Introduction
Research background
In the intensively competetive landscape of the world's economy in general and Vietnamese' in specific, almost all industries have faced many challenges and difficulties
The professional tax consultant service industry must deliver superior client value to gain a competitive edge, as value is linked to client loyalty, increased profits, long-term survival, and competitive advantage However, the definition of value is often vague and varies between clients and service providers due to differing perspectives, making the way clients interpret value more critical than how providers perceive it This complexity is heightened in professional services, which are more intangible and intricate than regular services, causing clients to struggle with confidently evaluating performance outcomes.
Understanding clients' perception of value is crucial for the success of professional firms, as it directly links to their perceived performance According to La, Patterson, and Style (2009), there is a strong positive relationship between performance and client satisfaction, with perceived performance completely mediating the relationship between value and satisfaction in professional B2B services This highlights the importance of delivering high performance to enhance client value and drive positive satisfaction outcomes.
Professional tax services are provided by specialized tax firms staffed with expert tax consultants who have in-depth knowledge of current tax laws As the economy grows and business transactions become more complex, tax regulations are continuously evolving, especially in emerging countries with frequent legal updates These services offer clients valuable advice and guidance based on the latest tax laws and practical experience, which many organizations lack internally Consequently, most companies—except those with very simple financial affairs—seek to hire professional tax firms to ensure compliance and optimize their tax strategies.
Research problem
In Vietnam's challenging economic environment, the increasing number and quality of professional tax service firms have expanded client choices, intensifying industry competition Consequently, firms are focusing more on how clients perceive their service performance and value, which directly impacts client satisfaction—the ultimate goal for all firms (Morgan et al., 2005).
In recent years, substantial research has examined the client perceived performance, client perceived value (and its determinants) in business-to-business professional services
Research has demonstrated a strong link between client-perceived performance and client satisfaction through the concept of value (La, Patterson, and Style, 2009) Previous studies also provide evidence that higher client satisfaction leads to increased repurchase intent, customer loyalty, and a willingness to maintain long-term relationships with service providers (Iacobucci et al., 1994; Athanassopoulos et al., 2001) As a result, researchers are keen to explore the determinants of client-perceived performance and confirm how value influences client satisfaction across various professional services However, much of the existing research has primarily focused on understanding the antecedents of value, its definition, and its impact on client satisfaction in business-to-consumer professional service settings, guided by Parasuraman’s frameworks (1985).
Research on client perceived value and client satisfaction in the business-to-business professional services sector remains limited While existing models, such as the 1988 measurement model and Gronroos (1984) dimensions, provide a foundation, recent studies have aimed to develop industry-specific B2B scales, particularly in fields like engineering consultancy and software Notably, La et al (2009) made a significant contribution by proposing a conceptual model for client-perceived value and satisfaction from an international perspective, especially in developing economies.
Research objectives
This article explores the unique characteristics of professional tax services, which are based on current tax regulations and practices It focuses on examining client perceived value and client satisfaction within the professional tax services sector The study applies La et al.'s framework to better understand how these services meet client expectations and deliver value Understanding these key factors is essential for improving service quality and enhancing customer satisfaction in the industry.
The 2009 conceptual model offers valuable insights for both practitioners and researchers in the field of professional tax services Given the varying levels of tax regulation development across countries, this study specifically focuses on business-to-business professional tax services in Vietnam, highlighting the unique regulatory environment and practices within the country.
Further to the above discussion, this study aims to obtain following objectives:
1) To examine the antecedents of client perceived performance;
2) To test the effect of client perceived performance to client perceived value in professional tax services in Vietnam;
3) To test the effect of client perceived value to client satisfaction with professional tax services in Vietnam; and
4) To explore factors/ situations (moderators) leading to the different influence of these factors to client perceived service in the context of Vietnam.
Scope ofthe research
This study will begin with a qualitative analysis to determine whether the key factors significantly influencing client perceived performance and perceived value, as well as the contextual factors that cause these influences to vary, are applicable within the context of professional tax services in Vietnam, building on La et al.'s (2009) conceptual model The objective is to identify the relevant factors and situations that affect clients’ perceptions, ensuring the model's relevance and effectiveness in the Vietnamese tax service industry.
• identify factors that reflect the unique characteristics of the professional tax service in Vietnam
This study collected quantitative data to verify the key factors and their moderators The sampling frame consisted of clients of tax consulting firms located in Ho Chi Minh City, where major tax advisory companies are headquartered These clients, who operate across a wide geographic area from Da Nang to Ca Mau, represent diverse industries, ensuring comprehensive insights for the research.
Significance ofthe research
This study aims to validate the applicability of La et al.'s (2009) conceptual model within the context of professional tax services in Vietnam Through qualitative analysis, the research will identify whether existing factors and relationships hold true or require modification, and will explore the introduction of new factors influencing client perceived performance, value, and satisfaction Subsequent quantitative analysis will provide empirical evidence to reinforce findings from the qualitative phase The research seeks to expand the understanding of value and satisfaction specifically in business-to-business professional tax services in Vietnam, representing a pioneering effort in the Vietnamese context and contributing to Asian behavioral research on client satisfaction and service value.
This research provides valuable managerial insights that can help professional tax firms understand the key factors influencing client perceived performance and value, including technical skills, interpersonal skills, customer orientation, relationships with tax authorities, and reputation By understanding these factors, tax firms can develop targeted strategies to better meet client needs and enhance customer satisfaction Exploring how these elements differently impact client perceptions is crucial for firms aiming to identify their competitive edge Ultimately, this knowledge enables tax firms to position themselves more effectively in the market and implement strategies to improve their competitiveness and success.
