MINISTRY OF EDUCATION AND TRAINING CAN THO UNIVERSITY NGUYEN TRUNG NHAN RESEARCH ON THE INFLUENCES OF INFORMATION TECHNOLOGY TO ELEMENTS IN COMPETITIVENESS CAPACITY IN MANY ENTERPRISES
Trang 1MINISTRY OF EDUCATION AND TRAINING
CAN THO UNIVERSITY
NGUYEN TRUNG NHAN
RESEARCH ON THE INFLUENCES OF INFORMATION TECHNOLOGY TO ELEMENTS IN COMPETITIVENESS CAPACITY IN MANY ENTERPRISES
LOCATED IN CAN THO CITY
BUSINESS MANAGEMENT MAJOR CODE: 62.34.01.02
SUMMARY OF PHD THESIS IN ECONOMICS
CAN THO - 2019
Trang 21 Nguyen Trung Nhan, Luu Thanh Duc Hai (2018) Impact of IT on the competitiveness of businesses in Can Tho city Journal of Finance, Part 1 - March 2018 (676), page: 113-116
2 Nguyen Trung Nhan, Luu Thanh Duc Hai (2018) Proposing a model to measure the impact of IT on the components of competitiveness of businesses Science Journal
of Can Tho University, Volume 54, Issue 6 (2018) pp: 215-223
3 Nguyen Trung Nhan, Luu Thanh Duc Hai (2019) The impact of IT on the factors that lead to the competitiveness of businesses in Can Tho city Science Journal
of Can Tho University, Volume 55, Number of Economics Topic (2019) page: 95-107
Trang 3CHAPTER 1 INTRODUCTION TO THE RESEARCH PROJECT 1.1 THE ISSUES AND NECESSITIES
1.1.1 THE ISSUES
In order to improve the competing capability, businesses must offer products and services with higher quality and convenience to consumers To achieve that goal, businesses must apply scientific and technological achievements to market research, management of input resources, production and business process management, human resource management, financial management and output management All these jobs which are supported by information technology (IT) will help businesses
to deploy more smoothly, quickly and effectively It will contribute to improve the competing capability, especially in the current Industrial Revolution 4.0 era
Today, IT has made great progress, it presents and plays an important and indispensable role in all activities of social life, especially in activities of businesses
1.1.2 THE NEED FOR RESEARCH
Today, in our country, the investment and application of IT in production and business activities are getting more and more attention from businesses This becomes more important than before as the development and competition among businesses is growing, foreign companies appear more and more, IT achievements have been applied to the management system of state agencies and production and business activities of businesses in the market If businesses do not invest in IT application, they will be eliminated and will not have access to new benefits that IT brings
Can Tho city has increased investment, applied IT in state agencies and initially formed the foundation for e-government; businesses in the city have invested and applied IT in increasing production and business activities, creating conditions to improve the competing capability for businesses in the process of regional and global economic integration
1.1.3 NOVELTY OF THE THESIS
There have not had any research projects or scientific projects yet on a national level in Vietnam about the impact level of common IT factors to the elements that constitute the competitive capability of businesses in a systematic manner
This topic is considered to be an exploratory research, a desire to supplement and complete the theoretical basis, deploy an empirical model on IT factors affecting
Trang 4the components of the competing capability of businesses at Can Tho city
Previous studies have considered IT factors as a component of the competing capability (belonging to Science and Technology) This study isolates the IT factor to evaluate the impact on the remaining factors in the competitive competence of businesses at the Can Tho city
Stemming from the aforementioned issues, the author has chosen the topic:
"Research on the influences of Information Technology to elements in competitiveness capacity in many enterprises located in Can Tho City" as the
content of the thesis
1.2 RESEARCH OBJECTIVES
1.2.1 GENERAL OBJECTIVES
The objective of the thesis is to study the impact of Information Technology on the constituent elements of competing capability of businesses in Can Tho city, thereby proposing management implications to improve the competing capability of businesses in Can Tho city
1.2.2 SPECIFIC OBJECTIVES
Assessing the current situation of IT application of businesses in Can Tho city, the constituent elements of the competing capability of businesses in the area of Can Tho city
Analyzing and auditing the impact of IT on the constituent elements of the competing capability of businesses in Can Tho city
Proposing the management implications to improve IT impact on the competing capability of businesses in Can Tho city
1.3 RESEARCH QUESTIONS
Question 1: How is the reality of applying IT and the constituent elements of the
competing capability of businesses in the localities of Can Tho city?
Question 2: What is the impact of IT on the constituent elements of competing
capability of businesses in Can Tho city today?
