Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Study Factors Affecting Management Capacity and the Business Effectiveness A Case of Small and Medium Enterprises in Vietnam

Author(s): Nguyen Anh Hien,Ha Hoang Nhu,Pham Thanh Trung,Le Ngoc Doan Trang,Phan Thanh Tam

Small and medium enterprises (SMEs) have a very important position in each country's economic development. In the current trend of integration and globalization, all countries pay attention to supporting SMEs to mobilize maximum resources and support for large enterprises. This helps to increase the competitiveness of products/services. The success of SMEs depends on the managers’ management capacity. Therefore, the main objective of this study is to explore factors impacting management capacity and the business effectiveness of small and medium enterprises in Vietnam. The researcher’s surveyed 800 managers related the SMEs in Vietnam. 19 items and 775 samples processed and Data collected from July 2018 to July 2019 in three provinces and one City following: Dong Nai, Binh Duong, Ba Ria –Vung Tau province and Ho Chi Minh City. The researchers get simple random sampling technique and each place surveys 200 samples. Cronbach's Alpha and the exploratory factor analysis (EFA) which used for Structural Equation Modelling (SEM) technique and using partial least squares method. Managers’ responses measured through an adapted questionnaire on a 5-point Likert scale. The findings of the paper have the management capacity impacting on the business effectiveness of small and medium enterprises in Vietnam with significance level 0.01.