Structure of the thesis
This thesis comprises 5 chapters Chapter 1 is the introduction which gives an overview of research background, problems, objectives, scope and significant ofthe research
Chapter 2 offers a comprehensive review of the literature on client perceived performance and its influencing factors, as well as client perceived value and satisfaction in service settings, including insights from qualitative studies and related hypotheses The thesis advances to Chapter 3, which discusses the research methodology employed, followed by an empirical investigation and presentation of results in Chapter 4 Finally, Chapter 5 provides a thorough discussion of the findings, explores managerial implications, and addresses study limitations. -Streamline your thesis research and writing with AI-powered tools that enhance clarity and SEO—[Learn more](https://pollinations.ai/redirect/397623)
Literature review
Literature review
2.1.1 Client perceived performance and its antecedents
According to Oliver (2006), performance refers to the perceived level of product or service outcomes, often measured on an objective scale ranging from good to bad, such as courteous versus discourteous service In contrast, quality is a judgment of performance excellence, and although these concepts are related, they are frequently confused with each other Understanding the distinction between performance and quality is essential for effectively evaluating and improving service delivery.
Researchers highlight that service quality differs from product quality due to its unique characteristics, including intangibility, inseparability of service provision and consumption, heterogeneity, and perishability (Zeithaml, Parasuraman, and Berry, 1990) These complexities, coupled with the technical nature of professional services such as engineering, consulting, and project management, make evaluating service quality more challenging (La, Patterson, and Style, 2009).
Research extensively examines the measurement of service quality and its dimensions, though opinions on the number of dimensions vary Consensus generally suggests that service quality comprises three fundamental elements: the quality of results, the quality of interaction, and the quality of the service environment (Pollack, 2008, p 539) The quality of results refers to the actual outcomes received by the customer, which is a critical component of overall service quality.
Clients evaluate service quality by assessing actual benefits, which are often measured objectively through real results The quality of interactions between clients and service teams reflects how effectively input is transformed into output, perceived subjectively by clients The service environment, including the company's facilities, is also reviewed based on client perception According to Ghobadian et al (1994), service quality encompasses technical quality—delivering the expected results—and functional quality—interactions between the service provider and client Other factors influencing perceived service quality include company image, costs, communication effectiveness, website accessibility, and the professionalism of team members Overall, service quality is assessed based on clients’ perceived performance across these elements, focusing on tangible outcomes, interaction quality, and the service environment.
The European school of thought, led by Gronroos (1984), emphasizes that clients perceive service quality through two key aspects: technical quality and functional quality Technical quality addresses "what" the service delivers, determining whether it meets client expectations, while functional quality focuses on "how" the service is delivered, influencing client satisfaction Both aspects shape the client's perception of service performance, making perceived performance the foundation for adjusting service quality and enhancing perceived value.
Lovelock (1995, 1999) identified two essential components of service packages: core services and supplementary services Core services represent the firm's fundamental competency in creating value for clients, serving as the primary offering that meets their essential needs In contrast, supplementary services encompass additional elements such as supporting and facilitating services that enhance the overall customer experience.
In the present of business-to-business professional services especially current practice of tax professional firms, the core service refer to the capability of utilizing technical or
• intellectual know-how/ expertise to provide solutions to a client's issue The core service in
• this context is equivalent to technical quality/ performance in Gronroos' school of thought
(1988 and 1984) Accordingly, supplementary services refer to Gronroos' (1988 and 1984) functional quality/ performance i.e the 'how' (services are delivered) components
Professional services are purchased to access external competence and resources that organizations lack internally (Czemiawska and Smith, 2010) Many clients lack the technical expertise to confidently assess the quality of the services they buy, relying instead on their perceptions of the service providers’ performance Consequently, clients often evaluate the quality and value of professional services based on their perceptions of the service firms’ overall performance.
• and Style, 2009) Conceptual Model of Client perceived Value and Satisfaction of La,
Patterson and Style (2009) identify two main factors influencing client perceived performance: people-related factors—including interpersonal skills, technical skills, and customer orientation—and firm-related factors such as innovation and reputation These elements—service provider behavior and the firm's innovativeness and reputation—have been extensively studied in both consumer and professional contexts, demonstrating their significant impact on perceived performance (e.g., Day and Barksdale Jr., 1992; Paulin, Ferguson, and Payand, 2000; LeBlanc and Nguyen, 1996).
Technical skills are a key factor clients consider when evaluating a firm's performance, as they reflect personnel’s knowledge, expertise, and understanding of clients' business needs and industry background (Ellis and Watterson, 2001; Burke, 1996; Rentz et al., 2002; Coviello, Ghauri, and Martin, 1998) In the context of tax professional services, which rely heavily on current regulations and practices, technical skills are deemed the most critical factor influencing perceived performance They can be assessed through tangible service results, aligning with the concepts of technical quality in Gronroos’ (1984, 1988) and Lovelock’s (1995, 1999) frameworks of core services.
Due to the intangibility and inseparability of service provision and consumption, high levels of interaction between the service firm and client personnel are essential (Laing, Lewis, Foxall, and Hogg, 2002) Interpersonal skills are a key criterion for evaluating the performance of professional service firms, as they reflect a team member's ability to communicate effectively verbally and non-verbally and build strong relationships with clients (Rentz et al., 2002) In the context of professional tax services, interpersonal skills significantly enhance clients' perception of service performance, leading to improved satisfaction and trust.
Recent empirical studies demonstrate that customer orientation serves as a key antecedent to service performance, which ultimately influences clients' overall service quality and performance evaluations (Brown, Mowen, Donovan, & Licata, 2002; Brady & Cronin)
Customer orientation is essential for a firm's success, focusing on acquiring and analyzing customer information to identify areas for improvement By prioritizing these insights, companies can effectively drive service enhancements and process improvements, ultimately enhancing customer satisfaction (Harline, Maxham, and McKee, 2000; Johnson, 1998; Johnson and Gustafsson).
Understanding customer needs and leveraging this knowledge to design superior services directly enhances perceived customer value (Nilsson, Johnson, & Gustafsson, 2001) By focusing on customer-centric strategies, businesses can create more tailored experiences that improve client satisfaction and loyalty, ultimately driving better business outcomes.
