Tài liệu Factors affecting the adoption of e-commerce model developed for small and medium enterprises in viet nam

Thai Nguyen University Southern Luzon State University Socialist Republic of Vietnam Republic of Philippines FACTORS AFFECTING THE ADOPTION OF E-COMMERCE MODEL DEVELOPED FOR SMALL AND MEDIUM ENTERPRISES IN viet nam A Dissertation Presented to the Faculty of Graduate School Southern Luzon State University, The Philippines and Thai Nguyen University, Socialist Republic of Vietnam In Partial Fulfillment of the Requirements for the Degree Doctor in Management By NGUYEN TIEN HUNG - FAT SLSU-DBA 6A (Hanoi) May 2013 Abstract E-commerce can be an important source of competitive advantage for most business organizations, especially small and medium enterprise sized (SMEs). This study examines the factors that influence e-commerce adoption in Vietnam SMEs . By studying the ecommerce model advantage and SMES‟ Readiness to Adopt, this study proposed and validated a predictive model. Developed from the technology acceptance model and other relevant researches in the area, the author identified six factors that influence electronic commerce adoption in VietNam as follows: Capacity of the firm to start e-commerce adoption; compatibility of e-commerce to the value, work practices, and technology at the firm; influence of managers on e-commerce adoption; effect of the ease of use on e-commerce adoption; effect of the usefulness on e-commerce adoption; and effect of effectiveness on e-commerce adoption. To validate the research model, 200 questionnaires were collected from 200 SMEs in HaNoi. i TABLE OF CONTENTS CHAPTER 1:1 INTRODUCTION .............................................................................................. 1 1.1. Background of the Study ........................................................................................ 2 1.2. Statement of the Problems ...................................................................................... 5 1.3. Significance of the Study ........................................................................................ 5 1.4. Scope and Limitation .............................................................................................. 6 CHAPTER II: 7 REVIEW OF RELATED LITERATURE...................................................... 7 2.1. Internet .................................................................................................................... 7 2.2. E-commerce ............................................................................................................ 9 2.3. E-Commerce Models. .......................................................................................... 12 2.4. Theory of Reasoned Action (TRA)....................................................................... 16 2.5. Technology Acceptance Model ............................................................................ 18 2.6. Grandon and Perason's Model .............................................................................. 20 2.7. Innovations Diffusion Theory (IDT) .................................................................... 23 2.8. Model of Factors Influencing Electronic Commerce Adoption and Diffusion in Small- & Medium-sized Enterprises ............................................................................ 27 2.9. Model for Assessing E-commerce Success in SMEs ........................................... 29 2.10. Conceptual Framework ....................................................................................... 33 CHAPTER III: 38RESEARCH METHODOLOGY ............................................................... 38 3.1. Research Design.................................................................................................... 38 3.2. Determination of sample size................................................................................ 38 3.3. Sampling design and techniques ........................................................................... 39 3.4. Research instrument .............................................................................................. 39 3.5. Data processing method ........................................................................................ 40 ii CHAPTER IV:41 PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULTS ..................................................................................................................................... 41 4.1. Respondents‟ profile ............................................................................................. 41 4.2. Factors afecting the adoption of e-commerce ....................................................... 45 4.3. Logistic Regression ............................................................................................... 55 CHAPTER V: 66SUMMARY, CONCLUSIONS AND RECOMMENDATIONS............ 66 5.1. Summary of the findings ....................................................................................... 66 5.2. Conclusion ............................................................................................................ 68 5.3. Recommendations ................................................................................................. 70 REFERENCES ............................................................................................................ 71 QUESTIONNAIRE ..................................................................................................... 