Tóm tắt Luận án Green procurement of inputs in Vietnamese firms

iew of the research Chapter 2: Theoretical basis for green procurement activities of inputs in firms Chapter 3: Research methodology Chapter 4: Research results Chapter 5: Evaluate research results and propose some solutions to promote green procurement of inputs in Vietnamese firms in the next period 5 CHAPTER 1: OVERVIEW OF THE RESEARCH 1.1. Research on firms’ procurement Phase 1 (before 1945, including World War II): procurement activities have not received much attention. Most of the research concerns the legal issues of purchasing, discussing how the ordering process is organized (Kaufmann, 2002). Phase 2 (from 1946 to the 1960s): Lewis (1946) stated that procurment had an extremely strategic position in enterprises. In 1958, Bergqvist developed measures to evaluate the effectiveness of procurement, including the use of balance scorecards when purchasing. Phase 3 (from the late 1960s to the 1980s): An important milestone in this period was the book "Material Management" by Ammer. Not only did he present the unique roles of procurement in material management, but also included supplier development and engagement concepts (Ammer, 1968). Phase 4 (1980s to mid 1990s): Procurement was recognized by many researchers as a source of competitive advantage in enterprises (Pearson, 1990). Phase 5 (mid-1990s up to now): studies have focused on clarifying the definition and process of implementing supply chain management activities as well as procurement activities of enterprises; emphasizing the strategic role of procurement as well as the importance of establishing relationships between firms and suppliers. During this period, many scientists have outstanding studies on supply chain management and procurement that are interested in environmental factors, also known as green supply chain management and green procurement. 6 1.2. Research on green procurement activities of firms In the world, researches on green procurement activities of firms appeared in the late twentieth and early twenty-first centuries. Research by Zsidisin and Hendrick (1998) concludes that there are five main factors when businesses practice green procurement, including: (i) Provide supplier design specifications including environmental requirements, (ii) Supplier's ISO 14001 environmental certification requirements, (iii) Cooperation with suppliers for environmental purposes, (iv) Firms’ environmental audit and (v) Suppliers’ environmental audit. Bowen et al. (2006) gave a more detailed classification of green procurement practices, namely: (i) Product-based green supply; (ii) Greening supply process and (iii) Innovative green supply. Blome et al (2013) said that green procurement activities of firms are divided into three categories as follows: (i) Firms adjust their demand for greener products, (ii) firms try to increase efficiency environmental performance by selecting green product suppliers, or greener product distributors, or (iii) firms cooperate with suppliers to improve environmental performance. In Vietnam, there is no specific research on green procurement activities of firms. Most of the research papers focus on green supply chain management, green public procurement or individual green purchasing. Regarding individual's eco-friendly consumer behavior, research by Hoang Thi Bao Thoa (2016) has partially identified factors affecting the relationship between green consumption intentions and behaviors, assessed the impact of these factors and proposed some recommendations for state agencies and firms to promote green consumption in Vietnam. Regarding green public procurement, research by Luu Quoc Dat (2015) has focused on 7 reviewing the policy experience of Japan and Korea, and then drawn some lessons on developing green public procurement in Vietnam. Ho Cong Hoa et al (2018) had "Research on institutions to promote green public procurement in Vietnam" and gave comments on the overview of green public procurement institutions, analyzed institutional barriers of green public procurement; and proposing some solutions to promote green public procurement in Vietnam. Regarding green supply chain management, research by Vu Anh Dung (2015) provides an analytical and applied framework to show the relationship between infrastructure and the greening implementation of the supply chain of enterprises. In addition, the study "Green supply chain - sustainable and environmentally friendly business solutions" by Nguyen Binh Minh (2016) has presented a standard model of green supply chain, the benefits of green supply chain implementation and lessons learned from some businesses around the world. 