Each enterprise has its own culture, but it is not a simple
thing for corporate culture to contribute greatly to the efficiency of
production and business activities. Corporate culture has core values,
including corporate vision and mission. Not only Vietnam, but also
developed countries in the world, tourism has become a key
economic sector. Therefore, the construction and development of
cultural culture according to its own characteristics, characteristics
and originality has a great effect in improving the efficiency and
competitiveness of the tourism industry in the domestic industry and
with the integration process. Based on the assessment results of the
current situation and the factors affecting corporate culture of
Vietnam travel companies, the author hopes to find the central
characteristics that have a positive effect to find suitable solutions to
help. The development of tourism companies' business culture is
increasingly strong
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nd think.
1.1.2. Roles of corporate culture
Retaining and attract talents
Building trust and attract customers and partners
Creating organizational identities and developing solidarity
Coordinating and controlling organizational activities
Reducing risks in daily activities
1.1.3. Models of corporate culture
1.1.3.1. Schein’s model of corporate culture
Schein (1985) argues that there are three layers of corporate
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culture. The first layer is artefacts which are tangible and easily seen
by outsiders. The second layer includes espoused values of the
organization such as strategies, goals, operating philosophies and
principles which can be directions to the behaviors within the
organization. The most important layer of corporate culture is the
deepest level, underlying assumptions. Underlying assumptions are
considered as a way of guiding behaviors by directing the way people
within an organization should perceive, think, and behave.
1.1.3.2. Hofstede’s model of corporate culture
Hofstede (1991) developed a model of corporate culture with
four layers. The most overt and visible element of corporate culture is
the first layer in this model, symbols. These symbols such as
gestures, objects, acts and words are meaningful for individuals
within the organization. The next layer is heroes. Heroes are still
alive or dead, real or imaginary, but they have admirable
characteristics. The third element is rituals which are activities with
the participating of the people within an organization. The deepest
element is values. They can determine preference of certain states to
others or what people think they should do.
1.1.3.3. Denison’s model of corporate culture
This model is based on the links between corporate culture
and performance after many years of Denison’s researches with the
involvement of 765 organizations. This model includes four cultural
traits which are mission, involvement, consistency and adaptability.
In each trait, there are three sub-dimensions. By measuring these
above cultural traits, it is possible for organizations to define their
weaknesses and where needs to be improved in order to enhance
performance.
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1.2. Overview of corporate culture development
1.2.1. Definition of corporate culture development
Corporate culture development is defined as a process of
learning values and assumptions after solving problems of external
adaption and internal integration to make it valid (Schein, 1985).
Similarly, according to Nguyen Quang Trung (2019), corporate
culture development is related to creating and improving values and
symbols for organizations and making it valid and matching. To sum
up, corporate culture development can be seen as developing values
and spreading them to members of organizations.
1.2.2. The importance of developing corporate culture
Developing corporate culture is very important to sustainable
development, integration and competitiveness capabilities of firms.
There are many challenges in the business environment that require
firms to be active and effective in management. Therefore, a strong
corporate culture will suitable values can help firms improve their
competitive advantages and build stronger human resources to
achieve the goals.
1.2.3. Corporate culture development activities
As mentioned in the definition of corporate culture
development, the 2 keys to develop corporate culture include creating
values and symbols for the organization, then sharing them to the rest
of the organization and make it valid to influence the way people
think, feel and act.
1.2.4. Factors influencing corporate culture development
1.2.4.1. Internal factors
Founders
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When investigating the characteristics of corporate culture,
researchers found that characteristics of strong members such as
organization's founder (Schein, 1985) have influence the content, size
and consensus of an organization's values. The founder is the person
who sets the foundation of an enterprise with the most core values of
vision, strategy, mission, etc. in the early stage of establishment. In
fact, founders establish the core values of the company they are
aiming for, shape the cultural rhythm they want, and nurture that
culture within the organization.
Leaders
Researchers found that leadership can be an important factor in
the success of an organization, can modulate behavior by providing
incentives, correlating rewards with employee performance and their
fairness (Avolio et al., 2009). Research by Mintzberg and Waters
(1982) highlights the strong positive influence of leaders on the
organization. According to them, the effect is not only “positive” but
also “substantial”.