73 iii LIST OF TABLES Table 4.1: Descriptive analysis of the respondents .......................................................... Table 4.2: Business areas ................................................................................................. Table 4.3: Firms utilizing e-commerce and firms having a website Crosstabulation ...... Table 4.4: KMO and Bartlett's Test ................................................................................. Table 4.5: Rotated Component Matrix ............................................................................ Table 4.6: KMO and Bartlett's Test ................................................................................. Table 4.7: Rotated Component Matrix ............................................................................ Table 4.8: Reliability Statistics ........................................................................................ Table 4.9: Item-Total Statistics ........................................................................................ Table 4.10: Reliability Statistics ...................................................................................... Table 4.11: Item-Total Statistics ...................................................................................... Table 4.12: Reliability Statistics ...................................................................................... Table 4.8: Reliability Statistics ........................................................................................ Table 4.9: Item-Total Statistics ........................................................................................ Table 4.10: Reliability Statistics ...................................................................................... Table 4.11: Item-Total Statistics ...................................................................................... Table 4.12: Reliability Statistics ...................................................................................... Table 4.13: Item-Total Statistics ...................................................................................... Table 4.14: Reliability Statistics ...................................................................................... Table 4.15: Item-Total Statistics ...................................................................................... Table 4.16: Reliability Statistics ...................................................................................... Table 4.17: Item-Total Statistics ...................................................................................... Table 4.18: Omnibus Tests of Model Coefficients .......................................................... iv Table 4.19: Model Summary ........................................................................................... Table 4.20: Classification Table v LIST OF FIGURE Figure 2.1: Internet model................................................................................................ Figure 2.2: B2B Business Model ..................................................................................... Figure 2.3: B2C Business Model ..................................................................................... Figure 2.4: C2C Business Model ..................................................................................... Figure 2.5: C2B Business Model ..................................................................................... Figure 2.6: Schematics of the theory of reasoned action (TRA) ..................................... Figure 2.7: Acceptance Model TAM (Davis 1989) ......................................................... Figure 2.8: Research model (Grandon and Pearson, 2004) ............................................. Figure 2.9: The common characteristics of IT innovation that influence intended ........ Figure 2.10: Proposed Electronic Commerce Adoption Model for Small- and Medium-sized Enterprises ............................................................................................... Figure 2.11: Proposed model for assessing e-commerce success in SMEs ..................... Figure 2.12: Research model ........................................................................................... Figure 4.1 Business areas ................................................................................................. Figure 4.2 Business areas and firm utilize e-commerce .................................................. Figure 4.3: Number of the firms have internet ................................................................ Figure 4.4:Research model after factor analysis ............................................................. vi CHAPTER 1 INTRODUCTION For recent decades, Information technology (IT) has been changing the world by significantly contributing to fasten the globalization process in which all competitors come to have equal opportunities in a flattened world as well as creating a real revolution in every field of science and life. The application of IT in production and business is not out of this trend either. The concept of IT application in commercial activities, also known as e-commerce, came into the world and become a new trend. E-commerce has been gradually replacing the old ways of doing business because of its variousprominent advantages, such as faster buying/selling procedure, lowered operational costs , more convenience for customers to place orders, increased efficiency with unlimited space and time properties, etc. However, for developing countries in general and for Vietnam in particular, ecommerce is a relatively new thing although the development of this trend have been taking place in both width and depth. It has not actually been completed for this area in State management. The