Thông tin tài liệu
ASSESSMENT OF TECHNOLOGY TRANSFER
CAPABILITY AND R&D CAPABILITY
THE CASE STUDY OF VIETNAMESE
FOOD ENTERPRISES
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In INTERNATIONAL BUSINESS
By
Student’s name: Mr: TRAN TAN HOANG VU (MBA03042)
Advisor: PhD. NGUYEN QUYNH MAI
International University - Vietnam National University HCMC
Ho Chi Minh, Viet Nam
September 2012
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Research_Thesis _HoangVu_03042
ASSESSMENT OF TECHNOLOGY TRANSFER
CAPABILITY AND R&D CAPABILITY
THE CASE STUDY OF VIETNAMESE
FOOD AND ENTERPRISES
Under the guidance and approval of the committee, and approved by all its members,
this thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:
--------------------------------------------------Chairperson
---------------------------------------
--------------------------------------------------Committee member
---------------------------------------
--------------------------------------------------Committee member
---------------------------------------
Advisor’s signature
Committee member
Committee member
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Research_Thesis _HoangVu_03042
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Research_Thesis _HoangVu_03042
Acknowledge
To complete this thesis, I have been benefited from the following people:
First of all, I would like to express deep gratitude to my advisor, Dr. Nguyen Quynh
Mai, School of Business, International University, Ho Chi Minh City. As the
research leader, she gave me a chance to join the research project group, and also
gave me great support as effective academic advisory.
I would like to thanks Ms. An, former BA student, who gave me the foundation and a
lot of useful knowledge.
I would like to thank Dr. Tung, Dr. Phuong, Dr. Tuan, Mr. Quang, Ms. An, Mr. Vu,
the research group members in this phase. Without teamworking, I could not get the
chance to interact with many people and learn new knowledge.
I also thank to the Dr. Nguyen Ngoc Hanh, vice president of Chemistry institute; Dr
Le Van Viet Man, Food department of University of Technology; Mr. Dang Van
Lam, R&D Manager from Cautre; Mr. Nguyen Huu Thuy, Technical Manager from
ThienHuong JSC; Dr. Nguyen Tien Hung, General Director of Vimedimex; Mr.
Nguyen Anh Linh, R&D expert from Masan Corporation; Mr. Kha, R&D Manager
of Bibica. These experts gave research group a lot of feedback during our interview.
I would like to express my thanks to Mr. Toan from Bach Khoa University, Ms. Thu
from Business Magazine for supporting research group to collect data.
Last but not least, thank my family, my parents, my wife who give me
encouragement and financial support through the whole course. They have supported
me with all the love and patient.
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Research_Thesis _HoangVu_03042
Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this
thesis either does not use language, ideas, or other original material from anyone; or
has not been previously submitted to any other educational and research programs or
institutions. I fully understand that any writings in this thesis contradicted to the
above statement will automatically lead to the rejection from the MBA program at
the International University – Vietnam National University Hochiminh City.
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Research_Thesis _HoangVu_03042
Copyright Statement
This copy of the thesis has been supplied on condition that anyone who
consults it is understood to recognize that its copyright rests with its author and that
no quotation from the thesis and no information derived from it may be published
without the author’s prior consent.
© Tran Tan Hoang Vu/ MBA03042/2010-2012
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Research_Thesis _HoangVu_03042
CONTENTS
List of Table ................................................................................................................ix
List of Figures .............................................................................................................x
Abbreviation ..............................................................................................................xii
Abstract .....................................................................................................................xiii
Chapter One - INTRODUCTION ............................................................................ 1
1. Introduction .......................................................................................................... 1
1.1. Current situation of Vietnamese Technology Competitiveness .................... 1
1.2. Vietnamese food industry ............................................................................. 3
2. Research problem ................................................................................................. 6
3. Research objectives .............................................................................................. 7
4. Scope and limitation............................................................................................. 7
5. Implication ........................................................................................................... 8
6. Organization of the study ..................................................................................... 8
Chapter Two - Literature review ............................................................................. 9
1. Introduction .......................................................................................................... 9
2. Definition ............................................................................................................. 9
2.1. Technology:................................................................................................... 9
2.2. Technology Transfer ..................................................................................... 9
2.3. Technology Transfer Capability ................................................................. 10
2.4. R&D Capability .......................................................................................... 10
3. Role of Technology and Technology Transfer .................................................. 10
4. Components of Technological Capability.......................................................... 12
5. R&D Capabilities ............................................................................................... 15
6. Environmental factors ........................................................................................ 17
7. Effectiveness of Technology Improvement ....................................................... 18
Chapter Three - Research methodology ................................................................ 20
1. Research process ................................................................................................ 20
2. Research model .................................................................................................. 21
3. Measurement design........................................................................................... 22
3.1. TTC factor measurements ........................................................................... 22
3.2. RDC factor measurement ............................................................................ 23
3.3. Innovation Environment factor measurement ............................................. 24
3.4. Effectiveness of Technology Improvement measurements ........................ 25
4. Questionnaire design .......................................................................................... 26
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Research_Thesis _HoangVu_03042
4.1. Semi-structure interview design:................................................................. 26
4.2. Questionnaire design ................................................................................... 26
5. Sample size and data collection method ............................................................ 27
5.1. Population & Sample size ........................................................................... 27
5.2. Collection method ....................................................................................... 27
6. Data analysis method ......................................................................................... 28
Chapter Four - Data analysis .................................................................................. 29
1. Sample demongraphic ........................................................................................ 29
2. R&D strategy ..................................................................................................... 31
3. Reliability test .................................................................................................... 34
4. TT Capabilitity description ................................................................................ 34
4.1. Ability to Recognize ................................................................................... 35
4.2. Ability to Acquire ....................................................................................... 36
4.3. Ability to Assimilate ................................................................................... 37
4.4. Ability to Apply and Adapt ......................................................................... 38
5. R&D Capabilities description ............................................................................ 39
5.1. Ability to Innovate ...................................................................................... 39
5.2. Facility capabilities ..................................................................................... 40
5.3. HR Capabilities ........................................................................................... 41
6. Performance description..................................................................................... 42
7. Innovation environment description .................................................................. 44
7.1. Internal environment ................................................................................... 44
7.2. External environment .................................................................................. 45
8. Cluster and Scatter chart .................................................................................... 47
8.1. Method to define weight: ............................................................................ 47
8.2. Trend analysis ............................................................................................. 48
8.3. Cluster analysis ........................................................................................... 51
8.4. Radar charts ................................................................................................. 53
Chapter Five - Conclusion, limitation and Recommendation.............................. 56
1. Conclusion ......................................................................................................... 56
2. Limitation & recommendation for further study ................................................ 57
LIST OF REFERENCES ...........................................................................................58
APPENDIX ………………........................................................................................62
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List of Tables
Table. 1:
Table. 2:
Table. 3:
Table. 4:
Table. 5:
Table. 6:
Table. 7:
Table. 8:
Table. 9:
Table. 10:
Table. 11:
Table. 12:
Table. 13:
Table. 14:
Table. 15:
Table. 16:
Table. 17:
Table. 18:
Table. 19:
Table. 20:
Table. 21:
Table. 22:
Table. 23:
Table. 24:
Table. 25:
Table. 26:
Table. 27:
Technology Transfer Revenue ................................................................... 2
Food CPI - Data & Forecast ...................................................................... 5
Ability to Recognize ................................................................................ 22
Ability to Acquire .................................................................................... 22
Ability to Assimilate ................................................................................ 23
Ability to Apply and Adapt ..................................................................... 23
Ability to Innovate ................................................................................... 23
Facility Capabilities ................................................................................. 24
Human resource capabilities .................................................................... 24
Internal environment ............................................................................ 25
External environment ........................................................................... 25
TT and R&D investment Performance ................................................ 25
Business number of employees ............................................................ 29
Investment reasons descriptive statistic ............................................... 32
Reliability statistic of measurement factors ......................................... 34
Ability to Recognize descriptive statistic ............................................. 35
Ability to Acquire descriptive statistic................................................. 36
Questionnaire response on Ability to Acquire ..................................... 36
Ability to Assimilate descriptive statistic ............................................ 37
Ability to Apply and Adapt descriptive statistic .................................. 38
Ability to Innovate descriptive statistic................................................ 39
Facility Capabilities descriptive statistic.............................................. 40
HR Capabilities descriptive statistic .................................................... 41
Performance of Technology Improvement descriptive statistic........... 42
Internal Environment descriptive statistic ............................................ 44
Questionnaire response on Internal Environment ................................ 44
External Environment descriptive statistic........................................... 45
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Research_Thesis _HoangVu_03042
List of Figures
Fig. 1: The Technology Transfer Effects .................................................................. 1
Fig. 2: Gross production of Food Processing Industry in Vietnam compare to 1994
price (source General Statistic Office, 2010) ............................................................... 5
Fig. 3: Gross production of Food Processing Industry in HCM compare to 1994
price (source General Statistic Office, 2010) ............................................................... 6
Fig. 4: Customer Value Creation through Technological Capability ..................... 11
Fig. 5: Technological progress trajectory (Source: Guan et al. 2006) .................... 12
Fig. 6: New mechanism for transferring technology to China – TDAID (Source:
Wang and Zhou, 1999) ............................................................................................... 12
Fig. 7: Element divisions as part of the supply chain (Source: Martin L. Jackson
and Andy Sloane 2007) .............................................................................................. 13
Fig. 8: Components of absorption capacity (Source: Whangthomkum, 2006) ...... 14
Fig. 9: R&D as a processing system ....................................................................... 16
Fig. 10: Research process ...................................................................................... 20
Fig. 11: Hypothesis Model .................................................................................... 21
Fig. 12: Business ownership types chart ............................................................... 29
Fig. 13: Business number of employees chart....................................................... 30
Fig. 14: R&D/revenue expenditure chart .............................................................. 31
Fig. 15: Technical transfer plan chart.................................................................... 32
Fig. 16: Investment objective – sort by mean ...................................................... 33
Fig. 17: Questionnaire response on investment objective ..................................... 33
Fig. 18: Questionnaire response on Ability to Recognize ..................................... 35
Fig. 19: Ability to Recognize – sort by mean ....................................................... 35
Fig. 20: Ability to Acquire – sort by mean ........................................................... 36
Fig. 21: Questionnaire response on Ability to Assimilate .................................... 37
Fig. 22: Ability to Assimilate – sort by mean ....................................................... 37
Fig. 23: Questionnaire response on Ability to Apply and Adapt .......................... 38
Fig. 24: Ability to Apply and Adapt – sort by mean ............................................. 38
Fig. 25: Questionnaire response on Ability to Innovate........................................ 39
Fig. 26: Ability to Innovate – sort by mean .......................................................... 39
Fig. 27: Questionnaire response on Facility Capabilities ...................................... 40
Fig. 28: Facility Capabilites sort by mean............................................................. 40
Fig. 29: Questionnaire response on HR Capabilities ............................................ 41
Fig. 30: HR Capabilities – sort by mean ............................................................... 42
Fig. 31: Questionnaire response on Performance of Technology Improvement... 43
Fig. 32: TT and R&D Investment Performance sort by mean .............................. 43
Fig. 33: Internal Environment – sort by mean ...................................................... 44
Fig. 34: Questionnaire response on External Environment................................... 46
Fig. 35: External Environment – sort by mean ..................................................... 46
Fig. 36: TTC vs RDC ............................................................................................ 48
Fig. 37: TTC vs Performance ................................................................................ 49
Fig. 38: RDC vs Performance ............................................................................... 50
Fig. 39: TTC vs RDC Cluster chart....................................................................... 51
Fig. 40: TTC vs Performance Cluster chart .......................................................... 52
Fig. 41: RDC vs Performance Cluster chart .......................................................... 53
Fig. 42: TTC vs. business ownership .................................................................... 53
Fig. 43: TTC vs. business size............................................................................... 54
Fig. 44: RDC vs. business ownership ................................................................... 54
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Research_Thesis _HoangVu_03042
Fig. 45:
RDC vs. business size .............................................................................. 55
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Research_Thesis _HoangVu_03042
Abbreviations
ANOVA: Analysis of Variance
BMI: Business Monitor International
EFA: Exploratory Factor Analysis
FFA: Food & Foodstuff Association
FPI: Food Processing Industry
FDI: Foreign Direct Investment
GSO: General Statistic Office
GCR: Global Competitiveness Report
GDP: Gross Domestic Product
HR: Human Resource
IE: Innovation Environment
R&D: Research & Development
RDC: Research & Development Capability
SME: Small and Medium Enterprises
SEM : Structural equation modeling
TT: Technology Transfer
TTC: Technology Transfer Capability
TTE: Technology Transfer Effectiveness, Effectiveness of Technology Improvement
TDAID: Transfer - Digestion - Absorption - Innovation - Dissemination
WEF: World Economic Forum
WTO: World Trade Organization
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Research_Thesis _HoangVu_03042
Abstract
Nowaday, Technology Improvement through TT and R&D activities is condition
for enterprises in Food Processing Industry (FPI) to compete in open market. If
enterprises can access their own capability, they can find the suitable strategy to
develop and compete in this fierce market.
