MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY

…………………

BÙI NHẬT LÊ UYÊN

RESEARCHING OF FACTORS IMPACT
INNOVATION CAPACITY OF HIGH TECHNOLOGY
INDUSTRIAL ENTERPRISES
IN VIETNAM SOUTHERN’S FOCAL PROVINCES

SPECIALIZATION: COMMERCIAL BUSINESS
CODE: 93 40 121

SUMMARY OF DOCTOR OF PHILOSOPHY THESIS

THÀNH PHỐ HỒ CHÍ MINH, NĂM 2018


Thesis was completed at:
Scientific instructor:

Reviewer 1:
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Reviewer 2:
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Reviewer 3:
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This thesis was protected at the council of
school:.................................................................

Economics and Finance, p.27-34.
5. Bùi Nhật Lê Uyên, 2016. Human resource problem for innovation activities
of high-tech enterprises in the integration period. Proceedings of science and
technology conference 2016, Ho Chi Minh City University of Technology,
p.93-96.


CHAPTER 1
RESEARCH OVERVIEW
1.1.

Research base

1.1.1.

The necesscity of research
High-tech industry plays a particularly important role in the national
economy. But in Vietnam, in the current period, due to many subjective and
objective reasons, the innovation capacity of enterprises in this field is very
limited. Therefore, to improve the capacity of innovation, we firstly need to
identify the factors that affect it.
Besides, innovation capacity is also a research issue that the world and
domestic science is very interested in. Evidence is in the world there have been
many research projects on innovation capacity in the field of high technology.
However, beside the academic value, these studies also had theoretical gaps.
Moreover, there are only few research projects in Vietnam that directly
address factors affecting innovation capacity. On that basis, the author would
like to affirm the thesis "Researching on factors impact innovation capacity of
high-tech industrial enterprises in Vietnam Southern’s focal provinces" is a
necessary direction, because of its importance and contribution to both science

On the other hand, in domestic research, there are many articles on
innovation capacity, but most of them are scientific reports, articles in
seminars, mainly in the form of an overview, explanation of terms, reality
analysis and proposed solutions...So that, the author has less opportunities to
learn experiences in designing research, methodology, data collection and
analysis, econometric modeling, building and testing measurement scale...
from local authors.
1.1.2.2.
Practical backgound
The reality of Vietnam's innovation capacity is still difficult problem.
Factors impact innovation, such as government support, collaboration
networks, human resource quality are limited, even R&D activities are
considered as minority.
In terms of R&D capacity, most domestic producers only focus on
development rather than research. About human resources in our country,
especially Ho Chi Minh City, are not trained according to international
standards. The scale of training is sparse, spontaneous and non-oriented. They
care about quantity than quality lead to lacking of quantity and not ensure
quality in human resources.
The government's role is very important in promoting innovation,
because there are many drawbacks in the high-tech industry that businesses
face to like as problems of copyright, commercial disputes, the quality of


education and training... All of matters contributed to create the barriers in
innovating and growing.
1.2. Research questions and objectives
1.2.1. Research questions
The thesis should clarify the following research questions:
- What factors that impact the innovation capacity of high-tech

the period from 1911 to 2017.
Research reality: Primary data on innovation capacity of high-tech
enterprises was surveyed in 2012-2014 and proposing management
implications for 2019-2025.
Research space:
In some of focal provinces of Vietnam Southern, including Ho Chi
Minh city, Binh Duong, Dong Nai and Vung Tau.
The high technology sectors were surveyed as following: electronics,
microelectronics; precision mechanics and automation; information
technology and telecommunications; pharmaceuticals, biotechnology; high
tech services.
1.4. Research methodology
The author chose mix method is as the main research method, in
which:
Qualitative research was conducted through two techniques: in-depth
interview and focus group discussion in order to adjust the content of
observable variables to suit the characteristic of Vietnam businesses in hightech industry and to explore new observable variables for the concepts has
controversial scale (Government support and internal human resource).
Quantitative research was conducted in two phases: a preliminary
study of 89 samples to evaluating concept scales and official study of 380
samples to testing research model and hypotheses.
The data were cleaned and processed in software SPSS20 and
Amos20 with Cronbach's alpha technique, Exploratory Factor Analysis
(EFA), Confirmatory factor analysis (CFA) and Structural Equation
Modelling (SEM).
1.5. Thesis’s contribution
1.5.1. New point of thesis