application in the enterprises as well as in the agencies and organizations is also at explorative level, to support the traditional business form or to combine these two forms with each other. In fact, many enterprises have applied and developed e-commerce and some of them have become good models in this area such as VIETGO, a pricing joint stock company with e-commerce page www.vatgia.com; and Peaceoft solution company with website www.chodientu.vn, etc…Despite its increased popularity, the exploitation and application of e-commerce are always two sides of a problem: 1 Firstly, we are in a transitional period from traditional business to e-commerce business method, so it is necessary to always make pragmatic and short-term comparison of the efficiency between these two methods. Secondly, there also requires a different and more intellectual way of looking at e-commerce. In order to successfully apply and develop e-commerce, it is required that negative aspects such as a fraudulence, distrust and sabotage, etc. are limitted by raising public awareness, developing firms‟ policy, executing management of ecommerce. .These things, however, have been difficult to control because of the fast, powerful and high-tech characteristics of e-commerce. The development of e-commerce has happened in the same manner as the development of traditional commerce, in which the first step was unprompted as each individual, company, agency or organization realized its internal benefits then it became more advanced and multiform. However, to expand and develop it to a high level as well as to create real benefits for society, it needs an intervention of “State hand” from the angle that these entities can not or do not want to do. For the above reasons, there is a question to ponder how do we develop and manage e-commerce in order to minimize the negativity and make optimal use of the positivity, and to successfully promote high efficiency to the society, the community, and each individual? 1.1. Background of the Study It can not be denied that benefits achieved by e-commerce have a great impact to the development of a nation‟s economy. Many developed countries in the world, among which United States was the first, have created favorable conditions for ecommerce to be developed, leading human being in achiving great business results. 2 Although there are many problems needed to be solved in the application of ecommerce, the developed countries, realizing its huge advantages, has quickly emloyed and developed e-commerce with the expectation of achieving the foundation for digital economy. Internet is changing the lifestyle and the way of working. Internet creates good conditions for everyone, from university researchers and students in big cities to people in remote mountainous areas , in which everyone have the opportunity to access the same endless information resources. Moreover, Internet also provides means of communication for people or places to carry out transactions at any time. Enterprises with different scales all can communicate to their partners and customers via Internet. Online activities help them quickly get necessary information, thereby improving the quality of products and services with low cost. The Government of Vietnam has placed special emphasis on developing ecommerce and assigned the Ministry of Commerce to be the clue agency who is responsible for examining and constructing the projects of e-commerce development in Vietnam. On 22/11/2001, the Center of Promoting Software Development, directly under Department of Vietnam Trade and Industry, opened the first training course named “E-commerce for Business” that was held free in Dong Nai with the purpose of helping enterprises step by step approach e-commerce and serve business activities on Internet. Since an initial application of e-commerce still faces a number of difficulties, it is essential to create real power, which comes from the infrastructure for e-commerce, strategy to develop e-commerce business in small and medium enterprises, government support, and awareness of business e-commerce applications in business. The intelligentsia needs to meet the requirements of specialty, and the cultural 3 standards of the people also need to be gradually improved, especially for young people, one of the main forces helping to deploy e-commerce. According to figures from the Ministry of Industry and Commerce, at present, small and medium enterprises account for more than 85% of enterprises in Vietnam, with registered capital of nearly 2,313,857 billion dongs (equivalent to 121 billion dollars) and 100% having Internet access. While more and more customers are looking for new products and trade opportunities with Southeast Asian countries, Vietnamese enterprises are also seeking new opportunities to reach them through ecommerce. Along with maintaining domestic operations actively, Vietnam will definitely continue to receive more attentions from importers in a near future (Mr Vincent Wong, Senior Managing Director of Business Development and Customer Services Department of Group Alibaba.com shared). In 2012, Vietnam Association of E-commerce (VECOM) constructed the Ebusiness Index in order to support agencies, organizations and enterprises evaluating quickly the application of e-commerce on a national scale as well as in each province and central city. E-business Index, abbreviated to EBI, helps agencies, organizations and enterprises to evaluate quickly the degree of ecommerce application and to compare the developments by the years in each locality, concurrently support to an assessment and comparison between the localities based on a system of index. So in Vietnam today there is only VECOM which constructed the EBI to assess a degree of e-commerce application in the enterprises and home organizations. But this is only statistical and investigative index that reflects a degree of e-commerce application annually, it can not bring out an index that helps enterprises identifying 4 whether the abilities of their own enterprises can apply e-commerce or not; how to invest and which problems needed to be solved... to apply e-commerce to business. 