The research result indicates that Technology Transfer Capability and R&D
Capability have positive relationship and contributing to Performance of Technology
Improvement. This research also shows the method to assess Technology Transfer
Capability, R&D Capability and Innovation Environment of Vietnamese Food
Processing Enterprises in HCM City. From these results, Vietnamese enterprises
have a lot of missions to improve their Technology level.
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Research_Thesis _HoangVu_03042
CHAPTER ONE - INTRODUCTION
1. Introduction
1.1. Current situation of Vietnamese Technology Competitiveness
According to Global Competitiveness Report (GCR) of World Economic
Forum (WEF) (2011), technology has increasingly become an important element for
the firm to compete and prosper. Whether the technology used has or has not been
developed within national borders, it is irrelevant for its ability to enhance
productivity.
In general, technology can be gained in three ways (Jon-Chau Hong, 1994):
-
Purchasing production techniques;
-
Transferring production techniques;
-
Developing one’s own techniques.
And the Technology Transfer (TT) effect is as below figure:
Fig. 1:
The Technology Transfer Effects
From this study, TT cost more, but it takes shortest time. On the other hand,
purchasing techniques will do little good for industrial upgrading. In short, TT is the
right strategy for developing Technology Capability in term of time and money.
The needs of small and mid-size enterprises (SMEs) in the agricultural and
food sectors are continually changing in the global marketplace. TT is one means of
advancing SMEs to be more competitive in the global marketplace and to embrace
1
Research_Thesis _HoangVu_03042
changes that are critical to their survival. (Michael T. Morrissey, Sergio Almonacid,
2004)
GCR (2011) also points out that Vietnam is lowly ranked in the
Technological Readiness and Innovation index. Particularly, Vietnam is ranked 102
in Availability of latest Technology, 60 in Firm level technology Absorption.
Considering Innovation Index, Vietnam is ranked 62 in University-industry
collaboration in R&D, 87 in Utility patents per million population, and 66 in
Availability of scientists and engineers.
According to the annual report of Vietnam National University – HCM city,
the TT revenue:
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Revenue
(bil VND)
46.6
54.7
53.4
57.3
63.1
68.3
69.7
99.5
76.3
86.3
84.3
Source: Vietnam National University – HCM city
Table. 1: Technology Transfer Revenue
This has pointed out that the need in TT (or in a broader view is R&D) is
supreme for the manufacturing enterprises. Especially, we have joined WTO, and if
enterprises cannot compete with foreign products in either cost, quality or model our
businesses will be dead and our economy will be doom in the future.
These are the reasons that many Vietnamese manufacturing enterprises
started to pay attention to investment into TT and R&D. Though they have been
facing with the problem that there is no previous study on which factors would effect
on the effectiveness of TT and R&D activities in Vietnamese environment so many
enterprises are investing unsystematically and ineffectively.
From 1998 to 9/2003, there have been 4800 FDI projects approved, registered
capital of 52.5 bil USD, and there are still 4100 projects with effective capital of
39.87 bil USD. 2170 projects have been operated, and 700 under basic construction.
Among them, about 70% of the projects related to TT or manufacturing new type of
product, but only about 4% Contracted Technology Transfer projects were approved
by law through Ministry of Science and Technology. These approved Contracted
Technology Transfer Project, about 63% are industry project, 26% are Food
Processing project and 11% are in cosmetic. (Hoang Van Cuong, Le Danh Ton)
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Research_Thesis _HoangVu_03042
Le Net (2006) showed that when buying a new technology, enterprises did
not have enough information, such as which technology was good, bad or backward.
For instance, a plastic company wanted to import a new device. A Hong Kong
company sold that device at two million USD, but then a Korean company sold the
same device at six hundred thousand USD. How could this plastic company find the
precise information in order to buy the device at a good price?
1.2. Vietnamese food industry
Vietnam's FPI is booming. After 20 years of renovation, the socio-economic
development achievements of the country positively impact on people's daily life. The
FPI has tremendous opportunities on the market. At home, people's demand for
processed food is increasing largely and diversely. Currently, the food processing
industry, seen as priority for development, is competitive advantage, market value,
export and resolves labor intensive. From 1995 to date, FPI has accounted for the largest
in the industry, delivered more profit and contribution to the national GDP. The
development of the FPI has also influenced other ancillary and supported other
industries’ development such as: packaging printing industry, packaging industry, frozen
industry, food preservation, animal packaging materials industry, and plastic processing
industry slaughter by-products. In addition, the development of the FPI also supports
growth of agriculture (crops, livestock), transportation, mechanical manufacturing, and
trade and services (distributors such as supermarkets, shops, etc.).
FPI’s products include raw food, processed food and refined food. In
particular, refined FPI benefits and contributes to the economy more. In Vietnam,
due to the level of technology is limited, refined food is still in small number, mainly
used for domestic demand. Exporting to the world market in majority is the crude
product.
According to Foodtexvietnam, Vietnam's FPI comprises around 260 seafoodprocessing plants (the country is a major exporter), with an annual production
capacity of 250,000 tons, 24 slaughter houses and meat-processing plants, 160
beverage plants, 65 fruit- and vegetable-processing plants, manufacturing instant
noodles and 23 confectionery manufacturers. Despite a significant proportion of
processed food being imported, consumption of imported produce remains fairly low
in the country – although it has increased in the main population centers of Ho Chi
Minh City and Hanoi.
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Research_Thesis _HoangVu_03042
In recent data, Vietnam is an agricultural country with abundant agricultural
raw materials but equipment, agro-processing technologies are capable of
manufacturing exports. This food industry brings high economic effectiveness
because it has the biggest proportion in gross output of industry, for example, the
proportion of food industry in 2010 is 14.17% (Tran Sinh, 2011). Moreover, the
development of this industry helps to develop agriculture. Therefore, FPI is the
priority industry in the growth of Vietnam economy.
According to the Organization of Business Monitor International (BMI), total
food consumption in the Vietnamese market in the period 2009-2014 will increase
67.3%. Especially in 2014, this consumption estimated at 426,997 billion. Average
per capita consumption is estimated at 56.4% (equivalent to 4,537,628) in 2014.
BMI has studied the food consumption data of Vietnam in the second quarter
of 2008, along with data on the expenditure of households of the General Statistics
Office (GSO). These figures reflect spending on food and drinks; however, BMI is
also wary on forecasts by reporting data may have eliminated the low figures
reported by several groups of consumer’s capacity in rural areas. BMI will continue
to check the comparison made by the GSO data with other sources of information to
be the most accurate assessment of the prospects of food consumption in Vietnam
during the period from 2005 to 2014.
05
06
07
08
09e
10f
11f
12f
13f
14f
9,93
11,23
12,75
14,6
14,35
14,68
16,75
19,13
21,75
24,75
119,3
133,1
148,9
168,3
163,1
164,6
185,3
208,8
234,3
263,1
14,61
13,12
13,49
14,58
6,36
7,74
14,19
11,16
10,62
10,58
Food
consumption
(billion USD)
Food
consumption per
capita (USD)
Total food
consumption
growth (annual)
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Research_Thesis _HoangVu_03042
Growth of per
capita food
13,00
11,51
11,9
13
4,92
6,29
12,66
9,68
9,17
9,09
19,44
18,94
18,31
16,23
15,51
14,92
15,14
15,1
14,91
14,8
consumption
(annual)
Food
consumption (%
of GDP)
Excluding drink expense
*: forecasting value – Source: General Statistics Office of Vietnam, BMI
Table. 2: Food CPI - Data & Forecast
Gross production of FPI increases steadily in recent years, and accounting for
around 24% gross production of Processing Industry (Figure 2). Even the percentage
contribution by FPI is declined, it still accounts for nearly 25% gross production of
Processing Industry. This means FPI still plays important role in Vietnam economic.
1000.0
25.00%
826.68
723.95
Thoundsand Billion
800.0
600.0
400.0
200.0
417.81
351.68
497.62
573.68
24.50%
620.34
24.00%
23.50%
86.2
102.1
140.7
121.3
150.8
169.9
198.7
0.0
22.50%
Processing industry
Fig. 2:
23.00%
Food processing industry
Contributed weight of FPI
Gross production of Food Processing Industry in Vietnam compare to
1994 price (source General Statistic Office, 2010)
In HCM City, gross production of FDI also increases in value but the
contribution to Processing Industry has been declined from 17.48% (2005) to 16.25%
(2010) (Figure 3). Market for the majority of the industry's products (except seafood
processing industry) mainly domestic, export markets have not been developed,
present only in the form of the potential. The markets of Southeast Asia, Northeast
Asia is the market that the business involved more than any other export markets.
Participation in the European market, America is not significant due to food products
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Research_Thesis _HoangVu_03042
of Vietnam do not fully meet the strict regulations on quality, hygiene and food
Thoundsand billion
safety of these countries.
