The impact of human resource on corporate social responsibility of small and medium sized enterprises in ho chi minh city
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TOPIC: THE IMPACT OF HUMAN RESOURCE ON CORPORATE SOCIAL
RESPONSIBILITY OF SMALL AND MEDIUM-SIZED ENTERPRISES IN HO
CHI MINH CITY
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written by dichvuthuctap.com
TABLE OF CONTENTS
ABSTRACT.....................................................................................................................5
CHAPTER I: INTRODUCTION ....................................................................................6
1.1 Rationale of the study.............................................................................................6
1.2 Background of the study ........................................................................................7
1.3 Aims and objectives of study.................................................................................9
1.4 Scope of study ........................................................................................................9
1.5 Research question...................................................................................................9
1.6 Methods of the study..............................................................................................9
1.7 Contribution and significance of the research .....................................................10
CHAPTER 2: LITERATURE REVIEW ......................................................................11
2.1 Theoretical basis for small and medium enterprises ...........................................11
2.1.1 Small and medium enterprise concept...........................................................11
2.1.2The specificities of the SMEs.........................................................................12
2.2 Theoretical basis of human resources..................................................................13
2.2.1 The concept of human resources ...................................................................13
2.2.2 Human Resources in SMEs ...........................................................................15
2.2.3 Factors affecting human resources in SMEs .................................................16
2.3 Theoretical basis for Corporate social responsibility (CSR)...............................21
2.3.1 Defining CSR.................................................................................................21
2.3.2 CSR and SMEs...............................................................................................23
2.3.3 The relationship between Human resources (HR) and Corporate social
responsibility (CSR)................................................................................................24
2.4 Proposed research model and research hypotheses .............................................26
2.4.1 Research model..............................................................................................26
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2.4.2 Research hypotheses......................................................................................26
CHAPTER 3: RESEARCH METHODOLOGY...........................................................30
3.1 Research Methodology.........................................................................................30
3.1.1 Qualitative......................................................................................................30
3.1.2 Quantitative research .....................................................................................30
3.2. Building questionnaires and encoding scale.......................................................31
3.3 Methods of sampling and data collection ............................................................34
3.3.1 Methods of collecting primary data...............................................................34
3.3.2 Sample size ....................................................................................................34
3.4 Analyzing data plan..............................................................................................34
3.4.1 Reliability analysis by Cronbach’s alpha......................................................34
3.4.2 Exploratory Factor Analysis – EFA ..............................................................35
3.4.3 Regression analysis........................................................................................36
CHAPTER 4: RESULTS AND DISCUSSION............................................................37
4.1 Data description....................................................................................................37
4.2 Reliability analysis ...............................................................................................38
4.2.1 Testing the reliability of the scale “Organizational Structure”.....................38
4.2.2 Testing the reliability of the scale “Organizational Culture”........................39
4.2.3 Testing the reliability of the scale “Personnel Training and Promotion in
SMEs” .....................................................................................................................40
4.2.4 Testing the reliability of the scale “Leadership style” ..................................41
4.2.5 Testing the reliability of the scale “Human Resources in SMEs”................42
4.2.6 Testing the reliability of the scale “Corporate Social Responsibility of
SMEs” .....................................................................................................................43
4.3 Exploratory factor analysis...................................................................................44
4.3.1 EFA test results of the independent variable.................................................44
4.4.2 EFA test results of the dependent variable....................................................48
4.4 Regression analysis ..............................................................................................51
4.4.1 Pearson correlation analysis ..........................................................................51
4.4.2 Verify multivariate linear regression model..................................................53
4.5.3 Multiple regression equations and conclusions about the hypotheses..........57
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CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................59
5.1 Conclusion............................................................................................................59
5.2 Recommendation..................................................................................................59
5.2.1 Organizational Structure................................................................................59
5.2.2 Organizational Culture...................................................................................61
5.2.3 Personnel Training and Promotion in SMEs.................................................62
5.2.4 Leadership style .............................................................................................64
REFERENCE.................................................................................................................66
APPENDIX 1.................................................................................................................71
APPENDIX 2.................................................................................................................78
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ABSTRACT
This study is conducted to research the impact of human resources on the social
responsibility of small and medium enterprises in Ho Chi Minh City. Factors
constituting human resources considered in this study include: (1) Organizational
Structure; (2) Organizational Culture; (3) Personnel Training and Promotion in SMEs;
(4) Leadership style. To achieve the research objectives, research methods combining
qualitative research methods and quantitative research methods are applied. 05 hand-
to-hand interviews between researchers with 02 target groups of employees and leaders
in small and medium enterprises in Ho Chi Minh City. 350 valid surveys have been
collected. The research results have shown the factors Organizational Structure;
Organizational Culture; Personnel Training and Promotion in SMEs; Leadership style
has a significant impact on human resources, thereby indirectly affecting social
responsibility in small and medium enterprises in Ho Chi Minh City.
