i

STATUS OF KNOWLEDGE ENABLING ENVIRONMENT IN PRIVATE
EDUCATIONAL COMPANIES IN VIETNAM: BASIS FOR
ENHANCEMENT PROGRAM OF
KNOWLEDGE MANAGEMENT
A Dissertation presented to
the Faculty of the Graduate School
Southern Luzon State University, Lucban, Quezon, Philippines
in Collaboration with
Thai Nguyen University, Socialist Republic of Vietnam

In Partial Fulfillment of the
Requirements for the Degree of
Doctor of Philosophy in Educational Management
MS. LE THU HANG (MOON)
DR. CECILIAN N. GASCON
Chairman

iii

Accepted in partial fulfillment of the requirements for the degree Doctor in
Education Management offered by Southern Luzon State University, Republic of the
Philippines in collaboration with Thai Nguyen University, Socialist Republic of Vietnam.

DR. TERESITA V. DELA CRUZ
Dean, Graduate School

DR. WALBERTO A. MACARAAN
Vice President for Academic Affairs
Date___________________

. Le Thu Hang (Moon)
v

TABLE OF CONTENTS

TITLE PAGE i
APPROVAL SHEET ii-iii
ACKNOWLEDGMENT iv
TABLE OF CONTENTS v-vi
LIST OF TABLES vii
LIST OF FIGURES viii
LIST OF APPENDICES ix
ABTRACT xiii

Chapter 1. INTRODUCTIOIN
Background of the Study 1
Statement of the Problem 3
Hypothesis 4
Significance of the Study 4
Research scope, paradigm and limitations 4
Definition of Terms 5
LIST OF TABLE Table No.

Page
Table 1
Summary of the aspects within human resources and its
management
23
Table 2
Summary of the aspects within the communication activities of
the company
29
Table 3
Summary of the aspects within the information technology
infrastructure
31
Table 4
Summary of the aspects of the learning arenas
33-34
Table 5
Summary of the aspects of the use of knowledge
37
Table 6
Number of employees per company and contract arrangements

viii
LIST OF FIGURES

Figure No.

Page
Figure 1
Research paradigm
5
Figure 2
Knowledge management and lifelong learning
13
Figure 3
Knowledge management activities
20
Figure 4
Conceptual framework for knowledge management in SMEs
22

Number of employees per company and type of professional role
(professional, supports or leaders) Table 3
Number of employees per company and contract arrangements

Table 4
Number of respondents by educational attainment as a
percentage of all respondents

Table 5
Number of tiers and work organization

Table 6
Recruitment and selection aspects

Table 6a
Frequency of the methods for advertising available positions

Table 6b
Frequency of the method of selecting employees

Table 6c
Frequency of the different selection criteria

Table 7
Aspects related with new recruitments

Table 7a

Number of companies by scheduled meetings of professional
workers and sectors

Table 12c
Companies with newsletter by sector

Table 12d
Number of companies by person in the gatekeeper position and
sector

Table 13
Number of hour formal and informal meetings (cells refers to
percentage of respondents) Table 14
Respondent’s perceived usefulness of formal and informal
meetings Table 15
Distribution of information (cells refer to percentage of
respondents) Table 16
Information technology infrastructure

the monetary reward aspect construct in the selected companies
(above 0.4) xi

Table 9
Communication patterns indicators by company

Table 10
Information technology infrastructure indicators by company

Table 11
Bivariate Pearson correlation of the binary recoded indicators of
the information technology investment binary indicators (above
0.40) Table 12
ANOVA of course length by sector (consultancy and education)

Table 13
ANOVA of course training cost by sector (consultancy and
education)

Table 14
Number of training events and yearly estimated training time by
purpose of training and company
enabling construct and knowledge creation indicators in each
service

xii
Title:
STATUS OF KNOWLEDGE ENABLING ENVIRONMENT
IN PRIVATE EDUCATIONAL COMPANIES IN
VIETNAM: BASIS FOR ENHANCEMENT PROGRAM OF
KNOWLEDGE MANAGEMENT

Researcher:
Ms. LE THU HANG, MA.

Degree
Doctor of Philosophy, Education Management

Name/ Address of the
Institution
Southern Luzon State University
Graduate School
Lucban, Quezon

knowledge management, companies are indeed implementing strategies for the promotion
of lifelong learning, which has recently been used in policy arenas as a guiding principle
for educational policies and reforms.
As results of the study, the different aspects of the equally heterogenous
“knowledge enabling environment” do not present strong relationships in both education
and consultancy companies. Each company in those fields is rather unique in organization
and promotion of knowledge intensiveness in their ordinary business activities. The
companies mainly provide training with the company profile. It is interesting to find out
that employees demand for training if their engagement in informal learning is low.