206.05
220
166.68
180
180.23
148.17
140
129.90
114.12
100
60
22.70
21.36
28.03
24.60
30.47
33.49
20
-20
2005
2006
2007
2008
Processing industry
Fig. 3:
2009
2010
Food industry
Gross production of Food Processing Industry in HCM compare to
1994 price (source General Statistic Office, 2010)
2. Research problem
There are many theoretical frameworks all over the world that measure the
Technology Transfer Effectiveness (TTE) and each of them focuses different factors.
There are also journals and a few of research about TT and R&D in Vietnam.
However, none of them study about the acquiring Technology Transfer
Capability (TTC) of small and medium enterprise and R&D performance in Vietnam
food industry. That means there is no research about how transferee’s technology
capability or effectiveness improves after TT, which factors affect their improvement
and the relationship between TTC and RDC.
In previous research phase, TTC was defined as Ability to Recognize, Ability
to Acquire, Ability to Assimilate, Ability to Apply and Adapt, Ability to Innovate.
R&D Capability (RDC) was defined as Facility Capability, Human Resource
Capability, and Investment Capability. However, Technology Capability and RDC
have the relationship and overlapped.
Also from this study, the assessment of TTC and RDC, food enterprises are
willingness to adopt new technology. These enterprises agreed TT is the quickest
way to expand their business.
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Research_Thesis _HoangVu_03042
However, previous research has not found out how TTC, RDC effect on
Business performance. It has not analyzed the Environment (or the Throughput in
some other research) factor either. More important, on each factor, it has not
developed the measurement scale for each factor.
So that, the purpose of this research is to assess TTC and RDC of Vietnamese
food enterprises. If they can measure their capabilities, they can improve it.
3. Research objectives
For these reason, the objectives of this research are:
-
Develop measurements for TTC, RDC, and Innovation Environment
(IE) factors, Effectiveness of Technology Improvement (TTE).
-
Use these measurements to evaluate TTC, RDC and TTE of Food
companies in HCM, and Vietnamese IE.
-
Explore the relationship between TTC; RDC and TTE.
-
Suggest the solutions for Vietnamese food Enterprise so they can
improve the TTE.
4. Scope and limitation
This research is conducted from July 2012 to January 2012, in Ho Chi Minh
City. This research will only focus on Effectiveness of TT and R&D in Food
industries enterprises. The enterprises ownership modes include state own, joint
venture, joint stock, private, limited liability SMEs.
The acquired sample population is small compare to the number of question
due to the number of business operating in this industry in this region, the time to
collect data (the period business focusing in manufacturing for new year occasion)
and the respondent’s requirement. The list of Vietnamese food enterprises in HCM
city only consists of around 200, and many of them were shut down due to the
economic crisis. That makes the effective list is only around 160.
Besides, many enterprises consider technology as sensitive topic, and they
refused to take part in the survey. These make sample size small, and many statistic
techniques cannot be used to assess the relationship between factors. Instead, this
research will use descriptive statistic to explore these relationships.
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Research_Thesis _HoangVu_03042
In addition, the questionnaire design uses Likert-scale, and the study is quite
new for respondent, so the respond may be bias.
5. Implication
Firstly, it is expected to find out which factors will be influenced on the TTE
from this research. By exploring these factors, the research can be used for academic
purpose or providing suggestions to the enterprises, which want to invest more into
TT and R&D.
Secondly, from this research, enterprises can assess their TTC and RDC.
Combining their business strategic and these value, they can have they can have the
plan to improve their capabilities.
Thirdly, the finding may provide a good method to evaluate TTE. Vietnamese
businesses can use these to build a KPI system to assess their investment, and do the
research on their own companies to improve based on their environment.
Lastly, by exploring the difficulties of IE, enterprises can work together to
suggest the change in government policy to make us more competitive on our home
ground and supply the domestic demand.
6. Organization of the study
This research is structured and organized in five (5) chapters as follows:
Chapter 1 – Introduction: Introduce the thesis topic and a brief background
about it, followed by the rationale, problem statement, research objectives, research
scope and limitations, significance of the research.
Chapter 2 – Literature Review: presenting the related secondary literature
concerning the TTC, RDC, IE, and the TTE.
Chapter 3 – Research methodology provides detail instrument of the
research process such as Measurement and Question design, Sample, Collecting data
method, Data analysis method: Design the framework; and the procedure and method
for collecting the data used to conduct the research.
Chapter 4 – Discussions and Findings: Analyze collected data and interpret
into initial findings of the research
Chapter 5 – Draw out conclusion and make recommendation, suggestion for
academic and enterprises.
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Research_Thesis _HoangVu_03042
CHAPTER TWO - LITERATURE REVIEW
1. Introduction
It is important to understand the crucial role of Technology, TT and R&D in
businesses. The investment into TT and R&D will result as the performance of
business. This review is based on relevant published researches on Technology,
Technology Capability and RDC; IE; and the method to evaluate TTE.
2. Definition
2.1. Technology:
Technology: is the application of science or knowledge to commerce and
industry. Technology is, simply, the application of knowledge to solve the problem
or invent useful tools.
Generally speaking, technology can be gained in three ways
(1) Purchasing production techniques;
(2) Transferring production techniques;
(3) Developing one’s own techniques.
2.2. Technology Transfer
Technology transfer: According to business dictionary, technology transfer is: (1)
the assignment of technological intellectual property, developed and generated in one
place, to another through legal means such as technology licensing or franchising; (2)
the process of converting scientific and technological advance into marketable goods
or service.
TT can also be defined as a process of transferring skills, knowledge,
technologies, method of manufacturing, samples of manufacturing and facilities
among identities to ensure scientific and technological developments are accessible
to a wider range of users who can then further develop and exploit the technology
into product, processes, applications, materials or services.
TT implies the movement of physical structure, knowledge, skills, organization,
values, and capital from the site of generation to the receiving site (Mittleman &
Pasha, 1997).
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Research_Thesis _HoangVu_03042
2.3. Technology Transfer Capability
According to enterprise-architecture’s definition: Technology capabilities are
Conceptual View that defines WHAT technology can do. These often have quite
abstract names but it is important that they do not imply any particular class of
technology or products.
Technology Capability is one of the sources of company competitive advantage.
In paper “The Role of Technological Capabilities in Determining Performance: The
Case of the Upstream Petroleum Industry”, technological capabilities are defined
here as the knowledge and skills required to identify, appraise, utilize and develop
technologies and techniques relevant.
2.4. R&D Capability
RDC is the set of organizing processes and principles that a firm uses to deploy
its resources to develop new products and improve manufacturing processes in
response to the change in external environment (Kogut and Zander, 1992; Grant,
2002)
3. Role of Technology and Technology Transfer
Technology plays a crucial role in economic development. According to Garfield
(1988), in the late 1950s, Robert Solow, the 1987 Nobel Prize in Economic Sciences,
formulated theory of economic growth that emphasized the importance of
technology. He stated that technology-broadly defined as the application of new
knowledge to the production process-is chiefly responsible for expanding an
economy over the long term, even more so than increases in capital or labor.
Technological knowledge is the understanding of the best ways to produce goods and
services (Mankiw, 2003)
The concept of TT has gained much attention and been variously defined by
many scholars and researchers. In 2000, Tarek Khalil defined TT as a process which
permits the flow of technology from a source to a receiver. It means that the source is
the owner or holder of the knowledge, while the recipient is the beneficiary of such
knowledge. TT also mean the transfer of technology know how and expertise.
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Research_Thesis _HoangVu_03042
Transferring technology is important to economic transformation because it turns
the intellectual value of knowledge into commercial value. Firms can then exploit his
– commercial value and produce high value-added outputs (Ministry of Research
Science and Technology of New Zealand, 2001).
TT is indicated as “the activity leading to the adoption of a new-to-the-user
product or procedure by any user or group of users” by Harder and Benke (2005).
New-to-the-user means any improvement over existing technologies or processes and
not only a recent invention of research result.
Ramanathan (2001) mentioned that all enterprises whether they are large or
SMEs can compete effectively only on the basis of “customer value creation”. His
framework has implied how a firm acquires and deploys technology to create
customer value. The effectiveness of these activities would be determined by the firm
core technological and supportive capability (Panda and Ramanathan, 1997, 1998;
Ramanathan, 1998, 2001)
Fig. 4:
Customer Value Creation through Technological Capability
In this framework, these capabilities are generic and supportive to other
capabilities:
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Research_Thesis _HoangVu_03042
Capability to plan and manage TT (specify, identify, assess, negotiate,
and finalize the purchase or sale of product, process, and peripheral
technologies from global technology suppliers)
Capability to continuously develop and refine human skills (human
resources development – HRD)
4. Components of Technological Capability
Guan et al. (2006) presented a technological progress trajectory for the catch-up
countries from imitation to innovation that is comprised of acquisition, assimilation
and improvement of technology. Wang and Zhou (1999) considered the role of
foreign enterprises and created a model of “transfer-digestion-absorption-innovationdissemination” (TDAID) in China’s perspective for increasing involvement in
international production and trade activities within a global market.
Acquisition
Fig. 5:
Transfer
Fig. 6:
Assimilation
Improvement
Technological progress trajectory (Source: Guan et al. 2006)
Digestion
Absorption
Innovation
Dissemination
New mechanism for transferring technology to China – TDAID
(Source: Wang and Zhou, 1999)
Martin L. Jackson and Andy Sloane (2007) in research “A model for analyzing
the success of adopting new technologies focuses on electronic commerce”, the four
key elements which are vital to any successful adoption are: process, management,
human resource, and organizational culture. A model were created, showing how
these four elements are totally interactive with one another and in themselves
construct organization, which in turn is part of supply chain as below figure:
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Research_Thesis _HoangVu_03042
Organization
Organizational
culture
Supply
chain
Human
Resources
Management
Fig. 7:
Supply
chain
Processes
Element divisions as part of the supply chain (Source: Martin L.
Jackson and Andy Sloane 2007)
Fransman (1984) identified the following elements:
Capability to search and select the most appropriate technology for
importation.
Capability to master imported technology and successfully use it for the
transformation of inputs into outputs.
Capability to adapt imported technology in order to suit local production
conditions and further develop the adapted technology as a result of local
incremental innovation.
Capability to institutionalize the search for more important innovations
and breakthroughs.
Technology capability is divided into five abilities, which are the ability of
learning by searching and acquiring strategy by learning from employees, the ability
of learning from practicing, the ability of learning from performance feedback, the
ability of learning from changes, and the ability of learning by training (Bell, 1984).
Thailand Development Research Institute conducted a study on the technological
capability of Thai industry (Kritayakirana et al., 1989). The industry was graded on
four capabilities:
Acquisitive capability: refers to the firm's ability to search, assess,
negotiate and procure relevant technologies as well as to install and start
up production facilities.
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Research_Thesis _HoangVu_03042
Operational capability: includes the efficient operation of process and
machinery, including its maintenance.
Adaptive capability: comprises knowledge acquisition, technology
digestion, and minor product and process modifications.
Innovative capability: involves carrying out research and development
activities and making radical or major product and process modifications.