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CHAPTER I: INTRODUCTION
1.1 Rationale of the study
CSR has become a topic of serious concern and has been widely developed around the
world. Up to the time of this article being published, if we look up the words "corporate
social responsibility" in English on Google, we will see more than 20 million results
(not including the phrases about CSR in other languages). Lots of articles, research,
books, magazines, forums, websites of universities, scientific circles, NGOs,
businesses, newspapers and governments discuss this topic.
Currently, consumers in developed countries are not only interested in product quality
but also how companies produce that product, whether the goods are friendly to the
environment, the community, Is it humane and healthy or not ... Many movements to
protect consumers' interests and the environment have developed very strongly, such as
boycott movements carcinogenic additives aimed at companies producing monosodium
glutamate, and milk production companies; movement to boycott products using fur,
boycott products that exploit child labors, aimed at Nike or Gap; The movement to
demand fairness for workers to ensure safe working conditions and the purchase price
of raw materials of farmers in Third World countries ... Facing pressure from society,
most of the big companies took the initiative. Considering CSR as an important
corporate strategy. Many programs have been implemented such as saving energy,
reducing carbon emissions, using renewable materials, solar energy, improving water
resources, eradicating illiteracy, building schools, relief, support for disaster victims,
gender equality, labor safety, labor rights, fair wages, staff training and development ...
Some of the names that take the lead in activities such as Google, Intel, Unilever, Coca-
Cola, GE, Nokia, HSBC, Levi Strauss, GlaxoSmithKline, Bayer, Toyota, Sony, UTC,
Samsung, Gap, BP, ExxonMobil ... Currently, most of the multinational companies This
family has developed a CSR strategy and communicated with all employees around the
world. Benefits gained through specific CSR activities have been recognized. The CSR
strategy not only improves the company's image in the eyes of the public and local
people, but also helps the company to implement more favorable investment
procedures, increase labor productivity and sales revenue, improve reputation and
brand, attracting many good labors.
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Currently, many small and medium enterprises in Vietnam have begun to realize that
corporate social responsibility has become one of the indispensable requirements for
enterprises. Because, in the context of globalization and international integration, if
enterprises do not comply with social responsibility, they cannot access the world
market. A recent survey conducted by the Institute of Labor Science and Social Affairs
on 24 enterprises in the two industries of Footwear and Textile shows that, thanks to the
implementation of corporate social responsibility programs, the revenue of these
businesses increased by 25%, labor productivity also increased from 34.2 million VND
to 35.8 million VND/employee/year; proportion of exports increased from 94% to 97%.
Recognizing the importance and benefits of implementing social responsibility in the
context of globalization and international integration, in addition to the responsibility
to pay taxes to the state, a number of large Vietnamese enterprises have registered.
implementing social responsibility in the form of commitments to society in protecting
employees, creating the commitment and satisfaction of employees to the enterprise.
Human resource management activities are carried out in order to help enterprises limit
negative impacts and promote positive impacts on enterprises and society.