- The author proposed a research model on factors affecting the

IMPLICATIONS
SUMMARY OF CHAPTER 1


CHAPTER 2
THEORETICAL BASIS AND RESEARCH MODEL
2.1. Concept of innovation, innovation capacity and high technology
2.1.1. Innovation
2.1.1.1. Concept of innovation
Innovation theory is the foundation for the birth of the concept of innovation
capacity, which was formed in the 1911s and has a long history of
development. Over time, the concept of innovation is increasingly
consolidated and improved. According to Brilman, J. (2002, page 28),
"innovation is the way to apply a creative idea to help businesses develop and
adapt quickly in a competitive environment." Another concept of Damanpour
and Aravind (2011, p. 427), “innovation is the process from creating,
developing and transforming ideas into new products, new processes, new
organizational structures or new administration methods"...
Thus, from synthesizing the concepts of innovation from many empirical
studies in the world, the author drawed the concept of innovation that was
suitable for this thesis, which is a process related to the use of enterprise
resources to make efforts to improve and develop completely new products or
processes for businesses. Therefore, innovation is very important and has
always been the biggest concern of many businesses, governments and
research institutes (Hekkert and Negro, 2009).
2.1.1.2. Classification of innovation
In this thesis, the author only approached two forms of innovation,
that is product innovation and process innovation according to OECD’s
classification (2005) and Lugones (2012).
According to OECD (2005), Product innovation is the birth of a new

2.1.3.1. The concept of high technology
In Vietnam, according to the High Technology Law No. 21/2008 /
QH12 (Quoc Hoi, 2008), "High technology is a technology with a high content
of scientific research and technological development; integrated from modern
technological and scientific achievements; to create products with superior
quality and features, high added value, environmentally friendly; plays an
important role in the formation of a new production or service industry or
modernize the existing manufacturing and service industry ”.


In this thesis, the author approached high-tech industrial enterprises
in accordance with the Law on High Technology No. 21/2008, which are
enterprises that produce high-tech products, these products need to meet the
following criteria:
- High proportion of value added in product value structure;
- High competitiveness and great socio-economic efficiency;
- Ability to export or replace imported products;
- Contribute to improving national capacity on science and
technology.
2.1.3.2. Innovation capacity in high tech
The relationship between high technology enterprises and innovation
is always inseparable. This is the most distinctive characteristic and it’s
difficult to find in other fields, because the high tech buisinesses exist in the
environment of vehement compete where high-tech products always change
rapidly, product life cycle is short, the new technology is introduced today but
technology will became popular in the coming days and gradually degenerate
over time. That is the reason why high-tech industries are constantly innovate
or on the other hand innovation is as vital elements in this area. (Goldman,
1982; Riggs, 1983; Shanklin and Ryans, 1984; Nystrom, 1990).
2.2. Basis theory and model of innovation capacity in the world

innovation system of countries, emphasizing the element of technological
innovation. According to Freeman and Perez (1988, p. 591) a national
innovation system is “a network of public and private organizations that has
many interactive activities such as importing, modifying and disseminating
new technology in which the Government plays an important role in working
closely with industry and scientific institutions”. Thus, it can be said that NIS
theory is the foundation for two factors of collaboration network and the
Government support.
2.2.1.4. Innovation capacity theory
During the 80s, 90s and later, the theory of innovation from the previous
generation inspired many researchers to explore and gradually improve the
theory of innovation capacity. Suarez-Villa (1990) said that innovation
capacity motivate new technology was born, new technology is the sign of
growing economy. Suarez-Villa affirmed that leading innovation companies
always have a strong culture in mission and vision as well as establishing a


business philosophy in which emphasize continuous improvement, customer
orientation and total quality management. These statements are closely related
to the principles of TQM.
2.2.2. Innovation capacity’s models in high technology industry
Jantunen (2005) explored the relationship between the
environmental dynamics, absorptive capacity and innovation capacity.
However, the research’s result only demonstrated the role of knowledge
utilization and environmental dynamics. Both of them showed positive role
and impact to innovation capacity. The study’s implication is only businesses
had good knowledge processing capabilities can be equipped method to
refresh the knowledge base and exploit available knowledge to develop new
products to meet market demand.
Tseng et al, (2011), from the Jantunen’s study (2005), Tseng et al.