1.3. Research on factors affecting green procurement activities of firms In 1997, Min and Galle pointed out that firms mainly implement green procurement strategies to ensure fulfillment of legal responsibilities and avoid violating environmental regulations. The research results of Carter and Carter (1998) shows the impact from customers is the main driver for firms implementing green procurement. In Asia, Tarig Khidir ElTayeb et al (2009) have researched and concluded that there are three factors that positively impact green procurement activities of firms in Malaysia are environmental regulations, customer pressure and expected economic benefits. Yu-Xiang Yen and Shang - Yung Yen (2011) also stated that environmental cooperation with suppliers, senior management's 8 commitment and customer pressure have a positive and strong influence on green procurement activities of firms. Liyin Shen et al (2016) also said that policy pressure, economic benefits, marketing interests, market pressure and internal pressure are factors that motivate firms to implement green procurement activities. 1.4. Research gap An overview of research in the world shows that research on green procurement activities and the factors affecting green procurement activities of firms is not a new thing. However, an overview of research in Vietnam, no authors studied this issue. Therefore, the thesis is the first scientific research studies on this issue, analyzes the current situation and finding the factors that affect the green procurement activities of Vietnamese firms, compares the differences in green procurement practices between different types of firms, and provides valuable solutions and recommendations to promote green procurement activities of firms in the context of international economic integration and sustainable development orientation. CHAPTER 2: THEORETICAL BASIS FOR GREEN PROCUREMENT ACTIVITIES OF INPUTS IN FIRMS 2.1. General theory of green procurement of inputs in firms 2.1.1. Definition of inputs in firms The thesis uses the definition of inputs according to Article 25 of Circular 200/2014 / TT-BTC issued by the Ministry of Finance on December 22, 2014: - Main raw materials: Are the types of materials that participating in the production process and constitute the main entity of the product. - Auxiliary materials: Are materials that, when participating in 9 the manufacturing process, do not constitute the main entity of the product but can be combined with the main material to change color, taste, appearance, increase the quality of products or to facilitate the process of manufacturing products to be performed normally, or to serve the needs of technology, engineering, preservation and packaging. 2.1.2. Definition of procurement and green procurement in firms 2.1.2.1. Definition of procurement In many documents, the terms purchasing and procurement are sometimes interchangeable. However, purchasing is the purely activity of buying a certain good and service, receiving it, and making payments. Procurement activities in enterprises are used in a broader sense, including activities of planning, implementing, evaluating and controlling purchasing decisions (Szwejczewski et al., 2005; Paulraj and Chen, 2007); also includes management of resources and suppliers (Ellram and Carr, 1994; Lindgreen, 2013). The study chooses the definition of procurement activities according to research by the Vietnam Logistics and Aviation School (2017) that “procurement is the process of purchasing materials or services needed for the production of finished products, or equipment for the production process, or goods and services necessary to maintain the operation of the company. This procurement process includes the following activities: planning, sourcing, supplier selection, negotiation, transaction and contract management, supplier performance management and supplier sustainability issues”. 2.1.2.2. Definition of green procurement Green procurement is one of the activities that help businesses implement green supply chain management through product lifecycle 10 analysis, environmentally friendly product design, minimizing resource use and prioritizing the use of easily recyclable, reusable inputs (Min and Galle, 1997; Carter and Carter, 1998). Synthesized from studies around the world, the concept of green procurement in the thesis is understood as: “the process of choosing products and services of firms without causing harm or cause little harm to the environment and human health when compared with competitive products and services, demonstrate corporate social responsibility, and promote sustainable production and consumption models. In other words, green procurement is when firms considering environmental criteria, in addition to traditional criteria such as cost, quality and delivery time in the process of purchasing goods and services”. 