Question 3: To improve the competing capability of businesses in Can Tho city,
how should the impact of IT be used?
1.4 OBJECTS AND SCOPE OF THE RESEARCH
1.4.1 OBJECTS OF THE RESEARCH
Trang 5The research object of the thesis is enterprises in Can Tho City via evaluating the impact of IT on the constituent elements of competing capability of businesses currently
The object of the thesis survey is the experts, Board of Directors, Chief Accountant and managers (departmental level) of businesses in the locality of Can Tho city in applying IT to business activities of businesses
1.4.2 SCOPE OF THE RESEARCH
1.4.2.1 Space range
The study focused on businesses in the area of Can Tho city, focusing on 05
districts: Ninh Kieu, Binh Thuy, Cai Rang, O Mon and Thot Not These are places
with the largest number of businesses
1.4.2.2 Time range
Research period: secondary data used in the thesis was collected in the period of
2014 – 2017, and additionally in 2018, 2019 Primary survey data was collected mainly in 2017 and supplemented in 2018
1.4.2.3 Content range
The research thesis is conducted for businesses of all economic sectors operating
in key fields in Can Tho city; at the same time studying the impact of IT on the internal and external factors that make up the competing capability of these businesses
1.5 THE SCIENTIFIC AND PRACTICE MEANING OF THE THESIS
1.5.1 SCIENTIFIC MEANING
The thesis is done with the following scientific meanings:
- The thesis conducts document review, selectively inherits and systematizes previous studies related to IT architecture framework in businesses, Competition issues, competitive advantage and competing capability in businesses; thereby proposing models, research processes, hypotheses and scales related to assessing the impact of IT on the components of competitive competence of businesses in Can Tho city
- Using a combination of qualitative and quantitative research methods Regarding these methods, the thesis mainly uses quantitative method to determine the impact of IT on each element that constitutes the competing capability of businesses
Trang 6- The research results will test the analysis, hypotheses, empirical conclusions and propose management implications in accordance with current IT investment and application practices in businesses in Can Tho city currently; thereby suggesting policy implications for state agencies to encourage, facilitate investment promotion and IT application for businesses in the coming time
1.5.2 Practical meaning
- This research stems from the general policy of the Party and the State and the practical needs of life is to promote the application of IT in organizations and businesses; is a research and discovery to add to the theoretical basis and empirical model on IT impacting the constituent elements of competing capability of businesses in Can Tho City
1.6 STRUCTURE OF THE THESIS
In addition to the summary and conclusion, the thesis is divided into 5 chapters presented with the following structure:
- Chapter 1: Introduction to research topics
- Chapter 2: Research overview
- Chapter 3: Theoretical foundations and research methods;
- Chapter 4: Research results and discussion;
- Chapter 5: Conclusion and management implications
Trang 7CHAPTER 2 RESEARCH OVERVIEW 2.1 RESEARCH WORKS ON IT ARCHITECTURAL FRAMEWORK
Architecture framework or IT model is determined by EA Zachman It is supplemented by new version developed based on EA framework and FEAF –II (USA), TOGAF from Open Group and VGAF v 2.0 in Vietnam
Regarding reference, the standard framework determines IT architecture framework (or model) in modern businesses following 06 main factors:
(1) Technical infrastructure (hardware, software, network, cloude, ),
(2) Database (Data),
(3) Information system (information),
(4) Applications (Portal, website, social networks, blogs),
(5) Users (operators, operators), and
(6) Information security
In particular, the technical infrastructure system is considered a foundation factor of the Architectural Framework and Information Security is considered a new
and important factor that has an impact on the remaining factors
2.2 RESEARCH PROJECTS ON COMPETING CAPABILITY
There are many studies (both domestic and foreign) about the constituent elements of competing capability of businesses, each research project determines the constituent elements of competing capability of businesses are also different These factors are described in the form of a specific "framework" or "model" of competing capability Competing capability can be considered as a dependent or independent variable, depending on the perspective from which a person approaches the problem (A Ambastha and K Momaya, 2003) The typical international researches include Marc Vilanova và ctg (2009); Olga Nykolyuk (2014); Dragan oćkalo và partner (2019) The typical domestic researches include Nguyen Đinh Tho and partner (2009); Ninh Đuc Hung and partner (2011), Huynh Thanh Nha and partner (2013); Pham Viet Hung and partner (2017)
The studies have built an important theoretical foundation and identified the basic internal factors that determines the competitive competence of enterprises: (1) Market, (2) Capital mobilization (3) Marketing, (4) Governance, management, (5) Technology, (6) Resources (human resources), (7) Public relations, (8) Others (reputation, brand, strategy)