R&D, as well as government support on innovation capacity. Research used
quantitative methods. The results demonstrated that cooperation between
firms impact to innovation, in which the downstream and upstream
international relationship represented a dominant influence on the innovation.
The role of government and human resources for R&D also positively
influenced innovation capacity.
2.3. Proposing the research model and analyzing the process of forming
the hypotheses
2.3.1. Proposed the research model
The research model of thesis was based on the basis theory of
Schumpeter, Nelson's theory and NIS theory, combined with research gaps
that were explored in process of literature review (Total Quality Management
will impact innovation capacity in positive or negative schools; the original
scale of government support, internal human resources and innovation
capacity was suitable totally or not when testing in Vietnam, if no, were there
an additional adjustment), along with building of research hypothesises that
based theory and expert interviews.


Figure 2-10: Model of factors affecting to the innovation capacity
of business in high-tech industries
Source: author’s research
2.3.2. Analyzing the process of forming the hypotheses in research model
2.3.2.1. Total quality management (TQM) and innovation capacity
The relationship between innovation capacity and the principles of
TQM is found in the theory of Suarez-Villa (1990). TQM has been proven
useful administrative solution in innovation and improving business’s
competitive advantage. Besides, if an organization commits to apply the
principles of TQM into its operating systems, the efforts for innovation will
bring expected results. Thus, in this study, the author agreed that TQM would

innovation capacity of high-tech industrial businesses (H3 marked +)
2.3.2.4. Collaboration network and innovation capacity
The theory of Nelson (1977; 1982, 1993) and the theory of national
innovation system (NIS) are the inspiration for schools of research on
collaborative networks in promoting innovation. According to Ahuja, G.
(2000); Becheikh et al,. (2006); Kang and Lee (2008); George, G. et al,.
(2002); Hagedoorn (1993); Romijn and Albaladejo (2002); Rothaermel and
Deeds (2006)... emphasized the collaboration in the value chain is a
prerequisite for transferring of knowledge and technical know-how.
Cooperation also contributes to setting up standard in the industry as well as
improving the application of new techniques.
From the point of view, this study hoped that if an organization
possesses high quality workforce, have a good educational background, skills,
flexibility and resolving job thoroughly, will bring the strength for innovation
capacity.
Hypothesis H6: Internal human resources positvely affects to the
innovation capacity of of high-tech industrial businesses


2.3.2.7. Ownership status and innovation capacity
Hypothesis H7: There exists a difference between domestic high-tech
enterprises and foreign high-tech enterprises (FDI sector) in the level of
influence/impact of total quality management (TQM), organizational learning
(OL), Government support (GS), collaboration network (CN), absorptive
capacity (AC) and internal human resources (IHC) to innovation capacity
(IC).
SUMMARY OF CHAPTER 2


CHAPTER 3

build the first draft scale.


Thus, the results of in-depth interview had contributed for the
development of the first draft scale that used in focus group discussions.
Focus - group
The specialists take part in the focus group including 8 managers who
understand business’s development process and determinate innovation
capability as an indispensable objective. In this stage, the main objective focus
to assess the first draft scale’s content and build the second draft scale for
quantitative research in the next stages. The authors choose focus group
method because it’s suitable with exploitation information and exchange of
views between the members in the group. The author show that the opposition
and similarity in discussion to realize latent aspects of research.
3.2.2. Quantitative research
Preliminary research
Preliminary research was conducted through interview by
questionnaire. Sample size n = 89, sampling method was selected to detect
errors in the questionnaire and testing scale initially.
This survey’s subject was the senior managers of high-tech businesses
in Vietnam southern (Ho Chi Minh city, Dong Nai province, Binh Duong
province, Vung Tau city) in the following fields: information technology and
communication; pharmaceuticals, biotechnology; nanotechnology, energy;
mechatronics, automation, microelectronics and high-tech services. Reason
for choosing the object is the managers, directly in charge of the business plan,
research and development department (R&D), marketing and
market...because they deeply understand of their developing capacity, engage
in strategic planning as well as implement annual potential technological
projects. They realize daily reality of the business and desire to enhance
innovation capacity for growth.

