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Article
Publication date: 6 March 2017

Local governance, corruption, and public service quality: evidence from a national survey in Vietnam

Thang V. Nguyen, Thang N. Bach, Thanh Q. Le and Canh Q. Le

The purpose of this paper is to examine whether higher levels of transparency, accountability, and participation have a statistically significant association with…

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Abstract

Purpose

The purpose of this paper is to examine whether higher levels of transparency, accountability, and participation have a statistically significant association with corruption, and whether corruption is highly correlated with lower public service quality in the context of Vietnam’s transition economy.

Design/methodology/approach

Using individual-level survey data from Vietnam Provincial Governance and Public Administration Performance Index, the research employs an ordered probit model to test whether greater transparency, accountability, and participation is associated with lower levels of corruption. Moreover, district-level data are used to test the relationship between corruption and quality of public services particularly in healthcare and primary education.

Findings

Results show that a higher level of transparency, participation, and accountability is associated with a lower level of corruption, and that corruption is negatively associated with public service quality.

Research limitations/implications

The use of cross-sectional data does not allow the establishment of causal relationships among variables.

Practical implications

The research suggests that fostering accountability to citizens and non-state sectors and promotion of genuine participation from these actors are critical for the future anti-corruption agenda.

Originality/value

In developing countries, whether corruption enhances efficiency of service provision is highly debatable. This research contributes to this debate by suggesting that corruption significantly decreases the quality of public service, and that improving local governance helps reduce corruption.

Details

International Journal of Public Sector Management, vol. 30 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IJPSM-08-2016-0128
ISSN: 0951-3558

Keywords

  • Governance
  • Vietnam
  • Corruption
  • Public service

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Article
Publication date: 26 October 2020

Social norms, organizational learning and bribes in emerging economies: a study of foreign invested firms in Vietnam

Binh T.T. Vuong, Thang V. Nguyen and Ngoc T. Phan

Drawing from institutional theory and organizational learning perspectives, the purpose of this paper is to examine how social norms of corruption in home countries and…

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Abstract

Purpose

Drawing from institutional theory and organizational learning perspectives, the purpose of this paper is to examine how social norms of corruption in home countries and those in host localities influence firm bribery behavior. It also investigates factors that moderate the influence of these norms.

Design/methodology/approach

The study is based on survey data of foreign invested firms (FIFs) in Vietnam, conducted by the Vietnam Chamber of Commerce and Industry between 2010 and 2018 along with Transparency International’s Corruption Perception Index. The authors run ordinary least squares regressions to test the hypotheses.

Findings

The study provides evidence that social norms of corruption in both home countries and host localities influence firms’ bribery behavior, but their effects are moderated by different sets of factors. Specifically, the use of local leadership augments the impact of the host province’s corruption norms on the firm’s bribe payments. By contrast, the relationship between the home country’s corruption norms and a FIF’s bribe payment is weaker if local leadership is used, and stronger if the FIF’s home country belongs to the Organization for Economic Co-operation and Development.

Research limitations/implications

Repeated cross-sectional data do not allow us to genuinely keep track of the changing roles of home country and host province corruption norms over time.[AQ2] In addition, the use of perception measures for corruption norms is subject to potential biases.

Practical implications

As the hiring of local executives weakens the impact of the home country’s norms which are embedded in the MNCs’ general practices, a stronger learning measure and regular review of the headquarters’ policies and practices is needed to ensure the overseas branch’s compliance. For policymakers, it is critical to recognize that local corruption plays a role in shaping FIFs’ bribery behavior.

Originality/value

While the effect of social norms of corruption on firm bribery behavior has been recognized, to the best of the authors’ knowledge, this is the first study that examines the learning processes FIFs may take to make sense of and cope with these norms, and also the first one to specify factors that moderate the influence of these norms.

