MINISTRY OF INDUSTRY AND TRADE INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY NGUYEN HUYEN TRANG FACTORS IMPACT TO THE IMPLEMENTING OF MANAGENT ACCOUNTING IN STARTUP IN HO CHI MINH CITY Major: ACCOUNTING Code: 60.01 MASTER THESIS HO CHI MINH CITY, 2022 This M.A thesis was completed at Industrial University of Ho Chi Minh City. Science supervisor: Ph.D Tran Ngoc Hung:. This MS thesis was presented at Industrial University of Ho Chi Minh City date. The Council assess of Master thesis include: 1.
- Secretary Chairman DEAN FUCULTY OF ACCOUNTING AND AUDITING MINISTRY OF INDUSTRY AND TRADE SOCIALIST REPUBLIC OF VIETNAM INDUSTRIAL UNIVERSITY OF Independence - Freedom - Happiness HO CHI MINH CITY THE DUTY OF THE MASTER THESIS Full name: NGUYEN HUYEN TRANG. Date of birth: 17/04/1993. MASTER THESIS NAME: Factors impact to the implementing of management accounting in startup in Ho Chi Minh City MISSIONS AND CONTENT: Determine the factor impact to the implementing of management accounting in startup in Ho Chi Minh City Measure the level of each factor Basing on the researching results, the author suggests solutions to enhance the possibility of management accounting application in startup in Ho Chi Minh City for improving their performance. DATE OF DELIVERY: The decision No .1874/QĐ-ĐHCN, October 14th, 2019 III.
TASK COMPLETE DAY:. SCIENCE SUPERVISOR: Ph.D Tran Ngoc Hung. Ho Chi Minh City, Jan, …. 2022 SUPERVISOR CHAIRMAN OF TRAINING (Signature) (Signature) DEAN FUCULTY OF ACCOUNTING AND AUDITING ACKNOWLEDGEMENT To complete the thesis, along with my own efforts, the author has received the encouragement and help of many people.
The author would like to sincerely express his deep gratitude to Dr. Tran Ngoc Hung - Lecturer in Accounting and Auditing Faculty of Industrial University of Ho Chi Minh City. He has enthusiastically and guided the writer throughout the process of studying, researching and completing the master thesis. Sincere thanks to the teachers in the Dean of the Faculty of Accounting and Auditing, Dr.
Tran Ngoc Hung - Principal Lecturer in the Accounting and Auditing Faculty of the Industrial University of Ho Chi Minh City, the Graduate School of the Industrial University of Ho Chi Minh City has guided and created favorable conditions for the writer to complete the thesis. Thank you to the Board of Directors, teachers of the Industrial University of Ho Chi Minh City for creating all favorable conditions for the writer to complete the thesis I would like to thank my parents, colleagues and friends for their encouragement and encouragement throughout the process of writing this thesis. The author sincerely thanks! i ABSTRACT This study aims to find out and measure the level of factors affecting the applicability of management accounting techniques in startups in Ho Chi Minh City. Data was collected using both quantitative and qualitative methods.
First, in general research, qualitative methodology was used to find out factors (variables) that can impact the applicability of management accounting techniques in startups in Ho Chi Minh City. Second, in detailed research, all variables are measured using a quantitative method by collecting data through sampling and sending questionnaires. 300 questionnaires were sent to chief accounts, financial directors, managers and only 236 questionnaires met the criteria for the data analysis. The study used a mixed research design approach-a procedure for collecting, analyzing, and “mixing” both quantitative and qualitative research and methods in a single study to understand the research problem.
Results show that 5 factors affect the applicability of management accounting techniques in startups in Ho Chi Minh City. These factors are firm size (FS), CEOs (CE), business strategy (BS), investor (IV), cultural (CL). Based on the results of the study, enhancing the application of MA in the startups should depend mainly on the role of major investors, followed by CEOs skills, perception. ii DECLARATION I hereby declare that this is my own research work.