That innovation leads to superior performance (Agarwal, Erramilli and Dez 2003;
Numerous studies in marketing and management literature (Han, Kim, and Srivastava, 1998; Zahra, de Belardino, and Boxx, 1998) highlight the significant role of innovation in contributing to a firm's performance and gaining a competitive advantage (Agarwal, Erramilli, and Dez, 2003; Vakola, 2000; Bharadwaj, Varadarajan, and Fahy, 1993) However, in the context of professional tax services, the impact of innovation is less clear due to the industry’s reliance on strict tax regulations, necessitating further research to understand its influence on firm performance.
In business-to-business professional services, a firm's general reputation and reputation within specific functional areas are key selection criteria (Dawes, Dowling, and Patterson, 1992) Firm reputation is defined as a combination of economic and non-economic factors attributed to a company based on its past actions (Weigelt and Camerer, 1998).
Qualitative analysis
Professional tax services are provided based on current tax regulations and practices, differing from other professional services In Vietnam, these services are not new; however, their adoption remains limited due to the relatively low costs and simplicity of financial transactions for many Vietnamese companies The primary clients are large corporations and foreign-owned firms with complex transactions involving overseas parties, who prioritize effective tax systems To gain a deeper understanding of the Vietnamese professional tax market and identify key factors influencing client perceptions of performance and satisfaction, a qualitative study involving in-depth interviews was conducted The interviews, mainly face-to-face (60%) and via telephone (40%), involved three senior managers from leading tax firms, including two from Ernst & Young and one from Nexia ACPA Auditing & Consulting.
In the study, interviews were conducted with representatives from Co Ltd and two chief accountants, each lasting approximately half an hour During these interviews, valuable information was gathered and analyzed using a sentence method, which involved examining key phrases to identify main points related to the research questions The insights obtained were then interpreted to draw conclusions and were confirmed through follow-up with the interviewees, ensuring the accuracy and reliability of the findings.
Our research identified four key factors—technical skills, interpersonal skills, customer orientation, and reputation—that significantly influence clients' perceived performance of professional tax firms Interestingly, the study found no significant link between a firm's innovation and perceived performance, primarily because changes in tax regulations are beyond firms' control, and innovation often involves incremental improvements in service processes rather than groundbreaking solutions In the context of Vietnam, where the economy is still developing, firms tend to adopt strategies and solutions based on practices from developed countries, further diminishing the perceived impact of innovation on client satisfaction This aligns with findings by La, Patterson, and Style (2009), who argue that clients lack the technical judgment to recognize the value of innovation in professional services Additionally, the research confirmed that a firm's international experience moderates the relationship between reputation and perceived performance, highlighting the importance of global exposure in building client trust.
The in-depth interviews identified two key factors significantly influencing clients' perceived performance: service fees and relationships with tax authorities Notably, the concept of service fees here differs from the traditional "payment" notion; instead, it functions as a benchmark allowing clients to gauge service quality relative to competitors and form expectations about perceived performance Higher service fees are generally associated with better service quality, leading clients to perceive superior performance from the firm This use of service fees as a reference price has been supported in consumer service literature, where expected service quality plays a crucial role in reference price formation, reflecting the well-established relationship between price and quality highlighted by researchers like Zeithaml.
Due to the intangible nature of services, consumers often rely on price as a key cue to assess service quality or perceived performance This is particularly critical for 'pure' services, where limited physical signals make it challenging for consumers to evaluate the potential quality of the service Understanding this dynamic is essential for effective service marketing strategies.
Another added factor having significant effect to is relationship with tax authorities
Professional tax services in Vietnam often rely on existing practices due to the evolving nature of tax regulations, which have not kept pace with the rapid growth and complexity of economic transactions In cases where regulations are unclear or do not cover specific situations, tax authorities often interpret regulations based on their own judgments, directly impacting how companies are examined Many clients of these services face complex tax issues with limited regulatory guidance, making strong relationships with tax authorities essential Such relationships enable tax firms to facilitate smoother interactions with tax officials, gain insights into their treatment practices, and enhance service quality Ultimately, a good rapport with tax authorities increases client trust and elevates the perceived performance and value of professional tax service firms.
The relationship between interactions with tax authorities and perceived performance is influenced by the nature of the services provided Professional tax services can be categorized into compliance services and advisory services, each playing a distinct role in client satisfaction Compliance tax services focus on helping clients adhere to tax regulations and fulfill legal requirements, ensuring accurate and timely submissions In contrast, advisory services offer strategic guidance to optimize tax positions and improve overall financial performance Understanding the differences between these service types is essential for assessing how they impact perceptions of effectiveness in tax management.
Companies are required by regulations to file their corporate income tax declarations annually within 90 days of the end of the tax year Advisory services assist management in planning for future operations, such as launching new business lines During this process, ensuring compliance with tax regulations is crucial, and companies often seek professional firms to receive expert advice on regulatory compliance, tax savings, operational improvements, and risk mitigation strategies These professional services help businesses navigate legal requirements while optimizing growth and efficiency.
Assisting the client in audit defense e.g explain to the tax authorities or draft official letter to answer the tax authorities' challenges is another example of professional tax advisory service
According to that, compliance services do not require much interaction with tax authorities
Clients primarily focus on the firm's relationship with relevant tax authorities when encountering tax issues and seeking expert advice Practical experiences of interviewees reveal a stronger link between a positive relationship with tax authorities and perceived performance in advisory services compared to compliance services This highlights the importance of fostering solid relationships with tax authorities to enhance client satisfaction in tax advisory roles.
In the context of Vietnam's professional tax services, the moderating effects of COO on the relationships between technical skills, interpersonal skills, customer orientation, innovation, reputation, and perceived performance have not been observed Despite the implementation of localization strategies by many professional tax firms, the number of foreign tax consultants in Vietnam has significantly declined in recent years However, this reduction has not notably affected the service quality or overall performance of professional tax firms in the country.
