The Contribution of Owners’ Human and Social Capital to Firm Performance in Vietnamese Small and Medium Enterprises
Main Article Content
Abstract
Abstract
Small and medium enterprises (SMEs) have held an increasingly important position inVietnam’s economy, contributing significantly to the economic growth of the country. Despite that vital role, research on this subject is very limited, scarce in quantity, and questionable in quality, particularly on owners’ human and social capital as a significant input for SME performance. Therefore, this article aims at testing the relationship between owners’ human and social capital resources and firms’ financial performance, using the survey of 2,739 SMEs inVietnamin 2004 conducted byVietnam’sInstituteofLabor Studiesand Social Affairs (ILSSA) and The Faculty of Economics -CopenhagenUniversity. The study then shows some significant results and opens future research directions.
Received 19 April 2015, revised 9 June 2016, accepted 28 June 2016
Keywords: Small and medium enterprises (SMEs), capital, resource, firm performance.References
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[2] Vu Trong, Big assistance for small and medium enteprieses, Socialist Republic of Vietnam - Government web portal (2010), Retrieved 22/04/2013, from http://baodientu.chinhphu.vn/Home/Tro-giup-lon-cho-doanh-nghiep-nho-va-vua/20102/27264.vgp
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[6] M. G. Colombo, L. Grilli, “Founders’ human capital and the growth of new technology-based firms: A competence-based view”, Research Policy, 34(6) (2005) 795.
[7] R. N. Lussier, “A success versus failure prediction model for the real estate industry”, American Journal of Business, 20(1) (2005) 47.
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[12] O. Sorenson, “Social networks and industrial geography”, Journal of Evolutionary Economics, 13(5) (2003) 513.
[13] H. Hoang, B. Antoncic, “Network-based research in entrepreneurship: A critical review”, Journal of Business Venturing, 18(2) (2003) 165.
[14] C. Lee, K. Lee, J. M. Pennings, “Internal capabilities, external networks, and performance: A study on technology-based ventures”, Strategic Management Journal, 22(6-7) (2001).
[15] N. Bosma, M. Van Praag, R. Thurik, G. de Wit, “The value of human and social capital investments for the business performance of startups”, Small Business Economics, 23(3) (2004) 227.
[16] A. Tuang, C. Stringer, “Trust and commitment in Vietnam: The industrial distributor’s perspective”, International Journal of Emerging Markets, 3(4) (2008) 390.
[17] Vietnamese Government, Decree No. 90/2001/ND-CP of November 23, 2001 on support for development of small and medium-sized enterprises, Legal normative documents (2001), Retrieved 10/05/2013, from http://moj.gov.vn/vbpq/en/Lists/Vn per cent20bn per cent20php per cent20lut/View_Detail.a spx?ItemID=9580
[18] J. Rand, F. Tarp, Characteristics of the Vietnamese business environment: Evidence from a SME survey in 2005, Component 5, Business Sector Research, Business sector program Support, March, CIEM, DoE, ILSSA, 2007.
[19] D. Dimov, “Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning”, Journal of Management Studies, 47(6) (2010) 1123.
[20] N. Harada, “Who succeeds as an entrepreneur? An analysis of the post-entry performance of new firms in Japan”, Japan and the World Economy, 15(2) (2003) 211.
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[22] M. G. Colombo, M. Delmastro, L. Grilli, “Entrepreneurs’ human capital and the start-up size, of new technology-based firms”, International Journal of Industrial Organization, 22(8-9) (2004) 1183.
[23] D. Ucbasaran, P. Westhead, M. Wright, “Opportunity identification and pursuit: Does an entrepreneur’s human capital matter?”, Small Business Economics, 30 (2008), 153.
[24] M. S. Mizruchi, “What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates”, Annual Review of Sociology, (1996) 271.
[25] W. G. Bennis, J. O’Toole, “How business schools lost their way”, Harvard Business Review, 83(5) (2005), 96.
