Assessment of Factors Influencing Strategic Management of Commercial Banks in Vietnam: An Empirical Study in the Bank for Investment and Development of Vietnam

Abstract

This research article reviewed related literatures on strategic management of commercial banks; proposed the research model and measured the impact of factors on strategic management in Vietnam commercial banks. Applying the Structural Equation Modelling (SEM) based on the Partial Least Squares(PLS) approach, the empirical study in the case of BIDV revealed that reputation factor has most positive impact on the strategic management of the bank. Other following factors have positive impact on the strategic management ranking from the highest to the lowest order including macro environment, bank resources, management style, competitiveness among rivals and structure of ownership. Based on the result of the research, the study has recommended several implications that can be highly applied for the bank management to effectively improve their strategic management in practice.
Keywords
Strategic management, reputation, bank resources, management style, SEM model.
References
[1] Fitzroy& Peter, 2012. Strategic management: The challenge of creating value. Routledge.
[2] Johnson, G&Scholes, K, 1999. Exploring corporate strategy: text & cases. Prentice Hall Europe.
[3] David, FR & David,FR, 2017. Strategic management: A competitive advantage approach. Pearson.
[4] Wheelen, TL&Hunger, DJ, 2011. Concepts in strategic management and business policy. Pearson Education India.
[5] Hill, Charles, WL, Jones, GR& Melissa, AS, 2014. Strategic management: theory: an integrated approach. Cengage Learning.
[6] Pearce, AJ,Robinson, RB & Subramanian, R, 1997. Strategic management: Formulation, implementation, and control. Chicago, Illinois: Irwin.
[7] Nha, Nguyen & Leblanc, G, 2001. "Corporate image and corporate reputation in customers’ retention decisions in services." Journal of retailing and Consumer Services 8.4: 227-236.
[8] Đinh Xuân Cường, Nguyễn Thị Thúy Dung, Vũ Văn Đức& Vũ Trung Kiên, 2017. Đánh giá niềm tin của khách hàng đối với các ngân hàng thương mại Việt Nam - Góc nhìn từ danh tiếng. Tạp chí Kinh tế & Phát triển,số 240,trang 37-44.
[9] Dess, GG, Lumpkin,GT& Eisner, AB, 2006. Strategic management: Text and cases. Richard d Irwin.
[10] Hitt& Michael A, 2006. "The importance of resources in the internationalization of professional service firms: The good, the bad, and the ugly." Academy of Management Journal 49.6: 1137-1157.
[11] Porter, ME, 2004. Building the microeconomic foundations of prosperity: findings from the microeconomic competitiveness index. Palgrave Macmillan.
[12] Fombrun, C, 1996. Reputation. John Wiley & Sons, Ltd.
[13] Ambrosini, V& Bowman, C, 2001. “Tacit Knowledge: Some Suggestions for Operationalization”, Journal of Management Studies, 38: 6, 811-829.
[14] Barney, J, 1991.“Firm resources and sustained competitive advantage”, Journal of Management , 17 (1) , 99-120.
[15] Peteraf, M, 1993.“The cornerstone of competitive advantage: A resource-based view”, Strategic Management Journal, 14: 179-191.
[16] Short, H, 1994. “Ownership, Control, Financial Structure And The Performance Of Firms”, Journal of Economic Surveys, vol. 8, no. 3, September, pp. 203-249.
[17] Thomsen, S& Pedersen, T, 2000. "Ownership structure and economic performance in the largest European companies." Strategic Management Journal: 689-705.
[18] Gedajlovic, ER& Shapiro, DM, 1998. "Management and ownership effects: Evidence from five countries." Strategic Management Journal: 533-553.
[19] Ramaswamy, Kannan, Li, M & Veliyath, R, 2002. "Variations in ownership behavior and propensity to diversify: A study of the Indian corporate context." Strategic Management Journal 23.4: 345-358.
[20] Li, M& Simerly, RL, 1998. "The moderating effect of environmental dynamism on the ownership and performance relationship." Strategic Management Journal: 169-179.
[21] Poulin, BJ& Hackman, MZ, 2001. "The rise and fall of the T. Eaton Company of Canada: lasting lessons on leadership and strategy." Journal of Leadership Studies 8.1: 96-112.
[22] Hambrick, DC, 1987. "The top management team: key to strategic success." California management review 30.1: 88-108.
[23] Fiedler, FE, 1978. "The contingency model and the dynamics of the leadership process." Advances in experimental social psychology 11: 59-112.
[24] House, RJ, 1976. "A 1976 Theory of Charismatic Leadership”. Working Paper Series 76-06.
[25] Newbert, SL, Bruce AK & Walsh, ST, 2007. "Defining the Relationship among Founding Resources, Strategies, and Performance in Technology‐Intensive New Ventures: Evidence from the Semiconductor Silicon Industry." Journal of Small Business Management 45.4: 438-466.
[26] Grant, RM, 1991. "The resource-based theory of competitive advantage: implications for strategy formulation." California management review 33.3: 114-135.
[27] Molina, M, Xavier, F & Teresa, MM, 2004. "How much difference is there between industrial district firms? A net value creation approach." Research Policy 33.3: 473-486.
[28] Prahalad, CK& Hamel, G, 2006. "The core competence of the corporation." Strategische unternehmungsplanung - strategische unternehmungsführung. Springer Berlin Heidelberg. 275-292.
[29] Rossiter, JR, 2002. "The C-OAR-SE procedure for scale development in marketing." International journal of research in marketing 19.4: 305-335.
[30] Bliemel, F, et al, 2005. "The Evolution of Relationship Marketing and the International Colloquia: Guest Editors' Commentary." Journal of Relationship Marketing 3.4: 1-5.
[31] Hair, JF, et al, 2012. "An assessment of the use of partial least squares structural equation modeling in marketing research." Journal of the academy of marketing science 40.3: 414-433.
[32] Birkinshaw, JM& Morrison, AJ, 1995. "Configurations of strategy and structure in subsidiaries of multinational corporations." Journal of international business studies 26.4: 729-753.
[33] Bentler, PM & Huang, W, 2014. “On components, latent variables, PLS and simple methods: Reactions to Rigdon’s rethinking of PLS.” Long Range Plann47(3): 138-145.