: 1Management Director, 1 Deputy Director and 3 senior officers

Interviews are implemented to seek for in-depth explanation for analyticalfindings as well as insights related to business registration policy to with aims to

go up efficiency of the service procedure

Table 1-1: List Of Interviewees At The Department Of Planning And

Investment In Hanoi Measurement Interviewee’s Profile Information

- Current situation of businesspermit registration at theDepartment of Planning andInvestment in Hanoi

- Solutions to improve tobusiness permit registrationservice quality

Mrs Le Hong Hanh, DeputyDirector of the Department

of business registration

Mr Do Tuan Anh, officer ofthe Department of businessregistration

Mrs Nguyen Bich Ngan,officer of the Department ofbusiness registration

Mrs Nguyen Ngoc Dung,officer of the Department ofbusiness registration

(Source: by Author)

- Primary data is collected in 2015

- Secondary data is collected from 2012 to 2015

Chapter 4: Recommendations for improving business registration service quality

at the Department of Planning and Investment in Hanoi

CHAPTER 2: THEORETICAL BACKGROUND OF BUSINESS REGISTRATION SERVICE AND SERVICE QUALITY

2.1 Basic concept

2.1.1 Definitions of Service

Service is the human labor crystallized in the value of the result or the value ofinvisible products which cannot be grasped A service is a non-material

equivalent of goods It is enunciated that service creates benefits by contributing

to facilitate a change in customers, a change in their physical possession,changing in their intangible assets Kotler (1999) defines services as “A service is

an act of performance that one party can offer to another that is essentiallyintangible and does not result in the ownership of anything Its production may ormay not be tied to a physical product.”

According to Lovelock and Gummerson (1980), services are economic activitiesoffered by one party to another Time-based performance is used to bring aboutdesired results in recipients themselves or in objects or other assess for whichpurchasers have responsibility In exchange for their money, time and effort,customers expect to obtain value from access to goods, labor, professional skills,facilities, networks and systems

A service is an activity or series of activities of more or less intangible nature thatnormally, but not necessarily, take place in interactions between customers andservice employees and/or physical resources or goods and/or systems of theservice providers, which are provided as solution to customer problems.(Gronroos, 1990)

According to ISO 8402, the service is the result generated by the action betweenthe supplier and the customer and the suppliers’ internal operations to meetcustomers’ needs

A service is intangible and perishable It is an occurrence or process that iscreated and used simultaneously or nearly simultaneously While customer couldnot retain the actual service after it is produced, the effect of service could beretained (Olsen, and Wykoff, 1987)

2.1.2 Definitions of Service Quality

To be able to correctly fine out what service quality is, we should start with thedefinition of quality:

“Quality consists of the capacity to satisfy wants” (Edward, 1968)

“Quality is fitness for use” (Juran, 1988)

“Quality is a driving force for improved competitiveness, customer satisfaction,and profitability” (Edvardsson, 1992)

As for service quality, finding a way to measure it has challenged a great number

of both scholars and practitioners in business for a long time because there aremany intangible natural of services providing activities The definition of servicequality may vary from person to person and from situation to situation In thisresearch, I will cover several service quality concepts from various perspectives

so as to bring a deeper understanding for readers

The first type should be mentioned that is technology-driven and orientated definition: quality is conformance to requirements (Crossby, 1984) To

product-be more specific, in order to achieve quality, an organization should establishsome criteria controlling fine of their products and ensuring the products are fullyfunctioned with the lowest rate of defection Once these requirementspecifications are set up, all manufacturing manner should strictly comply withthese specs

The second type of service quality definition can be united in the concept ofcustomer-perceived quality: quality is in the eye of customer AmericanMarketing Organization determined service quality as a delivery of service thatmeets and exceeds the expectations of the customers Furthermore, it wasenunciated that service quality is evaluated by customers based on serviceoutcome and service process as well as a comparison of customer expectationswith service performance As a result, service quality might be considered as thefit between current level and customer expectations Moreover, there are someother definitions which relate to how to measure service quality:

“The overall evaluation of a service firm that results from comparing that firm’sperformance with the customer’s general expectations of how firms in thatindustry should perform”- Parasuraman, Zeithaml and Bery (1988)

“The outcome of a process in which consumers’ expectations for the service arecompared with their perceptions of the service actually delivered”- Mangold andBabakus (1991)

“A consumer-generated comparative judgment, since individual have no implicitsense of quality unless a standard of comparison is provided”- Oliver (1997)

“The result of the consumer’s comparison of expected service with perceivedservice”- Bojanic (1991)

“Quality is the extent in which the service, the service process and the serviceorganization can satisfy the expectations of the users”- Kasper, vanHelsdigen&dVris (1999)

“A key competitive advantage for modern business firms”- Gronroos (2000),Kotler and Keller (2006)

“Consumer’s overall impression of efficiency of an organization and itsservices”- Park et al (2004)

2.2 Business Registration Service

2.2.1 Definition of Business registration Service

One of the administrative procedure concerned and evaluated by the bodies ofstate administration, had a strong impact on improving the business environment

in Vietnam nowadays are procedures of registration That is one of themandatory administrative procedures that businesses and traders must completebefore the state's requirements, in order to manage the business Any form ofpublic business is only considered legitimate in this country if this enterprise haslocal business license

To establish one of four types of enterprises (limited liability companies, jointstock companies, private enterprises or partnerships), the investor will conductbusiness registration procedures for business registration agency provincial citieswhere enterprises are headquartered intended

Registration includes of business registration and tax registration for the type ofenterprise established under the Enterprise Law Registration includes theestablishment of new registered businesses and posted edited registration.

The core issue in every step of the reform is to change perceptions of the nature

of the business registration work to have access to the best direction and bestmeet the practical requirements In recent years, registration is still a concept that

is not fully defined, although collectively known as "the recognition of the legalexistence of the enterprise" management of state agencies However, thisdefinition does not yet fully reflect the functions of the business registration work

in the market economy Thus, not only in registration completing registrationprocedures for establishing new businesses in the business registration agency,which also has the function to register the change and update the information ofbusiness during operation Registration also encompasses functional update,storage and provides information on the business to support the informationneeds of public authorities and of the businesses operating in the economy.Accordingly, in order to establish medium registration existence of suchenterprises in the economy, and has followed closely the changes in the wholeprocess of a business activity

Business registration in Vietnam today is done through two ways: One, actors,owners have to take place register competent authorities now for filing andregistration procedures The second form is registration through informationelectronic network, which is a new form of registering application of scientificand technological advances in the management of the state administration Thechange of business registration form to create favorable conditions for allbusiness may want to participate in approaching and solving importantadministrative procedures related registration flexibly and quickly Since then,the cost and time for not only investors but also for workers in the enterpriserecords management

2.2.2 Characteristics of Business Registration Service

- In terms of state management

Register now to be regarded as measures to manage economic state State canmanage the business through the first method is to register now and it is the basis

of the premise for the State can perform management operations when his next

go into production now business

- In terms of politic

Registration is understood as democratic freedoms of citizens, but this right must

be understood within the framework of freedom, democracy and concentrateequality before the law Right now registration is also supposed to perform.Business freedoms of citizens have connotations including the right to choosebusiness line, form, size or place of business, recruit and hire labor, the right toorganize and manage operations Business Any one individual organizations areeligible to business can register with the state to conduct business and productionactivities that no one has the right to prevent unauthorized

- In terms of legalization

Acts of business registration gives rise to the legal relationship between abusiness entity and the other side is the state agency with jurisdiction around thecertificate of business registration Certificate of business registration is a legaldocument issued by the competent state for business entities in the order, dueprocess of law to recognize the existence of legal entities and their business

activities Administrative nature - judicial business registration is shown in thefollowing aspects:

To be granted certificates of business registration or change the contents of thebusiness registration, business entities must comply with the order andprocedures for business registration as prescribed by law, namely the finalizationand payment business registration documents or notification to change thecontents of the business registration for the state agency having jurisdiction Forits part, within its competence, state agencies that are supposed to receivedocuments and compare them with the conditions prescribed by law to grant orrefuse to grant a certificate of business registration and registration editedbusiness registration for business entities This process must be done inaccordance with the steps and time limits as law