In 1990, the concept of TTC or Absorptive Capacity was first defined as a firm's
"ability to recognize the value of new information, assimilate it, and apply it to
commercial ends" by Cohen and Levinthal.
Recently, Whangthomkum (2006) studied empirically components of absorption
capacity. The figure below illustrates his conceptual model.
Ability to Recognize
Ability to Acquire
Absorption
Capacity
Ability to Assimilate
Ability to Apply
Fig. 8:
Components of absorption capacity (Source: Whangthomkum, 2006)
Ability to recognize value of new technology: Firms need to be able to
identify and translate external knowledge inflows into tangible benefits,
as well as a means of achieving superior innovation and time-lagged
financial performance (Kostopoulos et al., 2010). This ability is measured
according to two components, “basic knowledge” and “specialized
knowledge”
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Research_Thesis _HoangVu_03042
Ability to acquire new technology: The acquisition process determines
which technologies the firm needs, which vendors have the technology
that it wants to obtain, and what resources should be prepared before
buying the new technology (Lin et al.,2002). The most frequently used
measures in the literature to determine the acquisition ability is: number
of 15 years having experience in in-house R&D and the amount of R&D
investment.
Ability to assimilate the new technology: Assimilation of technology is
the process through which firms bring new technology components into
use. Assimilation ability can be measured through various processes and
outputs, such as functional interfacing, knowledge sharing, and
communication; knowledge processing system, compensation practices
and firm structure; and the number of cross-firm patent citations or
citations made in a firms’ publications about research developed with
other firms .
Ability to apply & adapt new technology: A successful knowledge
transfer is effective only when the knowledge transferred is retained for
use and to be retained for use, the knowledge acquired and communicated
must be applied. This ability can be measured through current knowledge
learned from the foreign parent, international joint-venture strategies and
training and development competence; the number of external research
communities in which the firm participates; the number of patents, new
product announcements or length of product development cycles. New
products and new applications using assimilated technology, finding
alternative use for the assimilated technology, and fusing assimilated
technology with other technologies.
5. R&D Capabilities
According to Brown and Svenson (1988), R&D includes several phases that
contain several subjects for the measurement of performance. They have
created the model as Fig.9
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Research_Thesis _HoangVu_03042
Fig. 9:
R&D as a processing system
In this model:
Inputs are for instance people, information, ideas, equipment, requests
and funds needed for activities.
The processing system is normally the R&D lab.
The outputs of processing systems are e.g. publications, new products or
processes, knowledge and patents
Finally, the outcomes, can be for instance cost reductions, sales, or
product improvements.
The study of
Lee
(1996) presents
evaluation criteria and their
operationalization in following R&D system phases: Input, Throughput,
Output and Outcome. A measurement scheme with 15 criteria has been
validated empirically by respondents from 28 industrial firms
System phases
Evaluation criteria
Input
Enough R&D investments
Enough R&D facilities
Degree of professionalization
Skill level of R&D personnel
Feasibility of R&D plans
Adequate education/training
Validity of selected R&D topics
Throughput
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Research_Thesis _HoangVu_03042
Output
Outcome
Collaboration between R&D and Production/Marketing
Effort to strictly follow plans
Adequate information management
Expansion and diversification of research areas
Degree of goal achievement
Usefulness of developed technology
Expected profit increment
Effects on general management improvement
In this research, Input, Processing (Brown and Svenson) or Input and Throughput
(Lee) are used as the Resources factor impacting on TT and R&D effectiveness.
6. Environmental factors
According to Liu and Jiang (2001), PRIs are the major sources of technological
innovation and transfer in China. Their missions are mainly to serve the ministerial
departments and enterprises within their industry. Due to the legacy of centrally
planned economy structure, technology development and transfer activities in these
institutes were managed by vertical administration from the government
departments.
According to Leong Chan and Tugrul U. Daim (2011), at a macro level, literature
findings show that there are many environmental factors promoting international TT,
which include national policy, economy growth, and market trend. For example, TT
needs appropriate legislation on intellectual property protection. It is also directly
influenced by market need and investment. International TT and acquisition should
align with national goal in technology development. Macro level regulations and
incentives can have major impacts on the efficiency of TT process.
Many researchers in China have done research on topic TT. One of these topics
states that government support, the constitution of the R&D performers, and the
regional industry-specific IE are significant determinants of innovation efficiency
(Li, 2009).
Leong Chan and Tugrul U. Daim (2011) also state that domestic SMEs, which
cannot afford to do so, should increase early-stage technology collaborations by
sharing R&D resources, and consolidating upstream/downstream resources.
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Research_Thesis _HoangVu_03042
Considering that every enterprise having their own organizational culture, the
study of Shabbir Hussain (1998) on TT models across cultures: Brunei-Japan joint
ventures can be applied. In this study, desired cultural change necessary towards the
success of TT, could be achieved through:
A strong commitment by the CEO;
The replacement of staff with those who are more receptive to
technology;
Appropriate training and education of the staff (including visits and on
the-job training);
Performance-based and quality-linked re-vamp of the structure of the
organization.
7. Effectiveness of Technology Improvement
There are many methods to measure or evaluate the result of R&D. In many
studies, they’ve grouped these method based on the purposes of R&D
performance measurements, suggested or reported measurement level, types
of R&D as measurement subject, perspective of measurement, and the phase
of R&D ( Ville Ojanen and Olli Vuola, 2003).
The fact that R&D investments often compete with other investments in
the company has changed the thinking R&D as the “black box”, isolated
function before that. They have to prove that R&D brings the productivity
and profit to the company.
There are numbers of measures or evaluation method indicating R&D
performances have been reported in the literature during the last decades.
The final set of measures and evaluation method will be utilized depends
on a number of factors and its specific type of organization.
Cooper and Kleinschmidt (1996) did a benchmarking study of 161 business
units includes ten performance metrics, which capture how well the business
unit’s total new product effort performs. The metrics are listed below:
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Research_Thesis _HoangVu_03042
Success rate: The proportion of development projects that became
commercial success
Percentage of sales by new products (introduced within the last three
years)
Profitability relative to spending
Technical success rating
Sales impact
Profit impact
Meeting sales objectives
Meeting profit objectives
Profitability versus competitors
Overall success
Tipping et al. (1995) presented to 11 metrics out of 33 metrics in their
“technology value pyramid” as assessed by 165 industrial companies. The
model provides a top-down perspective that is output-oriented. The top 11
metrics are listed below:
Financial return to the business
Strategic alignment with the business
Projected value of R&D pipeline
Sales or Gross profits from new products
Accomplishment of project milestones
Portfolio distribution of R&D projects
Customer satisfaction surveys
Market share
Development of cycle time
Product quality & reliability
Gross profit margin
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Research_Thesis _HoangVu_03042
CHAPTER THREE - RESEARCH METHODOLOGY
1. Research process
-
Research objectives
-
Make suggestion for the
full scale survey
Initial Findings
Initial finding
Literature review and develop
research model
-
Develop measurement &
questionnaire in semi-structure
form
Data collection (pilot test)
Conduct in-deep semistructure interview
Analyze expertise feedback to
create survey questionnaire
Check validity of question
Test theoretical model and
hypotheses
Fig. 10: Research process
In this phase of research, it will be divided to four steps:
Step 1: Review literature, theory, model to create the model and questionnaire..
Step 2: conduct qualitative research by in-deep interview with expertise, to refine the
model and questionnaire.
Step 3: Pilot test and perfect the questionnaire for the survey.
Step 4: Conduct survey and analyze data.
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Research_Thesis _HoangVu_03042
2. Research model
After a lot of discussion, the research group has developed the following model.
TT Capabilities:
- Ability to Recognize
- Ability to Acquire
Ability to Assimilate
- Ability to Apply & Adapt
R&D Capabilities
- Ability to Innovate
- Facility Capability
- Human Resource Capability
Effectiveness of Technology
Improvement
- Process and product
performance.
Business performance.
Environment
+ Internal (Management):
- Businesses’ TT and R&D
goal
- Organizational Structure.
- Organizational Culture
- Organizational Policy
+ External (Policy)
- Government Policy
- HR supply
- R&D Institution Capability
Fig. 11: Hypothesis Model
With the limitation of sample, the research model above is used to develop the
measurements and variables only.
21
Research_Thesis _HoangVu_03042
3. Measurement design
Measurement was based on literature review of previous researches and semistructure interview. For Absorption Capability or TTC
in this research,
measurements were referred to following authors Cohen & Levinthal (1990), Lyles
and Salk (1996), Lane and Lubatkin (1998), Welsch et al. (2001), Lin et al. (2002),
Zahra and George (2002)
For RDC in this research, measurements were referred to following authors: M.
Lee; B. Son & H.Lee (1996), Wong et al. (1999), Abu Bakar (2004), Escribano et al.