Therefore, the implementation of research on the impact of human resources on
corporate social responsibility (CSR) of small and medium enterprises is very
necessary. From the above reasons, the author decided to choose the topic “The impact
of Human Resource on Corporate Social Responsibility of Small and Medium-
sized Enterprises in Ho Chi Minh City” as the topic of my graduation thesis.
1.2 Background of the study
Corporate Social Responsibility (CSR) and Human Resource Management (HRM)
Studies have experienced an unprecedented explosion over the past decade. The
increase in research in this area has not only come from scientific researchers, but also
a growing interest in the business world (Denisi, 2014). In the analyzed documents,
there is no consensus on the definition of CSR (Amaeshi, 2007; Whitehouse, 2003). In
fact, it can be said that CSR is intangible, without dimensions, is cultural. CSR has
different meanings depending on the position of the person who explains it, or even the
company that practices it (Spence, 2007). The concept of CSR has evolved over time
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(Carroll, 1999) and varied by country and cultural background (Matten, 2008). In fact,
Dahlsrud (2008) published a paper synthesizing 37 different definitions of CSR,
concluding that although there are some agreements involved in defining aspects of
CSR, they are: social, economic and environmental, it is difficult to develop an
objective and global vision of CSR, mainly due to specific factors in the context and
ways of each company (Van Marrewijk, 2003).
Regarding to Human Resource Management, there are also many different definitions
and perspectives. An important first step in this problem is to clearly differentiate HRM
as a function or process from the organization's general management activities
(Kaufman, 2014). The HRM concept has been modeled over time and, like CSR, it
varies by region. The HRM purposes and definitions have been analyzed from various
perspectives, often based on different principles (Greenwood, 2013; Alvesson, 2009).
As Juan Herrera (2019) pointed out that CSR and HRM have evolved and interacted
with each other over time, linked by a series of binding factors. Gond et al. (2011) in
their research showed a linear relationship between human resources and corporate
social responsibility.
Guerci and Pedrini (2014) when doing their research to investigate the factors affecting
the social responsibility of companies in Italy showed that human resources have a
significant impact in the implementation of corporate social responsibility.
Juan Herrera (2019) in his study with the topic “Corporate Social Responsibility and
Human Resource Management: Towards Sustainable Business Organizations” showed
a remarkable linear relationship between human resource management and social
responsibility.
In Vietnam, many studies related to the investigation of factors affecting social
responsibility have been carried out. Chau Thi Le Duyen, Huynh Truong Tho (2015)
have examined the relationship between CSR, leadership and business performance of
enterprises. The results show that Leadership will have a positive impact on the
implementation of corporate CSR and CSR has a positive impact on business
performance of the enterprises. The author Nguyen Ngoc Thang (2010) has analyzed
more clearly the main factors of CSR. Thereby, the author suggested the steps to
integrate HR management activities with the implementation of CSR to help HR
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managers have an overview of methods and methods to apply to promote CSR in the
enterprises.
1.3 Aims and objectives of study
The study was conducted with the aim of investigating and discovering the impact of
human resources on corporate social responsibility (CSR) of SMEs in Ho Chi Minh
City.
1.4 Scope of study
➢ Spatial scope: Research is conducted within small and medium-sized enterprises
in Ho Chi Minh City
➢ Time scope: Research conducted to collect primary data from April 10, 2021 to
May 15, 2021.
➢ Survey respondents: Respondents are those who are working in small and
medium enterprises in Ho Chi Minh City.
1.5 Research question
To accomplish the proposed research objectives, the study focuses on clarifying the
following research questions:
(1) Does human resources affect the social responsibility of SMEs in Ho Chi Minh
City?
(2) What is the impact of human resources on the social responsibility of SMEs in
Ho Chi Minh City?
1.6 Methods of the study
Research method used by the author is a mixed research method including: (1)
Qualitative research and (2) Quantitative research.