With the issued certificate of business registration, business subjects publicize hisbirth with traders, and their subject status was recognized by the State andlegally Since this time, the business entity with full legal capacity participates inits own name in the economic relations, civil and other legal relations

2.3 Model for measuring service quality

2.3.1 Customer satisfaction (Zeithaml, 2006)

According to Kotler (1991), customer satisfaction is define as a person’s feeling

of pleasure or disappointment resulting from comparing a product perceivedperformance (or outcome) in relation to his or her perception In other words,customer satisfaction is a result of the service level you deliver compared to whatyour customer expects to receive There are two cases of customer satisfactionthat the actual results meet or exceed the expectations of customer expectation

On the contrary, the customer will not be happy with the service actually belowexpectations Actually, there is a close relationship between customer’ssatisfaction and service quality although they are two particular concepts: servicequality is an objective awareness and customer satisfaction is a subjectiveperception

Zeithaml et al propounded research model of customer satisfactionaccording to the SERVQUAL model to describe the relationship between servicequality and customer satisfaction SERVQUAL model used the results ofcustomer questionnaire surveys to estimate the level of customer satisfaction forthe service quality by five factors: Tangibles, Reliability, Empathy,Responsiveness, Assurance.

Figure 2-1: Customer Satisfaction – Zeithaml (2006)

(Source: Valarie A.Zeithaml, A.Parasuraman, Leonard L.Berry, 2010)

2.3.2 SERVQUAL Model (Parasuraman et al, 1985)

Parasuman et al defines service quality to be perceived by customers as “theextent of discrepancy between customers’ expectations and their perceptions”.Authors of the book developed a SERVQUAL model to evaluate perceptions andexpectations of service quality by the gap between what customers expect andactual receive of the service

SQ i=∑

j=1

k

P ij −E ij

SQ i: Perception of overall service by Customer No.i

k: Number of attributes of service quality

P ij: Perception of attributes j of the service by Customer No.i

E ij: Expectation of attributes j of the service by Customer No.i

P ij , E ij are assessed by Likert scale from 1 to 5 referring to quality levels from

“Very bad” to “Very good”

SQ=∑P kJ −E kJ

P kJ ; E kJ: Average value of Perception and Expectation relatively of allcustomers asked about attribute j in criteria k of the service (k=1 to 5)

Table 2-1 Dimensions and attributes to measure service quality

Caring, individualizedattention the firmprovides its customers

2

Assurance

Knowledge and courtesy

of employees and theirability to convey trust andconfidence

3

The developed service quality model determines five gaps between customersand providers

Figure 2-2: Servqual Model To Assess Service Quality

(Source: A.Parasuraman, Leonard L.Berry and Valerie A.Zeithaml, SERVQUAL:

A multiple – Item Scale for Measuring Customer Perceptions of Service Quality)

Gap 1: The discrepancy between consumer expectations and management perceptions of consumer expectations

In order to be able to exceed customer expectations, and insure customersatisfaction, service company management has to have a clear and accurateperception about customer expectations. When the management

or service provider does not correctly perceive what the customer wants or needs,

it will create the gap between expectations of customers and perception of serviceprovider As a result, service providers only can guess subjectively throughlimited survey, or base on service selection behaviors of customers

Gap 2: The discrepancy between management perception of customer expectation and service quality specifications

Managers need to make sure the organization is defining the level of service theybelieve is needed Even if management accurately perceive customerexpectations there are still chances of customer dissatisfaction that can be caused

by the gap in planning quality of the service according to customer expectations.Moreover, not all expectation of customer can be converted into qualityspecification

Gap 3: The discrepancy between service specifications and the actual service delivered

 Another potential area for customer dissatisfaction relates to the failure ofefficiently specified quality service due to various reasons, including incompetentworkforce, and inefficient working conditions Besides, the gap also results fromexperience, attitude and cooperation of customers

