NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL BUSINESS SCHOOL BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI Bachelor of Business Administration in English (E-BBA) Thesis Student: Pham Thuy Duong Class: EBBA4A Supervisor: PHAM SY LONG, MBA HANOI, 2016 ACKNOWLEDGEMENT Firstly, I would like to express my sincere gratitude to my supervisor, Mr.Pham Sy Long for the mentoring and continuous support of my thesis, for his patience, motivation, and immense knowledge. His guidance helped me in all the time of research and writing of this thesis. I could not have imagined having a better advisor and mentor for my thesis study. Meanwhile, I also would like to express my deepest gratitude to all faculties, professors and coordinators of the NEU Business School.
The four-year studying at NEU helped me to acquire all necessary insights and skills to accomplish the thesis. My sincere thank also goes to Mrs.Pham Thi Kim Tuyen, the Director of the Business registration Department, who provided me an opportunity to intern at the DPI in Hanoi, and who gave access to the research facilities. Without her precious support, it would not be possible to conduct this research. Afterwards, I would like to give my regard to my friends of EBBA, especially Nguyen Phuong Linh, Vu Dai Trang and Le My Khanh Huyen for helping me a lot in this study.
They have contributed their knowledge and efforts to provide me data and information to finish the thesis. Special thanks to them for standing by my side ups and downs. Last but not least, I would like to thank my family: my parents and my younger sister for supporting me spiritually throughout writing this thesis within the limited time frame and my life in general. The thesis would not be completed without all of these supports.
Pham Thuy Duong, Hanoi, January 2016 1 TABLE OF CONTENT ACKNOWLEDGEMENT.1 LIST OF TABLES.5 LIST OF FIGURES.17 CHAPTER 2: THEORETICAL BACKGROUND OF BUSINESS REGISTRATION SERVICE AND SERVICE QUALITY.1 Definitions of Service.2 Definitions of Service Quality.2 Business Registration Service.1 Definition of Business registration Service.2 Characteristics of Business Registration Service.3 Model for measuring service quality.4 Model used in thesis.4 Factors affecting Business Registration Quality.33 CHAPTER 3: FINDINGS ON BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI. OVERVIEW OF DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI.2 Office of Planning and Investment in Hanoi.2 Dimensions and Attributes to measure business registration service quality at the Development of Planning and Investment in Hanoi.3 Evaluation of business registration service quality in DPI.2 Five-service-quality-dimension evaluation.4 Summary of gaps between enterprises’ perception and expectation towards business registration service quality at the DPI in Hanoi.5 Causes of gaps found between enterprises’ perceptions and expectations.1 The organizational structure of the business registration department is not really reasonable:.2 Capacity and qualification of staffs and civil servants is uneven.3 System of legal documents specialized business registration overlap and is lack of clarity.4 Online information system to register is still developing and do not complete.73 CHAPTER 4: SOLUTION FOR IMPROVING BUSINESS REGISTRATION SERVICE QUALITY AT THE DEPARTMENT OF PLANNING AND INVESTMENT IN HANOI.1 Orientation to develop business registration service quality of the DPI in Hanoi.2 Solutions to improve business registration service at the DPI in Hanoi.1 Improving infrastructure and facilities.2 Solutions for the organizational structure of business registration agency .77 LIST OF REFERENCES.79 APPENDIX 1 – SURVEY QUESTIONNAIRES.79 APPENDIX 2 – QUESTIONS FOR IN-DEPTH INTERVIEW.83 4 LIST OF TABLES Table 1-1: The Number Of Enterprises From 2012-2014. Dimensions and attributes to measure service quality. 26 Table 3-1: Table Of Attributes.
Mean score of reliability dimension. 49 Table 3-3: Mean score of responsiveness dimension .54 Table 3-4: Mean score of empathy dimension .58 Table 3-5: Mean score of assurance dimension. 62 Table 3-6: Mean score of tangibles dimension. 66 Table 3-7: Overall assessment of business registration service at the DPI in Hanoi.
70 5 List of Figures Figure 1-1: The Process Of Conducting Survey. 16 Figure 2-1: Customer Satisfaction – Zeithaml (2006). 24 Figure 2-2: Servqual Model To Assess Service Quality. Organizational structure of the department of planning and investment in hanoi.
Inter-settlement process of business established registration dossiers within 3 working days. Inter-settlement process of business edited registration dossiers. Author’s propose model .45 Figure 3-5: Gap (P-E) Of Reliability Dimension .53 Figure 3-6: Gap (P-E) Of Responsiveness Dimension .57 Figure 3-7: Gap (P-E) Of Empathy Dimension .61 Figure 3-8: Gap (P-E) Of Assurance Dimension.65 Figure 3-9: Gap (P-E) Of Tangibles Dimension .69 Figure 3-10: Overall service quality dimensions. 71 6 ABBREVIATION DPI: Department of Planning and Investment LGUs: Local government units OSS: One-stop system ODA: Official development assistance 7 EXECUTIVE SUMMARY Nowadays, it cannot be denied that enterprises have played a very important role in the development of economy in the city.