(2008) for RDC;
For IE factor, knowledge from authors Leong Chan and Tugrul U. Daim (2011)
are referred;
Cooper and Kleinschmidt (1996), Wong et al. (1999), Kerssens-van Drongelen
and Bilderbeek (1999) knowledge were referred to build TTE measurements
3.1. TTC factor measurements
Variable
A2RE01
Measurement
Recognizing market need
A2RE02
Basic knowledge
A2RE03
Advance knowledge
Description
Company foresees or catch
up with the market need
Company has basic
knowledge of technology
Company has advance
knowledge of technology
Author/source
Cohen &
Levinthal (1990)
Lane and
Lubatkin, 1998
Lane and
Lubatkin, 1998
Table. 3: Ability to Recognize
Variable
A2AC01
Measurement
Technology need
A2AC02
A2AC03
A2AC04
A2AC05
Supplier
Technology evaluation
Supplier evaluation
Technology transfer
management
Negotiation and contract
A2AC06
Description
Define required Technology
to transfer
Search for supplier
Evaluate Technology
Evaluate supplier
Plan and manage
Technology transfer project
Independently negotiate and
contract to supplier
Table. 4: Ability to Acquire
22
Author/source
Lin et al., 2002
Lin et al., 2002
Lin et al., 2002
Narrative
Wang et al, 2001
Narrative
Research_Thesis _HoangVu_03042
Variable
A2AS01
Measurement
Installation
A2AS02
Information sharing
A2AS03
Planning ability
A2AS04
A2AS05
Accepting and learning new
technology
Learning ability
A2AS06
Finding out problem, unfit
Description
Understand procedure to
install and operate of
transferred technology
Share information among
project group
Planning, assigning
specifically in project group
Ready to learn spirit
Can fully understand from
instructor
During technology testing,
can find unfit problem in
equipment
Author/source
Zahra and
George, 2002
Welsch et al.,
2001
Zahra and
George, 2002
Lane and
Lubatkin, 1998
Lane and
Lubatkin, 1998
Narrative
Table. 5: Ability to Assimilate
Variable
A2AA01
Measurement
Training ability
Description
Train operating employee
A2AA02
Operating ability
Operate and achieve the
target objectives
A2AA03
Integration ability
A2AA04
Ability to fix small problem
Integrate small part into
whole system
Fix small problem
A2AA05
Maintenance ability
Maintain new technology
A2AA06
Evaluating ability
Evaluate efficiency of new
technology
Author/source
Lyles and Salk
(1996)
Lyles and Salk
(1996)
Lin et al., 2002
Lyles and Salk
(1996)
Lyles and Salk
(1996)
Narrative
Table. 6: Ability to Apply and Adapt
3.2. RDC factor measurement
Variable
A2IN01
A2IN02
A2IN03
A2IN04
Measurement
Ability to apply transferred
technology
Ability to generate new
product
Ability to generate new
tech
Ability to create new
equipment
Description
Generate new application by
using transferred technology
Generate new product by
using transferred technology
Research to create new
technology
Research to create new
equipment
Table. 7: Ability to Innovate
23
Author/source
Wong et al., 1999
Wong et al., 1999
Lin et al., 2002
Narrative
Research_Thesis _HoangVu_03042
Variable
RDIN01
Measurement
Training schedule
RDIN02
Satisfaction of R&D
equipment
Modernity of R&D
equipment
Effective usage of R&D
fund
Policy on R&D,
investment, information
RDIN03
RDIN04
RDIN05
Description
R&D employees get
frequent training
R&D equipment satisfy
company’s needs
R&D equipment are modern
Author/source
Lee et al. (1996)
Company use R&D fund
effectively
Government policy
encourage business to invest
in R&D, and gives good
information
Narrative
Lee et al. (1996)
Lee et al. (1996)
Narrative
Table. 8: Facility Capabilities
Variable
Measurement
RDCAP01 R&D employee's creativity
Description
R&D employee's creativity
RDCAP02 R&D employee's problem
solving skill
RDCAP03 R&D employee's demand
analysis skill
RDCAP04 R&D employee's
implementation skill
RDCAP05 R&D employee's research
skill
RDCAP06 R&D employee's discipline
RDCAP07 R&D employee's product
RDCAP08 R&D employee's planning
skill
RDCAP09 R&D employee's
collaboration skill
R&D employee's problem
solving skill
R&D employee's demand
analysis skill
R&D employee's
implementation skill
R&D employee's research
skill
R&D employee's discipline
R&D employee's product
R&D employee's planning
skill
R&D employee's
collaboration skill
Author/source
M. Lee; B. Son &
H.Lee, (1996)
M. Lee; B. Son &
H.Lee, (1996)
M. Lee; B. Son &
H.Lee, (1996)
M. Lee; B. Son &
H.Lee, (1996)
M. Lee; B. Son &
H.Lee, (1996)
Lee (1996)
Narrative
M. Lee; B. Son &
H.Lee, (1996)
Lee (1996)
Table. 9: Human resource capabilities
3.3. Innovation Environment factor measurement
Variable
InEn01
Measurement
Company's QA system
InEn02
Company's goal &
strategy
Company's working
condition
InEn03
InEn04
Company's policy
InEn05
Company's empower
system
Company's
commitment
InEn06
Description
Company has good QA
system
Company has long term
goal/ strategy
Working environment
encourage improvement
idea
Company policy (finance
or non-finance) encourage
technical improvement
Employees are empowered
Author/source
Narrative
Leaders commit to
continuous improvement
Kerssens-Van Drongelen
and Cook (1997)
24
Narrative
Kerssens-Van Drongelen
and Cook (1997)
Kerssens-Van Drongelen
and Cook (1997)
Narrative
Research_Thesis _HoangVu_03042
InEn07
Company's
recruitment/treatment
Company's training
system
Company's culture
InEn08
InEn09
Recruit and treat well to
talent
Training policy to R&D
employee
Company’s culture make
employees enjoy the
change
Table. 10:
Kerssens-Van Drongelen
and Cook (1997)
Narrative
Kerssens-Van Drongelen
and Cook (1997)
Internal environment
Variable
ExEn01
Measurement
Government Tax policy
Description
Government tax policy
encourage R&D
ExEn02
Government investment
Government have fund to
help TT development
ExEn03
Information support
system/capability
ExEn04
ExEn05
Human resource market
Safety, hygiene procedure
ExEn06
IP policy
Government organization
support information
consulting
Human resource supply
Clear procedure, policy
about safety, hygiene
Intellectual Property is
protected by law.
ExEn07
Market environment
Fair market
Table. 11:
Author/source
Leong Chan and
Tugrul U. Daim
(2011) + narrative
Leong Chan and
Tugrul U. Daim
(2011) + narrative
Narrative
Narrative
Narrative
Leong Chan and
Tugrul U. Daim
(2011)
Leong Chan and
Tugrul U. Daim
(2011)
External environment
3.4. Effectiveness of Technology Improvement measurements
Variable
Per01
Measurement
Outcome vs. plan
Description
Create product as planned
Per02
Sustainable product
Per03
Product's quality
Per04
Per05
Plant's efficiency
Patent
New product has profit in long
term
Product has high and stable
quality
Increase plant’s efficiency
Generate research patent
Per06
Diversify product line
Per07
Product's
diversification
Time to market
Per08
Revenue
Increase revenue
Per09
Export revenue
Increase export revenue
Table. 12:
Reduce time to market
Author/source
Wong et al. (1999)
Narrative
Narrative
Narrative
Kerssens-van
Drongelen and
Bilderbeek (1999)
Wong et al. (1999)
Lyles et al. (1997)
Cooper and
Kleinschmidt
(1996)
Narrative
TT and R&D investment Performance
25
Research_Thesis _HoangVu_03042
4. Questionnaire design
4.1. Semi-structure interview design:
By combining the definition of TTC, RDC, IE and Performance with the
knowledge from other research, research group created a semi-structure interview as
Appendix A. The semi-structure interview was conducted to:
-
Confirm interviewee’s understanding on the definition from used term;
-
Get interviewee’ agreement with the measurements used in the semi-structure
interview;
-
Which scale should be used for the survey questionnaire;
-
Which items should be added for each factor.
The semi-structure interview was conducted to 5 experts: Mr. Thuy, Mr. Lam,
Ms. Hanh, Mr. Hung, Mr. Man, in which 3 from enterprises, and 2 from
University/Institure.
The result of the semi-structure interview as below:
-
Some items were merged into one.
-
Some new items were added.
-
Term/Words were modified for easy to understanding
-
Some items were rearranged into the better factor.
-
Scale: Unimportant -> Important for Investment reasons; Totally Disagree ->
Totally Agree for other factors.
4.2. Questionnaire design
The questionnaires are designed to match with objectives of the study and
conceptual framework. The questionnaires are designed based on 3 dimensions of
independent variable and 1 dimension of dependent relating manufacturing
performance. Six-point Likert scale, ranged from 1 (very low/very unimportant) to 6
(very high/very important) is used, to avoid neutral answer. The higher the rating
scale the higher the result of statement.
The questionnaire were created based on the liturature knowledge, and the
feedback from the semi-structure interview. The questionnaire went through the pilot
26
Research_Thesis _HoangVu_03042
test of 4 experts (Mr. Lam, Mr. Thuy, Mr. Linh, Mr. Kha) to confirm the reliability.
After receiving the feedback of these experts, the questionnaire was refined again by
research group. The words were modified to be more friendly, and some redundant
questions were removed to reduce the length of questionnaire.
Based on the items of constructs, and to avoid the language barrier the initial
Vietnamese draft of questionnaire was designed. Then the questionnaires are
translated into English for the report. The translation is reviewed by Supervisor. See
Appendix B & Appendix C for Vietnamese and English versions of Questionnaire.
5. Sample size and data collection method
5.1. Population & Sample size
The population: Businesses operating in food industry in Ho Chi Minh City and
nearby province. The database of these enterprises was created by a group of
students. It was referred to the existed data of research group (from professor Tuan),
and research from Internet, Yellow page, Vietnam high quality products group, Food
and Foodstuff Association (FFA) list …. The database consists of the name of the
enterprise, the address, phone number and especially some enterprises with contact
details of people working in these enterprise.
After removing very small enterprises and duplication, the list was finalized at
200 enterprises.
Questionnaire survey, in introduction, may be answered by R&D or Technical
officer, but due to the required data and information, most of questionnaires are
answer by the manager level or with the assist of the department manager. Based on
the resource (human resource and time), the sample size of 60 was targeted.
5.2. Collection method
For the semi-structure interview, 5 experts were face to face interviewed. From
the feedback, questionnaire was created by research group.
In pilot test, 4 experts’ feedback were received to ensure the validity of the
measurement and remove redundant questions. Some adjustments on wording were
made by research group
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Research_Thesis _HoangVu_03042
In survey phase, many methods were used to get the maximum number of
sample. The questionnaire was issued through web, email (via connected people or
outsourcing people), or directly delivered to company by research’s assistants. For
data that was collected through, the result came with the respondents’ contact detail
for verifying, to increase the reliability.
To create the weight for each factor, three experts were consulted. The weight of
each factor is the average from these three experts.
6. Data analysis method
Answers from the respondents were reviewed and verified for completion and
usefulness. Accepted questionnaire were coded and the raw collected data will be
processed by SPSS software. Data will go through these analysis methods:
-
Because the population is small, SEM or EFA cannot be used for this
research. So in this research, descriptive statistic and visualization are
used to explore and demonstrate the findings.
-
Descriptive statistic provides the overview of the sample, to show the
coverage of the sample. This technique is also used to evaluate TTC,
RDC, IE and Technology Improvement Performance.
-
Reliability test: The reliability of measurement scales was evaluated by
using Cronbach’s alpha value. A scale is reliable if the alpha value is
higher than 0.7
-
Cluster and Scatter chart techniques were used to show the status of
businesses based on dimensions: TTC, RDC and TTE. From these charts,
the relationship between these factors is explored.
The data from the questionnaire was analyzed by using SPSS and EXCEL
software.
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Research_Thesis _HoangVu_03042
CHAPTER FOUR - DATA ANALYSIS
In the list of 200 enterprises, only 150 were able to contacted. Other enterprises were
shutdown or unable to contact through their contact info. There are 49 valid
responses over 54 responses received from these distributed questionnaires.
1. Sample demongraphic
Figure 12 shows the distribution of these businesses in term of business ownership,
while Figure 13 displays the relative size of businesses base on the number of
employees. With these descriptive statistics, sample population can represent the
population.
Business Ownership
6.12%
2.04%
Joint stock
16.33%
Ltd
44.90%
State own
Private
Others
30.61%
Fig. 12:
Business ownership types chart
No. of employees
Valid
Frequency
14
Percent
28.6
Valid
Percent
28.6
Cumulative Percent
28.6
100 -> 499
18
36.7
36.7
65.3
500 -> 1000
9
18.4
18.4
83.7
> 1000
8
16.3
16.3
100.0
49
100.0
100.0
1000
> 1000
36.73%
Fig. 13:
Business number of employees chart
According to the chart, the main ownership types are “joint stock” and “limited
liability”. There are 44.9% and 30.61% enterprises respectively in “joint stock” and
“limited liability”. This is explained through the size of capital these enterprises
need, and the decision making process, which helps them to compete in changing
market.
