Research on the influences of information technology to elements in competitiveness capacity in many enterprises located in Can Tho city

mentioned issues, the author has chosen the topic: "Research on the influences of Information Technology to elements in competitiveness capacity in many enterprises located in Can Tho City" as the content of the thesis. 1.2 RESEARCH OBJECTIVES 1.2.1 GENERAL OBJECTIVES The objective of the thesis is to study the impact of Information Technology on the constituent elements of competing capability of businesses in Can Tho city, thereby proposing management implications to improve the competing capability of businesses in Can Tho city. 1.2.2 SPECIFIC OBJECTIVES Assessing the current situation of IT application of businesses in Can Tho city, the constituent elements of the competing capability of businesses in the area of Can Tho city. Analyzing and auditing the impact of IT on the constituent elements of the competing capability of businesses in Can Tho city. Proposing the management implications to improve IT impact on the competing capability of businesses in Can Tho city. 1.3 RESEARCH QUESTIONS Question 1: How is the reality of applying IT and the constituent elements of the competing capability of businesses in the localities of Can Tho city? Question 2: What is the impact of IT on the constituent elements of competing capability of businesses in Can Tho city today? Question 3: To improve the competing capability of businesses in Can Tho city, how should the impact of IT be used? 1.4 OBJECTS AND SCOPE OF THE RESEARCH 1.4.1 OBJECTS OF THE RESEARCH 3 The research object of the thesis is enterprises in Can Tho City via evaluating the impact of IT on the constituent elements of competing capability of businesses currently. The object of the thesis survey is the experts, Board of Directors, Chief Accountant and managers (departmental level) of businesses in the locality of Can Tho city in applying IT to business activities of businesses 1.4.2 SCOPE OF THE RESEARCH 1.4.2.1 Space range The study focused on businesses in the area of Can Tho city, focusing on 05 districts: Ninh Kieu, Binh Thuy, Cai Rang, O Mon and Thot Not. These are places with the largest number of businesses. 1.4.2.2 Time range Research period: secondary data used in the thesis was collected in the period of 2014 – 2017, and additionally in 2018, 2019. Primary survey data was collected mainly in 2017 and supplemented in 2018. 1.4.2.3 Content range The research thesis is conducted for businesses of all economic sectors operating in key fields in Can Tho city; at the same time studying the impact of IT on the internal and external factors that make up the competing capability of these businesses. 1.5 THE SCIENTIFIC AND PRACTICE MEANING OF THE THESIS 1.5.1 SCIENTIFIC MEANING The thesis is done with the following scientific meanings: - The thesis conducts document review, selectively inherits and systematizes previous studies related to IT architecture framework in businesses, Competition issues, competitive advantage and competing capability in businesses; thereby proposing models, research processes, hypotheses and scales related to assessing the impact of IT on the components of competitive competence of businesses in Can Tho city - Using a combination of qualitative and quantitative research methods. Regarding these methods, the thesis mainly uses quantitative method to determine the impact of IT on each element that constitutes the competing capability of businesses. 4 - The research results will test the analysis, hypotheses, empirical conclusions and propose management implications in accordance with current IT investment and application practices in businesses in Can Tho city currently; thereby suggesting policy implications for state agencies to encourage, facilitate investment promotion and IT application for businesses in the coming time. 1.5.2 Practical meaning - This research stems from the general policy of the Party and the State and the practical needs of life is to promote the application of IT in organizations and businesses; is a research and discovery to add to the theoretical basis and empirical model on IT impacting the constituent elements of competing capability of businesses in Can Tho City. 1.6 STRUCTURE OF THE THESIS In addition to the summary and conclusion, the thesis is divided into 5 chapters presented with the following structure: - Chapter 1: Introduction to research topics - Chapter 2: Research overview - Chapter 3: Theoretical foundations and research methods; - Chapter 4: Research results and discussion; - Chapter 5: Conclusion and management implications. 