Gap 4: The discrepancy between service delivery and external communication

This gap may come from capability of employees and the experience in choosingservice of customers leading to unfavorable differences when the actual servicedelivered does not meet customers’ perception of the service through itsadvertising channel

Gap 5: The discrepancy between customers’ actual expectation and their perceptions of the service delivered

This gap is the result of customers’ comparison between what customers expectfrom the service and what they think they have received This is one of thecommon causes for customer dissatisfaction in service sector

Zeithaml & Parasuraman mentioned 4 factors in shaping customers' expectations:Word-of-Mouth: is the first factor that potentially determines customers'expectations, is the word he or she heard from other costumers;

Personal needs: is the second factor that modifies customers' expectations, isobtained as a result of a particular situations and requirements;

Prior experience: is the third factor that influences customers' expectations,which indicate the way the customers has experience prior service received;Advertisement and Personal experience: is the fourth factor which playing a keyrole in shaping customers' expectations is called external customers Thesecommunications contain all direct and indirect messages sent from supplyingorganization to customers

There were 10 elements for determining quality in service sector:

2.3.3 SERVPERF Model (Cronin and Taylor, 1992)

This model was first introduced by Cronin and Taylor in 1992 with the use tomeasure only expectation of quality as an effective function of service provision

to consumers Comparing to SERVQUAL, SERVPERF also finds out the samecriteria and attributes, but only define P (perceptions) rather than E(expectations)

The following model would describe SERVPERE model:

SQ i=∑

j=1

k

P ij

SQ i: Service quality perceived by customer No.i

K: Number of attributes of the service

Methodologically, the SERVPERF scale represents marked improvement overthe SERVQUAL scale Not only is the scale more efficient in reducing thenumber of items to be measured by 50 per cent, it has also been empiricallyfound superior to the SERVQUAL scale for being able to explain greatervariance in the overall service quality measured through the use of single-itemscale The main questions focus on customers’ perception of quality rather thandefining expectation of them and so on In spite of being not more popular thanSERVQUAL, it cannot be denied that SERVPERE model has its own advantagesbecause it enable quality services to be evaluated by directly focus on customers’feelings about what they are received With those benefits, SERVPERF modelare supported by a lot of researchers namely Bolton & Drew (1991), Babakus &Boller (1992), Boulding et al (1993)

2.3.4 Model used in thesis

As we all know, there are many existing models to assess service quality Abusiness with high service quality will meet customer needs whilst remainingeconomically competitive Improved service quality may increase economiccompetitiveness In this modern world, every service organization always tries

their best to bring the best service to their customers This aim may be achieved

by understanding and improving operational processes; identifying problemsquickly and systematically; establishing valid and reliable service performancemeasures and measuring customer satisfaction and other performance outcomes.From model of SERVQUAL MODEL (Parasuraman et al, 1985), authorproposed the following model to assess the service quality of businessregistration at the Development of Planning and Investment in Hanoi

2.4 Factors affecting Business Registration Quality

Reliability Responsive ness Empathy Assurance Tangibles

Customer satisfaction

development trend of the economy related to the ability to expand or narrow thescope of business of each company The economy in periods of high growth willcreate many opportunities for investment to expand production and businessactivities of enterprises, whereas the deteriorating economy will lead to reducedcosts and consumption increased competitive forces.

The trend of international economic integration and globalization also posesrequired to renew some of the content, method of government management ofbusiness registration This is both an opportunity to boost internationalcooperation, research, learning international experience in the field of managingstate business registration to complete solutions that are feasible, consistent, and

as well as challenge, more complexity to the management of state about businessregistration

2.4.1.2 Other organizations relate to business registration

- The consulting organizations supported the Business Registration: includingagencies, organizations and businesses operating the consultancy sector,guidance, support and supply procedures business registration services toindividuals and organizations demand (law firms, lawyers' offices, consultingfirms ) The support of organizations providing legal advisory services has astrong impact in understanding and sense of observance of rules of businessregistration The fact that in areas with strong growth of the company,organization that provides consulting services also have a positive impact to theperformance management function of registration