Foreign tax consultants possess advanced expertise in tax and legal matters, but they often lack in-depth knowledge of Vietnam's specific tax practices Language barriers further hinder effective communication with Vietnamese tax authorities, making it difficult for foreigners to navigate the local tax system Although they have support teams to assist in these interactions, clients often feel uncomfortable working with foreign consultants during challenging situations requiring responses or defenses against tax authorities Additionally, Vietnamese chief accountants typically prefer to collaborate and communicate directly with local Vietnamese tax consultants, reinforcing the importance of local expertise in ensuring smooth tax processes.
Research shows that the relationship between a professional service provider’s performance and client satisfaction is influenced by the client's buying experience Specifically, the level of client buying experience affects how perceived performance impacts perceived value, with different levels of experience leading to varying perceptions of value Understanding this dynamic is essential for enhancing client satisfaction and tailoring professional services to meet diverse client expectations.
Qualitative analysis does not confirm this statement, as experienced personnel are typically appointed as heads of tax, finance, and accounting departments based on their competence Although a company may be providing its first tax services to a client, the chief accountant and relevant staff usually have prior interaction with the service firm, allowing clients to assess the performance and value of these services Therefore, in Vietnam's professional tax service practices, client buying experience does not moderate the relationship between perceived service performance and perceived client value.
Table 1: Summary of qualitative analysis' results
No.,~ I' FaCtor/ Moderator qualitative conceptual analysis model
Factors having significant effect to client perceived performance
2 Technical skills Included Confirmed tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
6 Service fee Not included Introduced
7 Relationship with tax authority Not included Introduced
Firm's international experience as a moderator
8 in the relationship of reputation and perceived Included Confirmed performance
Nature of professional tax services as a moderator in the association between
9 Not included Introduced relationship with tax authorities and perceived performance
Effects of COO as a moderator in the
10 Included Not confirmed relationship of client perceived performance
Client buying experience as a moderator in the ll relationship between perceived performance Included Not confirmed and client perceived value
The qualitative analysis results are illustrated in the figure below These findings highlight key insights important for understanding the overall trends and patterns in the data The analysis provides valuable information that can guide future research and decision-making processes.
Figure 1: Summary of qualitative analysis' results Technical skills
Hypothesis
This study aims to provide managerial insights into professional tax services in Vietnam by examining client-perceived value and satisfaction in B2B tax service practices Grounded in existing literature and validated through qualitative analysis, the research highlights key factors influencing client perceptions and satisfaction The findings offer valuable implications for enhancing the quality and effectiveness of professional tax services in Vietnam's business sector.
Clients often rely on the perceived performance of a service firm to assess service quality and value when they lack the technical knowledge or expertise to evaluate purchased services confidently (La, Patterson, & Style, 2009) This approach is supported by various studies across consumer and professional contexts, indicating that service evaluation frequently depends on observable performance indicators rather than technical assessments (Day & Barksdale Jr., 1992; Paulin, Ferguson, & Payand, 2000).
LeBlanc and Nguyen (1996) identified that a service provider's behavior—specifically interpersonal skills, technical expertise, and customer orientation—along with the firm's innovativeness and reputation, significantly influence client perceived performance However, their qualitative analysis confirmed that interpersonal skills, technical skills, customer orientation, and reputation impact client perceptions, while the effect of innovation remains inconclusive These findings highlight the importance of service quality and firm reputation in enhancing customer satisfaction and perceived performance.
Therefore, in the context of business-to-business professional tax services, it is hypothesized:
• H 1: Technical skills have significant effect to client perceived performance;
• H2: Interpersonal skills have significant effect to client perceived performance;
• H3: Customer orientation has significant effect to client perceived performance;
• H4: Reputation has significant effect to client perceived performance;
In addition, the results ofthe qualitative analysis introduced two factors having significant effect to client perceived value i.e service fee and relationship with tax authority
This thesis investigates whether the service fee, often perceived as a signal of service quality in consumer services, can be applied to professional tax services in Vietnam The study examines the unique relationship between professional tax providers and tax authorities, highlighting the distinct nature of these services as identified by industry experts in qualitative analysis Empirical testing aims to validate the hypothesis that the service fee serves as an indicator of quality within the context of Vietnam’s professional tax industry.
• H5: Service fee has significant effect to client perceived performance;
• H6: Relationship with tax authority has significant effect to client perceived performance;
According to Razavi, Safari, Shafie, and Khoram (2012), perceived client value encompasses not only perceived performance but also what customers expect from the service Grounded in economic value and consumer behavior theories, perceived value is directly influenced by perceived quality (Jayanti and Ghosh, 1996) Numerous studies support the strong link between perceived quality and overall perceived value, highlighting its importance in shaping customer satisfaction and decision-making.
Research by Andreassen and Lindestad (1998), Chang and Wang (2011), and Edward and Sahadev (2011) demonstrates a positive relationship between perceived performance and value Additionally, McDougall and Levesque's (2000) empirical study across four service types highlights that perceived value is a crucial factor in driving client satisfaction, surpassing service quality in its impact Based on these findings, the following hypotheses are proposed to further explore the link between perceived value and customer satisfaction.
• H7: A firm's perceived performance has significant effect to client perceived value
• H8: Client perceived service have significant effect to client satisfaction
Professional tax services generally fall into two categories: compliance services, which help clients adhere to tax regulations, and advisory services, which address tax issues during audits and assist in crafting effective tax strategies for future growth Experts indicate that the relationship between clients and tax authorities tends to be stronger in advisory services compared to compliance services Consequently, it is hypothesized that a closer relationship with tax authorities positively influences perceived performance more significantly in advisory services than in compliance services.
• H9: The relationship between relationship with tax authority and perceived performance will be stronger in advisory services than in compliance services (nature of engaged services);
La, Patterson, and Style (2009) indicate that from a client's perspective, international experience enhances perceptions of a firm's reliability, capability, and credibility, which are key criteria in assessing a firm's reputation They further suggest that a firm's international experience acts as a moderator in the relationship between its reputation and the perceived performance by clients, highlighting its importance in influencing client evaluations and decision-making.
