MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY ……… BÙI NHẬT LÊ UYÊN RESEARCHING OF FACTORS IMPACT INNOVATION CAPACITY OF HIGH TECHNOLOGY INDUSTRIAL ENT
Trang 1MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
………
BÙI NHẬT LÊ UYÊN
RESEARCHING OF FACTORS IMPACT
INNOVATION CAPACITY OF HIGH TECHNOLOGY
INDUSTRIAL ENTERPRISES
IN VIETNAM SOUTHERN’S FOCAL PROVINCES
SPECIALIZATION: COMMERCIAL BUSINESS CODE: 93 40 121
SUMMARY OF DOCTOR OF PHILOSOPHY THESIS
THÀNH PHỐ HỒ CHÍ MINH, NĂM 2018
Trang 2Thesis was completed at:
Scientific instructor:
Reviewer 1:
Reviewer 2:
Reviewer 3:
This thesis was protected at the council of school:
At hours date month year
A thesis can be found at the library:
Trang 3LIST OF RESEARCH PAPERS
A Key research papers relate to the thesis
1 Bùi Nhật Lê Uyên, 2016 Innovation capacity – the solution for Ho Chi
Minh manufacture businesses in integrated period Industry and Trade
magazine, Vol 7, 07/2016, p.94-101
2 Đoàn Thị Hồng Vân và Bùi Nhật Lê Uyên, 2016 Enhance innovation capacity - the important solutions to help Vietnam businesses for sustainable
development Journal of economic development, Nov.2016, p.271-289
3 Đoàn Thị Hồng Vân và Bùi Nhật Lê Uyên, 2017 Factor effecting innovation capacity in Vietnamese Southern high technology industries
Journal of economic development, volume 24, issue 3, p.66-93
B Other research papers
4 Đoàn Thị Hồng Vân và Bùi Nhật Lê Uyên, 2015 Viet Nam's innovative
capacity in the context of integrating ASEAN economic community
Proceedings of scientific workshop: ASEAN Economic Community - opportunities and challenges for Vietnamese enterprises, University of
Economics and Finance, p.27-34
5 Bùi Nhật Lê Uyên, 2016 Human resource problem for innovation activities
of high-tech enterprises in the integration period Proceedings of science and
technology conference 2016, Ho Chi Minh City University of Technology,
p.93-96
Trang 4CHAPTER 1 RESEARCH OVERVIEW
1.1.1 The necesscity of research
High-tech industry plays a particularly important role in the national economy But in Vietnam, in the current period, due to many subjective and objective reasons, the innovation capacity of enterprises in this field is very limited Therefore, to improve the capacity of innovation, we firstly need to identify the factors that affect it
Besides, innovation capacity is also a research issue that the world and domestic science is very interested in Evidence is in the world there have been many research projects on innovation capacity in the field of high technology However, beside the academic value, these studies also had theoretical gaps Moreover, there are only few research projects in Vietnam that directly address factors affecting innovation capacity On that basis, the author would like to affirm the thesis "Researching on factors impact innovation capacity of high-tech industrial enterprises in Vietnam Southern’s focal provinces" is a necessary direction, because of its importance and contribution to both science and practice
of factors such as total quality management (TQM), organizational learning, government support, collaboration network, knowledge absorptive capacity, internal human resources was explored But the results in levels of influence was different There were many arguments and research gaps as TQM’s role
Trang 5In addition, most studies measured the concept of "Government support" through participation in R&D projects that funded by the Government However for developing countries such as Vietnam whether this measurement is really effective when applied For the concept of internal human resources, Bantel and Jackson (1989), Koroglu and Eceral (2015) argued that behind the successful innovation of an organization that was managed by educated and professional personnel Whereas Dakhli and De Clercq (2004) argued that the ability to accumulate work experiences over time would create important skills for the individuals rather than themselves qualification
Moreover, there is one issue not to be clarified, there is always a debate about how to measure innovation capacity (Kanji, 1996; Prajogo and Sohal, 2003; Tang, 1998)
On the other hand, in domestic research, there are many articles on innovation capacity, but most of them are scientific reports, articles in seminars, mainly in the form of an overview, explanation of terms, reality analysis and proposed solutions So that, the author has less opportunities to learn experiences in designing research, methodology, data collection and analysis, econometric modeling, building and testing measurement scale from local authors
1.1.2.2 Practical backgound
The reality of Vietnam's innovation capacity is still difficult problem Factors impact innovation, such as government support, collaboration networks, human resource quality are limited, even R&D activities are considered as minority
In terms of R&D capacity, most domestic producers only focus on development rather than research About human resources in our country, especially Ho Chi Minh City, are not trained according to international standards The scale of training is sparse, spontaneous and non-oriented They care about quantity than quality lead to lacking of quantity and not ensure quality in human resources
The government's role is very important in promoting innovation, because there are many drawbacks in the high-tech industry that businesses face to like as problems of copyright, commercial disputes, the quality of
Trang 6education and training All of matters contributed to create the barriers in innovating and growing
1.2 Research questions and objectives
1.2.1 Research questions
The thesis should clarify the following research questions:
- What factors that impact the innovation capacity of high-tech industrial enterprises, research cases in Vietnam Southern’s focal provinces?
- How is the correlation and the degree of impact between these factors to innovation capacity?
- Which factor’s scale should be developed, supplemented or measured to be appropriate when testing in Vietnam Southern’s focal provinces?
- What is the differences between the factors affecting the innovation capacity in domestic and FDI sector ?
1.2.1 Research objectives
The overall objective was to identify factors and assess their impact
on innovation capacity of high-tech industrial enterprises, in case of testing in some of key provinces of Vietnam Southern
1.3 Research’s subject and scope
1.3.1 Research subject: the research subject is enterprise-level innovation
capacity and measured through product innovation and process innovation
Trang 7Quantitative research was conducted in two phases: a preliminary study of 89 samples to evaluating concept scales and official study of 380 samples to testing research model and hypotheses
The data were cleaned and processed in software SPSS20 and Amos20 with Cronbach's alpha technique, Exploratory Factor Analysis (EFA), Confirmatory factor analysis (CFA) and Structural Equation Modelling (SEM)
1.5 Thesis’s contribution
1.5.1 New point of thesis
Trang 8- The author proposed a research model on factors affecting the innovation capacity of high-tech industrial enterprises, firstly tested in a number of key provinces of Vietnam Southern
- Adjust and develop the original scale by adding new observable variables for concept of Government support and internal human resource
- Adjust and develop the scale of innovation capacity towards forming
+ This is an academic research that is inherited and supplemented, firstly tested in Vietnam Therefore, it is basis of succession for Vietnam researchers on innovation capacity in the coming years
+ Research contributes to develop the scale of factors that influencing
to innovation capacity, step by step perfecting the methodology in measuring innovation capacity and related concepts
1.6 Thesis’s structure
Chapter 1: RESEARCH OVERVIEW
Chapter 2: THEORETICAL BASIS AND RESEARCH MODEL Chapter 3: RESEARCH DESIGN
Chapter 4: ANALYSIS OF RESEARCH RESULTS
Chapter 5: CONCLUSION AND MANAGEMENT
IMPLICATIONS
SUMMARY OF CHAPTER 1
Trang 9CHAPTER 2 THEORETICAL BASIS AND RESEARCH MODEL
2.1 Concept of innovation, innovation capacity and high technology 2.1.1 Innovation
2.1.1.1 Concept of innovation
Innovation theory is the foundation for the birth of the concept of innovation capacity, which was formed in the 1911s and has a long history of development Over time, the concept of innovation is increasingly consolidated and improved According to Brilman, J (2002, page 28),
"innovation is the way to apply a creative idea to help businesses develop and adapt quickly in a competitive environment." Another concept of Damanpour and Aravind (2011, p 427), “innovation is the process from creating, developing and transforming ideas into new products, new processes, new organizational structures or new administration methods"
Thus, from synthesizing the concepts of innovation from many empirical studies in the world, the author drawed the concept of innovation that was suitable for this thesis, which is a process related to the use of enterprise resources to make efforts to improve and develop completely new products or processes for businesses Therefore, innovation is very important and has always been the biggest concern of many businesses, governments and research institutes (Hekkert and Negro, 2009)
2.1.1.2 Classification of innovation
In this thesis, the author only approached two forms of innovation, that is product innovation and process innovation according to OECD’s classification (2005) and Lugones (2012)
According to OECD (2005), Product innovation is the birth of a new
good or service or significant improvements in existing goods and services
Process innovation is the implementation innovation or had a significant
improvement in production method or delivery method, which includes important changes in technology, equipment or software
According to Lugones (2012), Product innovation is introduction to
market a new product or new service that owns technical specifications,
Trang 10components, material characteristics or functionality totally different in compare with previous products Or a new product or service has significant
improvements on existing products/services Process innovation is a new
process or significant improvement on an existing process
2.1.2 Innovation capacity
2.1.2.1 Concept of innovation capacity
In this study, the author agrees with previous conclusions and presents thesis’s point of view Innovation capacity is ability of an enterprise to use internal resources or external resources to conduct innovation activities by producing and introducing to the market completely new products or new processes or making changes and significant improvements on existing products/processes
2.1.2.1 The importance of innovation capacity
According to Suarez (1990), the economy of a nation, a region or a geographic area that has the capacity to innovate rapidly, it can not only attract skilled and experienced human resources, but also promote growth in income and trade in the region In contrast, the innovation capacity depress in any country, region or geographic region will be an early warning of difficulties and decline in future (Suarez, 1990) Therefore, innovation capacity is very important to create competitiveness, allowing businesses to compete effectively in international markets (Williams and Hare, 2012; Fernández-Mesa and Alegre, 2015)
2.1.3 High technology and innovation capacity in high tech
2.1.3.1 The concept of high technology
In Vietnam, according to the High Technology Law No 21/2008 / QH12 (Quoc Hoi, 2008), "High technology is a technology with a high content
of scientific research and technological development; integrated from modern technological and scientific achievements; to create products with superior quality and features, high added value, environmentally friendly; plays an important role in the formation of a new production or service industry or modernize the existing manufacturing and service industry ”
Trang 11In this thesis, the author approached high-tech industrial enterprises
in accordance with the Law on High Technology No 21/2008, which are enterprises that produce high-tech products, these products need to meet the following criteria:
- High proportion of value added in product value structure;
- High competitiveness and great socio-economic efficiency;
- Ability to export or replace imported products;
- Contribute to improving national capacity on science and
technology
2.1.3.2 Innovation capacity in high tech
The relationship between high technology enterprises and innovation
is always inseparable This is the most distinctive characteristic and it’s difficult to find in other fields, because the high tech buisinesses exist in the environment of vehement compete where high-tech products always change rapidly, product life cycle is short, the new technology is introduced today but technology will became popular in the coming days and gradually degenerate over time That is the reason why high-tech industries are constantly innovate
or on the other hand innovation is as vital elements in this area (Goldman, 1982; Riggs, 1983; Shanklin and Ryans, 1984; Nystrom, 1990)
2.2 Basis theory and model of innovation capacity in the world
2.2.1 Basis theory
The author studied basis theories from 1911 until now, to evaluate the overall development of the theory along with the formation of relevant research concepts However, in this thesis, the author only focuses on analyzing some
of basis theories, such as Schumpeter's theory, Nelson theory, NIS theory, innovation capacity theory
2.2.1.1 Schumpeter, J.A (1911)
Joseph Schumpeter analyzed the systematic innovation process when he emphasized innovation as the force for growth Schumpeter appreciated the
Trang 12ability to adapt to market pressure and demand This principle of Schumpeter laid the foundation for the development of the theory and concept of innovation capacity in the 90s
Schumpeter's theory appreciated the role of knowledge, the process of finding and disseminating knowledge is the force to promote innovation Therefore, for sustainable development, enterprises need to know how to apply new knowledge and new technologies to create growth value This principle laid the foundation for two factors were absorptive capacity and organization learning
2.2.1.2 Nelson, R (1977; 1982, 1993)
Nelson's innovation theory (1977; 1982, 1993) clearly explained the nature of innovation, which is a constant and high-risk change, because innovation depends on market demand However, if not innovate, organizations will become less competitive than competitors To reduce risk, innovation can implement improvements instead of comprehensive innovation and should have interaction in an innovative network Nelson's theory laid the foundation for the concept of collaboration network that studied by empirical studies later
2.2.1.3 National Innovation Systems theory
The theory of national innovation system (NIS) focuses on analyzing the innovation system of countries, emphasizing the element of technological innovation According to Freeman and Perez (1988, p 591) a national innovation system is “a network of public and private organizations that has many interactive activities such as importing, modifying and disseminating new technology in which the Government plays an important role in working closely with industry and scientific institutions” Thus, it can be said that NIS theory is the foundation for two factors of collaboration network and the
Government support
2.2.1.4 Innovation capacity theory
During the 80s, 90s and later, the theory of innovation from the previous generation inspired many researchers to explore and gradually improve the theory of innovation capacity Suarez-Villa (1990) said that innovation capacity motivate new technology was born, new technology is the sign of growing economy Suarez-Villa affirmed that leading innovation companies always have a strong culture in mission and vision as well as establishing a
Trang 13business philosophy in which emphasize continuous improvement, customer orientation and total quality management These statements are closely related
to the principles of TQM
2.2.2 Innovation capacity’s models in high technology industry
Jantunen (2005) explored the relationship between the environmental dynamics, absorptive capacity and innovation capacity However, the research’s result only demonstrated the role of knowledge utilization and environmental dynamics Both of them showed positive role and impact to innovation capacity The study’s implication is only businesses had good knowledge processing capabilities can be equipped method to refresh the knowledge base and exploit available knowledge to develop new products to meet market demand
Tseng et al, (2011), from the Jantunen’s study (2005), Tseng et al
(2011) continued to affirm the role of absorptive capacity for innovation He analyzed whether knowledge input and knowledge diffusion can increase the efficiency of innovation The testing result supported the hypothesis that knowledge input positively influence innovation Similarly, the spillovers effect of knowledge from the business themself, from foreign semiconductor companies and from non-semiconductor companies hold a dominant position
in impacting to innovation Beside, absorbtive capacity had also a positive impact on innovation capacity
Rangus, K and Slavec, A (2017), Rangus and Slavec (2017)
continued to explore the relationship between absorptive capacity and innovation capacity Research also explored the role of organizational characteristics such as decentralization, employee participation to enhancing innovation Research’s results demonstrated the role of decentralized culture, employee engagement and absorptive capacity impact to innovation capacity From then, innovation influenced the business’s performance
Hung et al., (2010) The objective of the study was to determine the
relationship between total quality management (TQM); organizational learning and innovation capacity, including product innovation, process innovation and organizational innovation Hung et al used mixed method The results showed that relationships achieved statistical significance in the positive correlation between TQM and organizational learning to innovation