2.1.3. The roles of green procurement In terms of economic issues: green procurement helps firms to reduce costs of managing hazardous materials, reduce energy consumption, save waste disposal costs and the cost of paying fines for the violations related to the environment. In terms of social issues: green procurement promotes social progress by improving the quality and living environment of communities; forming new markets with recycled materials and increasing employment; raises awareness about environmental protection. In terms of environmental issues: Green procurement helps improve environmental quality through better environmental management and more efficient use of resources. 11 2.2. Background theory explaining green procurement activities of firms 2.2.1. Institutional theory Institutional theory examines the external pressures that affect the firm in the production and business process (Hirsch, 1975; Lai et al., 2009). Jenning and Zandbergen (1995) also applied this theory to study how a company solves green problems caused by external pressure, that is: government pressure, customer pressure and pressure from competitors. The drivers and barriers to the activities related to the environment of firms are also studied and explained by institutional theory (Lounsbury, 1997). However, internal factors (resources, leaders ...) also contribute to motivating firms to act for the environment, but these factors have not been mentioned by this theory (Clemens and Douglas, 2006). 2.2.2. Resource based view Resource-based view theory explains the process of achieving outstanding and sustainable business results of enterprises. Instead of focusing on external factors, this theory sets standards for internal factors called VRIN standards, including: Valuable, Rare, Inimitable and Non-substitutable. However, this theory has a limitation that only builds with an analytical unit as a company but has not analyzed the relationship between enterprises and other partners (customers and suppliers). 2.2.3. Stakeholder theory According to Freeman (1984), stakeholders are groups of people or individuals that can influence or be affected by the achievement of an organization's goals. This theory says that, in addition to shareholders, there are other objects related to the operation of enterprises, including: government agencies, political 12 groups, trade associations, trade unions, communities, related companies, potential customers and the public. The above theories all have a close relationship with the development of green procurement activities in firms. They should not be considered as separate theories because they help to clarify the internal and external factors affecting the development and practice of green procurement in firms. 2.3. Content of green procurement activities 2.3.1. Principles of green procurement According to the International Green Procurement Network Organization, there are four principles for implementing green procurement activities, they are: (1) Considering whether the product or service to be purchased is really necessary? (2) Consider the environmental impacts of such products or services throughout their life cycle (3) Select suppliers with a conscious effort to protect the environment (4) Collect information related to the environmental problems of products and suppliers 2.3.2. Basic green procurement activities Hamner (2006) summarized seven basic green procurement activities, including: (1) Requirements for product content (2) Restrictions on product content (3) Labeling or announcement of product content (4) Using questionnaires (5) Supplier has an Environmental Management System (6) Certification (7) Check supplier compliance 13 CHAPTER 3: RESEARCH METHODS 3.1. Research process The thesis uses a combination of qualitative research and quantitative research methods. Qualitative research was carried out by in-depth interviews with 9 Vietnamese manufacturing firms to adjust the model, scale and re-adjust the questions in the questionnaire before implementing quantitative research and formal testing of the model. Preliminary quantitative research was performed with 223 Vietnamese manufacturing companies through survey methods. The collected data are used to assess the reliability of the scale before conducting a large-scale formal study. Quantitative research was officially carried out with 427 manufacturing companies through survey methods. Collected data is used to reassess scales, factor analysis, correlation analysis and test models and research hypotheses using linear structural models with the support of SPSS and AMOS software version 22.0. 3.2. Proposed research model Figure 3.1: Proposed research model Source: Author Based on the relationship of theories and research overview 14 results, the author proposes a research model of factors affecting green procurement of inputs in Vietnamese manufacturing firms such as Figure 3.1. 