5 CHAPTER 2 RESEARCH OVERVIEW 2.1 RESEARCH WORKS ON IT ARCHITECTURAL FRAMEWORK Architecture framework or IT model is determined by EA Zachman. It is supplemented by new version developed based on EA framework and FEAF –II (USA), TOGAF from Open Group and VGAF v 2.0 in Vietnam. Regarding reference, the standard framework determines IT architecture framework (or model) in modern businesses following 06 main factors: (1) Technical infrastructure (hardware, software, network, cloude, ...), (2) Database (Data), (3) Information system (information), (4) Applications (Portal, website, social networks, blogs), (5) Users (operators, operators), and (6) Information security In particular, the technical infrastructure system is considered a foundation factor of the Architectural Framework and Information Security is considered a new and important factor that has an impact on the remaining factors. 2.2 RESEARCH PROJECTS ON COMPETING CAPABILITY There are many studies (both domestic and foreign) about the constituent elements of competing capability of businesses, each research project determines the constituent elements of competing capability of businesses are also different. These factors are described in the form of a specific "framework" or "model" of competing capability. Competing capability can be considered as a dependent or independent variable, depending on the perspective from which a person approaches the problem (A. Ambastha and K. Momaya, 2003). The typical international researches include Marc Vilanova và ctg (2009); Olga Nykolyuk (2014); Dragan oćkalo và partner (2019). The typical domestic researches include Nguyen Đinh Tho and partner (2009); Ninh Đuc Hung and partner (2011), Huynh Thanh Nha and partner (2013); Pham Viet Hung and partner (2017). The studies have built an important theoretical foundation and identified the basic internal factors that determines the competitive competence of enterprises: (1) Market, (2) Capital mobilization (3) Marketing, (4) Governance, management, (5) Technology, (6) Resources (human resources), (7) Public relations, (8) Others (reputation, brand, strategy). 6 2.3 THE STUDY ON THE IMPACT OF INFORMATION TECHNOLOGY ON THE CONSTITUENT ELEMENTS OF THE COMPETING CAPABILITY OF BUSINESSES Basic determination of factors belonging to c capability affected by IT in businesses are as follows: Table: Summary of competing capability elements influenced by IT TT ELEMENTS REPRESENTATIVE AUTHOR GHI CHÚ 1 Technical infrastructure Moon- Koon Kim, 2007; Nguyen Minh Ngoc, 2011; Tanja Mihalič et al (2013) 2 Human Resources Moon- Koon Kim, 2007; Nguyen Minh Ngoc, 2009; Ravarini, 2010; 3 Management capacity Nguyen Minh Ngoc, 2011; Tanja Mihalič et al (2013) Most of the researches 4 Relationship Ravarini, 2010; Tanja Mihalič et al (2013) Most of the researches 5 Financial resource Ravarini 2010; Tanja Mihalič et al (2013); Most of the researches 6 Business market Raykun R.Tan (1995), Moon-Koon Kim et al, 2007 7 Business strategy Moon-Koo Kim et al 2007 Source: Authors' summary, 2018 7 CHAPTER 3 THEORETICAL BASIS AND RESEARCH METHODS 3.1 THEORETICAL BASIS 3.1.1 Theoretical basis of IT architecture framework in businesses - EA Zachman architectural framework (1992) - FEAF-II architectural framework (United States, 2013); - TOGAF architectural framework (Open Group, 2016); - VGAF v2.0 architecture framework (Vietnam, 2019); - Standard framework. 3.1.2 Theoretical basis of the components of competing capability of businesses - “5 competitive pressures” model of M. Porter - PESTEL analysis model - Resource Based View Theory (RBV) 3.1.3 The theory about IT affecting the competing capability of businesses - Dynamic ability theory (Teece & et al. 1997; Eisenhardt & Martin 2000). From the theory of resources and the empirical studies mentioned above, we can conclude that IT is one of the important resources affecting the competing capability of businesses, IT resources are classified in the following order: (1) tangible resources include IT infrastructure components, physical infrastructure, (2) human IT resources including managerial and technical IT skills, and (3) intangible support resources. IT as knowledge assets, customer orientation and synergy (Konstantinos C. Kostopoulos et al, 2003). On the basis of the literature review in Chapter 2 and theoretical basis mentioned above, the author proposes a method to study the impact of IT on the constituent elements of competing capability of businesses as follows: 3.2 RESEARCH METHODS 3.2.1 Qualitative research After the Council approved the Research Outline, the author conducted a document review, identified the theoretical basis, collected primary data related to the analysis and evaluation of business activities in Can Tho City, assessed the development of some IT fields in Vietnam and IT application of enterprises in Can Tho City. 8 To identify research subjects based on the