[2] Vu Trong, Big assistance for small and medium enteprieses, Socialist Republic of Vietnam - Government web portal (2010), Retrieved 22/04/2013, from http://baodientu.chinhphu.vn/Home/Tro-giup-lon-cho-doanh-nghiep-nho-va-vua/20102/27264.vgp
[3] J. Barney, “Firm resources and sustained competitive advantage”, Journal of Management, 17(1) (1991) 99.
[4] P. Ganotakis, J. H. Love, “Export propensity, export intensity and firm performance: The role of the entrepreneurial founding team”, Journal of International Business Studies, 43(8) (2012) 693.
[5] G. S. Becker, Human Capital: A theoretical and empirical analysis, with special reference to education, New York: National Bureau of Economic Research, 1964.
[6] M. G. Colombo, L. Grilli, “Founders’ human capital and the growth of new technology-based firms: A competence-based view”, Research Policy, 34(6) (2005) 795.
[7] R. N. Lussier, “A success versus failure prediction model for the real estate industry”, American Journal of Business, 20(1) (2005) 47.
[8] World Bank, “Doing Business”, 2006, from www.doingbusiness.org
[9] Transparency International, Corruption Perceptions Index 2006, 2006, from http://archive.transparency.org/policy _research/surveys_indices/cpi/2006
[10] R. S. Burt, Structural holes: The social structure of competition, Cambridge, MA: Harvard University Press, 1992.
[11] B. Johannisson, O. Alexanderson, K. Nowicki, K. Senneseth, “Beyond anarchy and organization: Entrepreneurs in contextual networks”, Entrepreneurship and Regional Development, 6(4) (1994) 329.
[12] O. Sorenson, “Social networks and industrial geography”, Journal of Evolutionary Economics, 13(5) (2003) 513.
[13] H. Hoang, B. Antoncic, “Network-based research in entrepreneurship: A critical review”, Journal of Business Venturing, 18(2) (2003) 165.
[14] C. Lee, K. Lee, J. M. Pennings, “Internal capabilities, external networks, and performance: A study on technology-based ventures”, Strategic Management Journal, 22(6-7) (2001).
[15] N. Bosma, M. Van Praag, R. Thurik, G. de Wit, “The value of human and social capital investments for the business performance of startups”, Small Business Economics, 23(3) (2004) 227.
[16] A. Tuang, C. Stringer, “Trust and commitment in Vietnam: The industrial distributor’s perspective”, International Journal of Emerging Markets, 3(4) (2008) 390.
[17] Vietnamese Government, Decree No. 90/2001/ND-CP of November 23, 2001 on support for development of small and medium-sized enterprises, Legal normative documents (2001), Retrieved 10/05/2013, from http://moj.gov.vn/vbpq/en/Lists/Vn per cent20bn per cent20php per cent20lut/View_Detail.a spx?ItemID=9580
[18] J. Rand, F. Tarp, Characteristics of the Vietnamese business environment: Evidence from a SME survey in 2005, Component 5, Business Sector Research, Business sector program Support, March, CIEM, DoE, ILSSA, 2007.
[19] D. Dimov, “Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning”, Journal of Management Studies, 47(6) (2010) 1123.
[20] N. Harada, “Who succeeds as an entrepreneur? An analysis of the post-entry performance of new firms in Japan”, Japan and the World Economy, 15(2) (2003) 211.
[21] A. M. Amaral, R. Baptista, F. Lima, “Serial entrepreneurship: Impact of human capital on time to re-entry”, Small Business Economics, 37(1) (2011), 1.
[22] M. G. Colombo, M. Delmastro, L. Grilli, “Entrepreneurs’ human capital and the start-up size, of new technology-based firms”, International Journal of Industrial Organization, 22(8-9) (2004) 1183.
[23] D. Ucbasaran, P. Westhead, M. Wright, “Opportunity identification and pursuit: Does an entrepreneur’s human capital matter?”, Small Business Economics, 30 (2008), 153.
[24] M. S. Mizruchi, “What do interlocks do? An analysis, critique, and assessment of research on interlocking directorates”, Annual Review of Sociology, (1996) 271.
[25] W. G. Bennis, J. O’Toole, “How business schools lost their way”, Harvard Business Review, 83(5) (2005), 96.