1.2. Statement of the Problems This research project focuses on the adoption of e-commerce in Viet Nam SMEs and aims to test adoption factors in e-commerce model which it built based on the models of effective e-commerce in the world. Authors propose a model that factors are based on the actual situation of e-commerce in the viet nam enterprises . Thus the research problem for this study can be as follows: What are the main factors, which influence the adoption of e-commerce in Viet nam SMEs? Thus the research problem for this study can be as follows: H1. Capacity of firm affects e-commerce adoption H2. Compatibility of e-commerce for the value, work practices, and technology in the firm affects e-commerce adoption H3. Managers influence e-commerce adoption H4. The ease of use affects e-commerce adoption H5. The usefulness affects e-commerce adoption H6. Effectiveness affects e-commerce adoption 1.3. Significance of the Study - This study can serve small and medium enterprises in Vietnam. - This research will support the enterprises in constructing business strategies, strengthening advertising, and improving competitive advantages in the market 5 economy and in the integration of Vietnam today to the world economy. - This study can provide necessary information and support the Government‟s programs in formulating policies and laws on e-commerce applied for businesses in Vietnam. - Researchers can use this study as a reference for further research related to this issue. 1.4. Scope and Limitation The study shall focus on determining the e-commerce strategy that might help small and medium enterprises improve the production, sales and profit of the company. - Scope: Mainly research on the small and medium enterprises (SMES) in Vietnam. - The forms of ownership and types of enterprises: The enterprises of all forms of ownership and business types, except for the enterprises with 100% foreign capital. - The geographical limits: the research focuses on the enterprises in Hanoi. This representative meet the requirement and capacity for applying e-commerce in particular and IT in general at the highest level in Viet Nam. 6 CHAPTER II REVIEW OF RELATED LITERATURE 2.1. Internet The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite (TCP/IP) to serve billions of users worldwide. It is a network of networks that consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless and optical networking technologies. The Internet carries an extensive range of information resources and services, such as the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support email. Figure 2.1: Internet model Internet in Viet Nam Number of users in Vietnam up to the end of July 2011 reached over 31 million people, in which there were 4 million people using wide-bandwidth Internet. A large number of people using an Internet are considered to a potential basis, make a chance but also challenges for an e-commerce development in Vietnam. 7 According to statistics of General Directorate of Statistics on March 2012, number of people using an Internet in Vietnam reached to 32,1 million in which a number of subcribers on a country reached to 4,2 million (compared to 134 million telephone subcribers included 15,3 million fixed subcribers and 118,7 million mobile subcribers). Figures on a number of Internet users in Vietnam: Number of Users Year Percent of Population (%) Number of Subcribers Capacity (Bit/s) Domestics Bandwidth (Bit/s) 2000 2003 804.528 3,80 1.036 2006 4.059.392 17,67 7.000 12/2009 22.779.887 24,47 53.659 12/2010 26.784.035 03/2012 32.100.000 68.760 - 4.200.000 According to the survey of the market survey firm Internet Pando Networks (US), in 2012 Vietnam achieved an average rate connecting to Internet of 374 KBps (1 Byte equals to 8 bits), the fastest in South-East Asia, and was on the third place of Asia, after Korea (2.202 KBps) and Japan (1.364 KBps) (and after Russia, Taiwan and Hongkong). According to the report of Akamai, US Internet survey firm, at the end of 2011, Internet transfer rate in Vietnam reached about 1,7 Mbps, ranked 32/50 countries that to be surveyed and was lower than the average degree on the world (2,6 Mbps). Internet Service Providers (ISP) in Vietnam:  Vietnam Telecommunications Group - VNPT  General Corporation of Army Telecommunications - Viettel  FPT Corporation directly under Ministry of Science and Technology 8  NetNam directly under Institute of Information Technology - Vietnam Institute of Science and Technology  Join-stock Company of Saigon Post and Telecommunications Service - SPT  Hanoi Telecommunications Corporation  General Corporation of Multimedia Communications - VTC  Join-stock Company of Global Mobile Telecommunications (G-Tel)  Electricity Telecommunication Corporation - EVNTelecom  Vietnam Maritime Information Electronics Corporation - Vishiped  Computing and Data Transfer Corporation - VDC  Join-stock Company of Telecom Infrastructure CMC - CMC TI Internet in Vietnam today is managed by Vietnam Internet Center (VNNIC) that is a division directly under Ministry of Information and Communication. VNNIC was established in 28th April 2000 performing the