The research results and conclusions in the thesis are honest, not copied from any source and in any form. References to sources (if any) have been properly cited and cited.A CANDIDATE (Signature) Nguyen Huyen Trang iii TABLE OF CONTENTS TABLE OF CONTENTS. iv LIST OF FIGURES. vii LIST OF TABLES .1 CHAPTER 1 LITERATURE REVIEW .1 Oversea key research .2 Vietnam key research .3 Gap research and the aim of study .1 Determining the gap research .2 The aim of study .14 CHAPTER 2 THEORETICAL FOUNDATIONS ABOUT MANAGEMENT ACCOUNTING AND FACTOR IMPACT TO THE IMPLEMENING OF MANAGEMENT ACCOUNTING IN STARTUP .1 Management accounting overview .1 Management accounting concepts .2 The role and function of management accounting .3 Content of management accounting .2 Characteristics of startup .2 Characteristics of startup .3 Current disadvantages, advantages when implementing management in startup 23 2.3 Factor impact to the implementing of management accounting in startup .4 Grounded theory related to the factor impact to the implementing of management accounting .2 Development of hypotheses .30 CHAPTER 3 RESEARCH METHODOLOGY .2 Research model of factors impact to the implementing management accounting in startup .1 Qualitative method design .3 Research hypothesis design .2 Design of quantitative research.41 CHAPTER 4 RESEARCH RESULTS AND DISCUSSION .1 Quantitative research results .1 Test the reliabilities of scales .2 Exploratory factor analysis .56 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS .3 Limitations and directions for further research .63 v LIST OF STUDENTS PUBLISHED WORKS .105 vi LIST OF FIGURES Figure 2.1 Figure of factors influencing MCSs according to research by Samagaioa .2 Figure of factors influencing MCSs according to research by Crespoa .3 Figure of factors influencing MCSs according to research by Davila and Foster (2007) .1 Research framework diagram .2 Process research diagram .3 Summary of factor affecting the application of management accounting in start-ups in Ho Chi Minh City.39 vii LIST OF TABLES Table 4.1 Reliability Statistics of Firm size .2 Item-Total Statistics of Firm size .3 Reliability Statistics of CEO .4 Item-Total Statistics of CEO .5 Reliability Statistics of business strategy .6 Item-Total Statistics of business strategy .7 Reliability Statistics of investor .8 Item-Total Statistics of investor .9 Reliability Statistics of cultural .10 Item-Total Statistics of cultural .11 Reliability Statistics of the possibility of implementing management accounting in Startup in Ho Chi Minh City .12 Item-Total Statistics of the possibility of implementing management accounting in Startup in Ho Chi Minh City .13 KMO and Bartlett's Test result .14 Total Variance Explained result .15 Rotated Component Matrix result .53 viii ABBREVIATIONS ABC Activity based costing ACCA Chartered Certified Accountant CEO Chief Executive Officer CVP Cost volume profit EFA Exploratory Factor Analysis IFAC International Federation of Accountant IMA The Institute of Management Accountants MACs Management Accounting and Controls MAPs Management Accounting Practices MAS Management Accounting Systems MCSs Management Control Systems PEU Perceived Environmental Uncertainty SMA Strategic Management Accounting SMEs Small and Medium-Sized Enterprises VC Venture Capital ix INTRODUCTION 1.
Research problem Vietnam considered to have a great potential to become a “startup nation” with a generation of creative young people who are determined to start a business, with a startup culture and a spirit of accepting defeat increasingly. In recent years, the Government promulgated policies to facilitate and support startup. Therefore, the number of startups is increasing. According to Echelon, Singapore, the largest online magazine on startup in Southeast Asia, by August 2018, Vietnam had about 3,000 startups, nearly double the numbers in 2016.