Details

Multinational Business Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/MBR-11-2019-0162
ISSN: 1525-383X

Keywords

  • Vietnam
  • Emerging economies
  • Social norms
  • Bribery
  • Corruption
  • Organizational learning

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Article
Publication date: 14 November 2016

Competitor concentration, networking, and customer acceptance: The case of small firms in Vietnam

Thang V. Nguyen, Garry D. Bruton and Binh T. Nguyen

The purpose of this paper is to examine whether competitor concentration relates to better customer acceptance of the firm’s offerings and better networking of the firm…

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Abstract

Purpose

The purpose of this paper is to examine whether competitor concentration relates to better customer acceptance of the firm’s offerings and better networking of the firm with competitors and government officials.

Design/methodology/approach

The research is conducted in the context of the transition economy of Vietnam, using a combination of methods. Qualitative interviews are followed by a survey of 199 small firms in Hanoi, Vietnam. Since competitor concentration is count data, Poisson regression is used to test the relationship between networking, customer acceptance, and competitor concentration.

Findings

The results show that locating in a competitor concentration area improves customer acceptance of the firm’s offerings and increases networking with competitors, while decreasing networking with government officials. Competitor concentration does not help improve firm performance.

Research limitations/implications

A sample of 199 businesses in the food, furniture, and jewelry sectors in Hanoi may not be representative of all private businesses in Vietnam. The use of cross-sectional data could not establish causational relationships among variables.

Practical implications

Small firms in transition economies should be aware of the trade-offs between initial customer acceptance and negative consequences of being in a competitor concentrated area. Thus, once the firm’s offerings are generally accepted by customers, the firm may consider moving out of competitor concentration areas to expand and differentiate.

Originality/value

This paper points out that in the absence of effective market institutions, businesses want to be located near a concentration of similar firms as a means of gaining initial customer acceptance. This initial acceptance does not necessarily help firms improve business performance beyond the firm’s survival.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 28 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/APJML-12-2015-0204
ISSN: 1355-5855

Keywords

  • Vietnam
  • Competitor concentration
  • Customer acceptance
  • Networking with competitors
  • Networking with government officials

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Article
Publication date: 18 December 2020

The use of internal control systems and codes of conduct as anti-corruption practices: evidence from Vietnamese firms

Ngoc T.B. Le, Lien T.P. Vu and Thang V. Nguyen

Drawing from fraud triangle theory, the purpose of this paper is to examine whether the use of internal control systems and codes of conduct, as a specific element of…

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Abstract

Purpose

Drawing from fraud triangle theory, the purpose of this paper is to examine whether the use of internal control systems and codes of conduct, as a specific element of internal control, helps firms to reduce law violations and bribery payments to public officials.

Design/methodology/approach

The study is based on survey data of Vietnamese firms, conducted between September and December 2018. The authors run logistic and ordinary least squares regressions to test the hypotheses.

Findings

The study showed that the use of internal control systems has a negative and significant relationship with law violation but not with bribes paid to public officials. By contrast, the use of codes of conduct appears to reduce bribe payments but not law violations.

Research limitations/implications

Cross-sectional data do not allow us to confirm causal relationships. The self-reported measures of the use of codes of conduct and internal control systems may suffer from social desirability biases and should be further validated with different samples of firms. Finally, the relatively modest number of firms that participated in the survey raises a concern of sample representativeness.

Practical implications

For businesses, the application of codes of conduct and internal control systems enhances the reliability and certainty of the firm's operations as well as its integrity, contributing to the firm's long-term development. For policymakers, encouraging businesses to use internal control systems and codes of conduct would contribute meaningfully to the anti-corruption effort.

Originality/value

Businesses in emerging economies face a dilemma of how to participate in an anti-corruption agenda while staying profitable. This study shows that the use of internal control systems and codes of conduct would serve both purposes, contributing to businesses' sustainable development.

Details

Baltic Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/BJM-09-2020-0338
ISSN: 1746-5265

Keywords

  • Internal control
  • Code of conduct
  • Bribery
  • Corruption
  • Vietnam

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Article
Publication date: 18 November 2013

Local knowledge acquisition of foreign subsidiaries in Vietnam and China

Thang V. Nguyen and Jacky F.L. Hong

This paper seeks to examine how foreign subsidiaries of MNCs can acquire new local knowledge by focusing on two intra-organizational factors of learning mechanisms and…

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Abstract

Purpose

This paper seeks to examine how foreign subsidiaries of MNCs can acquire new local knowledge by focusing on two intra-organizational factors of learning mechanisms and formative organizational context.