• HlO: The relationship between reputation and perceived performance will be stronger under high (rather than low) level of firm's international experience
Figure 2: Proposed Conceptual Model of Client Perceived Value and Satisfaction in Business-to-Business Professional Tax Services in Vietnam
Customer orientation Reputation Service fee
Relationship with tax authorities experience
H8 Client satisfaction tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Methodology
Methodology
This study's sampling frame included clients of tax consultant firms in Ho Chi Minh City, home to many of the largest tax consulting companies These clients operate across a broad geographic area, from Da Nang to Ca Mau, and represent diverse industries This diverse client base ensures comprehensive insights into the tax consultancy sector in Vietnam's key economic regions.
The questionnaire, adapted from previous research and pre-tested through interviews with academic and industrial experts, was designed to identify ambiguous questions, ensure face and content validity, and verify the clarity of item wording This pre-testing phase, similar to the methodology employed by File, Cermak, and Prince (1994), aimed to refine the measurement scales Based on feedback, a 5-point scale was preferred over a 7-point scale, as participants found the latter more confusing, leading to the adoption of a 5-point scale for all constructs to enhance clarity and response accuracy.
The final questionnaire was formatted into an online survey and distributed to clients of professional tax firms in Ho Chi Minh City, with face-to-face interviews conducted when possible to enhance data collection A total of 227 questionnaires were sent out, resulting in 132 responses, of which 120 were deemed usable after eliminating incomplete or insufficient responses.
According to Stevens (1996), a sample size of 120 is appropriate for social science research, as it recommends approximately 15 subjects per predictor to ensure a reliable model Since this research model includes eight predictors, a total of 120 observations is considered adequate.
Tabachnick and Fidell (2007) also give a formula for calculating sample size that a researcher wishes to use: N >50+ 8m (where m is the number of independent variables)
Based on the research requirements, a sample size of more than 114 observations is needed for a thesis with 8 independent variables Therefore, using 120 observations provides a sufficient and reliable dataset to ensure the robustness of the regression analysis.
Measurement
This study utilizes multiple-item scales to measure all constructs, primarily adapted from La, Patterson, and Style’s (2009) research on "Client Perceived Value in Professional B2B Services," which draws upon international marketing and services literature Key indicators such as interpersonal skills and technical skills are based on Rentz et al (2002), while customer orientation is adapted from Saxe and Weitz (1982) Additionally, the reputation construct is tailored from Caruana’s (1997) modifications to suit the current context, and client perceived performance is measured according to Petterson, Johnson, and Spreng’s (1997) findings.
In the qualitative analysis, variables such as service fee, relationships with tax authorities, and the nature of engagement were identified through in-depth interviews with industry experts and clients of professional tax firms Participants agreed that these variables could be assessed using specific indicators, which were adapted from their insights due to the unique aspects of Vietnamese professional tax services As there are limited existing theories addressing these variables within this context, the indicators proposed during the interviews were incorporated into the study to ensure relevance and accuracy.
Regarding value concept, it has been studied in consumer services However, it is challenging to measure perceived value in a B2B service setting (La, Patterson and Style,
In 2009, multiple items measuring client perceived value were sourced from various studies, highlighting the importance of understanding customer perceptions to enhance business strategies These insights emphasize the significance of evaluating customer satisfaction and perceived value to drive organizational success and foster loyalty Incorporating diverse measurement tools allows companies to better tailor their offerings and improve overall customer experience, ultimately contributing to sustained growth and competitive advantage.
Research by Eggert and Ulaga (2002), Sweeney, Soutar, and Johnson (1999), and Patterson and Spreng (1997) highlights key insights into customer satisfaction According to La, Patterson, and Style (2009), a validated measurement scale for client satisfaction in the professional B2B service setting remains underdeveloped Consequently, their study employed five items adapted from prior research by McDougal and Levesque (2000) to effectively assess client satisfaction.
Caruana, Money and Bethon, 2000) to measure this construct This study adopted the same from research of La, Patterson and Style (2009) mentioned above
This article measures a firm's international experience based on the framework developed by La, Patterson, and Style (2009), which itself is derived from Cavusgil and Zou's (1994) original concept of 'international competence.' The measurement items have been adapted with amended wording to ensure relevancy and clarity for the current study.
This article presents a comprehensive summary of the items and scales used to measure all constructs in the study, as outlined in the accompanying table For a detailed description of the original scales, please refer to Appendix 1, which provides in-depth information to ensure clarity and transparency in the measurement instruments utilized.
Table 2: Summary of indicators of the constructs used in the research model
• Ability to express him/herself non-verbally
• General speaking! communication skills Interpersonal • Awareness and understand of the non-verbal communication of skills others
• Ability to control and regulate non-verbal display of emotion
(Scale: 1 = Very Poor; 5 = Very Excellent) (Below are additional items suggested by the expert panel and drawn from other studies)
• Knowledge of our needs/ issues
• Competence of the service provider team
(Scale: 1 = Very Poor; 5 = Very Excellent)
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• Offered the service that is best suited to our problem
(Below are additional items suggested by the expert panel and drawn from other studies)
• Was willing to disagree with us in order to help us make a better decision
• Pro-active in contact us to discuss about our issues/ problems
(Scale: 1 = Strongly disagree; 5 = Strongly agree) (Below are additional items suggested by the expert panel and drawn from other studies)
• Expertise in this specific area
• Competitive competence of service provider team
(Scale: 1 = Not well regarded; 5 = Well regarded) (Below are additional items suggested by the expert panel)
• The service fee was used as a benchmark for the service quality
(Scale: 1 = Strongly disagree; 5 = Strongly agree)
• Good relationship with tax authorities
• Abilities to discuss/ negotiate with relevant tax authorities regarding our issues
• With information/ advice from the service provider team, we are not surprised at the practice of relevant tax authorities
(Scale: 1 = Strongly disagree; 5 = Strongly agree) (Below are additional items suggested the expert panel other studies)
• Kept your Company regularly informed of progress
Ensure that the service provider team fully understands your company's aims and goals to facilitate a smooth and successful collaboration Clear communication of objectives helps in aligning expectations and achieving desired outcomes efficiently Establishing a mutual understanding early on is vital for project success and long-term partnership growth.
