Diversification of business and technical efficiency of companies in Vietnam
DOI:
https://doi.org/10.15549/jeecar.v8i4.772Keywords:
Diversification, Technical Efficiency, Vietnamese CompaniesAbstract
This study focuses on assessing the technical efficiency of enterprises across 63 provinces of Vietnam from 2015 to 2018 and the factors affecting their technical efficiency, in which we focus on two factors: business diversification and ICT index. In this research, we use the DEA method to group effective and ineffective enterprises, then use the GMM method to estimate the factors affecting to the firm’s performance. The research results show that the technical efficiency of enterprises in the provinces is quite small (about 10%), most of the enterprises have not achieved the technical efficiency due to the wasteful use of input factors. Research shows that business diversification and ICT both have a positive impact on efficiency, from which to increase technical efficiency, enterprises in provinces need to pay attention to business diversification and improve ICT index. in terms of the local government
References
2.Ade Oyedijo (2012), Antecedents and Performance Outcomes of Strategic Planning in Nigerian Public Universities, Global Disclosure of Economics and Business, Volume 2, No 1 (2013)
3.Berger và Ofeck (1995), Diversification's effect on firm value, Journal of Financial Economics Volume 37, Issue 1, January 1995, Pages 39-65
4.Bedoya và Paganetto (2003), ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach, Journal of Productivity Analysis, 2003, vol. 20, issue 2, 143-167
5.Brynjolfsson and Hitt (1993), Beyond the IT Productivity Paradox, August 1998Communications of the ACM 41(8):49-55
6.Concetta Castiglione (2012), The consumption of cultural goods through the internet. How is it affected by the digital divide?, ACEI Working Paper Series AWP-04-2016
7.Dolores Añón Higón (2011), The impact of ICT on innovation activities: Evidence for UK SMEs, International Small Business Journal 30(6):684-699
8.Dang Thi Viet Duc (2019). “Impact of information and communication technology on Vietnam's economy”, Financial Reviews
9.Enrico Santarelli và Hien Tran (2013), The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam, Small Business Economics, 2013, vol. 40, issue 2, 435-458
10.Eden (2018), From Computer Ethics to Responsible Research and Innovation in ICT: The transition of reference discourses, Information & Management
11.Jose´Ferna´ndez-Mene´ndez và c?ng s? (2009), Prevalence, Diagnosis, Treatment, and Control of Hypertension in Spain. Results of the Di@bet.es Study
12.Khuong(2019),https://www.vnu.edu.vn/ttsk/?C1654/N25124/PGS.TS.-Vu-Minh-Khuong
13.Concetta Castiglione (2012), Rational addiction and cultural goods: the case of the Italian theatregoer, ACEI Working Paper Series AWP-03-2015
14.Huynh The Nguyen (2019), Factors affecting technical efficiency in small and medium enterprises in Vietnam, Asian Business and Economic Research Review, 2020
15.Her-Jiun Sheua và c?ng s? (2005), Insider Ownership and Firm Performance, Managerial and Decision Economics
16.Long Hau LE and Tan Nghiem LE (2020), Income Diversification Among Rural Households in the Mekong River Delta, Vietnam: A Look Back at the Economic Transition Period, Research in World Economy
17.Loveman, G. W. (1998). Employee Satisfaction, Customer Loyalty, and Financial Performance: An Empirical Examination of the Service Profit Chain in Retail Banking. Journal of Service Research, 1(1), 18–31
18.León at al (2016), Relationship between the use of ICT and the degree and type of diversification, Conference on ENTERprise Information Systems / International Conference on Project MANagement / Conference on Health and Social Care Information Systems and Technologies, CENTERIS / ProjMAN / HCist 2016, October 5-7, 2016
19.Manal Yunis (2018), The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship, Journal of Business Diversification’s effect on firm value
20.Nguyen Viet Hung (2008), Factors affecting the performance of Vietnamese commercial banks, PhD thesis
21.Ngo Dang Thanh (2010), Measuring the performance of the banking system: case of Vietnam (1990-2010), Journal of applied finance and banking, 2012
22.Prabowo và c?ng s? (2011), Independent directors and firm performance in family controlled firms: evidence from Indonesia, Asian Pacific Economics Literature
23.Paganetto (2003), ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach, Becchetti, Leonardo and Paganetto, Luigi and Londono Bedoya, David Andres, ICT Investment, Productivity and Efficiency: Evidence at Firm Level Using a Stochastic Frontier Approach (August 2003). Available at SSRN: https://ssrn.com/abstract=428560 or http://dx.doi.org/10.2139/ssrn.428560
24.Pandya và Rao (1998), Diversification and firm performance: An empirical evaluation, Global Disclosure of Economics and Business
25.P.G Berger và E.Ofek (1995), Diversification’s effect on firm value, Journal of Financial Economics 37 (1995) 39-65
26.Phillip Koellinger (2006), Impact of ICT on Corporate Performance, Productivity and Employment Dynamics, European Commission, DG Enterprise & Industry
27.Rafi Ashrafi and Muhammed Murtaza (2008). “Use and Impact of ICT on SMEs in Oman”.
28.Roberto Alvarez et al (2001), The Impact of R&D and ICT Investment on Innovation and Productivity in Chilean Firms, American Development Bank. Competitiveness and Innovation Division
29.Roghieh Gholami et al (2004), The Causal Relationship between ICT and FDI, Electronic Journal of Information Systems
30.Samwel et al (2019), Challenges facing women in ICT from a women perspective: A case study of the Zimbabwean Banking Sector and Telecommunications Industry, Journal of Systems Integration
30.Stephen Tallman và Jiatao Li (1996), Effects of International Diversity and Product Diversity on the Performance of Multinational Firms, The Academy of Management Journal 39(1):179-196
31.Shen H., Dong Wang and Zhongfeng Su - Diversification and firm performance in China. African Journal of Business Management 5 (2011) 99-104.
32.Vania Sena (2004), The Return of the Prince of Denmark: A Survey on Recent Developments in the Economics of Innovation , Economic Journal, 2004, vol. 114,
33.Yusof et al(2010), Measuring Efficiency of Insurance and Takaful Companies in Malaysia Using Data Envelopment Analysis (DEA), Review of Islamic Economics
34.Yu et al (2014), Energy Efficiency Evaluation Based on Data Envelopment Analysis: A Literature Review, Energies 2020
Downloads
Published
How to Cite
Issue
Section
License
The JEECAR journal allows the author(s) to hold the copyright and publishing rights of their own manuscript without restrictions.
This journal applies the Creative Attribution Common License to works we publish, and allows reuse and remixing of its content, in accordance with a CC-BY 4.0 license.
Authors are free to: Share — copy and redistribute the material in any medium or format and Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
No additional restrictions — The author may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
The JEECAR Journal is committed to the editorial principles of all aspects of publication ethics and publication malpractice as assigned by the Committee on Public Ethics.