Design/methodology/approach

A mail survey was carried out with top managers among manufacturing subsidiaries of multinational corporations (MNCs) located in Hanoi, Vietnam and Guangdong province of China. In total 123 completed questionnaires from MNCs in Hanoi and China were received.

Findings

The results suggested that training and mentoring and formative organizational context has positive association with knowledge acquisition. However, three interaction terms between learning mechanisms (experimentation, socialization, training and mentoring) with formative organizational context are significantly related to knowledge acquisition. Besides, the authors also found a positive and significant association between knowledge acquisition and subsidiary performance.

Practical implications

Building a formative organizational context directly promotes knowledge acquisition and increases the effectiveness of more informal learning mechanisms. Besides, a learning mechanism may work differently in different contexts, and foreign managers need to be aware of when to apply what mechanisms.

Originality/value

The paper argues that the alignment between organizational context and organizational learning mechanisms can help the foreign subsidiaries acquire new knowledge and improve subsequent performance. Local knowledge acquisition in MNCs should be conceived as a deliberate and managed act, requiring a careful selection of both formal and informal mechanisms supported by appropriate contextual conditions in foreign subsidiaries.

Details

Multinational Business Review, vol. 21 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/MBR-04-2013-0017
ISSN: 1525-383X

Keywords

  • China
  • Vietnam
  • Knowledge acquisition
  • Learning mechanisms
  • MNCs
  • Organizational context

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Article
Publication date: 14 May 2018

Corporate diversification and accrual and real earnings management: A non-linear relationship

Mohammad Alhadab and Thang Nguyen

This study aims to examine the non-linear relationship between corporate diversification and real and accrual earnings management, using a sample of 5,659 US firm-year…

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Abstract

Purpose

This study aims to examine the non-linear relationship between corporate diversification and real and accrual earnings management, using a sample of 5,659 US firm-year observations for 1,221 firms covering the period from 2001 to 2012.

Design/methodology/approach

The authors use various techniques and regressions to test the hypotheses. Following prior research, several proxies have been used to measure diversification, accrual earnings management and real earnings management.

Findings

The study produces several important findings. First, the study provides evidence that diversified firms engage in real and accrual earnings management to manage their reported earnings upward. These results are consistent with recent research (Farooqi et al., 2014; Jirapon et al., 2008) that finds that diversified firms engage in earnings manipulation. Second, and most importantly, the study contributes to the literature by providing the first evidence on a non-linear relationship between corporate diversification and earnings management. Specifically, the study provides evidence that diversified firms engage in accrual (real) earnings management, but this engagement is associated with level of diversification in a non-linear U-shaped (inverted U-shaped) relationship.

Research limitations/implications

Like all other studies, the current study has some limitations. The study was conducted only on the largest firms in the USA that have market capitalization of more than US$10m; hence, the findings may not be generalizable to small publicly traded firms. Further, the findings may not be generalizable to other markets, given the unique characteristics of US markets such as the presence of very sophisticated investors.

Practical implications

This study provides some important implications for US regulators to revise their regulations to prevent diversified firms from using earnings management to manipulate reported earnings.

Originality/value

This study is the first in the USA to examine the non-linear relationship between corporate diversification and earnings management. The study focuses on one of the most active, most attractive and largest capital markets throughout the world, that of the USA. Also, this study is one of the few studies that examine whether diversified firms use real activities manipulation to manage their reported earnings.