• The tax consultant team made sure thoroughly understood the i' problem before commencing
• Responded promptly when your Company contact the tax
• Produced reports and presentations of the highest standard
• Went "the extra mile" when necessary to ensure you were satisfied at the end of the assignment
(Scale,ã 1 =Strongly disagree; 5 = Strongly agree)
• Firm X has delivered what your Company want and expected
Based on the fee paid and the quality of services delivered, clients perceive that Company X offers excellent value for money Overall, Firm X provides better value compared to other service providers in the same industry.
(Scale: 1 =Strongly disagree; 5 = Strongly agree)
• Your Company is very satisfied with our decision to commission firm X
Client • If your Company had to do it all over again, your Company satisfaction would choose the same firm
• Firm X has met or exceeded your Company's expectations
(Scale: 1 =Strongly disagree; 5 = Strongly agree)
• Firm X's international experience in this type of project is substantial
• Firm X had allocated a sizable number of full time employees on Firm's the ground to work on the project international • Firm X had a significant number of clients in international experience markets
• Firm X' s experience in dealing with international clients is considerable
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Partnering with a reputable professional tax firm enhances reliability and ensures expert advisory services While having a strong relationship with tax authorities can be beneficial, it does not play a significant role in selecting a firm for compliance services Instead, choosing a qualified and experienced tax firm is key to ensuring accurate and compliant tax management.
(Scale: 1 = Strongly disagree; 5 = Strongly agree)
The scales were utilized to develop the final questionnaire for subsequent research stages The completed English version of the questionnaire is provided in Appendix 1, ensuring clarity and accessibility for respondents.
Data Analysis
Purifying data 3 2
Data cleaning is essential to ensure accuracy, involving the removal of errors like missing values caused by typos and the identification of outliers, which helps improve the reliability of data analysis and insights.
Frequency analysis confirms that the dataset contains no missing values, with a total of 120 valid observations The distribution of each item is approximately normal, as evidenced by Skewness and Kurtosis values ranging from -1 to 1 Further exploratory analysis identified thirteen outliers, including observations numbered 14, 16, and 19.
27, 40, 48, 50, 62, 69, 72, 86, 117 and 118) in total for three (03) dependent variables in the research model (i.e Perceived Performance, Client Perceived Value and Client Satisfaction)
After elimination of outliers, the data set has 107 observations left
Results of the above analysis are disclosed in detailed in Appendix 2.
Measurement analysis
To purify the measures, Cronbach's Alpha and Exploratory Factor Analysis ("EPA") were employed
Evaluating scale based on Cronbach 's Alpha
Cronbach's Alpha analysis demonstrated reliable measures, with all coefficients exceeding the 0.7 threshold recommended by Nunnally (1978), indicating good internal consistency across the scales.
Table 3: The Cronbach alpha coefficients of components
Based on the above analysis, Cronbach Alpha are all above 0.7 Thus, these scales are considered appropriate to further analysis in next steps Please refer to Appendix 2 - The 1st
Cronbach alpha coefficients of components for further details of the above Cronbach alpha analysis
Evaluating scale by using Exploratory Factor Analysis ("EFA '')
After checking the reliability of the scale, EF A is employed That the method is chosen to analyze the factors is the principal components method with varimax rotation
To assess the measurement model's validity, confirmatory factor analysis (CFA) was conducted to evaluate the convergence of items measuring each variable and the discriminant validity among variables The analysis included all constructs, encompassing both independent and dependent variables, to ensure the reliability and distinctiveness of the measurement scales These results provide evidence of adequate convergent validity and discriminant validity within the research model.
The results of the KMO and Bartlett's tests in the factor analysis indicate that the data is suitable for factor analysis, with a high KMO coefficient of 0.872 (above the minimum threshold of 0.5) and a significance level of 0.000 (p < 0.05) These findings confirm that the factor analysis is appropriate for the dataset, ensuring reliable and valid results.
With eigenvalues greater than 1, there are seven (7) factors extracted and the extracted variance was 70.220% (greater than 50%), which met requirement
Table 3 below is the extracted factors and its items as well as loading factor of each item
REL17 806 tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization.' a Rotation converged in 7 iterations
Variables with factor loadings below 0.5 were removed to ensure the reliability of the analysis, especially given the limited sample size (Field, 2000, p 440) An SPSS analysis was conducted, and based on the Rotated Component Matrix results, PER25 and CLI.PER28 were identified as having loadings below 0.5, indicating they do not meaningfully contribute to the factor structure Consequently, these items were deleted from the research to improve the accuracy and validity of the factor estimation.
Also based on the above analysis, there are seven (7) factors extracted in which five
The five key factors—Technical Skills, International Skills, Customer Orientation, Relationship with Tax Authorities, and Client Satisfaction—are assessed using their respective items, consistent with the proposed research model outlined in Chapter 2, Literature Review, and Hypothesis section, utilizing validated scales Additionally, two factors are measured differently: one factor is evaluated through items related to Reputation and Service Fee, while the other is assessed based on items reflecting Perceived Performance and Client Perceived Value.
In the context of this thesis, the service fee serves as a benchmark for clients to assess service quality among competitors, representing an interpretation of the firm's reputation A higher service fee typically indicates a stronger industry reputation and perceived higher service quality Consequently, in the professional tax consultant industry in Vietnam, the service fee is regarded as a key indicator of a firm's reputation As a result, the service fee factor will be omitted from the analysis, and its items will be incorporated into the Reputation factor to better reflect the industry's dynamics.