structure of enterprises in the province. Each individual learns about research’ contents (experts), select preliminary investigation enterprises, and support clues in research process. Qualitative research is carried out in 03 parts: - To evaluation the IT development through indicators related to IT fields and ranking announcements of IT application; - Evaluation the enterprises in Can Tho City: mainly evaluating the general situation, apply IT application in enterprises operating in Can Tho City; analysis of capital, labor, revenue, profit, employee's income, ... - Evaluation of the competitive competence of enterprises in Can Tho City through some typical studies and published articles in scientific journals, journalism, ... When selecting expert interview members, the author selected the following subjects and numbers: - Quantity: 24 experts - Composition: Directors of Departments, branches and centers of Can Tho City; Head of administrator and leader of faculty at Universities which have IT education; Business Director; Chief Accountant, Sales Manager and some other independent experts. 3.2.2 Quantitative research - Phase 1: Preliminary research + This phase consists of two main parts (1) on the basis of theoretical research and related financial profiles, the author will conduct the establishment of a Test Scale (draft) to consult with experts and discuss with the group and (2) proceed to adjust the appropriate scale, conduct preliminary quantitative research (about 72 units). After obtaining the data collected through preliminary research, the author will conduct data cleansing (70 units were selected), enter the data into the software and conduct the Cronbach’s test ”Alpha and analyze discovery factor EFA. + After obtaining the test results, the author consulted with the instructor, analysts and business leaders who have strong IT applications (List of experts) to consider removing abnormal numbers in the analytical results. Conducting assessment and adjustment of the set of scales suitable to the study. - Phase 2: Official research 9 + After adjusting the scale, the author has repeatedly consulted the instructor and experienced experts in two related fields: IT and Business Administration in order to build an official scale of competitive competence in enterprises and complete the research model. After agreeing on the scale, the author determines the content to be collected and proceeds to set up an official businesses investigation questionnaire according to the subjects and scope of the study. + After the survey data, the author has cleaned the data, resulting in more than 350 satisfactory business questionnaires, but the author decided to choose the most complete 350 votes for official analysis using qualitative analysis tools Cronbach's Alpha, EFA, CFA and SEM according to the selected research process. The author has used SPSS and AMOS software version 20.0 to analyze the data and check the hypotheses. 10 Source: Proposal of the author, 2017 Figure 3.1 Proposed research procedure P re li m in a r y r es ea rc h O ff ic ia l R e se a rc h Checking model suitability, theoretical and hypothetical contact value, estimating models Set of scales Official Research ( n = 350) Check the EFA weights, factors and extracted variances Analyze CFA Official Scale Check the model's suitability, CFA weight, unidirectional aggregate reliability, convergence value and differentiation Analyze CFA SEM model Theoretical basis Consulting relevant documents Test scale (draft) Thảo luận nhóm - Tham khảo ý kiến chuyên gia Preliminary Scale Quantitative Preliminary Research (n = 70) Preliminary assessment of the scale Check Cronbach’s alpha coefficient Analyze EFA factor 11 3.3 PROPOSED RESEARCH MODEL In this study, the author has chosen the solution is to evaluate the impact of general IT factors instead of assessing the impact of each factor in the IT architecture framework of businesses on the constituent elements of competing capability of businesses. Proposed research model: Source: Proposal of the author, 2018 Figure 3.2: Official research model Scale and Hypothesis: Hypothesis H1: IT have an impact on the Market-oriented capacity factors in businesses activities Hypothesis H2: IT have an impact on the factors of ability to mobilize capital in businesses activities Hypothesis H3: IT have an impact on the elements of marketing capacity in businesses activities Hypothesis H4: IT have an impact on the elements of organizational management capacity in businesses activities Hypothesis H5: IT have an impact on the factors of resource capacity in businesses activities Factors constitute competitiveness in enterprises Competitiveness Social Relation -ship Resour- ces Organi- zation Promo- tion Finance Market IT 12 Hypothesis H6: IT have an impact on the elements of social relations in businesses activities Hypothesis H7: IT have an impact on the constituent elements of competing capability of businesses 13 CHAPTER 4 RESULTS AND DISCUSSION 4.1 THE RESULTS OF ANALYSING DESCRIPTION STATISTICS The results of the survey on factors affecting the competitive competence of medium and small companies in Can Tho city with the average value of the sample population (350 businesses) are described in the following table: Through analysis data, it shows that the impact of IT on the constituent elements of competing capability of businesses in Can Tho city is only average and still quite low, this is reflected in the average value of the scale. (with Mean value) ranging from 3.19 to 3.78. In fact, the business efficiency of businesses in Can Tho city due to the difference in business results between manual methods (not using IT) and with IT application is not too large, so the application of IT of medium and small companies, especially in production and business, has not been really paid attention. The difficulties that many businesses encounter when applying IT are funding, lack of information about products / services, and limited IT skills of employees. Common IT applications in businesses are mainly accounting software, customer management software, sales management, etc., still simple and local; businesses in Can Tho have not paid much attention to investing, applying IT, and programs lacking systematic and highly integrated applications, thus restricting businesses in improving the management efficiency and their competing capability. Increasing requirements for IT application, cooperation and information sharing in skills and more integration of resources are vital issues of businesses. 4.2. EVALUATION OF THE IMPACTS OF IT TO THE CONSTITUENT ELEMENTS OF COMPETING CAPABILITY OF BUSINESSES 4.2.1 Testing the scale using Cronbach's Alpha coefficient The results of the reliability analysis show that the Cronbach’s Alpha coefficients of the scales are all above 0.60. The lowest is the Management Capacity scale (α = 0.770), the highest is the Technology Application Capacity scale (α = 0.899). Looking at the correlation coefficient of the total variable, it is found that the observed variables have a quite strong correlation coefficient between the observed variables (the lowest is the MA05 observed variable with a total correlation of 0.486 and the highest is XH03 with a total correlation of 0.774). 14 4.2.2 Testing the relationship of variables in the model by analyzing EFA discovery factor EFA analysis for 7 groups of factors affecting the competing capability includes 30 observed variables. The results of the first factor analysis show that the variables are extracted into 7 groups, with the following results: - The total variance extracted is 53.41%> 50%, showing that the variables in the model can explain 53.41%, the scale is accepted. - KMO coefficient = 0.928 within 0.5 ≤ KMO ≤ 1, this is the index used to consider the suitability of factor analysis. A large KMO value means that factor analysis is appropriate. - Test Bartlett with Sig. = 0,000, is statistically significant (Sig. <0.05): This is a statistical quantity used to consider the hypothesis that the variables have no correlation in the whole. Factor loading of each group is greater than 0.5. Therefore, the results of this factor analysis are accepted. EFA analysis for the competing capability variables includes 03 observed variables. The results of the first factor analysis show that the variables are extracted into 1 group as follows: - The total variance extracted is 65.62%> 50%, the scale is accepted. - KMO coefficient = 0.719 is within 0.5 ≤ KMO ≤ 1, factor analysis is appropriate - Test Bartlett with Sig. = 0.00, indicating a high level of significance. - All Factor loading value of each group > 0.5. Table 4.1: A result of EFA analysis related to dependent variable Symbol Factor loading 1 NLCT2 0,888 NLCT1 0,799 NLCT3 0,752 Source: Results of official data processing in 2018 Therefore, the results of this factor analysis are accepted. 4.2.3 Results of positive factor analysis With the scale of competing competence, the CFA method was performed with 33 observed variables extracted from EFA discovery factor analysis results. The analyzed results are as follows: 15 Source: Official data processing results, 2018 Figure 4.1 Results of CFA affirmation analysis To assess the suitability of the model, this study uses the following criteria: Chi squared (required: P> 5%); chi-squared adjusted according to degrees of freedom (CMIN / DF 0.9; TLI index> 0.9 and RMSEA index <0.05. 16 4.2.4 SEM test on the impact of IT on the constituent elements of the competing capability of businesses SEM test results are as follows: Source: Official data processing results, 2018 Figure 4.2 SEM test results 17 Table 4.2: Results of discriminatory value analysis (SEM) related to IT factors Relationships Estimate S.E. C.R. P Competing Capability <--- CN 0,380 0,099 3,845 *** Competing Capability <--- TT -0,161 0,077 -2,098 0,036 Competing Capability <--- QL -0,289 0,106 -2,718 0,007 Competing Capability <--- MA 0,252 0,111 2,282 0,022 Competing Capability <--- NL 0,050 0,071 0,710 0,478 Competing Capability <--- XH 0,169 0,074 2,281 0,023 Competing Capability <--- NV 0,086 0,039 2,208 0,027 Source: Official data processing results, 2018 After reviewing the model's suitability: Chi-square / df = 1,773; IFI = 0.933; TLI = 0.924; CFI = 0.933; RMSEA = 0.047, the study obtained a final estimation model. The coefficient P = 0.000 of the whole model but for each Resource mobilization capacity factor (NL) is greater than 0.05 but less than 1 so with a relatively large number of observations testing, this is acceptable; there are two factors: Market Capability (MC) and Organizational and Management capabilities (OM) are both negative values (-), and are inversely related to the competing capability factor; The technological capacity has the strongest impact on the competing capability of businesses. 4.2.5 Testing and estimating models with Bootstrap Regarding the results, it shows that the bias and the standard deviation of the bias (SE-Bias) with the optimal estimate used in the verification study are present but not too large (most absolute CR values < 2), proving that the estimated results in the study are reliable. In other words, the initial estimate of 1,000 observations is averaged and this value tends to be close to the estimate of the population, the bias of the estimate and its standard deviation have a small and stable value. Therefore, we 18 can conclude that the estimates in the SEM model the impact of IT on the constituent elements of competing capability of businesses are reliable. 4.2.6 Conclusion of research hypotheses Through the above analysis, the hypotheses are accepted as follows: H1. There is an inverse relationship between the impact of information technology on the ability of market-oriented capacity that constitute the competing capability of businesses H2. There is a positive relationship between the impact of information technology on the factor of capital mobilization capacity that constitutes the competing capability of businesses. H3. There is a positive relationship between the impact of information technology on the marketing capability element that constitutes the competing capability of businesses. H4. There is an inverse relationship between the impact of information technology on the organizational and management factors that constitute the competing capability of businesses. H5. There is a positive relationship between the impact of information technology on the factor Capacity to mobilize resources that constitutes the competing capability of businesses. H6. There is a positive relationship between the impact of IT on the social relations element that constitutes the competing capability of businesses. In addition, there is a positive relationship between the impact of IT on the competing capability of businesses 19 CHAPTER 5 CONCLUSION AND MANAGEMENT IMPLICATIONS 5.1 CONCLUSION All the components have impact on competing capability of businesses, with both Social Relationship and Capacity to mobilize the resources are 2 factors that have the strongest impact on competing capability. This is explained today, businesses in Can Tho city with IT applications mainly invest in network infrastructure, resource management software, design sales websites, transaction forms. with customers, partners, other businesses and participate in public services with government agencies. There are 02 elements, Market Orientation and Management Organization capacity which are inversely related to competing capability of businesses. Due to the latency of the research data (collected in a timely manner), in addition, businesses in Can Tho are mostly small and medium-sized so priority should be given to investment in customer-oriented areas. 5.2 MANAGEMENT IMPLICATIONS - Enhancing market-oriented capacity: Businesses need to exploit the application of Internet to have a high efficiency in market research through building an updated and complete customer data system. Market research online saves costs for businesses and time for customers. - Raising capital mobilization capacity: Financial activities using modern methods should be encouraged and facilitated (such as buying, selling, providing services and payment online) to help improve operational efficiency, save time and cost based on digital platform, digit