Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

Assessing the Impact of Management Capacity on Enterprises' Business Performance of Southeast Region in Vietnam

Author(s): Le Dinh Thang, Tran Thi My Phuoc, Duong Thi Mai Phuong

 In 2020, many enterprises faced difficulties and had to temporarily suspend their operations, increasing 20% compared to 2019, especially in the large market of the Southeast region in Vietnam. It recognizes this importance for managers. When the company’s director has a better response level of leadership capabilities, the business performance will also be better. Therefore, the article aims to assess the impact of management capacity on enterprises’ business performance in the Southeast region in Vietnam. The authors surveyed 800 managers and used a convenient sampling method. Still, SPSS tools processed 746 samples to measure Cronbach’s alpha, Exploratory Factor Analysis (EFA), Confirmation Factor Analysis (CFA), and Structural Equation Modeling (SEM). The results showed four factors affecting management capacity and enterprises’ business performance in Vietnam’s Southeast region with 1% significance. Four factors include Strategic Vision (SV), Effective Leadership (EL), the Leadership of People (LP), and Organization Capability (OC). Based on the research results, the authors gave several recommendations to improve the management capacity.

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