In the context of professional tax services in Vietnam, perceived performance and perceived value are combined into a single factor, indicating they are not distinctly separated by clients Clients tend to evaluate these services based on both the benefits they receive and the compensation they provide, resulting in perceived performance and perceived value occurring together, which can be labeled as perceived service Factors influencing perceived performance are expected to similarly impact perceived service, as perceived service is measured through items related to performance Additionally, customer satisfaction arises when clients compare their expectations with actual performance, highlighting that perceived service significantly influences client satisfaction in professional tax services.
In line of the above, below table is summary of factors and its items for further analysis
1 Technical skills TEC 1, TEC 2, TEC 3
2 Interpersonal skills INT 4, INT 5, INT 6, INT 7
3 Customer Orientation CUS 8, CUS9, CUS 11
4 Reputation REP 12, REP 13, REP 14, SER 15, SER 16
5 Relationship with tax authorities REL17,REL18,REL19
6 Perceived service PER 20, PER 21, PER 22, PER 23, PER 24,
7 Client satisfaction CLI.SAT 29, CLI.SAT 30, CLI.SAT 31
Please refer to Appendix 4 for further details about EF A results
To ensure all measures remain acceptable across the new groups, Cronbach's Alpha was recalculated, providing a reliable assessment of internal consistency This step confirms the robustness of the data and the validity of the measures used in the study The updated analysis supports the overall reliability of the research findings, ensuring the integrity of the data collection process.
Table 6: The Cronbach alpha coefficients of new components
All new factors demonstrated Cronbach's alpha values above 0.7, indicating good internal consistency and suitability for further analysis The detailed results of the Cronbach's alpha analysis are provided in Appendix 5.
In addition, statistical descriptive analysis was also conducted to give an overview of tested variables and the result is illustrated in Appendix 6.
Hypothesis testing
EF A was conducted to refine the model specifically for Vietnam, resulting in the development of an optimized testing framework This tailored approach aims to enhance the accuracy and effectiveness of assessments within the Vietnamese context, as illustrated in the accompanying diagram.
Figure 3: Conceptual Model of Client Perceived Value and Satisfaction in Business-to-Business Professional Tax Services in Vietnam
In line with that, hypothesis of the research are also revised as follow:
• Hl: Technical skills have significant effect to client Perceived service;
• H2: Interpersonal skills have significant effect to client Perceived service;
• H3: Customer orientation has significant effect to client Perceived service;
• H4: Reputation and Service fee has significant effect to client Perceived service;
• H5: Relationship with tax authority has significant effect to client Perceived service;
• H6: Client Perceived service has significant effect to client satisfaction;
• H7: The relationship between relationship with tax authority and perceived; performance will be stronger in advisory services than in compliance services (nature of engaged services); and
• H8: The relationship between reputation and perceived performance will be stronger under high (rather than low) level of firm's international experience
Based on the factor analysis, new variable values were explored to identify underlying patterns and relationships This analysis helps in understanding the structure of the data, providing insights into key factors affecting the study The results are crucial for optimizing research strategies and improving data-driven decision-making processes.
Technical skills, including TECI, TEC2, and TEC3, are essential for effective performance, highlighting the importance of technical expertise in the workplace Interpersonal skills, measured by INT4, INT5, INT6, and INT7, play a crucial role in fostering positive professional relationships and enhancing team collaboration Customer orientation, reflected through CUSS, CUS9, and CUS11, emphasizes the company's commitment to understanding and meeting customer needs Reputation, assessed via REP12, REP13, REP14, SER15, and SER16, significantly influences stakeholder trust and overall company credibility The relationship with tax authorities, represented by REL17, REL18, and REL19, underscores the importance of maintaining transparent and compliant communication with fiscal entities Perceived service, evaluated through PER20, PER21, PER22, PER23, PER24, CLI.PER26, and CLI.PER27, directly impacts customer satisfaction and loyalty, making it a vital aspect of service quality.
Client satisfaction= Mean (CLI.SAT29, CLI.SAT30, CLI.SAT31)
Regression analysis for factors affecting Perceived Service
Based on Cronbach's Alpha and Exploratory Factor Analysis (EFA), five key factors influencing perceived service quality were identified Regression analysis conducted in SPSS demonstrated significant relationships between these factors and perceived service, highlighting their impact on customer perceptions and satisfaction.
The first regression analysis indicates that there are two (02) outliers i.e observation
Two observations (No 2 and No 23) were excluded from the dataset, leaving 105 observations for re-running the regression analysis The updated results show that the correlation coefficients between perceived performance variables and other factors (technical skills, interpersonal skills, customer orientation, reputation, and relationship with tax authorities) are all greater than 0.4, indicating moderate to strong relationships Additionally, with significance values (Sig.) less than 0.05, it is appropriate to include all these independent variables in the model, confirming their relevance in explaining perceived performance.
In addition, residuals (errors) are normally distributed given its Skewness and Kurtosis are among -1 to 1 (refer to Appendix 7) No outlier was figured out in the second regression
Our regression analysis confirmed that all the assumptions were met, indicating that the model is appropriate for examining factors influencing perceived service quality The results demonstrate the validity of the regression analysis, providing valuable insights into the key determinants affecting customer perceptions.
Table 7: Summary of regression results: Factors having impacts on Perceived Service
1 789 .622 603 42020 622 32.620 5 99 .000 a Predictors: (Constant), technical skills, interpersonal skills, customer orientation, reputation, relationship with tax authorities b Dependent Variable: Perceived service
The analysis revealed that the model and all individual independent variables are statistically significant, with p-values less than 0.05 The ANOVA F-test (F(5, 99) = 32.629) confirms the model's overall significance, while the adjusted R-squared value of 0.603 indicates that approximately 60.3% of the variance in Perceived Service variables can be explained by the five identified components Overall, these findings demonstrate that the linear regression model effectively captures the relationship between the independent variables and the dependent variable, providing valuable insights into the factors influencing Perceived Service.
