Thang V. Nguyen

A Study of the Formality of Human Resource Management Practices in Small and Medium-Size Enterprises in Vietnam

One main challenge for human resource (HR) management in small and medium-size enterprises (SMEs) is to balance the formal policies and the informal culture of these smaller firms. While HR formality has remained a subject of much qualitative analysis, it has not received much quantitative analysis. Using a sample of 89 Vietnamese SMEs this study tested the level of formality as a dimension of HR management. The results supported our hypotheses that firm size is positively related to HR formality, and that HR formality is positively associated with owners’ perceptions of firm performance. This study provides important research implications as well as practical implications for managers and policy makers.

Trust and Uncertainty: A Study of Bank Lending to Private SMEs in Vietnam

This research explores the question of how – in the absence of institutions that legitimate markets, contracts, and private property, and the lack of business data – banks make loan decisions to the private sector. We conducted in-depth interviews with 23 bankers of state-owned and private banks in Vietnam. Our results suggests that in the absence of effective market institutions and business data, banks in Vietnam face considerable uncertainties (rather than risks) in lending to private businesses. Consequently, banks employ a combination of uncertainty avoidance, and reliance on trust, in lending to their private business clients. We also found a strong association between types of banks (state and privately owned) and uncertainty strategies, as well as strong relationships between types of banks and trust development mechanisms.

A dynamic model of trust development and knowledge sharing in strategic alliances

Building on the recent advances in research on trust and knowledge sharing in strategic alliances, we weave together the existing literature to develop a dynamic model of trust development and knowledge sharing (TD/KS). We set forth three objectives for this paper. First, to review the literatures on trust and knowledge sharing and establish dynamic conceptualisations of both concepts. Second, to develop an integration of trust development and knowledge sharing in a dynamic setting; and finally, to offer the TD/KS model, which describes how alliances are formed, developed and dissolved, based on levels of trust and knowledge sharing between partners. We conclude our paper with theoretical and practical applications of our proposed model.

Local knowledge acquisition of foreign subsidiaries in Vietnam and China

Purpose – This paper seeks to examine how foreign subsidiaries of MNCs can acquire new local knowledge by focusing on two intra-organizational factors of learning mechanisms and formative organizational context. Design/methodology/approach – A mail survey was carried out with top managers among manufacturing subsidiaries of multinational corporations (MNCs) located in Hanoi, Vietnam and Guangdong province of China. In total 123 completed questionnaires from MNCs in Hanoi and China were received. Findings – The results suggested that training and mentoring and formative organizational context has positive association with knowledge acquisition. However, three interaction terms between learning mechanisms (experimentation, socialization, training and mentoring) with formative organizational context are significantly related to knowledge acquisition. Besides, the authors also found a positive and significant association between knowledge acquisition and subsidiary performance. Practical implications – Building a formative organizational context directly promotes knowledge acquisition and increases the effectiveness of more informal learning mechanisms. Besides, a learning mechanism may work differently in different contexts, and foreign managers need to be aware of when to apply what mechanisms. Originality/value – The paper argues that the alignment between organizational context and organizational learning mechanisms can help the foreign subsidiaries acquire new knowledge and improve subsequent performance. Local knowledge acquisition in MNCs should be conceived as a deliberate and managed act, requiring a careful selection of both formal and informal mechanisms supported by appropriate contextual conditions in foreign subsidiaries.

Local governance, corruption, and public service quality: evidence from a national survey in Vietnam

Purpose The purpose of this paper is to examine whether higher levels of transparency, accountability, and participation have a statistically significant association with corruption, and whether corruption is highly correlated with lower public service quality in the context of Vietnam’s transition economy. Design/methodology/approach Using individual-level survey data from Vietnam Provincial Governance and Public Administration Performance Index, the research employs an ordered probit model to test whether greater transparency, accountability, and participation is associated with lower levels of corruption. Moreover, district-level data are used to test the relationship between corruption and quality of public services particularly in healthcare and primary education. Findings Results show that a higher level of transparency, participation, and accountability is associated with a lower level of corruption, and that corruption is negatively associated with public service quality. Research limitations/implications The use of cross-sectional data does not allow the establishment of causal relationships among variables. Practical implications The research suggests that fostering accountability to citizens and non-state sectors and promotion of genuine participation from these actors are critical for the future anti-corruption agenda. Originality/value In developing countries, whether corruption enhances efficiency of service provision is highly debatable. This research contributes to this debate by suggesting that corruption significantly decreases the quality of public service, and that improving local governance helps reduce corruption.