Entrepreneurial orientation, business strategies and firm performance : a comparative study of small and medium-scale enterprises in Vietnam and Thailand | |
| Author | Thai Thanh Ha |
| Call Number | AIT Diss no.SM-02-07 |
| Subject(s) | Small business--Vietnam Small business--Thailand Business planning--Vietnam Business planning--Thailand |
| Note | A doctoral dissertation submitted in partial fulfillment of the requirement for the degree of Doctor of Philosophy, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation; no. SM-02-07 |
| Abstract | The Entrepreneurial Orientation, a complex phenomenon, exhibits a rich history of theoretical contributions, but lacks empirical investigations. Expanding upon contingency framework, this study empirically investigated the relationships between the Entrepreneurial Orientation and the performance of SMEs. More specifically, this study assessed the differences and similarities between Thai SMEs and Vietnamese SMEs in terms of the above-mentioned relationships in the ASEAN context. The literature review shows that the Entrepreneurial Orientation consists of three main dimensions, which include risk-taking, proactiveness and innovativeness. Risk-taking is the extent to which the SMEs are inclined to take business-related risks with regard to investment decisions and strategic actions in the face of uncertainty. Proactiveness pertains to the pioneering nature of the firm as evident in its propensity to compete aggressively and proactively with the other competitors. The innovation component reflects the extensiveness and frequency of product innovation and technological leadership in order for SMEs to obtain a competitive advantage. Business strategies are the firm-level process that incorporates the range of activities that SMEs undertake to formulate their strategic mission and goals. The activities, which constitute business strategies of SMEs, can be grouped into functional areas. They include marketing, finance, human resource management in SMEs, research and development (R&D), and operations. Performance of Thai and Vietnamese SMEs was assessed with the financial criteria (net profit) and non-financial perceived business performance including business growth and job creation. A field survey of SMEs in Thailand Vietnam was conducted with the use of structured questionnaires and face-to-face interviews. The survey resulted in 478 useable and completed questionnaires. Exploratory factor analysis (EF A) was used to identify and condense the underlying variables while confirmatory factor analysis (CF A) was taken to validate and generalize the results from exploratory factor analysis. The path analysis technique was used in this study. There were significant differences between Thai and Vietnamese SMEs in terms of the Entrepreneurial Orientationperformance relationship. It was also revealed that Thai and Vietnamese SMES pursued different patterns of business strategies in order to achieve the firm's intended goals. The results of this study confirmed that business strategies moderated the performance of SMEs both in Thailand and in Vietnam. Thai SMEs outperform their Vietnamese SMEs because of a higher level of motivation for entrepreneurship, leading to better performances on financial and non-financial measures. Implications for policy makers have been drawn to enhance the investment climate for small business entrepreneurs. Directions were also proposed for future research in order to contribute more theoretically to entrepreneurship phenomenon. |
| Year | 2002 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation; no. SM-02-07 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Swierczek, Fredric William; |
| Examination Committee(s) | Sheng, Yap Kioe;Do Ba Khang;Chye, Koh Hian ; |
| Scholarship Donor(s) | Okumenisches StudienWerk e.V. (OSW) Germany; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2002 |