Every enterprise has to take in business registration in order to establish and operate a business. As a result, the Committee of the city in general, the Department of Planning and Investment in Hanoi in particular, pay special attention to the business registration service quality and narrow the gap between expectation and perception of enterprises about that service. Objectives: To identify the dimensions to evaluate the service quality of the DPI in Hanoi To analyze the current business registration service quality situation at the DPI in Hanoi to find out the causes and gap between enterprises’ perception and expectation To suggest recommendations to enhance the quality of business registration service at the DPI in Hanoi The research’s second data gathered from a variety of sources namely organizational reports, academic studies, authorized books, newspaper articles which related to service quality and business permit registration. Besides, information from the Department of Planning and Investment in Hanoi’s official website and other related researches is also used and covered with sources at the end of this research.
Primary data is obtained through two ways included questionnaire survey and in-depth interview. The research has analyzed five dimensions of customer service based on the SERVQUAL model of Parasuman: Reliability, Responsiveness, Empathy, Assurance and Tangibles. After analyzing the data, the author’s survey has found 8 out the gaps between enterprises’ perception and expectation. After interviewing five people in the business registration department, the author can identify the reasons for those gaps and some recommendations to improve the business registration service quality at the DPI in Hanoi.
Among five dimensions, after surveying, Tangibles is the best dimension with the lowest gap (-1.23) and Empathy is the worst dimension with the highest gap (-2. Overall, business registration service quality at the DPI in Hanoi was evaluated at 2.85 in term of perception while the expectation of the service was hoped at 4. After findings about current situation about business registration service quality at the DPI in Hanoi, the author found out some causes leading to the gaps between enterprises’ perceptions and expectations, namely: The organizational structure of the business registration department is not really reasonable; Capacity and qualification of staffs and civil servants is uneven; System of legal documents specialized business registration overlap and is lack of clarity; Online information system to register is still developing and do not complete. Therefore, the DPI in Hanoi should improve the business service quality and narrow the gap to bring satisfaction for enterprises in the city.1 Rationale It cannot be denied that business registration is the first step that every entrepreneur has to take in order to establish and operate a business in a particular area.
As a result, it is the first interaction between the businessmen and LGUs and as such. The Ninth Congress of the Party was highlighted that: "The State will create a favorable regulatory environment, bring equality for businesses to compete and cooperate to develop; by strategies, planning, plans and policies, combined with the use of physical force by the State to shape economic development - social, rational exploitation of the resources of the country, ensuring balanced macro- economy, regulating incomes; inspection, control and inspection of all business activities in accordance with law. Since 1991, with the introduction of the Company Law, the Law on Private Enterprises, and after that the Law on Enterprises (1999) and the Law on Enterprises (2005) marks a strong step forward in promoting the investment, meets the need of economic development. The main improvement in market entry procedures has created great appeal to the business environment of Vietnam in the eyes of investors.
In recent years, the management of State for enterprises has made big changes, especially in creating a favorable business environment for enterprises of all economic sectors and activities launched. In order to provide better services to the business sector, LGUs have strived in recent years to improve the business permit registration systems. Open investment environment has created conditions to increase continuously the number of businesses in the city over the years. Specifically, for 5 years (2010- 2014), the number of registered enterprises was established by 85% compared to the total number of registered enterprises in the province after 18 years (from 1992 to 2009) with a registered capital increase more than 112%.
Businesses 10 have played a very important role in economic development - society of the City; every year, contributing 60% of gross average city's budget, year after year. Hanoi always ranks the second in the country (behind Ho Chi Minh City) with the number of enterprises accounts for 1/5 of registered businesses in the country. Table 1-1: The Number Of Enterprises From 2012-2014 Time The number of The number of The proportion of the enterprises in enterprises in number of enterprises in No Vietnam Hanoi Hanoi among country 1 2012 69897 14673 21% 2 2013 76955 14862 19% 3 2014 74842 14656 20% (Source: DPI’s report) In 2014, Hanoi has now registered 14 656 new establishment, down 1.4% on the number of businesses over the same period last year. Therefore, the Department of Planning and Investment in Hanoi must constantly improve and enhance the quality of business registration services with the hope for making satisfaction for businesses to sign up business.
But business registration service must meet the criteria laid yet to be treated as good quality service? The objective of this study was to explore the components of service quality for business registration at the Department of Planning and Investment in Hanoi to evaluate customer satisfaction. The theme: “Business registration service quality at the Department of Planning and Investment in Hanoi” has been chosen to be my thesis topic.2 Research Objectives In order to propose solutions of “Business registration service quality at the Department of Planning and Investment in Hanoi”, the thesis focuses on the following objectives: To identify the dimensions to evaluate the business permit registration service quality at the Department of Planning and Investment in Hanoi To analyze the current situation of service quality at the Department of Planning and Investment in Hanoi; find out and narrow the gap between customers’ perception and expectation To propose solutions and recommendation in order to enhance the service quality of business permit registration.3 Research Question Based on the above research objectives, this research has been designed to answer the following questions: What are the dimensions affecting service quality perceived by customers? How is the current situation of business permit registration service quality at the Department of Planning and Investment in Hanoi? What are the gaps and causes of service quality? How to improve customers’ satisfaction and service quality of business permit registration at the Department of Planning and Investment in Hanoi? 1.1 Research method This thesis uses primary research methods: Descriptive attributes is performed by delivering questionnaires to actual customers so as to collect data. Most questions are designed depended on a former theoretical framework. After that, these numerical data will be analyzed by mathematical, computational techniques via 12 Excel to see how impact each factor has on Service Quality of Business registration at the Development of Planning and Investment in Hanoi.