Table 8: Relationship among independent variables (Technical Skills, Interpersonal Skills, Customer Orientation, Reputation, Relationship with Tax Authorities) and dependent variable (Perceived Service)
Model Coefficients Coefficients Sig Statistics
B Std Error Beta Tolerance VIF
Reputation 256 077 258 001 627 1.594 a Dependent Variable: Perceived service
A Variance Inflation Factor (VIF) below 10 indicates that the independent variables are not highly correlated, suggesting that multicollinearity is not a concern When VIF values are small, it shows that there is minimal overlap among the predictors, ensuring that the regression coefficients are reliable This lack of multicollinearity means that the relationships between independent variables do not significantly impact the accuracy of the regression model's explained results.
Technical skills, interpersonal skills, customer orientation, reputation, and relationships with tax authorities all positively impact perceived service quality These core factors are essential for enhancing customer satisfaction and trust in service delivery Developing strong technical expertise and interpersonal abilities can improve overall service perception, while maintaining a good reputation and positive relationships with tax authorities further reinforce customer confidence Prioritizing these areas is crucial for businesses aiming to boost their perceived service value and achieve long-term success.
Figure 4: Regression results: Factors having impacts on Perceived Service Technical skills
Regression analysis between Perceived service (independent variables) and Client satisfaction (dependent variable)
In this regression analysis, all six assumptions were tested and satisfied, ensuring the validity of the model The correlation coefficients between perceived performance variables and other factors exceeded 0.4, indicating a moderate to strong relationship Additionally, the Sig value was less than 0.05, confirming the significance of the perceived performance variable (PER.SER) and justifying its inclusion in the regression model.
In addition, residuals (errors) are normally distributed given its Skewness and Kurtosis are among -1 to 1 (refer to Appendix 8) No outlier was figured out in this regression
To sum up, all the assumptions of regression were tested and satisfied the requirement Hence, regression analysis is considered appropriate to test factor affecting Client Satisfaction
The regression analysis results are summarized below, providing insights into the key factors influencing the study outcomes These findings highlight significant variables that affect the dependent variable, emphasizing the importance of understanding these relationships for better decision-making The comprehensive overview aligns with SEO best practices by incorporating relevant keywords related to regression analysis and study results.
Table 9: Summary of regression results: Factor having impact on Client Satisfaction
R Adjusted Error of Model R Square R Square the R Square F Change dfl df2 Sig F
1 749 8 562 557 47353 562 131.976 1 103 8 000 a Predictors: (Constant), PER.SER b Dependent Variable: CLI.SAT
The analysis revealed that the overall model is statistically significant, with a p-value less than 0.05, and the F-value of 131.976 (FANOVA I, 103) The adjusted R-squared value of 0.557 indicates that the linear regression model explains approximately 55.7% of the variation in client satisfaction These results suggest that perceived service is a significant predictor of client satisfaction, with the model demonstrating good fit and explanatory power.
The figures indicating the relationship among independent variables and dependent variable are summarized in below table
Table 10: Relationship between independent variable (perceived service) and dependent variable (client satisfaction)
U nstandardized Standardized Coefficients Coefficients Collinearity Statistics
In this study, client satisfaction serves as the dependent variable, and the analysis indicates that the independent variables exhibit low multicollinearity, with Variance Inflation Factor (VIF) values below 10 This suggests that the independent variables are not highly correlated, ensuring that the regression model's results are reliable and not significantly affected by multicollinearity issues.
In summary, H6 is supported that indicates that Perceived Service have positive impact on Client Satisfaction.
Moderator testing
The Chow test, introduced by Chow in 1960, is a statistical and econometric tool used to determine whether the coefficients in two linear regressions are equal across different data sets This test is commonly employed to assess whether independent variables have varying impacts on different subgroups within a population By analyzing separate models, the Chow test helps identify structural changes or differences in the relationships between variables across groups It is a valuable method for validating the stability of regression models and understanding subgroup-specific effects in econometric analyses.
In the case, the data can be split into group and each group can model as:
The null hypothesis of the Chow test posits that the parameters a1 = a2, b1 = b2, and c1 = c2 across different groups, indicating no structural break It also assumes that the model errors (E) are independent, identically distributed, and follow a normal distribution with unknown variance This statistical test is used to determine whether the coefficients in separate regressions are equal, helping identify potential changes in model relationships Understanding these assumptions is crucial for accurate interpretation of the Chow test results in econometric analysis.
The study applied the Chow test to examine the moderating effects of a firm's international experience and the nature of the engaged service on the relationship between reputation and perceived service Additionally, the test was used to assess how the relationship between the firm's relationship with tax authorities and perceived service is influenced These analysis outcomes provide valuable insights into the factors that impact perceived service quality in relation to firm reputation and interactions with tax authorities.
Two Chow test analyses were conducted to examine the moderating effects of firm’s international experience and the nature of engaged services The analysis included linear regression on combined data as well as separate groups, specifically foreign firms versus local firms for the international experience moderator, and advisory service versus compliance service for the engaged services moderator These tests aimed to determine whether the relationships differ significantly across these groups, providing insights into how these factors influence the overall model.
Table below summarize the results of the above steps
Table 11: Summary of Chow test results
Moderator Null hypothesis of Chow test F- value Fcritical Conclusion
Firm's Firm's international experience 0.993 international does not moderate the experience relationship between Reputation
The F-value for Perceived Service is 3.086, which is lower than the F-critical value at p = 0.05, indicating no significant moderation effect The nature of engaged services (F = 1.172) also does not significantly moderate the relationship between the relationship with tax authorities and perceived service Additionally, the F-values for the firm's international experience and the nature of engagement are below the F-critical threshold (2, 101) at p = 0.05, leading to the failure to reject null hypotheses H7 and H8 This suggests that the firm's international experience does not influence the relationship between reputation and perceived service, nor does the nature of engaged services alter the relationship between the relationship with tax authorities and perceived service.
The details of the Chow test formula and analysis results are provided in Appendix 8, offering comprehensive insights into the statistical evaluation.
Figure 5: Summary of thesis results
749 Client satisfaction tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg