1 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY PRESENT BY: NGUYỄN HỮU THUẬN BÌNH THE IMPACT OF FACTORS IN THE CSR COMPLIANCE TOWARD COMPETITIVENESS OF ENTERPRISES - CASE STUDY OF SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY MASTER THESIS HO CHI MINH CITY - 2018 TIEU LUAN MOI download : skknchat@gmail.com 2 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY PRESENT BY: NGUYỄN HỮU THUẬN BÌNH THE IMPACT OF FACTORS IN THE CSR COMPLIANCE TOWARD COMPETITIVENESS OF ENTERPRISES - CASE STUDY OF SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY Faculty of Business Administration Code: 8340101 MASTER THESIS SUPERVISOR: Dr. ĐẶNG NGỌC ĐẠI HO CHI MINH CITY - 2018 TIEU LUAN MOI download : skknchat@gmail.com 3 COMMITMENT Here by, I commite the master thesis: THE IMPACT OF FACTORS IN THE CSR COMPLIANCE TOWARD COMPETITIVENESS OF ENTERPRISES - CASE STUDY OF SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY is my own study. The data and materials in this study were referred honest, transparent. All of inheritances and references have been quoted and proved fully according prestigious sources.
This study is still not published in any other researches and I am responsible about the transcription for this study. HCMC - Dec 17, 2018 Present by NGUYỄN HỮU THUẬN BÌNH TIEU LUAN MOI download : skknchat@gmail.com 4 INDEX INDEX LIST OF ABBRIVIATIONS. 8 LIST OF TABLES. 9 LIST OF FIGURES.
11 CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT AND DEMARCATION OF STUDY.1 Introduction and Background of the Study .3 Purpose of Study .1 Primary Research Objective.2 Secondary Research Objective .5 Scope And Demarcation of Study.7 Structure of Study .8 Significance of the Study. 17 CHAPTER 2: THEORETICAL FRAMEWORK AND RESEARCH MODEL .1 Definition of Concepts .1 Corporate Social Responsibility (CSR) .2 Small and Medium- Sized Enterprises (SMEs).2 Theoretical Framework and Literature Review .2 Social contract theory. 23 TIEU LUAN MOI download : skknchat@gmail.3 Relationship between factors : Conceptual Overview and Proposed Hypotheses .1 Workforce oriented CSR activities .2 Society oriented CSR activities .3 Market oriented CSR activates .4 Environmental oriented CSR activates.3 Research Methodology for Quantitative Testing and Analysis .4 Response rate and sample size. 46 TIEU LUAN MOI download : skknchat@gmail.com 6 CHAPTER 4 : RESEARCH RESULT AND FINDINGS .1 Validity results: Sub-model CSR factors – EFA Analysis.2 Findings on Corporate Social Responsibility Dimensions – Cranach’s Alpha .1 Workforce-oriented CSR activities .2 Society-oriented CSR activities .3 Market-oriented CSR activities .4 Environmental-oriented CSR activities .3 Validity results: Sub-model Outcomes factor – EFA Analysis .4 Findings on Outcome Dimensions – Cranach’s Alpha .4 Empirical results of the Structural Equation Modelling Analyses .1 Sub-model 1 : Outcomes .1 Revised hypothesized model and path diagrams .2 Structural and measurement models .3 Measurement and structural model estimation .4 Evaluating the goodness-of-fit indices.2 Sub-model 2 : CSR Factor and Business Reputation .1 Revised hypothesized model and path diagrams .2 Structural and measurement models .3 Measurement and structural model estimation .4 Evaluating the goodness-of-fit indices.3 Sub-model 3 : CSR Factor and Customer Loyalty .1 Revised hypothesized model and path diagrams .2 Structural and measurement models .3 Measurement and structural model estimation .4 Evaluating the goodness-of-fit indices.4 Sub-model 4 : Workforce Oriented CSR Factor and Employee Satisfaction .1 Revised hypothesized model and path diagrams .2 Structural and measurement models.
69 TIEU LUAN MOI download : skknchat@gmail.3 Measurement and structural model estimation .4 Evaluating the goodness-of-fit indices.5 Sub-model 5 : CSR Factor and Increased Competitiveness .1 Revised hypothesized model and path diagrams .2 Structural and measurement models .3 Measurement and structural model estimation .4 Evaluating the goodness-of-fit indices. 73 CHAPTER 5 : CONCLUSIONS AND RECOMMENDATIONS.1 Summary of the study .2 Interpretation of the empirical results and recommendations .1 Workforce-oriented CSR activities .2 Society-oriented CSR activities .3 Market-oriented CSR activities .4 Environmental-oriented CSR activities .3 Contribution of the study .4 Limitation of the study .5 Recommendation for future research. 105 TIEU LUAN MOI download : skknchat@gmail.com 8 LIST OF ABBRIVIATIONS CSR Corporate Social Responsibility SME Small and Medium-sized enterprises GDP Gross Domestic Product ANOVA Analysis Of Variance AMOS Analysis of Moment Structures MLG Multiple Linear Regression SEM Structural Equation Modelling KMO Kaiser-Meyer-Okin EFA Exploratory factor analysis NFI Normed Fix Index CFI Comparative Fix Index RMSEA Root Mean Square Error of Approximation TIEU LUAN MOI download : skknchat@gmail.com 9 LIST OF TABLES Table 3.1 – Summary operationalisation of variables and scale development .2 – Questionnaire Design according to sections and factors.1 – Factor structure – CSR Factors .2 – Workforce-oriented CSR activities (WOC) .3 – Society-oriented CSR activities (SOC) .4 – Market-Oriented CSR activities (MOC) .5 – Environmental-oriented CSR activities (EOC) .6 – Factor structure – Outcomes factors .11 – Summary of EFA Analysis .12 – Criteria for Goodness-of-fit indices .13 – Definition of structural and measurement model .14 – Goodness-of-fit indices for the structural model .15 – Definition of structural and measurement model .16 – Goodness-of-fit indices for the structural model .17 – Definition of structural and measurement model .18 – Goodness-of-fit indices for the structural model .19 – Definition of structural and measurement model .20 – Goodness-of-fit indices for the structural model.21 – Definition of structural and measurement model .22 – Goodness-of-fit indices for the structural model .23 – ANOVA results of demographic variables on Employee satisfaction .24 – ANOVA results of demographic variables on Business reputation .25 – ANOVA results of demographic variables on Customer loyalty .26 – ANOVA results of demographic variables on Increased competitiveness….76 TIEU LUAN MOI download : skknchat@gmail.27 – MLR results of demographic variables on Increased competitiveness .28 – Summary of relationships between demographic and other variables.78 LIST OF FIGURES Figure 2.4 – Hypothesized model of CSR activities and their influence on competitiveness .1 – Path diagram of structural relationships: Revised model of Outcomes factors and Increased competitiveness .2 – Structural model estimation .3 – Path diagram of structural relationships: Revised model of CSR factors and Business reputation .4 – Structural model estimation .5 – Path diagram of structural relationships: Revised model of CSR factors and Customer loyalty .6 – Structural model estimation .7 – Path diagram of structural relationships: Revised model of Workforce- oriented CSR factor and Employee satisfaction .8 – Structural model estimation .9 – Path diagram of structural relationships: Revised model of CSR factors and Increased competitiveness .10 – Structural model estimation .73 TIEU LUAN MOI download : skknchat@gmail.com 11 ABSTRACT In view of the important role small and medium-sized enterprises (SMEs) totally play as the backbone of national economies and the survival and competitiveness challenges that they face, the goal of this study was to develop specific models of corporate social responsibility (CSR) for SMEs in HCMC as a way to enhance their competitiveness and foster economic development. The primary objective was to gain insight into the deployment of CSR in SMEs, including investigating CSR factors and their potential impact on competitiveness.
This study integrates previous findings and theories on CSR activities and SMEs’ competitiveness into a comprehensive hypothesized model. A comprehensive literature study revealed potential factors that could influence the Increased competitiveness of SMEs in HCMC. Four independent variables (Workforce-oriented, Society-oriented, Market-oriented and Environmental-oriented CSR activities) and three mediating variables (Employee satisfaction, Business reputation and Customer loyalty) were identified as variables influencing the Increased competitiveness (dependent variable) of SMEs. Independent variables were categorized as CSR factors while mediating and dependent variables were categorized as outcomes factors.
Furthermore, hypotheses were formulated for possible relationships between the independent, mediating and dependent variables. All the variables in the study were clearly defined and operationalized. Reliable and valid items sourced from various measuring instruments used in other similar studies, were used in the operationalization of these variables. Furthermore, several items were generated from secondary sources.
A structured self-administered questionnaire was made available to respondents identified using the stratified and purposive sampling techniques, and the data collected from 221 usable questionnaires was subjected to several statistical analyses. The validity and reliability of the measuring instrument was ascertained using an exploratory factor analysis and Cronbach-alpha coefficients respectively. An exploratory factor analysis using SPSS 23 for Windows was conducted to identify the unique factors available in the data before applying structural equation modelling (SEM). The data were categorized into models of independent variables (CSR factors) and the mediating variables (Outcomes factors).
The items measuring Market-oriented CSR activities and Workforce-oriented CSR activities loaded as expected. The items measuring Environmental-oriented CSR activities loaded onto two separate factors which were renamed Environmental-oriented CSR activities and Regulated CSR activities. One of the items originally expected to measure the construct Society-oriented CSR activities loaded onto Environmental-oriented CSR activities, leaving three items which loaded TIEU LUAN MOI download : skknchat@gmail.com 12 together onto the Society-oriented CSR activities factor. Four factors constituted the outcomes sub model, namely Customer loyalty, Stakeholder trust, Business reputation, and Employee satisfaction.
In this study, SEM was the main statistical procedure used to test the significance of the relationships hypothesized between the various independent and dependent variables. Owing to the sample size limitations, the hypothesized model could not be subjected to SEM as a whole. Consequently, six sub-models were identified and subjected to further analysis. Further research is encouraged on action-oriented areas such as: the success of different policies and techniques to increase the uptake of CSR amongst SMEs; the economic, social and environmental impact of CSR at sector level; and a typology of SMEs with regard to their engagement in CSR.
TIEU LUAN MOI download : skknchat@gmail.com 13 CHAPTER 1: INTRODUCTION, PROBLEM STATEMENT AND DEMARCATION OF STUDY.1 Introduction and Background of the Study Small and Medium-sized enterprises ( SMEs) are universally acknowledged as effective vehicles for employment generation and economic growth ( Basil, 2005). Even in country with large corporations like United State of America. SMEs contribute substantially to employment opportunities and supply goods and services to consumers and large organizations. In Asia Pacific, where the private sector in general is not well developed, SMEs could play a critical role in stimulating economic development and alleviating poverty ( Beyene, 2002).
Vietnam in general and HCMC in particular, SMEs are increasingly becoming the backbone of the economy. They play a crucial role in creating job opportunities that make the attainment of equitable and sustainable growth and development possible. It is estimated that there are over 423,000 SMEs in HCMC, providing employment and income generation opportunities to low income earners of the economy (http://www. For example, SMEs constitute over 90 percent of businesses operating in the private sector, they contribute to 45 percent of GDP and employ approximately 2.
However, more than a haft of SMEs in HCMC fail during their first year (http://www. Despite their growing importance, their high failure rate is thus a cause for concern. Analytical and practical case studies on appropriate strategies that can aid the competitiveness of SMEs in HCMC are limited. Owing the global competition, technological advances and changing needs of consumers, competitive paradigms are continuously changing.
These changes are driving businesses into stiff competition in areas such as design and development of products, manufacturing, distribution, communication and marketing ( Singh, Garg and Deshmukh, 2008 ) A positive relationship between CSR activities of SMEs and their enhanced competitiveness exists, at least if a long-term perspective is consider ( European Competitiveness Report, 2008 ). To remain competitive, businesses need to be able to adapt to new demands from the market and society in which they operate. Although CSR has been mainly discussed in the context of larger enterprises, it’s also strategic tool to enhance the competitiveness of SMEs ( Szabo, 2008 ). Hence, this study seeks to evaluate the application of CSR as a competitive strategy for SMEs in HCMC.2 Problem Statement The question arises as to why private or public businesses – particularly SMEs which are often characterized by limited human and financial resources compared to larger enterprises – should engage in CSR activities.