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CHAPTER 1
INTRODUCTION
1.1. Background of the Study
According to the World Bank the competitiveness index of human resources in
Vietnam reached 3.39/10 point and competitiveness of Vietnam economy reached 73/133
among participated countries. Furthermore the recent social survey showed that the capital
scale of enterprises is rather small. Nearly 50% of businesses have their capital less than 1
billion VND. While nearly 75% of enterprises with capital of less than 2 billion VND, 90%
of enterprises have their capital of less than 5 billion VND. Due to the small capital scale,
enterprises of Vietnam seem to be less competitive. The innovation and technology of
enterprises are critical.
Concerning human resources in small and medium enterprises (SMEs), the number
of PhDs accounted for only 0.66% while masters composed of 2.33%; labor graduated
from universities and colleges as 41.38% while graduators of vocational schools as
12.33%. It is noteworthy that a part of business owners who got their education from

million people (representing approximately 70.0% of the nearly 63 million people
employed in the economy). From the total number of trained manpower, the number of
trained personnel through vocational training system in 2015 is expected about 23.5
million (by 77%) and in 2020 - about 34.4 million people (by 78.5%); the number through
the education and training system in 2015 accounts for approximately 7 million people (by
23%) and in 2020 approximately 9.4 million people (by 21.5%).
In the context of knowledge economy, a lot of workshops and conferences of
knowledge management have been held recently in many sectors of Vietnamese
economy, both public and private ones. The major comments have been largely agreed that
many businesses in Vietnam are now just focusing on the issues such as production, cost
reduction while leaving behind the issue of knowledge management, which can support
leadership to solve business problems. E.g. when a company faces a brain drain, business
is interrupted or affected at least until a matching replacement is found. However, the
situation could have been avoided if companies perform well the task of knowledge
management, which is implemented by collection, storage, sharing and use of information
and trade secrets, not only at individual levels but at the level of the enterprise. Then a
mechanism and a process of creation, storage, sharing and development of knowledge in
each business are required so that the knowledge of individual turns into knowledge assets
of the enterprise. Take a look at another example where a business leader needs to make a
quick business decision. In the case the department of business development can assist the
board of directors in strategic insights on commercial viability, in consideration of risks
and competitors, in analysis of strengths and weaknesses as well as necessary financial
resources. The above mentioned department plays here the role of a unit of knowledge
management with comprehensive information and accurate business lines as well as the
knowledge enabling environment. It is noteworthy that to promote knowledge efficiency, a
few training sessions to transfer knowledge to staff is not enough. Some factors that
contribute to the success of knowledge management have been listed in the workshops and
conferences mentioned above: (1) the relationship between knowledge and business
effectiveness; (2) proper system and infrastructure (data storage, information exchange,
3

the results of the study? 4

1.3. Null Hypothesis
There is no significant relationship between knowledge enabling environment
and knowledge management.
1.4. Significance of the study
This study would be beneficial to the following:
Administrators and leaders. It is hoped that the study may contribute in giving a
new dimension in knowledge management. The study would provide administrators and
leaders with a clear idea and model of knowledge management. In the same manner, their
practice of knowledge management could give a fresh perfective in terms of its influence
to the overall SMEs in education and consultancy.
Future Researchers. This study could provide references for future proponents
who wish to venture a study similar to the nature of this ongoing research. Thus, basic
tenets on knowledge management and novel dimensions on instructional variables could
serve as resources for other studies.
1.5. Research scope, paradigm and limitations
The study is limited to private educational companies that provide a rich amount
of information and constitute interesting cases for the purpose of the dissertation. They are
small and medium private Vietnamese companies that work within two services that can be
considered “knowledge intensive” consultancy and education. The companies are a self-
selected sample of a very particular kind. All the companies have applied and received
grants from the ADB for competence development. This provided an opportunity to gain
access to specific information on the demand for training that would be very difficult to
obtain in any other sample. However, from initial group of 119 companies agreed to
participate in this study, only 18 companies provided a satisfactory amount of information
for the case study in the end. Thus, it is important to note that the results of this study can

organizations. It is presented in the so called Collaborative Climate Index (CCI).
Communication
Communication is the activity of conveying information through the exchange of
thoughts, messages, or information, as by speech, visuals, signals, written, or behavior. It is
the meaningful exchange of information between two or more living creatures.
Communication may be intentional or unintentional, may involve conventional or
unconventional signals, may take linguistic or non-linguistic forms, and may occur through
spoken or other modes. Communication requires a sender, a message, and a recipient,

Knowledge enabling
environment

1. Size
2. Stability of workforce
3. Experience
4. Professionalism
5. Recruitment
6. Reward system
7. Communication
8. IT
9. Learning arenas (training
and learning activities)