For small business, they prefer to operate in “ttd” mode, because of the structure is
easier to manage with small capital. With small capital, the business needs a fast
response to the changing market, and “ltd” is advance, because the decision can be
made through the decision of the owner.
For larger business, many enterprises prefer “joint stock” because this structure make
it easier to get larger capital, and the decision making process need to be more
transparent and precise. In joint stock mode, each project is analyzed carefully before
approval for budget. Even the final decision still mostly rely on BOD, it is still faster
than state own enterprise.
Nowaday, the number of Vietnamese state own enterprise become less, because they
hardly adapt to the change of market with their complicated decision making process.
These type also reflect partly through the relative size of company. 28.57% of
enterprises are small size, which mostly cover Ltd and private type. While larger size
enterprises represent joint stock or state own enterprise.
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Research_Thesis _HoangVu_03042
2. R&D strategy
R&D/revenue expenditure
38.10%
47.62%
0% < x < 2%
2% < x < 3%
x > 3%
14.29%
Fig. 14:
R&D/revenue expenditure chart
According to the response, more than 50% of enterprises (28/49) did not disclose
their R&D/revenue expenditure. This is explained as these enterprises consider R&D
expense as strictly confidential information.
Figure 14 shows the investment of these Businesses into TT and R&D. The TT and
R&D investment should be considered as a part of business development strategy, to
grow or sustain in challenging market.
47.62% of enterprises response they invest less than 2% of revenue on R&D. This
means many enterprises do not have enough attention to R&D.
However, about the same number of enterprises invest more than 3% of revenue on
R&D. This is not reasonable ratio compare to the average expense of the countries.
This is explained as these enterprises may have sudden expense to catch up with the
technology, or young company. From the list of these company, it is easy to find out
these companies are young or private companies.
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Research_Thesis _HoangVu_03042
TT plan
6.12%
18.37%
No plan
Plan for next year
38.78%
Plan for 3-5 years
36.73%
Fig. 15:
Others
Technical transfer plan chart
Fig 15 show that nearly 80% of the business have short or long-term plan for TT.
This means Vietnamese manufacturing companies are recognizing that Technology
is important to gain competitive.
N
Maximum
6
Mean
5.18
Std.
Deviation
.755
Improved product
49
Minimum
3
Branding
49
2
6
5.02
1.164
Market
49
2
6
5.00
.957
New high-tech product
49
2
6
4.90
1.085
Manufacturing cost
49
2
6
4.84
1.067
Product trend
49
3
6
4.84
.943
VAT product
49
2
6
4.82
1.014
Energy & environment
49
2
6
4.53
1.043
Employees' TT absorption capability
49
2
6
4.33
1.068
Co-brand, Franchise, OEM, M&A
49
1
6
3.59
1.206
Owner’s interest
49
1
6
3.59
1.485
Valid N (listwise)
49
Table. 14: Investment reasons descriptive statistic
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Research_Thesis _HoangVu_03042
Owner's interest
Co-brand, Franchise, OEM, M&A
Employees' TT absorbtion capability
Energy & environment
VAT product
Product trend
Manufacturing cost
New high-tech product
Market
Branding
Improved product
3.59
3.59
4.33
4.53
4.82
4.84
4.84
4.90
5.00
5.02
5.18
1.00
Fig. 16:
2.00
3.00
4.00
5.00
6.00
Investment objective – sort by mean
Owner's interest
Co-brand, Franchise, OEM, M&A
Employees' TT absorbtion capability
Very unimportant
Energy & environment
Unimportant
VAT product
Seem to be unimportant
Product trend
Likely important
Manufacturing cost
New high-tech product
Important
Market
Very important
Branding
Improved product
0%
Fig. 17:
50%
100%
Questionnaire response on investment objective
Investment objective descriptive statistic shows that most of Vietnamese companies
invest into TT and R&D because of three reasons: Improving their product,
Improving their brand image and Market competitiveness. This statistic also points
out that Positioning strategy (to become Co-brand, Franchise …) and Owner’s
interest are weak reasons for businesses to invest their money. This is explained as
when companies become competitive and well-organized, they are not either less
affected by CEO’s interest nor want to share their profit with others.
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Research_Thesis _HoangVu_03042
3. Reliability test
To test the reliability of the data, Cronbach's α (alpha) is used. Cronbach’s alpha is
commonly used as a measure of the internal consistency or reliability of a test score
for a sample of examinees. Gliem & Gliem (2003) insists that it is imperative to
calculate and report Cronbach’s alpha when using a Likert-type scale.
Reliability Statistics
Cronbach Cronbach's Alpha Based N of
's Alpha on Standardized Items Items
Effectiveness of Technology Improvement
.898
.902
9
Ability to Recognize
.814
.818
3
Ability to Acquire
.905
.905
6
Ability to Assimilate
.858
.858
6
Ability to Apply and Adapt
.867
.868
6
Ability to Innovate
.840
.847
4
Facility Capabilities
.847
.856
5
R&D Capabilities
.916
.916
9
Internal environment
.930
.931
9
External environment
.864
.866
7
Table. 15: Reliability statistic of measurement factors
Above table shows the reliability statistics of all measurement factors in this
research (for details, please refer to Appendix E). This table shows that the minimum
value of Cronbach’s alpha is 0.818 (of Ability to Recognize), and highest value is
0.93 (of Internal environment). These Cronbach alpha values are very high,
especially for the new model, which makes this research worth for further study. This
result means that all the factors were built in good method. All the factors’
measurement are likely to measure different dimension in a factor, so all the items
should be kept in this research.
4. TT Capabilitity description
All the four abilities of TTC (Ability to Recognize, Ability to Acquire, Ability to
Assimilate, Ability to Apply and Adapt) have very high mean value (smallest is 4.53
in Technology need and Integration ability measurements), which still more than 1
point higher than the neutral value (3.5). According to the respondents, the range of
the response was not good enough. No measurements get full range cover (from 1 to
6). This means all observed companies evaluate themselves very good in TTC.
34
Research_Thesis _HoangVu_03042
4.1. Ability to Recognize
N
Maximum
6
Mean
5.12
Std.
Deviation
.881
Advance knowledge
49
Minimum
3
Basic knowledge
49
4
6
5.08
.731
Recognizing market need
49
3
6
4.63
.834
Valid N (listwise)
49
Table. 16: Ability to Recognize descriptive statistic
Strongly Disagree
Disagree
Tend to disagree
Likely to agree
Agree
Totally agree
Recognizing market need
Basic knowledge
Advance knowledge
0% 20% 40% 60% 80% 100%
Fig. 18:
Questionnaire response on Ability to Recognize
Recognizing market need
4.63
Basic knowledge
5.08
Advance knowledge
5.12
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 19:
Ability to Recognize – sort by mean
With the response score, it is able to conclude that “Ability to recognize market
need” of Vietnamese enterprises should be improved. This is not the skill that is
trained from the training, but it requires the information feedback from the market.
Vietnamese enterprises have not paid enough attention to do market research, which
is why this score is not as good as others
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Research_Thesis _HoangVu_03042
4.2. Ability to Acquire
Negotiation and contract
N
49
Minimum
2
Maximum
6
Mean
4.82
Std.
Deviation
1.014
Supplier evaluation
49
2
6
4.78
.872
Technology evaluation
49
2
6
4.78
.919
Supplier
49
2
6
4.63
1.035
Technology transfer management
49
2
6
4.59
.934
Technology need
49
2
6
4.53
.892
Valid N (listwise)
49
Table. 17: Ability to Acquire descriptive statistic
Strongly disagree
Technology need
Technology transfer…
Supplier
Technology evaluation
Supplier evaluation
Negotiation and contract
0%
Disagree
Tend to disagree
Likely to agree
Agree
20%
40%
60%
80%
100%
Totally agree
Table. 18: Questionnaire response on Ability to Acquire
Technology need
Technology transfer management
Supplier
Technology evaluation
Supplier evaluation
Negotiation and contract
4.53
4.59
4.63
4.78
4.78
4.82
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 20:
Ability to Acquire – sort by mean
All measurements in “Ability to Acquire” score pretty high. In these, the ability to
define technology need and TT management score lowest. This is easy to understand,
because Vietnamese enterprises have to face a pool of new Technology while their
bases (in finance and Technology) still relative low. They are struggling to define
which technology to develop first. In addition, Vietnamese is not confident in
management skill when facing new problem. These explained the low score in
“Technology need” and “Technology Transfer management”
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Research_Thesis _HoangVu_03042
4.3. Ability to Assimilate
Accepting and learning new technology
N
49
Minimum
3
Maximum
6
Mean
5.12
Std.
Deviation
.949
Learning ability
49
3
6
4.90
.872
Finding out problem, unfit
49
2
6
4.86
1.061
Planning ability
49
2
6
4.78
.985
Installation
49
2
6
4.67
.987
Information Sharing
49
2
6
4.55
1.022
Valid N (listwise)
49
Table. 19: Ability to Assimilate descriptive statistic
Strongly disagree
Information Sharing
Installation
Planning ability
Finding out problem, unfit
Learning ability
Accepting and learning new…
0%
Fig. 21:
Disagree
Tend to disagree
Likely to agree
Agree
20%
40%
60%
80%
100%
Totally agree
Questionnaire response on Ability to Assimilate
Information Sharing
Installation
Planning ability
Finding out problem, unfit
Learning ability
Accepting and learning new technology
4.55
4.67
4.78
4.86
4.90
5.12
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 22:
Ability to Assimilate – sort by mean
All measurements in Ability to Assimilate score high. The lowest score is
“Information sharing” (4.55) and the highest score is “Accepting and learning new
technology” (5.12). Vietnamese people, especially HCM people, are eager to learn
new knolwedge. This city is one of the most adapting region, where new technology
product are tested, that’s why the willing to learn of employees are high.
However, knowledge sharing is always the problem for Vietnamese, that’s why
information sharing score lowest for ability to assimilate.
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Research_Thesis _HoangVu_03042
4.4. Ability to Apply and Adapt
N
Maximum
6
Mean
5.29
Std.
Deviation
.736
Ability to fix small problem
49
Minimum
4
Maintenance ability
49
2
6
4.96
.815
Evaluating ability
49
3
6
4.86
.890
Operating ability
49
3
6
4.67
.851
Training ability
49
2
6
4.63
.951
Integration ability
49
2
6
4.53
1.002
Valid N (listwise)
49
Table. 20: Ability to Apply and Adapt descriptive statistic
Strongly disagree
Integration ability
Training ability
Operating ability
Evaluating ability
Mantainance ability
Ability to fix small problem
Disagree
Tend to disagree
Likely to agree
Agree
0%
Fig. 23:
20%
40%
60%
80%
100%
Totally agree
Questionnaire response on Ability to Apply and Adapt
Integration ability
Training ability
Operating ability
Evaluating ability
Mantainance ability
Ability to fix small problem
4.53
4.63
4.67
4.86
4.96
5.29
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 24:
Ability to Apply and Adapt – sort by mean
All measurements in Ability to Apply and Adapt score high. The lowest score is
“Integration ability” (4.53) and the highest score is “Ability to fix small problem”
(5.29).