5) Number of organisational changes or improvements made in the
production processes of this company within 2012-2014 ?
3.3.2. Government support
The study inherited Wallsten's scale (2000), together with the results of indepth interview that helped the author add two new observable variables for
Government Support scale (GS) with 3 statements as follows:
1) Our company participated in R & D projects funded by the Government =>
Wallsten (2000)
2) Government facilitate for our company access to preferred loans => new
observable variables
3) Government facilitate for our company training and development of
professionals human resources => new observable variables
3.3.3. Internal human resources


The scale of Internal human resource concept (IHC) described by the
following 7 statements:
1) Human resources in our company are highly skilled
2) Human resources in our company are very intelligent and creative.
3) Human resources in our company is considered to be the best in this field.
4) Human resources in our company are specialized on their jobs.
5) Human resources in our company are always thinking and creating new
ideas and knowledge.
6) Human resources in our company are trained in professional environments..
7) Human resources in our company always work best and committ to making
efforts to achieve our goals.
3.3.4. Total quality management (TQM)
In this study, TQM is measured through 4 components: (1) The support of
senior managers; (2) Employee involvement; (3) Continuous improvement
and (4) Customer-orientation. The author applies the scale of Coyle-Shapiro
(2002); Zeitz et al (1997) to measure TQM.

extracted from EFA’s result, it has 14 observable variables compared to 16
observable variables of original scale, in which component of top management
support (TQMTM) has observable 6 variables; component of continuous
improvement has 4 observable variables (TQMCI) and component of
customer focus (TQMCF) has 6 observable variables.
- Organizational learning (OL) has 2 components that was extracted
from EFA’s result, with 6 observable variables; including learning strategy
has 6 observable variables; learning culture has 2 observable variables
- Government support (GS) still remain content value of original
scale, only 1 component that was extracted from EFA’s result, with 3
observable variables.
- Absorptive capacity (AC) has 2 components that was extracted from
EFA’s result, with 6 observable variables, including knowledge
dissermination (ACKD) has 3 observable variables and knowledge acquisition
(ACKA) has 3 observable variables.
- Internal human resource (IHC) only has 1 components that was
extracted from EFA’s result, with 7 observable variables.
- Collaboration network (CN) has 1 components that was extracted
from EFA’s result, with 2 observable variables..
SUMMARY OF CHAPTER 3


CHAPTER 4
OFFICIAL QUANTITATIVE RESEARCH’S RESULT
4.1. Testing the concept’s scale
Testing the concept’s scales to ensure reliability before testing the
model and research hypotheses. The study uses the following methods:
exploratory factor analysis (EFA), Cronbach's alpha reliability and
confirmatory factor analysis (CFA).
There are 10 components that extracted from EFA results.

Although 5 concepts of TQM, AC, IHC, GS and CN only explain
51.5% of the variations of innovation capacity
Table 4-7: The relationship between the concepts in research model
Standardized
Unstandardized regression weights
regression
Relationship
weights
IC
IC
IC
IC


8.257

1.856

.036

par_35

.172

Source: Author’s official research results
4.2.2. Testing research hypotheses
Rsearch has 6 hypotheses about relationships between concepts. The
SEM results verify these relationships by following:
H1: Total Quality Management positvely affects to the innovation
capacity of business in Vietnam southern high-tech industry.
Testing result show that p-value = 0.018 < 0.1, achieve statistical
significance, at level of reliability 90% (Table 4-7). Thus the hypothesis H1 is
accepted.
H2: The Organization learning positvely affects to the innovation
capacity of business in Vietnam southern high-tech industry.
The result does not reach statistical significance when p-value = 0.382 >
0.1, at level of reliability 90%. Hence, the hypothesis H2 is not accepted.
H3: The Government support positvely affects to the innovation
capacity of business in Vietnam southern high-tech industry.
The study’s result clearly reflects reality when the Government
support has p-value = 0.036 < 0.1, achieve statistical significance at 90%


reliability (Table 4-7) and standardized regression weights in relationship with

SUMMARY OF CHAPTER 4