Moreover, according to the Employee New, in June 2018, Ho Chi Minh City has a number of startup accounting for about 46% of the number of startups in the country. This said that Ho Chi Minh City is leading startup in the country. However, there is a truth that about 90% of startup do not survive until the second year (Huyền, 2018). What causes the above situation, and what solutions to improve the survival rate of startups? This is one of the top questions for researchers, organizations and governments in the current period.
According to a Global Entrepreneurship Monitor (GEM) report, a business-based ecosystem assessment and 12 index: (1) Entrepreneurial Finance, (2) Government Policies: support and relevance, (3) Government Policies: Taxes and Bureaucracy, (4) Government entrepreneurship Programs, (5) Entrepreneurship Education at School Stage, (6) Entrepreneurship Education at Post School Stage, (7) R&D Transfer, (8) Commercial and Legal Infrastructure, (9) Internal Market Burdens or Entry Regulation, (10) Internal Market Dynamics, (11) Physical Infrastructures, (12) Cultural and Social Norm. In the 2013-2015 period, the Entrepreneurial Finance index for business which located in Vietnam is one of the indicators of change, but this change is negative. Specifically, this indicator decreased from 2. In the report of GEM 2017-2018, the Entrepreneurial Finance index for business in Vietnam reached 3.79 points (9 1 points), indicating that the business Entrepreneurial Finance index of Vietnam is one of the indicators of poor and not improved.
This is considered as one of the main reasons for the high rate of start-up bankruptcy today. To improve the financial situation of a start-up business, businesses need to have appropriate business strategies, make quick and accurate decisions, a business plan, and use reasonable capital. Beside that, management accounting is an effective tool to support managers in financial management and making economic decisions quickly and reasonably. Therefore, startup that want to minimize business risks due to financial problems cannot avoid using management accounting techniques.
However, startup enterprises have not been fully aware of the role management accounting, which has led to the inability to apply management accounting techniques. As a result, the ability of management accounting is not good, business fact financial risks and bankruptcy. This makes the rate of startup in Vietnam leave the startup due to financial problems is extremely high, ranked 5/54 country which join GEM. This suggests that, nowadays, improving finance for business is one of the urgent requirements to improve the viability of startup.
Wishing to improve the financial situation and improve the competitiveness of startup, the author research “Factors impact to the implementing of management accounting in startup in Ho Chi Minh City”. Research objectives The purposes of this study are: To identify and measure factor, which impact to the use of management accounting techniques in startup in Ho Chi Minh City To discuss and propose some solutions in order to enhance the possibility of implementing management accounting techniques in startup in Ho Chi Minh City. Research questions 2 To achieve the common goal of the project, the research content is to answer the following questions: Research questions 1: Which factors impact to the implementing of management accounting in startup in Ho Chi Minh City? Research questions 2: What level of each factor impacts on the implementing of management accounting in startup in Ho Chi Minh City? Research questions 3: Which solutions can help startup increase the implementing of management accounting in startup in Ho Chi Minh City? 4. Research methodology Research objects: Factors that impact to the implementing of management accounting in startup in Ho Chi Minh City.
Scope of research: Due to time and space constraints, the author surveyed startups startups which is operating in Ho Chi Minh City which is operating Research methodology: Study is concurrently using qualitative and quantitative research. Content of the methodology shall be presented in more detail in chapter 3 of this research. Contribution of the thesis - Modeling the factors impact to the implementing of management accounting in startup in Ho Chi Minh City - By using quantitative methodology, the author determined the measurement and assessment of the factors that impact to the implementing of management accounting in Ho Chi Minh City. Structure of thesis The thesis includes 5 chapters in introduction and appendix: 3 Chapter 1: Overview of the use management accounting and related issues Chapter 2: Theoretical foundations of management accounting and factors impact to the implementing of management accounting Chapter 3: Research methodology Chapter 4: Findings and discussion Chapter 5: Conclusions and recommendations 4 CHAPTER 1 LITERATURE REVIEW Through this chapter, the author wants to provide an overview of the thesis-related issue through previous studiex in the world and in Vietnam.