Corporate social responsibility (CSR)
Danner & Odenwelder (2015) confirmed the strong and positive
mutual relationship between organizational culture and CSR efforts.
CSR efforts have changed the organizational culture and underlying
assumptions. These changes have influence on culture in the way
members and surrounding communities treat and communicate with
each other. In Vietnam, promoting corporate CSR is starting to thrive
for long-term benefits. CSR studies in Vietnam are quite plentiful in
many fields such as the animal feed industry, textile industry, hotel
services, but there are still quite a few studies going into cooperation.
CSR's impact on the cultural characteristics of businesses, especially
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businesses providing travel and tourism services.
Internal communication
Elias (1991) emphasizes the importance of internal
communication within an organization. Internal communication can
be implemented by a variety of methods such as internal magazines,
documents, profiles or sharing opinions on social networks, blogs,
websites. In fact, the intention to examine the relationship between
organizational culture and internal communication systems comes
from the importance of internal communication within the
organization, especially in establishing relationships with employees
(Miller, 2012).
1.2.4.2. External factors
National culture
Fey & Denison (2003) conducted research and pointed out the
positive impact of Russian culture on subcultural groups, thereby
affecting work collaboration and performance. in business. The
author proposes to consider the impact of the ethnic cultural factors
on cultural culture. To clarify the ethnic cultural factors of the
Vietnamese people when put into the survey, the author points out
the features based on Hofstede's theory of cultural dimensions,
including power distance, uncertainty avoidance, individualism vs
collectivism, ferminity vs masculinity (Hofstede, 2010).
Adopted culture
Immigrated or adopted cultures come from external factors, such
as other individuals, other organizations, or even other countries. In
the current globalization context, cultural interference is inevitable.
Especially with businesses in the tourism industry, currently
operating both at home country and abroad, the impact from
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international culture cannot be denied. Companies operating in many
different territories often have a more diverse culture than domestic
companies, changing that culture. Vadini (2014) pointed out the
positive effects of the immigrated factors on strong cultural culture
through the example of the cultural interference of two separate
companies. Based on the theory of imported culture, the author
proposes to focus on three factors: global trends, other organizations
and new company employees.
Characteristics of the industry
Organizations have different features based on industry standards
(Pennings & Gresov, 1986). While businesses operating in the same
field have cultural similarities due to the common characteristics of
the profession and the interaction, learning from each other. Well-
known authors and scholars agree that Corporate culture contributes
to enhancing the effectiveness of strategy execution, organizational
change and a positive image of the company in the eyes of its
customers (Deal & Kennedy, 1982). A broadly shared set of values
held by employees - a “strong” corporate culture is especially
beneficial for companies in the service sector.
There might be more factors the influence corporate culture
development, but the above are the most popular ones which were
mentioned in previous papers. In this research, they are also used to
investigate the case of Vietnamese tourism companies.
CHAPTER 2: RESEARCH HYPOTHESIS AND
RESEARCH METHODS
2.1. Research hypothesis
Based on the literature reviews in Chapter 1, the hypothesis
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of this study can be formulated as follows.