Details

Review of Accounting and Finance, vol. 17 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/RAF-06-2016-0098
ISSN: 1475-7702

Keywords

  • Diversification
  • Real earnings management
  • Accrual earnings management
  • Non-linear relationship

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Article
Publication date: 30 September 2019

Drivers of social media disengagement: a study of young consumers in Vietnam

Long Thang Van Nguyen, Rajkishore Nayak, Jerry Watkins and Phuong Ngoc Duy Nguyen

This paper aims to identify and discuss selected reasons for social media disengagement (SMD). Drawing upon two-factor theory, it is argued that the determinants of…

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Abstract

Purpose

This paper aims to identify and discuss selected reasons for social media disengagement (SMD). Drawing upon two-factor theory, it is argued that the determinants of consumer disengagement may be different from those that enable consumer engagement. Accordingly, extrinsic factors of social media experiences (SMEs), subjective norms (SN), perceived anonymity (PA) and perceived credibility (PC) trigger previously engaged consumers to terminate their interactions with the brand on social media.

Design/methodology/approach

A quantitative survey targeting young members from one of the largest social media communities in Vietnam was used in 2018. A total of 387 completed questionnaires were used for data analysis using covariance-based structural equation modeling.

Findings

Results reveal that PC is the main driver of SMD. Moreover, PA, SME and SN are indirectly related to SMD via PC.

Practical implications

The study provides some strategic recommendations for brand managers to re-design user interaction with social media brand pages to improve consumer retention and minimize consumer disengagement.

Originality/value

While consumer engagement with social media has received much attention from practitioners and academics, a research gap exists around the “dark side” of consumer engagement in which consumers can disengage from their relationship with brand on social media. This disengagement can lead ultimately to the termination of the relationship between the consumer and the brand. This research contributes to marketing literature by providing empirical evidence for relevant constructs driving consumer disengagement from the brand’s social media pages.

Details

Young Consumers, vol. 21 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/YC-01-2019-0938
ISSN: 1747-3616

Keywords

  • Consumer engagement
  • Subjective norms
  • Perceived credibility
  • Consumer disengagement
  • Perceived anonymity
  • Social media experience
  • Social media disengagement

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Article
Publication date: 8 April 2020

Misallocation and reallocation of resources in Vietnamese manufacturing firms

Phuong Thi Nguyen and Minh Khac Nguyen

This research identifies the level of misallocation in Vietnamese manufacturing sector for the period 2000–2015. Meltiz and Polanec dynamic productivity decomposition is…

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Abstract

Purpose

This research identifies the level of misallocation in Vietnamese manufacturing sector for the period 2000–2015. Meltiz and Polanec dynamic productivity decomposition is used to compare the relative productivity contributions from surviving, entering and exiting firms to aggregate productivity change by the type of ownership. Heckman's two-step model is used to examine the effect of misallocation and industry- and firm-level factors on entry or exit decision and market share of firms in Vietnamese manufacturing sector.

Design/methodology/approach

The level of misallocation and efficiency gains in total factor productivity (TFP) are assessed using Hsieh and Klenow (2009) productivity decomposition framework for the period 2000–2015. The dynamic productivity decomposition of Meltiz and Polanec (2015) is used to compare the relative contributions from surviving, entering and exiting firms to aggregate productivity change. The effects of misallocation and other factors on entry or exit decisions and market share of firms are determined by using Heckman choice model.

Findings

The results indicate three main points. Firstly, resource misallocation is found to be highest among state-owned enterprise (SOEs) and low technology industries. TFP is found to 81.2% greater if there is no resource misallocation among firms. Secondly, the aggregate productivity change for the entering, exiting and surviving firms is 35% due to productivity reallocation among three groups. Finally, the decision of entry or exit as well as the market share of firms are influenced by misallocation and industry- and firm-level factors such as Vietnam's WTO entry, tax policy, financial frictions, industrial concentration, technology gap, capital intensity, human capital, scale of firm, time entry and FDI spillovers. The result finds the higher misallocation level is, the lower the probability and market share for a new firm to enter in the industry is.

Research limitations/implications

The main limitation of the study is that the market is assumed perfectly competitive and the method has only decomposed misallocation of resources to those arising from output and capital distortions. The results of Heckman choice model only clarify on the sub-sample of state-owned enterprises and low technology firms.