3.3. Research method 3.3.1. Qualitative research method Qualitative research is done through literature review, research model building and preliminary survey questionnaire design. The qualitative research used in this study is the technique of in-depth interviews with 9 managers of 9 Vietnamese manufacturing enterprises to learn the concepts and characteristics of green procurement activities of firms and build scale for the 1st time. 3.3.2. Preliminary quantitative research method Preliminary quantitative research methods include preliminary investigation, preliminary assessment of the reliability of the scale, explore factor analysis and then formulate a formal questionnaire. According to Nguyen Dinh Tho (2011), the purpose of preliminary quantitative research is to assess the reliability and value of the scale before testing research hypotheses and research models. 3.3.3. Official quantitative research Official quantitative research objectives are to test the value of the scale by the method of exploratory factor analysis (EFA), assess the reliability of the scales using Cronbach's Alpha's coefficients and confirmed factor analysis (CFA). When CFA analysis has achieved good results, the next step is to test the hypotheses proposed in the theoretical model by the SEM linear structure model to test the suitability of the theoretical model and research hypotheses. 3.4. Questionnaire design After building the scale and the observed components based on expert opinions, the author builds a questionnaire. The content of the 15 questionnaire is divided into 3 parts. Part 1 includes questions for the green procurement activities and factors affecting the green procurement activities of firms, using the 5-level Likert scale (1: totally disagree; 5: totally agree). Part 2 includes information of the enterprise. Part 3 is the respondent's personal information. 3.5. Research location and research sample 3.5.1. Research location Because of limited capacity and resources, the author conducted a survey with manufacturing enterprises in Hanoi, Ho Chi Minh City and some neighboring provinces. 3.5.2. Research sample (1) Population: firms’ managers, such as: Director/ Deputy Director, Chief Operating Officer / Deputy Chief Operating Officer, Head of Purchasing / Deputy Head of Purchasing Department. (2) Sampling frame: Vietnamese manufacturing firms, including state-owned firms, private firms and FDI firms. (3) Sampling size: Hair et al (1998) assumed that the minimum sample size should be 50, preferably 100 and the observed / measurement variable ratio is 5/1, meaning that a minimum of 5 observations is needed for each measurement variable. (4) Sampling method: group selection method combined with convenient sampling method. 3.6. Official research model and research hypothesis 3.6.1. Official research model After conducting preliminary quantitative research, reliability test Cronbach's Alpha and EFA analysis, the official research model of the thesis is as follows (Figure 3.2). 16 Figure 3.2: Official research model Source: Author 3.6.2. Official research hypothesis 3.6.2.1. Hypothesis of factors affecting green procurement activities of inputs in Vietnamese manufacturing firms H1a: Environmental regulations positively affect the green procurement activities of firms H2a: Customer pressure positively affects the green procurement activities of firms H3a: Competitive pressure positively affects the green procurement activities of firms H4: Barriers from suppliers negatively affect the green procurement activities of firms H5: Corporate social responsibility positively affects the green procurement activities of firms H6a: Managers’ commitment positively affects the green procurement activities of firms H7: Expected business benefits positively affect the green procurement activities of firms H8: Cost barriers negatively affect the green procurement activities of firms 17 H9: Human resource barriers negatively affect the green procurement activities of firms 3.6.2.2. Hypothesis of factors affecting corporate social responsibility of firms H1b: Environmental regulations positively affect the corporate social responsibility of firms H2b: Customer pressure positively affects the corporate social responsibility of firms H3b: Competitive pressure positively affects the corporate social responsibility of firms H6b: Managers’ commitment positively affects the corporate social responsibility of firms 3.6.2.3. Hypothesis of the difference in green procurement activities by firms’ characteristics H10: There are differences in green procurement activities by firms’ size H11: There are differences in green procurement activities by types of firms H12: There are differences in green procurement activities by market of firms 3.7. Sampling method The author selected group sampling method combined with convenient sampling method and the number of samples collected is n = 427. The research model has 54 observed variables, so the minimum sample size is 54 x 5 = 270 (Hair et al., 1998); so n = 427> 270 is suitable. 