MINISTRY OF EDUCATION AND TRAINING
CAN THO UNIVERSITY

NGUYEN TRUNG NHAN

RESEARCH ON THE INFLUENCES OF INFORMATION TECHNOLOGY TO
ELEMENTS IN COMPETITIVENESS CAPACITY IN MANY ENTERPRISES
LOCATED IN CAN THO CITY

BUSINESS MANAGEMENT

MAJOR CODE: 62.34.01.02

SUMMARY OF PHD THESIS IN ECONOMICS

CAN THO - 2019


1. Nguyen Trung Nhan, Luu Thanh Duc Hai (2018). Impact of IT on the
competitiveness of businesses in Can Tho city. Journal of Finance, Part 1 - March 2018
(676), page: 113-116
2. Nguyen Trung Nhan, Luu Thanh Duc Hai (2018). Proposing a model to measure
the impact of IT on the components of competitiveness of businesses. Science Journal
of Can Tho University, Volume 54, Issue 6 (2018) pp: 215-223.
3. Nguyen Trung Nhan, Luu Thanh Duc Hai (2019). The impact of IT on the
factors that lead to the competitiveness of businesses in Can Tho city. Science Journal
of Can Tho University, Volume 55, Number of Economics Topic (2019) page: 95-107.

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level in Vietnam about the impact level of common IT factors to the elements that
constitute the competitive capability of businesses in a systematic manner.
This topic is considered to be an exploratory research, a desire to supplement
and complete the theoretical basis, deploy an empirical model on IT factors affecting
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the components of the competing capability of businesses at Can Tho city.
Previous studies have considered IT factors as a component of the competing
capability (belonging to Science and Technology). This study isolates the IT factor to
evaluate the impact on the remaining factors in the competitive competence of
businesses at the Can Tho city.
Stemming from the aforementioned 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.

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.

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- 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

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).
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2.3 THE STUDY ON THE IMPACT OF INFORMATION TECHNOLOGY
ON

THE

CONSTITUENT

ELEMENTS

OF

GHI CHÚ

Moon- Koon Kim, 2007; Nguyen Minh
Ngoc, 2009; Ravarini, 2010;

Management

Nguyen Minh Ngoc, 2011; Tanja Mihalič

Most of the

capacity

et al (2013)

researches

Ravarini, 2010; Tanja Mihalič et al

Most of the

(2013)

researches

Ravarini 2010; Tanja Mihalič et al

Most of the

(2013);

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.

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

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+ 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.

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Preliminary research

Theoretical basis

and extracted variances

Analyze CFA

Official Research

Official
Scale

Check the model's suitability, CFA weight,
unidirectional aggregate reliability, convergence
value and differentiation

Checking model suitability, theoretical and
hypothetical contact value, estimating models
Source: Proposal of the author, 2017
Figure 3.1 Proposed research procedure

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Analyze CFA

SEM model


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:

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
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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

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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

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. 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


Table 4.2: Results of discriminatory value analysis (SEM) related to IT factors
Relationships
Competing
Capability
Competing
Capability
Competing
Capability
Competing
Capability
Competing
Capability
Competing
Capability
Competing
Capability

Estimate

S.E.

C.R.

P




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
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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.

financial market of businesses following the current trend. In addition, businesses
can apply IT to manage supply chains, secure payment for suppliers, take advantage
of buyers' reputation to access bank capital …
- Enhancing marketing capacity: Using Internet to implement digital
marketing, electronic effects, social media to promote the image of businesses and
products. Internet minimizes cost and brings much greater efficiency than the
traditional method of sending mail advertising: no stamps, no packaging, no paper
and other costs.
- Improve management organization capacity: Implement businesses
management tools based on comprehensive and integrated IT application platform;
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implement standardization and digitalization of resources and focus on developing
knowledge and skills of human resources, such as: foreign language competence;
basic knowledge about culture, society, history in international business;
international communication and dealing with cultural differences in business;
international practices and laws in the field / business.
- Enhancing technology application capacity: Investing in modern equipment
infrastructure for businesses to implement IT application and automation; focusing
on investment in network infrastructure and Internet connection is a technical
condition for businesses to apply IT on all businesses and participate in the ecommerce market; usage of application software in operation and management;
improve the capacity of human resources using IT; at the same time enhance the
security of IT systems for businesses.
- Enhancing the capacity of mobilizing resources: Increasing access to new
management methods (such as ERP, CRM, SCM systems) in order to improve the
management efficiency in the entire business. In particular, paying attention to the
business resource management system (ERP) will fundamentally change the entire
information system in businesses and affect the two resources of businesses,
technology and people; at the same time requires human resources of businesses to