Originality/value

The focus of many previous research papers on resource misallocation was generally to look at the level of misallocation in developed countries. However, knowledge about the effect of misallocation and other factors on entry or exit decisions and market share of firms is limited, particularly in the context of developing countries. This paper clarifies the level of misallocation in Vietnamese manufacturing sector and the effect of misallocation and other factors on entry or exit decisions and market share of firms.

Details

Journal of Economic Studies, vol. 47 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/JES-04-2019-0168
ISSN: 0144-3585

Keywords

  • Firm decisions
  • Manufacturing sector
  • Misallocation
  • TFP
  • Vietnam

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Book part
Publication date: 23 April 2018

Leadership and Public Sector Reform in Vietnam

Ha Ngoc Pham

This chapter describes how public sector reform (PSR) became important following the ‘Doi Moi’ (renovation) programme in 1986. Restructuring of state-owned sector was…

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Abstract

This chapter describes how public sector reform (PSR) became important following the ‘Doi Moi’ (renovation) programme in 1986. Restructuring of state-owned sector was regarded as crucial for ensuring the quality of economic growth, and the Vietnamese government (www.chinhphu.vn/portal/page/portal/English) put considerable effort in PSR. The 8th Party Congress (1996) emphasized the urgent need for a more transparent, capable and modern public sector, including efforts to improve law-making process and capacity, reducing burdensome bureaucracy, fighting corruption, increasing leadership by senior officials and improving public service delivery. The government specifies the national PSR Master programme, and the Ministry of Home Affairs coordinates its implementation among ministries, central agencies and provincial governments. Local political leaders (party leaders) determine reforms based on guidelines of the party and government. The author writes that in spite of ambitious public service reform programmes and some positive achievements, the quality of public sector remains poor. The professional capacity of civil service is low, pay is low, corruption is high and processes and structures seem ill-fitted for the market economy. Reform scope is too broad, the capacity of public agencies and civil servants is limited and existing monitoring, evaluation and reporting systems are weak. In some successes, leaders use appointment and promotion to encourage lower level to implement reforms and training to increase understanding. They believe that Vietnamese leadership has become less proactive and vigorous in practicing or embracing bold reform experiments.

Details

Leadership and Public Sector Reform in Asia
Type: Book
DOI: https://doi.org/10.1108/S2053-769720180000030006
ISBN: 978-1-78743-309-0

Keywords

  • Doi Moi
  • 8th Party Congress
  • leadership
  • Vietnam

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Article
Publication date: 26 October 2019

With whom do consumers interact?: Effects of online comments and perceived similarity on source credibility, content credibility, and personal risk perception

Hue Trong Duong, Long Thang Van Nguyen and Hong Tien Vu

The purpose of this study is to investigate the effects of congruent and incongruent anonymous comments posted to an online health news article on personal risk…

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Abstract

Purpose

The purpose of this study is to investigate the effects of congruent and incongruent anonymous comments posted to an online health news article on personal risk perception. This association is examined through testing the moderating roles of perceived similarity and approval ratings, and the mediating roles of source credibility and content credibility.

Design/methodology/approach

Hypotheses regarding the impact of comments on personal risk perception were tested experimentally using a news article, comments and approval ratings about the ear picking behavior. Data were collected from 391 young Vietnamese respondents.

Findings

The influence of online comments (congruent vs incongruent) on personal risk perception was mediated by source credibility and content credibility. Further, data showed a direct effect of online comments on personal risk perception. Interestingly, the direct and indirect effects of online comments on personal risk perception were observed among participants who perceived that anonymous commenters were similar to them. Approval ratings had neither a main nor interaction effect with comments on the dependent variables.

Practical implications

The results indicate that marketers should consider online comments as a powerful form of social influence, which may alter consumers’ personal risk perception.

Originality/value

The present study adds to social marketing literature by showing how consumers’ online comments influence personal risk perception in the context of changing media ecosystem.

Details

Journal of Social Marketing, vol. 10 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JSOCM-02-2019-0023
ISSN: 2042-6763

Keywords

  • Social marketing
  • Risk perception
  • Message credibility
  • Online comments
  • Online social influence

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