3.8. Survey methodology and data collection The author conducted the survey from December 2018 to June 2019. Direct survey: The author conducts direct surveys with 18 manufacturing enterprises located in Pho Noi A Industrial Park, Thang Long II Industrial Park, North Thang Long Industrial Park, Hiep Phuoc Industrial Park, Tan Binh Industrial Park, Binh Duong Industrial Park ... in Hanoi , HCMC and some neighboring provinces. Indirect survey: The author conducts an indirect survey using the online survey method through the Google Forms application. CHAPTER 4: RESEARCH RESULTS 4.1. Sample description After surveys, 427 valid answer sheets were included in the analysis. - Types of firms: State-owned firms account for 16.4%; private firms account for 54.8%; FDI firms account for 28.8%. - Firms’ size: Firms with less than 100 employees account for 20.4%; firms with 100 to 300 employees account for 55%; firms with 301 to 500 employees account for 21.8%; firms with 501 to 700 employees account for 5.9%; firms with 701 to 100 employees account for 4.2% and firms with over 1001 employees account for 2.8%. - Market of firms: Firms with domestic market account for 30.9%; firms with foreign markets account for 48% and firms with both types of markets account for 21.1%. - Number of years of establishment: Firms established less than 3 years account for 3.3%; firms established from 3 to 5 years accounted for 41.7%; firms established from 5 to 10 years accounted for 49.9% and firms established over 10 years accounted for 5.2%. This shows that the surveyed firms are mainly established from 3 to 10 years. - Revenue in the last 3 years: Firms with an average turnover of less than 10 billion VND, accounting for 9.8%; firms with revenue from 11 billion to 100 billion, accounting for 24.4%; firms with 19 revenue from 101 billion to 300 billion, accounting for 53.2% and firms with an average turnover of 300 billion or more accounts for 12.6%. The statistics show that the firms participating in the survey are mainly small and medium companies with revenue from 11 billion to 300 billion. 4.2. Testing the reliability of the scale The results of analyzing the reliability of the green procurement activity scale (MX) and 9 factors: environmental regulation (QD), customer pressure (KH), competition pressure (CT), corporate social responsibility (TN), managers’ commitment (CK), expected business benefits (KV), barriers from suppliers (RCC), cost barriers (RCP) and human resource barriers (RNL) are all > 0.6. 4.3. Explore factor analysis (EFA) The results of the 1st EFA analysis with the value of KMO of 0.888> 0.5 and Sig of Bartlett "s Test of 0.000 <0.05 showed that these 54 observations are correlated with each other and completely consistent with the factor analysis. The results of the factor rotation method show that from 54 observations, 10 factors are extracted, but the observed variables QD4 and KH9 have load coefficients less than 0.5, so the author removed this variable and run the 2nd EFA analysis for the remaining variables. The results of the second EFA analysis showed that the value of KMO was 0.886> 0.5 and Sig of Bartlett "s Test was 0.000 <0.05, showing that these 52 observations are correlated with each other and completely consistent with factor analysis. Results of rotation factor matrix extracted 10 factors and no observed variables had load coefficients less than 0.5. 4.4. Confirmed factor analysis (CFA) The result of CFA analysis shows that: CMIN / DF index = 20 1.268 (<2), TLI and CFI is greater than 0.9; GFI is close to 0.9; RMSEA = 0.025 (<0.08) is suitable. Therefore, the model is suitable with the research data (Table 4.1). Table 4.1: Indicators evaluating the suitability of the model with research data Indicators Values CMIN/DF 1,268 GFI 0,880 TLI 0,962 CFI 0,964 RMSEA 0,025 Source: Survey results (2020) 4.5. Testing the suitability of theoretical models and research hypotheses Figure 4.1: Results of the second SEM Source: Survey results (2020) The thesis uses the SEM structural model to determine the influencing factors and the influencing level of these factors on green 21 procurement activities of firms. The result of 1st SEM shows the value of Chi square / df = 1.268 ( 0.9; GFI ≈ 0.9; RMSEA = 0.025 (<0.08). However, two factors (CT and RNL) have not had a clear impact on MX (p = 0.259 and p = 0.221). Therefore, the author removed these 2 variables from the model and runs SEM for the second time. The s