- The media agencies: The media (radio - television, press, news) of central andlocals have a very large impact to the state management of enterprise registration.Media agencies with the function to promote the role of society and otherstakeholders to support state management agencies manage and monitor businessinformation by regularly and continuously on the management of businessregistration Those organizations play a key role to disseminate information oflaws about business registration to businesses, organizations and individuals

2.4.1.3 Technology advancement

Service quality depends on technology and information processing capability ofthe system Technology allows high-level production of products with superiorquality In particular, the development of information technology makes planningand administration processes of business registration become effectively andefficiently Besides, technology advancement is also applied by registrationthrough electronic network This is the new way of registration which has manyadvantages Following this approach will significantly reduce the time and costsrelated to business registration procedures for objects as well as allow people toget the reliable and legitimate information of business quickly and conveniently

2.4.2 Internal factors

Capacities and attitudes of staff leadership and civil servants

Civil servants, especially staffs working in state management for enterprises ingeneral, business registration particular, directly involved in the formulation andimplementation of policies, legislation on business registration Theircompetence and human qualities are the factors that play an important role incontributing to success in managing state Therefore requirements for teamleaders and officials in charge of managing business registration must havescientific thinking, ability to apply research and understand the policy documents

of state law, have practical experience and a solid field

In addition to self-study, education, additional knowledge is in the process ofwork, a team of state officials must regularly be checked and re-evaluate thecapacity and expertise On that basis, management bodies appointed civilservants to participate in training courses and training to enhance theirprofessional and organized the seminar program, the exchange aims to sharepractical experience Also, team officials must also train and cultivate ourselves,enhance political attitude to not fall into subjective voluntarism, notauthoritarianism, corruption at work

CHAPTER 3: FINDINGS ON BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF

PLANNING AND INVESTMENT IN HANOI

3.1 Overview of Department of Planning and Investment in Hanoi

3.1.2 Office of Planning and Investment in Hanoi

According to Decision No 13/2014 of Committee dated 07/3/2014 of the HanoiPeople's Committee regulating the functions, tasks, powers and organizationalstructure of the DPI in Hanoi, this Department has the function to advise thePeople's Committee of state management about planning and investment,including the following areas: general planning, economic and socialdevelopment plans; implement and propose policies of economic and socialmanagement in the city; domestic investment, foreign investment in the local;management of ODA and concessional loans from donors, non-governmental aidabroad; tender management; business registration within the city; synthesis andunified management of business issues, collective economy, private economy;organizations providing public services under the State management of theDepartment and perform a number of tasks and powers as assigned or authorized

by the Hanoi People's Committee and in accordance with law

3.1.2.1 Structure

Figure 3-1 Organizational structure of the department of planning and

investment in hanoi

(Source: DPI’s website)

Currently, the organizational structure of the Department of Planning andInvestment include Department Directors (directors and 05 deputy directors), has

Director of Department

Deputy Director of Department Deputy Director of Department Deputy Director of Department

Office of Department Inspectorate Department Synthetic Room Sociocultural Room Commercial industrial and service Room Agriculture and rural development Room Urban infrastructure

Room District Room Cooperation and international funding

Room Project evaluation Room Foreign investment Room Business registration Room 1 Business registration Room 2 Business registration Room 3 Center for support SMEs Investment Promotion

Room

Deputy Director of Department Deputy Director of Department

14 rooms and 02 business units directly under the total number of officials andemployees are 273 people (including 48% female staff), 92.2% of employeeshave bachelor degrees and master degrees, Party members accounted for 55%;the average age of the labor contract in the Department is 38 years old.