2.1.1. Hypothesis 1: National culture has a positive impact on
corporate culture
Hypothesis H1.a: National culture has a positive impact on
Involvement
Hypothesis H1.b: National culture has a positive impact on
Consistency
Hypothesis H1.c: National culture has a positive impact on
Adaptability
Hypothesis H1.d: National culture has a positive impact on Mission
2.1.2. Hypothesis 2: Adopted culture has a positive impact on
corporate culture
Hypothesis H2.a: Adopted culture has a positive impact on
Involvement
Hypothesis H2.b: Adopted culture has a positive impact on
Consistency
Hypothesis H2.c: Adopted culture has a positive impact on
Adaptability
Hypothesis H2.d: Adopted culture has a positive impact on Mission
2.1.3. Hypothesis 3: Characteristics of tourism industry have a
positive impact on corporate culture
Hypothesis H3.a: Characteristics of tourism industry have a positive
impact on Involvement
Hypothesis H3.b: Characteristics of tourism industry have a positive
impact on Consistency
Hypothesis H3.c: Characteristics of tourism industry have a positive
impact on Adaptability
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Hypothesis H3.d: Characteristics of tourism industry have a positive
impact on Mission
2.1.4. Hypothesis 4: Founders have a positive impact on corporate
culture
Hypothesis H4.a: Founders have a positive impact on Involvement
Hypothesis H4.b: Founders have a positive impact on Consistency
Hypothesis H4.c: Founders have a positive impact on Adaptability
Hypothesis H4.d: Founders have a positive impact on Mission
2.1.5. Hypothesis 5: Leaders have a positive impact on corporate
culture
Hypothesis H5.a: Leaders have a positive impact on Involvement
Hypothesis H5.b: Leaders have a positive impact on Consistency
Hypothesis H5.c: Leaders have a positive impact on Adaptability
Hypothesis H5.d: Leaders have a positive impact on Mission
2.1.6. Hypothesis 6: Internal communication has a positive impact
on corporate culture
Hypothesis H6.a: Internal communication has a positive impact on
Involvement
Hypothesis H6.b: Internal communication has a positive impact on
Consistency
Hypothesis H6.c: Internal communication has a positive impact on
Adaptability
Hypothesis H6.d: Internal communication has a positive impact on
Mission
2.1.7. Hypothesis 7: CSR has a positive impact on corporate
culture
Hypothesis H7.a: CSR has a positive impact on Involvement
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Hypothesis H7.b: CSR has a positive impact on Consistency
Hypothesis H7.c: CSR has a positive impact on Adaptability
Hypothesis H7.d: CSR has a positive impact on Mission
2.2. Research methods
2.2.1. Qualitative methods
2.2.1.1. Methods description
Qualitative methods are used in this research to analyze the
current situation of corporate culture development of Vietnamese
tourism companies including observations and surveys. Schein’s
model of corporate culture is applied to collect data and information.
According Schein (1985, 1992), these three levels of corporate
culture make a flow with the highest level is underlying assumptions.
The lower levels are driven by the higher levels. In addition, a change
in a higher level leads to transformative changes in all lower levels
(Unwill, 2002). This model was widely used in different countries
including Asian countries to collect information about corporate
culture of companies in different industries including services.
2.2.1.2. Respondents
As mentioned in Chapter 1, management is responsible for
developing corporate culture, so respondents of the survey are leaders
of Vietnamese tourism companies. They can give detailed and
relevant information about what they have done to develop their
corporate culture.
2.2.1.3. Questionnaire design
In order to design the questionnaire, 3 layers of corporate
culture in Schein’s model and 11 steps to develop corporate culture
of Heifetz & Hagberg (2000) were applied. Experts are also
interviewed to give feedback to the questionnaire which will be
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tested and fixed later to be available. The questionnaire includes 2
parts: information about the company and the respondent and
corporate culture development. There are 25 questions including 7
questions for the company and the respondent and 18 for corporate
culture development.
2.2.2. Quantitative methods
2.2.2.1. Methods description
Denison’s model is used to collect information about the
corporate culture of Vietnamese tourism companies. This model has
been applied to measure corporate culture of many organizations all
over the world, and has been widely used in many international
researches and in different conditions; thus, it has shown the
popularity and validity in previous researches. In addition, after
reviewing previous researches and interviewing experts, a research
model of 7 factors including national culture, adopted culture,
characteristics of tourism industry, founders, leader, internal
communication and CSR was developed. The 5-point Likert scale
(Ricardo and Jolly (1997) is used to measure aspects of the factors
(measurement of observed variables) in this study. Point 1 is
"completely disagree" and the score 5 is "totally agree" to analyze the
frequency statistics to describe the attributes of the survey sample
group such as: Gender, Age group, Experience, Department,
Position. Descriptive statistical analysis used for observed variables
of the scale according to the research model.
2.2.2.2. Sample size and selection
According to Gorsuch (1983), if the sample size selected is
based on the rules and requirements of Exploratory Factor Analysis
(EFA), the minimum size is 5 times the observed variable (n = 5*m).
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(Hair et al., 2010). In the research scope, the author applied the
sample size above 472 which is suitable to the model. From the
above reasons, the author decided to choose a sample size of n=472
samples (who are working for Vietnamese tourism companies),
evenly distributed among departments, units with different titles,
working years, ages and genders.
