Summary of Dotoral thesis Economic: A study of factors affecting the collaboration in Vietnam exported fruits and vegetables supply chain

The thesis has reviewed and indicated the research results of a number of foreign and domestic studies concerning the concept, the characteristics, the role of supply chain collaboration, the level of collaboration and determinants of the collaboration in supply chains.

MINISTRY OF EDUCATION AND TRAINING

FOREIGN TRADE UNIVERSITY

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SUMMARY OF DOTORAL THESIS

A STUDY OF FACTORS AFFECTING THE COLLABORATION IN

VIETNAM EXPORTED FRUITS AND VEGETABLES SUPPLY CHAIN

Field of study: International Economic Code: 62.31.01.06 (new code: 9310106)

NGUYEN THI YEN

The thesis is completed at: Foreign Trade University

Supervisor: Assoc Prof., Dr Trinh Thi Thu Huong

Reviewer 1:

Reviewer 2:

Reviewer 3:

The thesis shall be defended in front of the Thesis committee at

University Level at Foreign Trade University

At hour date month year 20

The thesis can be found at the National Library and The Library of Foreign Trade University

LIST OF PUBLISHED WORKS OF THE AUTHOR

RELATING TO THE THESIS

1 Nguyen Thi Yen (2019), “Factors effecting the collaboration in Vietnam

exported fruits and vegetables supply chain” External Economics Reviews, No

120/2019

2 Nguyen Thi Yen (2018), “Fruits’s cold supply chain: experience of Japan

and lessons for Vietnam”, External Economics Reviews, No 104/2018

3 Nguyen Thi Yen (2018), “Some recommendations to enhance collaboration

in Vietnam’s retail supply chain”, Academic Conferrence at University Level

“Vietnam retail market: perspectives for 2020 and beyond”, Foreign Trade University, 08/2018

INTRODUCTION

1 Rationale of the research:

Vietnam has advantages over agriculture and fruits and vegetables, of which the export output has been increasing constantly through the years, are among the main export products However, the export output, although rising, still solely accounts for the minority of domestic production, while export turn-over makes up a meager proportion of worldwide demand at 1,5% Clearly, it lacks food safety exported fruits and vegetables supply chain, not the import markets

The theory concerning collaboration in supply chain has been studied, applied in reality for many years Nonetheless, for developing countries as Vietnam, it is still a brand new thing and has just been attached special importance to recently, which results

in the fact that a lot of companies do not understand deeply the extreme magnitude of collaboration in export fruits and vegetables supply chain Therefore, recognizing factors affecting collaboration in supply chain, then finding out existing difficulties to provide appropriate solutions are utterly imperative nowadays For that reason, the writer chooses

“A study of factors affecting the collaboration in Vietnam exported fruits and vegetables supply chain” to be the topic of the Ph.D thesis

2 Overview and related issues of thesis

2.1 General findings of supply chain collaboration

The thesis has reviewed and indicated the research results of a number of foreign and domestic studies concerning the concept, the characteristics, the role of supply chain collaboration, the level of collaboration and determinants of the collaboration in supply chains

2.2 General findings of fruits and vegetables supply chain collaboration

The thesis has reviewed and indicated the research results of a number of foreign and domestic studies concerning the collaboration in fruits and vegetables supply chain and its determinants

2.3 Comments on previous reports and unsolved problems

General perception

In general, there have been a lot of researches on supply chain collaboration and its determinant, which have been published in prestigious supply chain management

journals These studies have clarified the concept of chain collaboration, the levels of collaboration, the characteristics and the role of collaboration in improving and developing the supply chain From there, we can form the theoretical basis for research

on collaboration and its determinants The number of domestic researches on collaboration and its determinants is very limited

Unsolved problems

Various studies have discussed the factors that influence collaboration within the chain, however, the amount of researches is limited when it comes to a particular field Furthermore, studies have not yet identified all factors affecting the collaboration in the export vegetable and fruit supply chain, but only at reasoning and surveying the influencing factors Domestic research on this issue is still limited, there is currently no research on the analysis of factors affecting the collaboration in Vietnam exported fruits and vegetable supply chain

3 Research objectives and tasks:

The objectives of this thesis are to recognize and analyze factors affecting the collaboration in Vietnam exported fruits and vegetables supply chain, then to find solutions influencing such factors in order to reinforce the collaboration in Vietnam exported fruits and vegetables supply chain In addition, the thesis develops a scale system for collaboration and factors affecting the collaboration in Vietnam exported fruits and vegetables supply chain

To achieve the aforementioned objectives, the thesis performs the following tasks: Firstly, clarifying the rationale of supply chain, collaboration in supply chain, recognizing and analyzing factors affecting the collaboration in export fruits and vegetables supply chain Secondly, creating and developing a system of scales for factors affecting the collaboration in Vietnam exported fruits and vegetables supply chain Thirdly, analyzing the real situation of Vietnam exported fruits and vegetable supply chain and collaboration in Vietnam exported fruits and vegetable supply chain.Fourth, determining factors and their affecting level to collaboration in Vietnam exported fruits and vegetable supply chain Fifth, basing on the analyses of affecting level of factors to provide solutions influencing factors in order to reinforce the collaboration in Vietnam exported fruits and vegetable supply chain

4 Research subjects and scope:

Research subjects are factors affecting the collaboration in Vietnam exported fruits

and vegetable supply chain This thesis research on fruit and vegetable exporting enterprises and co-operatives which are placed in the relationship with their suppliers, distributors / customers Exporting enterprises and co-operatives are the central enterprise

of the export fruit and vegetable supply chain, and their answers are generalized to assess collaboration and the factors affecting collaboration in the supply chain

Spatial research scope: the thesis researches on the collaboration in Vietnam

exported fruits and vegetable supply chain In addition, the thesis researches on experience lessons of India and Thailand

Temporal research scope: statistics in the thesis are from 2010 to 2019 and were

collected from reports of state authorities such as General Department of Custom, General Statistics Office,…

Research content scope: the thesis researches on the collaboration in export fruits and

vegetables supply chain The thesis also focuses on researching into the vertical collaboration in supply chain, specifically the collaboration between elements in the Vietnam exported fruits and vegetable supply chain

5 Research Methodology

This thesis approaches from the perspective of the state management agencies in managing the activities of enterprise in Vietnam’s export fruits and vegetables supply

chain Approaching the rationale concerning factors affecting the collaboration in

Vietnam exported fruits and vegetable supply chain Approaching realistically through surveys to evaluate the affecting level of factors to the collaboration in Vietnam exported fruits and vegetable supply chain Researching, evaluating on the reality of the collaboration between elements in export fruits and vegetables supply chain in specific domestic and international conditions and context; associating the development of the supply chain and the collaboration in export fruits and vegetables supply chain with national socio-economic development situation in the age of international economic

integration The research combined of descriptive research and verification research

6 Research significance:

6.1 Theoretical contribution:

Improving the theoretical framework about supply chain, collaboration in supply chain and factors affecting the collaboration in supply chain The new point of this thesis

is that the author has come up with a collaborative model in Vietnam exported fruits and vegetables supply chain that is governed by 6 factors: two of which are commitment and government support have certain impacts on the collaboration, 4 other factors of trust, power, culture, business strategy that were published in previous research works The thesis developed and 5 scales of commitment factor, 4 scales of government support factor and 5 scales of collaboration in Vietnam’s export fruits and vegetable supply chain This could be considered the first research on factors affecting the collaboration in Vietnam exported fruits and vegetable supply chain, being the rationale for researches towards different fields in Vietnam The research uses both qualitative and quantitative research methods to test the result, so it would add to the methodology of analysing the collaboration in supply chain

6.2 Realistic contribution:

Raising awareness of export fruits and vegetables businesses about the importance, necessity of collaboration in supply chain The thesis identifies the three factors with greater influence are trust, power, and business strategy The research also provides solutions for businesses' consideration and for developing Vietnam exported fruits and vegetable supply chain The research is also a reliable reference material about supply chain, collaboration in supply chain or methodology of metrology research and research model test

7.Structure:

Apart from introduction, table of contents, list of tables and figures, abbreviations, references, conclusion, the thesis is divided into four chapters

CHAPTER 1: SOME BASIC THEORETICAL ISSUES ON SUPPLY CHAIN AND

COLLABORATION IN SUPPLY CHAIN 1.1 Overview of supply chain

1.1.1 Concept of supply chain

There are many supply chain concepts, in general, they show that it is the link between companies from the first stage of purchasing raw materials to producing and delivering

products to customers According to the author, the concept introduced by Chopra, Sunil and Peter Meindl is more complete when it comes to the role of the links in the supply chain Accordingly, the supply chain is composed of all activities participated directly and indirectly in supplying products to end customers In addition to businesses directly involved in meeting customer needs such as suppliers, manufacturers, distributors, indirect stakeholders such as transportation, information, warehousing service providers also play an important role This is a sufficient condition for businesses to serve customers with optimal service and cost

1.1.2 Objectives of supply chain management

The supply chain is composed of all activities involved in the supply of products to the end customers, so the ultimate goal of supply chain management is to satisfy customer needs and enhance overall value of the chain

1.1.3 The basic elements of the supply chain

The thesis indicates five basic elements of the supply chain: production, inventory, place, delivery and information Manufacturing in the supply chain refers to the capacity of the chain to create and store products Inventories are in the supply chain and range from raw materials to finished products, semi-finished products, held by manufacturers, distributors

or retailers in the chain Place is understood as the choice of the geographical location of supply chain facilities and the identification of activities that need to be taken by each vehicle Delivery involves moving from raw materials to finished products under different conditions in the supply chain Finally, information is the key element related to the four remaining basic ones of the supply chain Information is to connect all activities

in the chain, when the information is transmitted accurately, fully and promptly, the parties in the supply chain will be able to make an accurate decision for their own activities

1.1.4 Basic components of the supply chain structure

A supply chain consists of components interrelated and interacted with each other are suppliers, manufacturers, consumers and intermediary organizations In each supply chain, products are moved from the supplier to the manufacturer, distributor, customer (retailer) and end customers along the supply chain In fact, manufacturers may receive

raw materials from many other suppliers and then supply them to distributors, which forms supply networks

1.2 Collaboration in the supply chain

1.2.1 Definition

The thesis points out some concepts of supply chain collaboration, whereby we can understand that a collaborative supply chain in which members jointly plan and carry out supply chain activities in order to bring the best benefits to each member and the whole supply chain as well as aiming to best satisfy customers' needs

Collaboration can bring the benefits to the supply chain as following: Increase accuracy for forecasting demand, shorten order processing time; Improve productivity and product quality, boost businesses' competitive position of in the industry

1.2.2 Classification

According to Togar and Sridharan (2007), supply chain collaboration can be divided into three categories: Vertical Collaboration, Horizontal Collaboration and Lateral Collaboration

- Vertical Collaboration: vertical collaboration occurs when two or more organizations, such as manufacturers, distributors, carriers, and retailers share responsibility, resources and information to intend to serve related organizations similar to the end consumer

- Horizontal Collaboration: horizontal collaboration is the cooperation between factors in the same stage to reduce costs and increase product prices

- Lateral Collaboration: lateral collaboration has the characteristics of both types of above collaboration, the flexibility due to the combination of benefits from coordinating components throughout the chain of vertical collaboration and from sharing resources of horizontal collaboration

Besides, considering supply chain collaboration should be associated with supply chain organization structures, including: basic struture, collaboration, partnership, tiers, integration

1.2.3 The criteria to evaluate the collaborative between supply chains

The thesis states and explains the criteria of assessment to the collaboration between supply chains Simatupang và Sridharam (2008) listed out five criteria, including: decision synchronization, system of collaborating execution, binding stimulation, creative supply chain, and information sharing The content of collaboration is listed in the table below:

COL1 The components in supply chains and the

chain activities plans

Simatupang and Sridharam (2008)

COL2 The components in the supply chains

always evaluate the collaboration

procedure

Simatupang and Sridharam (2008)

COL3 The components in the supply chains

always collaborate to develop new

products and the market

Simatupang and Sridharam (2008), Fisher (1997); Simchi-Levi and partners, 2003

COL4 The components in the supply chains

always collaborate to execute chains

activities

Simatupang and Sridharam (2008), Fisher (1997); Simchi-Levi and partners, (2003)

COL5 The components in the supply chains

always share information

Simatupang and Sridharam (2008), Subramani (2004); Zhang and Chen (2013)

manufacturing process in the chain must based on the rigorous standards of various importing contries in the world All parners need to keep up to date with these standards Thirdly, in the export supply chain, the transportation and consumption time will be longer than domestic consumption, the type, quantity and quality are also different The fourth is that the fruits and vegetables are seasonal and acquisition depends heavily on foreign partners Fifthly, vegetables and fruits are greatly influenced by natural conditión such as condition of land, climate, topography, water resources, etc and import-export policy of the exporting and importion countries.

1.3.2 Factors affecting the collaboration in Vietnam exported fruits and vegetable supply chains

1.3.2.1 Trust between counterparts

In this research, trust is defined as the range of which enterprises trust their counterparts in the supply chain to fulfil their responsibility based on goodwill Researches have pointed out the elements in the scale of trust (TRU) including: Our counterpart (the supplier and the importer) are always open-minded and never conceal their business objectives (TRU1), our counterparts always have positive altitude in mutual agreements (TRU2), we believe that our counterparts is honest (TRU3), components in the chains always respect each other (TRU4), counterparts always care about our problem (TRU5) When exporters believe in food hygiene, safety and quality

of growers and are aware of its importance to health and purchase decisions of consumers, they will certainly cooperate with farmers to build that trust, so:

H1: There is a positive relationship between trust and collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2.2 Power

When designing a cooperative supply chain with other enterprises, the business, itself, has to consider the scale, effect and status of other enterprises Researches about power pointed out the elements in the power scale including: The components in the chain share equal power when making decision about the activities of the chain (producing, distributing, selling, researching and developing…) (POW1), both the supplier and the importer have influence to our decision (of producing, distributing, selling, researching and developing…) (POW2), we have influences to partners’ decision (producing, distributing, selling, researching and developing…) (POW3) The power between the parties will influence the decisions on activities in export fruits and

vegetables supply chain, namely the greater the influence between the parties is, the more regularly they will have to contact to work and exchange together This leads to the following hypothesis:

H2: There is a positive relationship between power and collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2.3 Commitment

Cooperating commitment is defined as the range of which partners in the supply

chains will maintain and stimulate their business relationships Researches about cooperating commitment showed out the scale including: the components are expected to maintain the business relationship (CMM1), the components are willing to enrich and extent the relationship with their partners (CMM2), we spend lots of time to build up the relationship with other partners (CMM3), we invest a subsequent amount of budget into building up relationship with other partners (CMM4), the relationship with partners is more important than short-term interest (CMM5) Commitments play a very important role in developing collaboration in the supply chain Therefore:

H3: There is a positive relationship between commitment and the collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2.4 Culture

Culture commonesses is defined as the range of which partners in the supply chain

have value, belief and managing methods that is in common with each other Researches about culture commonesses describe the element in this scale including: we have culture

in common (about languages, desires, habits…) (CUL1), we could easily understand the term and business method of our partners (CUL2), we always agree with solutions to

handle difficulties and hardship of our partners (CUL3) Cultural similarity also

facilitates inter-organizational cooperation (Melvor and Humphreys 2002) Therefore: H4: There is a positive relationship between cultural similarity and collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2.5 Business strategy

Business strategy compatibility is defined as the extent to which supply chain partners have clear and agreed business strategy goals Studies of business strategies have also shown that the components of the scale include: The components of the chain jointly develop common business goals for the export fruits supply chain (BS1), the components

of the chain is highly in agreement about the common business goals of the export fruits supply chain (BS2), all members of the chain understand the partners's business goals (BS3), all partners understand their rights and obligations in the operation of the export fruits supply chain (BS4) Sharing common business strategies will serve as a guideline for cooperation activities between partners and facilitate integration and use of resources (Wathne and Heide 2000) Therefore:

H5: There is a positive relationship between the compatibility of business strategy and collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2.6 Government support

In the complicated and extensive operations of the supply chain, there is a need to enhance cooperation between businesses and governments, national and international, to control and manage risks effectively in global supply chains Studies of government support have also shown that the components of this scale include: The Government of Vietnam has implemented policies and special projects to support our company (GS1), the Vietnamese government gives the necessary information on time (GS2), the Vietnamese government provides financial support to our company (GS3), the government supports other resources for our company (GS4) According to Mentzer,

2001, it is difficult to cooperate with any actors who want to participate in the supply chain in the industry but do not meet the national and international policies and laws Therefore:

H6: There exists a positive relationship between government support and collaboration in Vietnam exported fruits and vegetable supply chain

1.3.2 The original research model

From the above-mentioned assumptions, the research model consists of six factors (six independent variables) that all positively affect the collaboration (dependent

variable) in Vietnam exported fruits and vegetable supply chain

1.4 Experience in developing cooperation in the export fruits and vegetables supply chains of India and Thailand

1.4.1 Experience of India

The dissertation introduces the general export of Indian vegetables and fruits and the cooperation in the Indian export vegetables and fruits supply chain From there, draw lessons for Vietnam Firstly, for the farmers, they have formed the link through the group

of vegetable farmers thanks to the intermediaries of distribution and government support policies Second, the signing of production contracts Thirdly, intermediary retail organizations have promoted their role very well Fourth, the Indian government has well performed its role of supporting and promoting production as well as domestic consumption of fruits and vegetables

1.4.2 Experience of Thailand

The dissertation provides a general introduction about Thai fruits and vegetables export and the cooperation in Thai fruits and vegetables export supply chain From there, draw lessons for Vietnam Firstly, sharing goodwill information among the components of the export vegetables and fruits supply chain Second, promoting the supporting role of associations Third, exporters focus on developing a collaborative relationship between the components of the exports vegetable and fruits supply chain

CHAPTER 2: RESEARCH PROCESS AND METHODOLOGY

2.1 Research process

2.1.1 An overview of the research process flowchart

The research process of the thesis consists of 6 steps, namely: identifying research objectives, collectiong and reviewing documents, collecting research data, preliminary research, formal research, research result’s report

2.1.2 The steps in the research process

This study clearly explains the activities and purposes of each step in the research process

of the research

2.2 Secondary research data

Secondary data was collected through field research by reviewing data from published data sources Its included reports from The General Statistics Offices, Vietnam Frui and Vegetable Association, Information Center of the Strategic Policy Institute for Rural Development and Vietnam Chamber of Commerce and Industry (VCCI)

The secondary data is analyzed base on the qualitative analysis methods, including general and matching methods, logical reasoning methods and statistical and modeling methods

2.3 Primary research data

2.3.1 Qualitative analysis methods

Group discussion