topic THE IMPACT OF MANAGERIAL CAPACITY ON BUSINESS PERFORMANCE OF ENTERPRISES IN THE MEKONG DELTA REGION

topic THE IMPACT OF MANAGERIAL CAPACITY ON BUSINESS PERFORMANCE OF ENTERPRISES IN THE MEKONG DELTA REGIONtóm tắt tiếng anh ẢNH HƯỞNG NĂNG LỰC CỦA NHÀ QUẢN LÝ ĐẾN KẾT QUẢ KINH DOANH CỦA DOANH NGHIỆP TẠI KHU VỰC ĐỒNG BẰNG SÔNG CỬU LONG tóm tắt tiếng anh ẢNH HƯỞNG NĂNG LỰC CỦA NHÀ QUẢN LÝ ĐẾN KẾT QUẢ KINH DOANH CỦA DOANH NGHIỆP TẠI KHU VỰC ĐỒNG BẰNG SÔNG CỬU LONG tóm tắt tiếng anh ẢNH HƯỞNG NĂNG LỰC CỦA NHÀ QUẢN LÝ ĐẾN KẾT QUẢ KINH DOANH CỦA DOANH NGHIỆP TẠI KHU VỰC ĐỒNG BẰNG SÔNG CỬU LONG The research topic “THE IMPACT OF MANAGERIAL CAPACITY ON BUSINESS PERFORMANCE OF ENTERPRISES IN THE MEKONG DELTA REGION” not only meets practical needs but also serves as a motivation to

Tra Vinh, 2024

PEOPLE'S COMMITTEE OF TRA VINH PROVINCE

TRA VINH UNIVERSITY

ĐANG XUAN HUY

THE IMPACT OF MANAGERIAL CAPACITY

Tra Vinh, 2024

PEOPLE'S COMMITTEE OF TRA VINH PROVINCE

TRA VINH UNIVERSITY

ĐANG XUAN HUY

THE IMPACT OF MANAGERIAL CAPACITY

CHAPTER 1 - INTRODUCTION

The Mekong Delta (MĐC) is one of the key economic regions of Vietnam, with a large scale in both area and population, along with abundant natural resources This region includes 12 provinces and Can Tho city, covering an area of approximately 39,194.6 km² (accounting for 12.2% of the country's total area) and a population of about 18 million people (19% of the national population)

In the context of attracting investment, in 2023, the MĐC attracted approximately 100 trillion VND in the agricultural sector, demonstrating its appeal to businesses and investors

However, the economy of the MĐC still faces many challenges The average income here remains among the lowest in the country The quality

of the workforce is still weak, with only 15% of labor being trained, compared to the national average of 26% (Quoc Dung, 2023) This results in

a shortage of high-quality labor, making it difficult for businesses in the region to meet development demands

The economic system of the MĐC is also experiencing sluggish movements, especially in the industrial sector, with GDP growth declining sharply (-2.26%) in 2021 compared to 4.05% nationwide

While many international studies have pointed out the influence of both internal and external factors on business performance, there is still a lack of in-depth studies in Vietnam regarding the role of managers in organizations There are very few studies directly assessing factors such as

managerial capacity, cultural mindset, ethics of managers, and job motivation's impact on business results

Therefore, researching the impact of managerial capacity on business performance in the MĐC is essential This not only helps fill the research gap but also provides valuable information for businesses in the region to improve their management capabilities, thereby promoting sustainable economic development The research topic “THE IMPACT OF MANAGERIAL CAPACITY ON BUSINESS PERFORMANCE OF ENTERPRISES IN THE MEKONG DELTA REGION” not only meets practical needs but also serves as a motivation to drive economic development in the region in the future

The overall objective of the dissertation is to analyze and evaluate the impact of managerial capacity on business performance of enterprises in the Mekong Delta region Based on this, the dissertation will propose several management implications to improve factors related to managerial capacity, contributing to enhanced business performance of enterprises in the region

• To systematize the theoretical and practical issues regarding managerial capacity and business performance of enterprises, while studying the influence of managerial capacity on business performance

• To identify and describe the characteristics of managerial capacity of managers in enterprises in the Mekong Delta region

• To analyze the impact of managerial capacity on business performance

of enterprises in the research area

• To propose management implications applicable to enterprises in the

Mekong Delta region to increase their business performance

• What theories or frameworks are suitable for measuring the characteristics of managerial capacity and business performance, while supporting the relationship between managerial capacity and business performance?