Knowledge Management:
Use of knowledge
+ Knowledge creation


computer networks, but it also encompasses other information distribution technologies
such as television and telephones. Several industries are associated with information
technology, including computer hardware, software, electronics, semi-conductors, internet,
telecom-equipment, e-commerce and computer services.
Innovation
Innovation is the application of better solutions that meet new requirements, in-
articulated needs, or existing market needs. This is accomplished through more
effective products, processes, services, technologies or ideas that are readily available
to markets, governments and society. The term innovation can be defined as something
original and, as a consequence, new, that "breaks into" the market or society.
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Knowledge
Knowledge is in people’s heads, it differs from information or data, it is individual,
and in some instances it can be made public or shared as information. In addition, the
difference between various types of knowledge has been explained in terms of content.
Andriessen (2004, p. 97) identifies six different metaphors in his analysis of the treatment
of knowledge in key publications of the knowledge management field: knowledge as
something physical, as a wave, as a living organism, as thought and feelings, as a process
and as a structure.
In the present work, knowledge is understood both as the structure and the content
of the mental schemas. Therefore, this study uses knowledge as “something physical” and
“as a structure” as defined by Andriessen. It also includes the idea of knowledge as
feelings since the schemas have important emotional components. Further, it includes
knowledge as a process, as a wave and as a living organism, since these three elements
refer to the idea that knowledge is in a constant dialectic process with the reality it
represents. The frame and the content are reinforced or change in each action that we
perform. It is through action that we test our schema in the real world. This action will
inform us about the schema that in tum will or will not change. In this way, action
develops our knowledge, and knowledge is therefore a dynamic entity. Knowledge as a

structure of the mental model, it might produce partial modification (beta answer) or it
might result in a critical modification (gamma answer, significant learning or conceptual
change). These changes in our schema constitute, in fact, learning. Learning is the process
of transforming data into knowledge, making something public (information) into
something private knowledge). The process of transforming knowledge into data is the
process of teaching, understood broadly. The information that starts the process of learning
is usually the articulation of someone’s knowledge that served to codify and externalize
her/his knowledge. If the students (or any listener or reader) incorporate the data that has
been externalized, then there is learning.
Finally, it is important to mention that knowledge can be acquired through different
means. Knowledge is not only created through theoretical means (such as reading or
analyzing information); learning also occurs by doing. Thus when we act, our acts “teach”
us, providing us with information on our performance. This process of learning is not
necessarily a conscious one, and can occur implicitly without the individual realizing it; in
this way we acquire tacit knowledge.
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Knowledge creation
Organizational knowledge creation is a part of the knowledge management
process. Knowledge creation is about continuous transfer, combination and conversion of
the different types of knowledge (as users practice, interact and learn). Knowledge creation
is a product of the interplay between knowledge and knowing them. The shift in condition
between the possession of knowledge and the act of knowing - something that comes about
through practice, action, and interaction- is the driving force in the creation of new
knowledge. Furthermore, in order for this interplay to be most fruitful, it is important to
support unstructured work environments in areas where creativity and innovation are
important.

quality is not restricted to those in occupations described as "professions", typically those
which require a high level of education and have high earnings.
Profit
A financial benefit that is realized when the amount of revenue gained from a
business activity exceeds the expenses, costs and taxes needed to sustain the activity. Any
profit that is gained goes to the business owners, who may or may not decide to spend it on
the business.
Recruitment
Recruitment refers to the overall process of attracting, selecting and appointing
suitable candidates to one or more jobs within an organization, either permanent or
temporary. The term may sometimes be defined as incorporating activities which take
place ahead of attracting people, such as defining the job requirements and person
specification, as well as after the individual has joined the organization, such
as induction and on boarding. Recruitment can also refer to processes involved in choosing
individuals for unpaid positions, such as voluntary roles or training programs.
Reward system
Employee reward systems refer to programs set up by a company to reward
performance and motivate employees on individual and/or group levels. They are normally
considered separate from salary but may be monetary in nature or otherwise have a cost to
the company. While previously considered the domain of large companies, small
businesses have also begun employing them as a tool to lure top employees in a
competitive job market as well as to increase employee performance. Although employee
recognition programs are often combined with reward programs they retain a different
purpose altogether. They are intended to provide a psychological - rewards a financial -
benefit. Although many elements of designing and maintaining reward and recognition
systems are the same, it is useful to keep this difference in mind, especially for small
business owners interested in motivating staffs while keeping costs low.
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This chapter presents the relevant readings, related literature and conceptual
framework which bear significance and similarities in this study.
2.1. Review of Literature
Before presenting the model for knowledge management defended in this
dissertation, it is important to acknowledge where knowledge management comes from
and the contribution of other fields in the study of training and skill development in
organizations. The next sections will discuss different management approaches to the
promotion of learning at work, such as human capital theory, organizational learning and
intellectual capital. It will also show the connection between these different fields and
knowledge management as well as why knowledge management was chosen as the main
field within this dissertation.
Learning is the process of creating knowledge and knowledge guides the process of
learning. Our knowledge is constantly changing; in other words we are continually
learning throughout our entire life span and in all different kinds of settings. The concept
of lifelong learning seems useful in this context. It has been used mainly by
intergovernmental organizations as a guiding principle for educational policies.
The assumption of this dissertation is that knowledge management is indeed an
employer strategy for lifelong learning through structuring “everyday activities” in a way
that promotes constant knowledge creation. Knowledge management, as will be defined
later, refers to the different business activities directed toward the creation, storage,
distribution and use of knowledge and information. Knowledge management creates an
environment for constant skills formation and learning, what von Krogh et al. (2000) call
“the knowledge enabling environment”. On the one hand, knowledge management
strategies enforce a lifelong perspective of learning through the continuous emphasis on
the creation of knowledge and skills upgrading. On the other hand, knowledge
management strategies promote constant opportunities for skill development and learning,
both formal and informal. Knowledge management includes formal learning activities,