Vietnamese engineers mostly have problem when study new thing and adapt them to
the existence knowledge or system. However, fixing problem is based on knowledge
of one machine only, and it is easy for Vietnamese employees to complete that.
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Research_Thesis _HoangVu_03042
5. R&D Capabilities description
5.1. Ability to Innovate
Ability to apply transferred technology
N
49
Minimum
3
Maximum
6
Mean
4.51
Std.
Deviation
.916
Ability to generate new product
49
3
6
4.51
1.063
Ability to generate new tech
49
1
6
3.96
1.290
Ability to create new equipment
49
1
6
3.67
1.313
Valid N (listwise)
49
Table. 21: Ability to Innovate descriptive statistic
Ability to create new…
Strongly disagree
Ability to generate new tech
Disagree
Tend to disagree
Ability to generate new…
Likely to agree
Ability to apply transferred …
Agree
0% 20% 40% 60% 80% 100%
Fig. 25:
Questionnaire response on Ability to Innovate
Ability to create new equipment
3.67
Ability to generate new tech
3.96
Ability to generate new product
4.51
Ability to apply transferred technology
4.51
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 26:
Ability to Innovate – sort by mean
For factor Ability to Innovate, as expected, its appearance is divided into two groups.
The more advance ones (Ability to generate new tech, Ability to Create new
Equipment) have lower score than the easy ones (3.96 & 3.67 score compare to 4.51
for both others.
When enterprises do TT, their main target is use that Technology to achieve their
target. From the application of these technologies, it is easy for them to create new
products (like changing input material, add/change flavour to adapt with Vietnamese
appetite). But to generate a new technology or new equipment, the engineers need to
understand the development of technology to move forward. They may need passion,
training, skill, time or motivation to create something new. In Vietnam, because we
39
Research_Thesis _HoangVu_03042
still behind others in Technology, and Vietnamese engineers spend their time to
catch up with others in technology, and can not spend much time to create new
technology.
However, these still score more than the neutral value. This is a good sign, because
with the right investment and strategy, these score may be improved in the future.
5.2. Facility capabilities
N
Maximum
6
Mean
4.47
Std.
Deviation
1.174
R&D investment
49
Minimum
2
Training schedule
49
1
6
4.37
1.131
Satisfaction of R&D equipment
49
1
6
4.20
1.224
Modernity of R&D equipment
49
1
6
4.16
1.106
Effective usage of R&D fund
49
1
6
3.88
1.452
Valid N (listwise)
49
Table. 22: Facility Capabilities descriptive statistic
Effective usage of R&D…
Strongly disagree
Modernity of R&D…
Disagree
Satisfaction of R&D…
Tend to disagree
Training schedule
Likely to agree
R&D investment
Agree
0%
Fig. 27:
20% 40% 60% 80% 100%
Questionnaire response on Facility Capabilities
Effective usage of R&D fund
3.88
Modernity of R&D equipment
4.16
Satisfaction of R&D equipment
4.20
Training schedule
4.37
R&D investment
4.47
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 28:
Facility Capabilites sort by mean
From the chart, “R&D investment” has the highest score (4.47), while the “Effective
usage of R&D fund” has lowest score (3.88).
40
Research_Thesis _HoangVu_03042
Recently, government has promoted many program to encourage enterprises invest in
R&D. There are tax redemption or reduced tax rate incentive for companies deriving
income from performing R&D. Newly established companies in high technology are
entitled to a 10% reduced tax for 15 years (Ernst & Young’s report). These policies
and more others explained why “R&D investment” scores high.
However, R&D fund seem not to have a good management. In many Vietnamese
companies, R&D activities are proposed from bottom, get approved and processed. It
is not the result of the R&D department when they have power to manage a part of
income as their operational capital. In some companies, when there is R&D fund, it
is not controled by people belonging to R&D only. This will make the usage of these
fund ineffective.
5.3. HR Capabilities
R&D employee's collaboration skill
N
49
Minimum
1
Maximum
6
Mean
4.73
Std.
Deviation
1.056
Policy on R&D, investment, information
49
1
6
4.63
1.055
R&D employee's problem solving skill
49
1
6
4.61
.996
R&D employee's discipline
49
2
6
4.61
.931
R&D employee's planning skill
49
1
6
4.45
1.156
R&D employee's demand analysis skill
49
1
6
4.35
1.200
R&D employee's product
49
2
6
4.29
1.041
R&D employee's implementation skill
49
1
6
4.18
1.054
R&D employee's research skill
49
1
6
3.76
1.199
Valid N (listwise)
49
Table. 23: HR Capabilities descriptive statistic
R&D employee's research skill
R&D employee's…
R&D employee's product
R&D employee's demand…
R&D employee's planning skill
R&D employee's discipline
R&D employee's problem…
Policy on R&D, investment, …
R&D employee's…
Strongly disagree
Disagree
Tend to disagree
Likely to agree
Agree
Totally agree
0%
Fig. 29:
20% 40% 60% 80% 100%
Questionnaire response on HR Capabilities
41
Research_Thesis _HoangVu_03042
R&D employee's research skill
R&D employee's implementation skill
R&D employee's product
R&D employee's demand analysis skill
R&D employee's planning skill
R&D employee's discipline
R&D employee's problem solving skill
Policy on R&D, investment, information
R&D employee's collaboration skill
3.76
4.18
4.29
4.35
4.45
4.61
4.61
4.63
4.73
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
HR Capabilities – sort by mean
Fig. 30:
For the HR capabilities factors, all the factors except “R&D employees’s research
skill” score between 4 and 5. “R&D employee’s research skill score only 3.76. This
means that Vietnamese’s R&D employees are very skillful, except the research skill.
The “R&D employees research skill” is the result of the training program, policy,
recruitment and treatment. For Vietnamese enterprises, the investment reason also
pointed out that they do not target R&D employees skill as priority. In addition, the
recruitment, training, policy do not support R&D skill of employees. Theses
explained why this measurement’s score is low.
6. Performance description
Frequency of collected data is presented in Table 24, and Fig 31, 32
N
Maximum
6
Mean
4.71
Std.
Deviation
1.061
Product's quality
49
Minimum
1
Product's diversification
49
2
6
4.43
1.021
Plant's efficiency
49
2
6
4.41
.934
Sustainable product
49
2
6
4.35
.855
Time to market
49
2
6
4.31
.871
Outcome vs plan
49
2
6
4.29
.913
Revenue
49
2
6
4.22
1.026
Patent
49
1
6
4.04
1.117
Export revenue
49
1
6
3.84
1.297
Valid N (listwise)
49
Table. 24: Performance of Technology Improvement descriptive statistic
42
Research_Thesis _HoangVu_03042
Export revenue
Patent
Revenue
Outcome vs plan
Time to market
Sustainable product
Plant's efficiency
Product's diversification
Product's quality
Strongly disagree
Disagree
Tend to disagree
Likely to agree
Agree
Totally agree
0% 20% 40% 60% 80%100%
Fig. 31:
Questionnaire response on Performance of Technology Improvement
Export revenue
Patent
Revenue
Outcome vs plan
Time to market
Sustainable product
Plant's efficiency
Product's diversification
Product's quality
3.84
4.04
4.22
4.29
4.31
4.35
4.41
4.43
4.71
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 32:
TT and R&D Investment Performance sort by mean
The TT and R&D Investment Performance scores spread in wide range (from
minimum of 1 or 2 to maximum of 6). On average, all the performances were
evaluated achieved above the middle point (3.5).
Through these score, product’s quality, product diversification and plant efficiency
are likely the main achievement of Vietnamese enterprise (score 4.71, 4.43 and 4.41
respectively). This is explained as Vietnamese FPI expect their product quality
improvement when implementing TT. The objective of investment is short term,
which lead to short term result. The diversificaion and efficiency normally come in
package, when enterprises apply these new technology, changing input or reduce
their waste in the process. Referring to the purpose of Investment on Table, product
quality and market competitiveness are two most reasons that enterprises apply
Technology Improvement.
In the response, it is easy to recognize that export revenue is achieved least among
the performance. It is easy to understand this, because most of the sampled enterprise
focus domestic market as main market. The technology improvement is aimed to
43
Research_Thesis _HoangVu_03042
increase their competitiveness on homeground before going abroad.
So export
revenue is currently just an additional effect of technology improvement.
7. Innovation environment description
7.1. Internal environment
N
Maximum
6
Mean
5.00
Std.
Deviation
1.080
Company's QA system
49
Minimum
1
Company's goal & strategy
49
1
6
4.73
1.132
Company's commitment
49
2
6
4.65
.969
Company's empower system
49
1
6
4.57
1.021
Company's working condition
49
3
6
4.45
.959
Company's policy
49
1
6
4.41
.998
Company's training system
49
1
6
4.22
1.026
Company's culture
49
1
6
4.20
1.207
Company's recruitment/treatment
49
1
6
4.14
1.099
Valid N (listwise)
49
Table. 25: Internal Environment descriptive statistic
Company's…
Company's culture
Company's training system
Company's policy
Company's working condition
Company's empower system
Company's commitment
Company's goal & strategy
Company's Q&A system
Strongly disagree
Disagree
Tend to disagree
Likely to agree
Agree
Totally agree
0% 20% 40% 60% 80% 100%
Table. 26: Questionnaire response on Internal Environment
Company's recruitment/treatment
Company's culture
Company's training system
Company's policy
Company's working condition
Company's empower system
Company's commitment
Company's goal & strategy
Company's QA system
4.14
4.20
4.22
4.41
4.45
4.57
4.65
4.73
5.00
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 33:
Internal Environment – sort by mean
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Research_Thesis _HoangVu_03042
In the IE, the highest score goes to measurement “Company’s QA system. It is easy
to understand that most companies agree that they have good QA system because this
is one of the “must” condition for food industry enterprises to operate.
In contrast, the “Company’s recruitment and treatment” of Vietnamese companies is
getting worst score. This is explained as Vietnamese enterprises haven’t got the
effective system in salary, promotion, talent engineers. In many companies, the brain
drain phenomena is still a big problem that Vietnamese enterprises have to face.
Many good engineers are leaving for foreign company, because their incomes
haven’t been improved, and they are not recognized by the company.
For the fresh undergraduates, they are not attracted by company system if they
choose their path as a researcher. In addition, “Company’s culture” and “Company’s
training system” score close to the “Company’s recruitment/treatment” strategy. This
add more reasons to explain why human resourse development is not good and why
Research skill of R&D employees (from Technology Capability) is not high. These
give HR department an idea to learn how to integrate good human resourch plan,
especially for R&D employees.
7.2. External environment
N
Maximum
6
Mean
4.10
Std.