Units of the Department in carrying out the tasks related to business registration:

of Departments under current regulations;

Chaired advising the directors of the implementation of the "one stop shop" inreception and settle the administrative procedures under the jurisdiction of theDepartment, which directly perform the reception and pay the settlement resultsthe administrative record;

Chaired synthesis report on the settlement of municipal administrativeprocedures (weekly, monthly, quarterly service request preliminary review andother requirements of the Leadership Department);

Being responsible for advising organizations implement solutions that improvethe efficiency of the administrative reform, improve the quality of reception andprocessing of information of citizens and organizations to reflect the Department(through the hotline, box Suggestion directly )

Implementing of the fram - Archives of Department: Receiving, revising,classification and systematization of records, document archive

Scheduling archive preservation prescribed: Explosion-proof, moisture and insect ;

Serving the exploitation of archives as prescribed; which current registrationdossiers to be revised now stored and exploited for solving daily records hugebusiness registration, must intensify the application of information technology inthese activities Implementation of the application of information technologywith related tasks such as focal management and operation of informationtechnology systems throughout the Department;

Management and maintenance operations of the application software on theintranet; Manage Electronic Portal (Website) and Electronic Information page ofthe Department of timely internal service professional duties; Coordinate with theroom, the center of the Department shall publish on their websites informationconcerning planning and investment are the responsibility of the Department asprescribed;

Civil servants of the relevant parts to registered businesses in the Office of theDepartment include: 16 officials of "OSS" (One stop service) receiving andreturning the business registration documents, including one deputy Direct Office

as Head "OSS"; 01 hosting staff; 02 information technology staff

Inspectorate Department

Inspectorate Department shall assist the Director of performing the tasks andpowers of administrative inspection and specialized inspection in the scope ofduties and powers of the Director of the Department Currently InspectorateDepartment has a very important role in the control business registration (directand active participation in business after business registration check on thecontents of the dossier business registration, fulfill the obligations of corporatereports and handle violations of enterprises in business registration)

Center for Support of Small and Medium Enterprises in Hanoi:

Function:

Center for Support of Small and Medium Enterprises Hanoi (hereinafter referred

to as the Center for support SMEs) is the business units under the Department of

Planning and Investment in Hanoi, have legal status, seal and be open accounts atthe State Treasury and the bank as prescribed.

Center for support SMEs has function of advising and counseling assist theDirector of Planning and Investment and implementation of plans, programssupported by the City Government and develop small and medium-sizedenterprises; direct implementation of consultancy, support and training and otherservices for development of small and medium-sized enterprises in the city ofHanoi

The organizational structure:

The organizational structure and apparatus of the present center include directors,

02 deputy directors, 05 professional Room: Administration - Organization;Department of training; Consulting assistance and business information;Consulting investment management; Research and Development Division andmanaging business incubators HR is currently comprised of 46 people, including

38 staff officers and 08 contract staff

After 10 years of operation, the Centre (from 2005 to present), the Centre hasmade a positive contribution in communication, information and people tobusiness policies of the State aid, performs well consultancy, training andbusiness support

The Centre is also the bridge between the business consultant and businessregistration agencies in the settlement documents, administrative procedures forbusiness registration

In addition, the Department provides for other units of the Department along withthe responsibility to coordinate with the unit in the management apparatus basedbusiness registration functions and tasks assigned to perform good works andadministrative business registration now under the jurisdiction of the Department

Business registration Rooms:

Currently, Hanoi has 3 business registration office is named in the order:Business registration Rooms 01; 02; 03 with the functions and duties are defined

as follows:

Function:

The business registration office is the administrative agency under theDepartment of Planning and Investment in Hanoi, have legal status, seal andseparate account by the MPC decided to establish The business registrationoffice is the assistant of the Director of the Department in the City

Mission:

a) The scope of implementation of the management of the state businessregistration office under the Department of Planning and Investment in Hanoidelimited geographical administrative or other criteria by the specific decision ofthe Director of ensuring conformity with reality

b) Developing forms and instructions guide enterprises and establishedbusinesses on record, order, procedure business registration Geting businessregistration records; considering the validity of the records business registrationand grant or deny certificate business registration;

c) Coordinating the construction, management and operation of informationsystems business registration countries; providing information about localbusiness registration within the City Committee, City Tax Department, relatedagencies and to organizations and individuals that request

d) Requiring enterprises to report on business under the provisions of theEnterprise Law; supervise the implementation of the annual reporting ofenterprises

e) Directing check or suggest state agencies have the authority to inspect thecontents enterprise business registration profile;