• What capacities/characteristics of managers affect the business performance of enterprises in the Mekong Delta region?

• What is the level of influence and the mechanism through which factors related to managerial capacity affect the business performance of enterprises in this region?

• How can the business performance of enterprises in the Mekong Delta

be improved through enhancing characteristics of managerial capacity in the near future?

To address the research questions and specific research objectives, a combination of qualitative and quantitative research methods will be employed To achieve the first objective, qualitative research methods will

be used, primarily through document analysis and expert consultation The level of influence and mechanisms of the factors related to managerial capacity on business performance will be measured using quantitative research methods The quantitative research will initially be conducted with

a small sample size, followed by a larger sample size For the third research objective, qualitative research will be utilized through expert interviews to discuss the results and suggest appropriate implications

The subject of the dissertation is the managerial capacity, business performance, and the influence of managerial capacity on the business performance of enterprises in the Mekong Delta region

The main survey subjects are individuals who are senior or middle-level managers in enterprises engaged in production and business activities in the provinces and cities of the Mekong Delta region

• Identifying important factors affecting business performance: The results

of the research will clarify which specific managerial capacities influence business performance

• Enhancing managerial capacity within enterprises: This research will help current managers reassess their capabilities and adjust or supplement the capacities that significantly impact business performance

• Addressing human resource training issues related to management

• Supporting strategic planning and decision-making: The research will provide enterprise managers with a more comprehensive understanding

of the key role of leadership teams in the success of enterprises

CHAPTER 2 – THEORETICAL FOUNDATION AND

of the extent to which an enterprise achieves its set financial and financial objectives (Li et al., 2006) by utilizing resources effectively (according to Daft, 2000), aiming to enhance the effectiveness of its organization and business processes

non-2.1.2 Managerial Capacity

Transformational capacity involves effectively combining comprehensive and individualistic approaches to meet the common goals and ambitions of a group, as well as assessing the motivations of followers

Responsibility in Managerial Capacity

Responsibility in managerial capacity integrates leadership ethics and corporate social responsibility, aiming to be accountable to the organization and stakeholders Specifically, a manager's ethics are an inherent requirement

of responsible managerial capacity, necessitating that leaders adhere to ethical principles to act and make ethical decisions Meanwhile, Shi & Ye (2016) argue that only by connecting the individual level and the organizational level can the responsible managerial capacity of leaders be fully realized

Information Technology Capacity

IT capacity refers to an organization’s ability to collect, deploy, integrate, and reconfigure IT resources to achieve competitive advantage The three most relevant IT capacities are IT infrastructure capacity, IT alignment with business operations, and proactive IT capacity (Lu & Ramamurthy, 2011)

Innovative Capacity

Innovative capacity is defined as “the ability of an enterprise/individual to generate innovative outputs” (Esterhuizen et al., 2012) Kogut & Zander (1992) emphasize that innovation integrates a company's capabilities in implementing new developments from existing knowledge Additionally, innovative capacity is the ability to develop new versions and implement necessary changes in response to market demands Innovative capacity is a factor that can be enhanced through work

Absorptive Capacity

Absorptive capacity was first introduced by Kedia and Bhagat (1988); however, the term is often associated with the studies of Cohen and Levinthal (1990) Cohen and Levinthal (1990) argue that absorptive capacity, which includes recognition, assimilation, and exploitation of new knowledge, is crucial for how organizations perceive and utilize external information

Emotional

Emotional orientation is often defined as “the processes through which individuals influence the emotions they have, when they have them, and how they experience and express these emotions” (Gross, 1998) Technically, this refers to the regulation of internal emotions, while external emotional orientation (between individuals) refers to the processes by which one individual influences the emotions of others (Nozaki & Mikolajczak, 2020; Zaki & Williams, 2013)

2.1.3 Digital Orientation

According to Ardito et al (2021), Quinton et al (2018), and Verhoef et al (2019), digital orientation reflects strategic decisions aimed at digitizing the organizational functions of businesses Digital orientation is gaining attention with the emergence of new and powerful digital technologies, creating opportunities to improve and expand operations as well as the products offered by businesses (Nambisan et al., 2019)

2.1.4 Knowledge Management

For the purpose of this research, knowledge management is approached with the role of the manager in mind “Knowledge management is defined as a systematic and comprehensive approach to creating, sharing, and leveraging knowledge within and around organizations.”