2.2.2.3. Data processing methods
Data collected through the questionnaires will be processed
by SPSS software, encrypted and cleaned, then tested and analyzed
according to the following steps: descriptive statistics, reliability
testing of Cronbach's Alpha scale, Exploratory Factor Analysis
(EFA), correlation analysis and multivariate regression to test
research hypotheses.
CHAPTER 3: RESEARCH RESULTS OF CORPORATE
CULTURE DEVELOPMENT OF VIETNAMESE TOURISM
COMPANIES
3.1. Corporate culture development of Vietnamese tourism
companies
3.1.1. Understanding level about corporate culture development
and its importance
The aforementioned survey result indicates that 96% of
participants believed that corporate culture development in
Vietnamese tourism companies is necessary (34%) and even
extremely necessary (62%). This shows that firms focus more on
corporate culture in their business activities. Only 4% of the answers
show that corporate culture development is unnecessary.
3.1.2. Time and Investment budget to develop corporate culture
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The result shows that most corporate cultures are built in the
company establishment stage; however, it has just been put into
careful consideration since 2000. This is also the time when
corporate culture became a trend, especially in tourism industry,
which shows catch-up of the firms and the vision of the managerial
system. 100% of the survey participants answered that the members
in managerial systems and levels are responsible for corporate culture
development activity.
Accounting for the highest proportion - 56% - are companies
who spend the budget for corporate culture development from 1% to
5% of their revenue. 14% of companies spend more than 5% of their
revenue, and 10% of companies invest less than 1% for this activity.
The remnant of 20% did not set out any specific budget for corporate
culture development.
3.1.4. Level of innovation and addition of values in corporate
culture development process
Among the surveyed companies, up to 50% of them “have
regular innovation”, 16% “have continuous innovation”, and only
34% have little or no innovation. However, companies have not
placed much importance on innovation as the percentage of
companies with little innovation accounts for a large proportion.
3.1.5. Outcomes of corporate culture development
Development of visible artifacts in companies
70% of the surveyed companies have founded several visible
artifacts. Only 8% have no visible elements and 22% of
companies said that they have a few.
Development of espoused values
84% of companies have had numerous espoused values
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which have been made and developed over the past years.
Only 2% have no espoused values and 12% have few
espoused values.
Development of basic underlying assumptions of corporate
culture
68% of companies have built and developed their own
fundamental concepts, 18% of which have good
development. Only 2% (1 company) in surveyed companies
has no fundamental concepts development and nearly 30%
have succeeded in developing their concepts. However, the
statistics show that companies have not paid much attention
to fundamental concepts development.
3.1.6. Activities of corporate culture development in Vietnamese
tourism companies
It can be seen from the survey result that 11 steps of the
Heifetz and Hagberg (2000) have been applied by Vietnamese
tourism companies. In which, step 1, 2 and 7 are conducted the most,
with the proportion of 76%, 72% and 70% respectively. Step 5, 8 and
11 are the least conducted stages by companies, accounting for 46%,
58% and 54% respectively.
3.2. Advantages and drawbacks of corporate culture
development in Vietnamese tourism companies
3.2.1. Advantages
Firstly, a large number of Vietnamese tourism companies
have been aware of the significance of the corporate culture in the
success of the whole company.
Secondly, most companies have developed their distinct culture from
logo, slogan or other visible elements, espoused values and
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fundamental concepts.
Thirdly, the corporate cultures of several tourism companies
(more than 50% of the surveyed companies) have regular innovation
and development without rigidity.
Fourthly, several companies have conducted stages in
professional corporate culture development with care and orientation
from leaders who have had the strong and clear sense of
responsibility in this activity.
3.2.2. Drawbacks
Firstly, a few companies still consider corporate culture
development as an unnecessary activity, or have little or no
information about this matter, or lack the confidence of their
knowledge about this field (4% of companies say that they have
never been introduced about corporate culture development and 26%
say that they have little knowledge).
Secondly, throughout the whole process, despite the
fluctuation in tourism industry and business environment, several
companies have not been active in changing or adding new values in
their corporate culture and activities.
Thirdly, although tourism companies have focused on
investing for corporate culture development, they have not had
specified long-term plans for this activity.