Deviation
1.195
Safety, hygiene regulation
49
Minimum
1
IP policy
49
1
6
3.84
1.231
Government Tax policy
49
1
6
3.69
1.310
Government investment
49
1
6
3.61
1.288
Market environment
49
1
6
3.61
1.272
Information support system/capability
49
1
6
3.45
1.100
Human resource market
49
1
6
3.39
1.187
Valid N (listwise)
49
Table. 27: External Environment descriptive statistic
45
Research_Thesis _HoangVu_03042
Human resource market
Information support…
Strongly disagree
Market environment
Disagree
Government investment
Tend to disagree
Government Tax policy
Likely to agree
IP policy
Agree
Totally agree
Safety, hygeine procedure
0%
Fig. 34:
20%
40%
60%
80%
100%
Questionnaire response on External Environment
Human resource market
Information support system/capability
3.39
3.45
Market environment
Government investment
Government Tax policy
3.61
3.61
3.69
IP policy
Safety, hygiene regulation
3.84
4.10
1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00
Fig. 35:
External Environment – sort by mean
External environment, in contrast score very low. The highest score is in “Safety,
hygiene regulation” (4.10) while the lowest scores are for “Information support
system” and “Human resource market”.
It is understandable “hygiene, safety regulation” measurement to score the highest
value for external environment. It is necessary for FPI to have the related licence to
operate and get product accpeted. However, this score is not very high compare to
the expectation. This expose the fact that the national regulation still have a lot of
unclear points. Governement, association and authorities need better procedure,
instruction to help enterprises to achieve it.
“Information support system” and “Human market resource” score below neutral
value (3.5). This happens, because Vietnam hasn’t built the system to provide the
information to enterprises, especially information related to Technology. Even
government tries to help through Technology fair, Industry fair but the help have not
been enough from enterprises point of view. Through the in-depth interview,
enterprises expect government support more information, in systematic way. They
46
Research_Thesis _HoangVu_03042
hope government can connect enterprises, so they know who already has a
technology, or which companies want the same technology with them, so that they
can cooperate to gain the technology with less finance.
In addition, “Labor market” for this field is not sufficient for enterprises. The
curriculum of University/Institute does not help students to start research on their
own after graduated. Moreover, technology, knowledge from university are rather
old, or not practical to apply in modern environment. Enterprises wish that
government pay more attention in education, to provide them better R&D human
resource.
8. Cluster and Scatter chart
8.1. Method to define weight:
From definition:
-
TTC includes four (04) factors: Ability to Recognize, Ability to Acquire,
Ability to Assimilate, Ability to Apply and Adapt
-
RDC include three (03) factors: Ability to Innovate, Facility investment,
Human Resource capability.
-
The
Performance
of
Technology
Improvement
include
nine
(09)
measurements as in questionnaire
Three (03) experts (Mr. Lam, Mr. Thuy, Mr. Man) were sent questionnaire, asked
them to evaluate the weight contribution of each factor (measurement) on TTC, RDC
and Performance of Technology improvement. The total contribution of all
factors/measurements is 100%.
After receiving all three feedbacks, the average on each factor/measurement is
compute to define the contributing weight of each. From the feedback of expertise,
contributing weight of TTC, RDC and Performance of Technology Improvement are
as Appendix F. By using these weights, new scale variables TTC, RDC and TT and
R&D Investment Performance can be generated as below equations:
TTC
RDC
= 0.35 * A2RE + 0.2333 * A2AC + 0.1833 * A2AS + 0.2333 * A2AA
= 0.2333 * A2IN + 0.2667 * RDCAP + 0.5000 * HRCAP
PER
= 0.0906 * PER04 + 0.0572 * PER05 + 0.1000 * PER06 +
0.0572 * PER01 + 0.1572 * PER02 + 0.1667 * PER03 +
0.0739 * PER07 + 0.1739 * PER08 + 0.1233 * PER09
47
Research_Thesis _HoangVu_03042
Means of all measurements Ability to Recognize, Ability to Acquire, Ability to
Assimilate, Ability to Apply and Adapt, Ability to Innovate, Facility Capability and
and HR Capability are used as the intermediate variables.
By using these means and equation, new variables are created for TTC, RDC and
Performance. The set of points are generated as Appendix G
8.2. Trend analysis
By using these data, scatter charts for TTC vs RDC, TTC vs Performance, RDC vs
Performance are generated as Fig 36 to Fig 38
TT Capability vs. RD Capability
6
5.5
5
R&D Capability
4.5
4
3.5
3
2.5
2
1.5
1
1
1.5
2
2.5
3
3.5
4
TT Capability
Fig. 36:
TTC vs RDC
48
4.5
5
5.5
6
Research_Thesis _HoangVu_03042
From this chart, it is posible there is correlation between TTC and RDC. If enterprise
has high TTC, it is likely to have high RDC.
TT Capability vs. Performance
6
5.5
5
4.5
Performance
4
3.5
3
2.5
2
1.5
1
1
1.5
2
2.5
3
3.5
4
4.5
TT Capability
Fig. 37:
TTC vs Performance
49
5
5.5
6
Research_Thesis _HoangVu_03042
R&D Capability vs. Performance
6
5.5
5
4.5
Performance
4
3.5
3
2.5
2
1.5
1
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
6
R&D Capability
Fig. 38:
RDC vs Performance
From these chart, it is able to say that TTC and RDC have positive impact on TTE.
From these chart, it is also to conclude that RDC have larger impact on TTE than
TTC. Using correlation function of SPSS for these 3 factors below result is achieved:
D
PER
Pearson Correlation
PER
1
Sig. (2-tailed)
N
Pearson Correlation
TTC
TTC
Sig. (2-tailed)
N
RDC
.452
**
.586
**
.001
.000
49
49
49
**
1
.452
.001
49
50
.767
**
.000
49
49
Research_Thesis _HoangVu_03042
Pearson Correlation
RDC
Sig. (2-tailed)
N
.586
**
.767
**
.000
.000
49
49
1
49
**. Correlation is significant at the 0.01 level (2-tailed).
8.3. Cluster analysis
By using cluster analysis function of SPSS, Fig 39 to Fig 41 show the scatter chart
and clusters for TTC vs RDC; TTC vs Performance; RDC vs Performance:
Fig. 39:
TTC vs RDC Cluster chart
Fig 39 show the 3 clusters, which demonstrate the overview of Vietnamese
enterprise. They can be defined as 3 groups: average RDC with average TTC group;
high TTC and high RDC group; very high TTC with very high RDC group.
These clusters mean that TTC and RDC have positive relationship. The higher TTC,
the higher RDC that enterprise has. From this chart, enterprise can learn which
strategy is suitable for each level of TTC and RDC to apply to their context.
51
Research_Thesis _HoangVu_03042
Fig. 40:
TTC vs Performance Cluster chart
Fig 40 shows the 3 groups of TTC and Performance: average TTC (3 -> 4) and
average performance group; High TTC with fluctuated performance group; and very
high TTC with high performance group;
52
Research_Thesis _HoangVu_03042
Fig. 41:
RDC vs Performance Cluster chart
Fig 41 shows the 3 groups of RDC and Performance: medium low performance
group; high performance with average RDC group; and very high performance with
high RDC.
8.4. Radar charts
A2RE
5.5
5
4.5
4
Government
3.5
A2AA
3
A2AC
Join stock
Private
Ltd
A2AS
Fig. 42:
x
TTC vs. business ownership
53
Research_Thesis _HoangVu_03042
A2RE
6
5.5
5
4.5
4
[...]... the world that measure the Technology Transfer Effectiveness (TTE) and each of them focuses different factors There are also journals and a few of research about TT and R&D in Vietnam However, none of them study about the acquiring Technology Transfer Capability (TTC) of small and medium enterprise and R&D performance in Vietnam food industry That means there is no research about how transferee’s technology. .. However, Technology Capability and RDC have the relationship and overlapped Also from this study, the assessment of TTC and RDC, food enterprises are willingness to adopt new technology These enterprises agreed TT is the quickest way to expand their business 6 Research_Thesis _HoangVu_03042 However, previous research has not found out how TTC, RDC effect on Business performance It has not analyzed the Environment... of Technology Improvement This research also shows the method to assess Technology Transfer Capability, R&D Capability and Innovation Environment of Vietnamese Food Processing Enterprises in HCM City From these results, Vietnamese enterprises have a lot of missions to improve their Technology level xiii Research_Thesis _HoangVu_03042 CHAPTER ONE - INTRODUCTION 1 Introduction 1.1 Current situation of. .. are: - Develop measurements for TTC, RDC, and Innovation Environment (IE) factors, Effectiveness of Technology Improvement (TTE) - Use these measurements to evaluate TTC, RDC and TTE of Food companies in HCM, and Vietnamese IE - Explore the relationship between TTC; RDC and TTE - Suggest the solutions for Vietnamese food Enterprise so they can improve the TTE 4 Scope and limitation This research is conducted... more receptive to technology; Appropriate training and education of the staff (including visits and on the- job training); Performance-based and quality-linked re-vamp of the structure of the organization 7 Effectiveness of Technology Improvement There are many methods to measure or evaluate the result of R&D In many studies, they’ve grouped these method based on the purposes of R&D performance... suggestion for academic and enterprises 8 Research_Thesis _HoangVu_03042 CHAPTER TWO - LITERATURE REVIEW 1 Introduction It is important to understand the crucial role of Technology, TT and R&D in businesses The investment into TT and R&D will result as the performance of business This review is based on relevant published researches on Technology, Technology Capability and RDC; IE; and the method to evaluate... defined by many scholars and researchers In 2000, Tarek Khalil defined TT as a process which permits the flow of technology from a source to a receiver It means that the source is the owner or holder of the knowledge, while the recipient is the beneficiary of such knowledge TT also mean the transfer of technology know how and expertise 10 Research_Thesis _HoangVu_03042 Transferring technology is important... new year occasion) and the respondent’s requirement The list of Vietnamese food enterprises in HCM city only consists of around 200, and many of them were shut down due to the economic crisis That makes the effective list is only around 160 Besides, many enterprises consider technology as sensitive topic, and they refused to take part in the survey These make sample size small, and many statistic techniques... level, types of R&D as measurement subject, perspective of measurement, and the phase of R&D ( Ville Ojanen and Olli Vuola, 2003) The fact that R&D investments often compete with other investments in the company has changed the thinking R&D as the “black box”, isolated function before that They have to prove that R&D brings the productivity and profit to the company There are numbers of measures... the biggest proportion in gross output of industry, for example, the proportion of food industry in 2010 is 14.17% (Tran Sinh, 2011) Moreover, the development of this industry helps to develop agriculture Therefore, FPI is the priority industry in the growth of Vietnam economy According to the Organization of Business Monitor International (BMI), total food consumption in the Vietnamese market in the ...Research_Thesis _HoangVu_03042 ASSESSMENT OF TECHNOLOGY TRANSFER CAPABILITY AND R&D CAPABILITY THE CASE STUDY OF VIETNAMESE FOOD AND ENTERPRISES Under the guidance and approval of the committee, and. .. relationship and overlapped Also from this study, the assessment of TTC and RDC, food enterprises are willingness to adopt new technology These enterprises agreed TT is the quickest way to expand their... none of them study about the acquiring Technology Transfer Capability (TTC) of small and medium enterprise and R&D performance in Vietnam food industry That means there is no research about how transferee’s
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