2.2 Theories

2.2.1 Resource Orchestration Theory

Resource Orchestration Theory is a robust theoretical foundation that combines Resource-Based View (RBV) and Dynamic Capabilities View (DCV) into a single theoretical framework by overcoming the limitations of each theory (Sirmon et al., 2011)

2.2.2 Information Sharing Theory

Information Sharing Theory (IS), originating from Social Exchange Theory, was first introduced by Constant et al (1994) to study the influences on individuals' intentions to share information This theory extends beyond the information exchange activities that typically occur among friends and acquaintances, including interactions with strangers within organizations that they may never meet directly (Constant et al., 1994)

2.3 Previous Studies

According to Aguilera et al (2024), more follow-up studies are needed

in the future to investigate the topic of business performance in greater depth Existing studies show various perspectives on the concepts and approaches

to answer the question of what constitutes success in business management for effective business outcomes Baía & Ferreira (2024) share this view when evaluating 92 previous studies These researchers found differences and theoretical overlaps when investigating business performance

A few studies have investigated factors related to managers that influence business performance, such as the work by Febrian et al (2023) This study assessed previous research to explore results related to the relationship between leadership styles and business performance This clearly demonstrates that factors related to managers remain a research direction that needs further investigation Additionally, the research by Piwowar-Sulej & Iqbal (2023) further highlights the interest in managerial factors affecting business performance, even when companies are focused on sustainable development Notably, Chatterjee et al (2023) also emphasize the need to pay attention to the role of leaders in managing remote employees specifically, or in managing businesses in a digital direction generally, as technological trends are seen as a key competitive factor

The research results of Martínez Aragón & Aguilar Morales (2023) add variables such as knowledge management, innovation, and transformational leadership that influence business performance, which are important topics However, the relationships studied are limited, and qualitative and mixed methods have been explored to a lesser extent

Therefore, investigating these two variables holds potential for innovation and interest for both researchers and entrepreneurs/managers aiming to enhance business performance The study by Do & Mai (2022) also suggests that to improve business performance, it is necessary to analyze the learning needs of the organization and develop its learning aspects more broadly

In summary, through studies related to business performance, it is evident that the role of managers and their impact on enterprises can lead to their success or failure There are various approaches to evaluating the role

of managers However, no studies have specifically investigated the impact

of managerial capacity on the business performance of enterprises Moreover, scholars and researchers are significantly interested in business performance in a digital environment or the impact of digital technology; the effects of the environment and the management of talent, skills, and knowledge within enterprises This opens up new avenues for deeper exploration, especially concerning digitization and knowledge

• H3: There is a positive relationship between the accountability capacity

of managers and the digital orientation of enterprises

• H4: There is a positive relationship between the information technology capacity of managers and the digital orientation of enterprises

• H5: There is a positive relationship between the innovative capacity of managers and the digital orientation of enterprises

• H6: There is a positive relationship between knowledge management and

business performance of enterprises

• H7: There is a positive relationship between digital orientation and business performance of enterprises

• H8: There is a positive relationship between the absorptive capacity of managers and the business performance of enterprises

• H9: There is a positive relationship between the emotional shaping capacity of managers and the business performance of enterprises

• H10: There is a positive relationship between the accountability capacity

of managers and the business performance of enterprises

• H11: There is a positive relationship between the innovative capacity of managers and the business performance of enterprises

• H12: There is a positive relationship between the information technology capacity of managers and the business performance of enterprises

CHAPTER 3 - RESEARCH DESIGN

3.1 Research Process

Hình 2: Quy trình nghiên cứu

Nguồn: Tác giả đề xuất

Giai đoạn 3: Điều tra khảo sát

sơ bộ

Giai đoạn 1: Điều tra tư liệu NC

Đánh giá kết quả khảo sát sơ bộ

Xử lý dữ liệu và kết quả Chuẩn bị và thực hiện