Fourthly, managerial activities have shown ineffectiveness,
and companies still lack the advanced training segments about
corporate culture.
Fifthly, with regard to human resources and competency,
some individuals who are in charge of corporate culture development
still have inadequate advanced knowledge or inadequate training
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about this field; the lack of capital is a frequent situation in several
companies.
3.2. Factors that influence corporate culture development of
Vietnamese tourism companies
3.2.1. Research reliability
Table 1.1: Cronbach’s alpha test
Variables Cronbach's Alpha
National culture 0.75
Adopted culture 0.642
Characteristics of
tourism industry
0.593
Founder 0.264
Leader 0.634
Internal
communication
0.694
CSR 0.798
(Source: Conducted by author, 2020)
In order to assess the impact of the factors proposed above
on corporate culture in Vietnam tourism companies, the author uses a
survey with seven scales corresponding to 7 factors, each scale has 4
variables of observations, so the regression model is built on 28
measurement observed variables. The seven scales include: "National
culture"; "Adopted culture"; "Characteristics of the tourism industry";
"Founder"; " Leader"; "Internal communication" and "CSR". All of
these variables have been assessed reliability by using Cronbach's
alpha coefficients. Cronbach's alpha coefficients are greater than 0.6
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and total variable correlation coefficients are greater than 0.3 to reach
the necessary confidence in a research concept. Detailed results of
reliability test are showed in Appendix 4, in which "founder" scale
was removed because Cronbach's Alpha coefficient is 0.264, lower
than the required minimum of 0.6. Four variables of other scales have
variable-total correlation coefficient lower than 0.3 were also
eliminated. Thus, six scales are accepted.
In fact, through interviews with staff in travel agencies, some
founders are currently taking leadership positions of the company (as
in the case of Vietravel) or the founders are retired. Therefore, the
role of the founders in these companies is no longer as influential as
the "leader". After removing non-conforming variables, the
remaining scales and variables all meet the reliability requirements
and are accepted into EFA.
KMO coefficient considers the appropriateness of factor
analysis, this value must be greater than 0.5 (0.5 <KMO <1.0) to be
eligible for factor analysis to be considered as fit. Here, the KMO
value is verified to yield 0.738, which means that the appropriate
factor analysis applies to the data set of the study.
Barlett test results with Sig.= 0, less than 0.05, proves that
the observed variables are correlated with each other, in other words,
the selected variables are correlated and suitable to explain for factors
affecting organizational culture. The results of the EFA show that the
study still follows the factor structure proposed by the author from
the beginning with 6 subgroups representing 6 factors: National
culture, Immigrated culture, Tourism industry characteristics,
Leaders, Internal Communication, and CSR. These 6 factors can
explain up to 64.824% of the variance of the research model.
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For each model of the 4 dependent variables, the significance
level Sig of F-test is equal to 0 (less than 0.5), that is, the built-in
linear regression model is consistent with the whole. Thus, the
independent variables in the model are related to 4 dependent
variables of corporate culture. All VIF values in the table are less
than 10, so there will be no multicollinearity. Thus, the research
model is suitable for the overall tourism businesses in Vietnam, the
results are reliable and can be applied to many other businesses.
3.2.2. Research results
From the research, author proposes the following equation of
corporate culture:
Involvement =0.125*DT + 0.030*DN + 0.184*DL +
0.787*LD + 0.045*TD + 0.044*TN
Consistency =0.134*DT + 0.057*DN + 0.162*DL + 0.385*LD
+ 0.326*TD + 0.377*TN
Adaptability =0.280*DT + 0.232*DN + 0.315*DL + 0.221*LD
+ 0.084*TD + 0.169*TN
Mission =0.282*DT + 0.088*DN + 0.18*DL + 0.488*LD +
0.070*TD + 0.153*TN
Corporate culture = 0.222*DT + 0.111*DN + 0.227*DL +
0.51*LD + 0.132*TD + 0.190*TN
Explanation: “Corporate culture”: DT; “Adopted culture”: DN;
“Characteristics of tourism industry”: DL; “Leaders”: LD; “Internal
communication”: TD và “CSR” TN.
3.2.3. Discussion
The research has shown that travel
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