Trang 82.3 THE STUDY ON THE IMPACT OF INFORMATION TECHNOLOGY
CAPABILITY OF BUSINESSES
Basic determination of factors belonging to c capability affected by IT in businesses are as follows:
Table: Summary of competing capability elements influenced by IT
4 Relationship Ravarini, 2010; Tanja Mihalič et al
(2013)
Most of the researches
5 Financial resource Ravarini 2010; Tanja Mihalič et al
(2013);
Most of the researches
6 Business market Raykun R.Tan (1995), Moon-Koon Kim
et al, 2007
7 Business strategy Moon-Koo Kim et al 2007
Source: Authors' summary, 2018
Trang 9CHAPTER 3 THEORETICAL BASIS AND RESEARCH METHODS
3.1 THEORETICAL BASIS
3.1.1 Theoretical basis of IT architecture framework in businesses
- EA Zachman architectural framework (1992)
- FEAF-II architectural framework (United States, 2013);
- TOGAF architectural framework (Open Group, 2016);
- VGAF v2.0 architecture framework (Vietnam, 2019);
- Standard framework
3.1.2 Theoretical basis of the components of competing capability of businesses
- “5 competitive pressures” model of M Porter
- PESTEL analysis model
- Resource Based View Theory (RBV)
3.1.3 The theory about IT affecting the competing capability of businesses
- Dynamic ability theory (Teece & et al 1997; Eisenhardt & Martin 2000) From the theory of resources and the empirical studies mentioned above, we can conclude that IT is one of the important resources affecting the competing capability
of businesses, IT resources are classified in the following order: (1) tangible resources include IT infrastructure components, physical infrastructure, (2) human IT resources including managerial and technical IT skills, and (3) intangible support resources IT as knowledge assets, customer orientation and synergy (Konstantinos
C Kostopoulos et al, 2003)
On the basis of the literature review in Chapter 2 and theoretical basis mentioned above, the author proposes a method to study the impact of IT on the constituent elements of competing capability of businesses as follows:
3.2 RESEARCH METHODS
3.2.1 Qualitative research
After the Council approved the Research Outline, the author conducted a document review, identified the theoretical basis, collected primary data related to the analysis and evaluation of business activities in Can Tho City, assessed the development of some IT fields in Vietnam and IT application of enterprises in Can Tho City
Trang 10To identify research subjects based on the structure of enterprises in the province Each individual learns about research’ contents (experts), select preliminary investigation enterprises, and support clues in research process
Qualitative research is carried out in 03 parts:
- To evaluation the IT development through indicators related to IT fields and ranking announcements of IT application;
- Evaluation the enterprises in Can Tho City: mainly evaluating the general situation, apply IT application in enterprises operating in Can Tho City; analysis of capital, labor, revenue, profit, employee's income,
- Evaluation of the competitive competence of enterprises in Can Tho City through some typical studies and published articles in scientific journals, journalism,
When selecting expert interview members, the author selected the following subjects and numbers:
- Quantity: 24 experts
- Composition: Directors of Departments, branches and centers of Can Tho City; Head of administrator and leader of faculty at Universities which have IT education; Business Director; Chief Accountant, Sales Manager and some other independent experts
3.2.2 Quantitative research
- Phase 1: Preliminary research
+ This phase consists of two main parts (1) on the basis of theoretical research and related financial profiles, the author will conduct the establishment of a Test Scale (draft) to consult with experts and discuss with the group and (2) proceed to adjust the appropriate scale, conduct preliminary quantitative research (about 72 units) After obtaining the data collected through preliminary research, the author will conduct data cleansing (70 units were selected), enter the data into the software and conduct the Cronbach’s test ”Alpha and analyze discovery factor EFA
+ After obtaining the test results, the author consulted with the instructor, analysts and business leaders who have strong IT applications (List of experts) to consider removing abnormal numbers in the analytical results Conducting assessment and adjustment of the set of scales suitable to the study
- Phase 2: Official research
Trang 11+ After adjusting the scale, the author has repeatedly consulted the instructor and experienced experts in two related fields: IT and Business Administration in order to build an official scale of competitive competence in enterprises and complete the research model After agreeing on the scale, the author determines the content to be collected and proceeds to set up an official businesses investigation questionnaire according to the subjects and scope of the study
+ After the survey data, the author has cleaned the data, resulting in more than
350 satisfactory business questionnaires, but the author decided to choose the most complete 350 votes for official analysis using qualitative analysis tools Cronbach's Alpha, EFA, CFA and SEM according to the selected research process The author has used SPSS and AMOS software version 20.0 to analyze the data and check the hypotheses