following functions:  Manage, allocate, supervise and impulse the use of domain resource, address and Internet number sign of Vietnam  Give information, guide and total up on Internet  Join in international activities on Internet. (Source: http://en.wikipedia.org/wiki/Internet) 2.2. E-commerce E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangably. For online retail selling, the term e-tailing is sometimes used. E-commerce can be divided into: 9 • E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall" • The gathering and use of demographic data through Web contacts • Electronic Data Interchange (EDI), the business-to-business exchange of data • E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters) • Business-to-business buying and selling • The security of business transactions E-tailing or The Virtual Storefront and the Virtual Mall As a place for direct retail shopping, with its 24-hour availability, a global reach, the ability to interact and provide custom information and ordering, and multimedia prospects, the Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses. A number of businesses already report considerable success. As early as the middle of 1997, Dell Computers reported orders of a million dollars a day. By early 1999, projected e-commerce revenues for business were in the billions of dollars and the stocks of companies deemed most adept at ecommerce were skyrocketing. Although many so-called dotcom retailers disappeared in the economic shakeout of 2000, Web retailing at sites such as Amazon.com, CDNow.com, and CompudataOnline.com continues to grow. Market Research: In early 1999, it was widely recognized that because of the interactive nature of the Internet, companies could gather data about prospects and customers in unprecedented amounts -through site registration, questionnaires, and as part of taking orders. The issue of whether data was collected with the knowledge and permission of 10 market subjects had been raised. (Microsoft referred to its policy of data collection as "profiling" and a proposed standard has been developed that allows Internet users to decide who can have what personal information.) Electronic Data Interchange (EDI): EDI is the exchange of business data using an understood data format. It predates today's Internet. EDI involves data exchange among parties that know each other well and make arrangements for one-to-one (or point-to-point) connection, usually dial-up. EDI is expected to be replaced by one or more standard XML formats, such as ebXML. E-Mail, Fax, and Internet Telephony: E-commerce is also conducted through the more limited electronic forms of communication called e-mail, facsimile or fax, and the emerging use of telephone calls over the Internet. Most of this is business-to-business, with some companies attempting to use e-mail and fax for unsolicited ads (usually viewed as online junk mail or spam) to consumers and other business prospects. An increasing number of business Web sites offer e-mail newsletters for subscribers. A new trend is opt-in email in which Web users voluntarily sign up to receive e-mail, usually sponsored or containing ads, about product categories or other subjects they are interested in. Business-to-Business Buying and Selling: Thousands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information. The Security of Business Transactions: Security includes authenticating business transactors, controlling access to resources such as Web pages for registered or selected users, encrypting 11 communications, and, in general, ensuring the privacy and effectiveness of transactions. Among the most widely-used security technologies is the Secure Sockets Layer (SSL), which is built into both of the leading Web browsers. (Mark van Ketel and Tim D. Nelson) 2.4. E-Commerce Models. Creating an e-commerce solution mainly involves creating and deploying an e-commerce site. The first step in the development of an e-commerce site is to identify the e-commerce model. Depending on the parties involved in the transaction, e-commerce can be classified into 4 models. These are:  Business – to – Business (B2B) model  Business – to – Consumer (B2C) model  Consumer – to- Consumer (C2C) model  Consumer – to – Business (C2B) model Business-to-Business (B2B) Model The B2B model involves electronic transactions for ordering, purchasing, as well as other administrative tasks between houses. It includes trading goods, such as business subscriptions, professional services, manufacturing, and wholesale dealings. Sometimes in the B2B model, business may exist between virtual companies, neither of which may have any physical existence. In such cases, business is conducted only through the Internet. The advantages of the B2B model are:  It can efficiently maintain the movement of the supply chain and the manufacturing and procuring processes. 12  It can automate corporate processes to deliver the right products and services quickly and cost-effectively. The B2B model is predicted to become the largest value sector of the industry within a few years. This is said to be the fastest growing sector of e-commerce. Figure 2.2: B2B Business Model Figure 2.2: B2B Business Model Business-to-Consumer (B2C) Model The B2C model involves transactions between business organizations and consumers. It applies to any business organization that sells its products or services to consumers over the Internet. These sites display product information in an online catalog and store it in a database. The B2C model also includes services online banking, travel services, and health information. Fig.2:B2C Business Model Figure 2.3: B2C Business Model 13