Qualitative research to explore, adjust, supplement and complete the scale for the
proposed research model. Qualitative research is carried out through the following
steps: In-depth interviews to collect personal opinion, including 2 groups: Group 1
includes 05 currently working as employees at small and medium enterprises in Ho Chi
Minh City, group 02 includes 03 people who are in the leadership of some small and
medium enterprises in Ho Chi Minh City.
Quantitative research: After qualitative research, quantitative research will be
conducted. Data were collected through survey questionnaires and stored using Excel
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software and then analyzed through SPSS 16.0 software. The author conducted the scale
reliability test by Cronbach's Alpha coefficient, explored EFA factor analysis,
correlation analysis, multivariate regression analysis to determine the relationships of
factors in the proposed research model.
1.7 Contribution and significance of the research
This research topic contributes to the theoretical basis of studies related to human
resources and social responsibility of SMEs. Additionally, the study may serve as a
useful reference for authors when doing research on other aspects of CSR.
Research results of the topic provide administrators in small and medium enterprises
with factors of human resources that affect social responsibility in small and medium
enterprises. From there, it can help administrators to build human resource-related
strategies to improve CSR implementation in their enterprises.
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CHAPTER 2: LITERATURE REVIEW
2.1Theoretical basis for small and medium enterprises
2.1.1 Small and medium enterprise concept
Micro, small and medium enterprises, commonly known as small and medium
enterprises, are small-sized enterprises in terms of capital, labor or turnover. Small and
medium enterprises can be divided into three categories based on their size: micro
enterprises, small enterprises and medium enterprises. According to the World Bank
Group's criteria, a microenterprise is an enterprise with a number of employees less than
10 people, a small enterprise with a number of employees from 10 to less than 200
people and a capital of 20 billion or less. medium enterprises have from 200 to 300
employees with capital of 20 to 100 billion. In each country, people have their own
criteria for defining small and medium enterprises in their own country. In Vietnam,
according to Article 6 of the Government's Decree No. 39/2018/ND-CP dated March
11, 2018, stipulates: 1. Micro enterprises in the fields of agriculture, forestry, fisheries
and industry and construction have an average annual number of employees
participating in social insurance not exceeding 10 people and total annual turnover not
more than 3 billion VND or total capital not exceeding 3 billion VND. A
microenterprise in the trade and service sector has an average annual number of
employees participating in social insurance not more than 10 people and total annual
revenue of no more than VND 10 billion or total capital of no more than 3 billion VND.
2. Small enterprises in the fields of agriculture, forestry, fisheries and industry and
construction whose average number of employees participating in social insurance does
not exceed 100 people per year and total annual turnover does not exceed 50 billion
VND or total capital is not more than 20 billion VND, but not a micro enterprise as
prescribed in Clause 1 of this Article. A small enterprise in the trade and service sector
has an average annual number of employees participating in social insurance not
exceeding 50 people and total annual revenue of no more than VND 100 billion or total
capital of no more than 50 billion VND, but is not a micro enterprise as prescribed in
Clause 1 of this Article. 3. Medium enterprises in agriculture, forestry, fisheries and
industry and construction with an average annual number of employees participating in
social insurance not exceeding 200 and total annual turnover not exceeding 200 billion
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VND or total capital source not exceeding 100 billion VND, but not being small or
micro-enterprise as prescribed in Clauses 1 and 2 of this Article. A medium-sized
enterprise in the trade and service sector has an average annual number of employees
participating in social insurance not exceeding 100 and the total revenue of the year
does not exceed 300 billion VND or the total capital source does not exceed 100 billion
VND, but is not a micro enterprise or a small enterprise as prescribed in Clauses 1 and
2 of this Article.
2.1.2 The specificities of the SMEs
Micro-enterprises refer to enterprises with less than 10 employees and annual turnover
and total balance sheet not exceeding 2 million euros. Small enterprises have fewer than
50 employees, annual sales do not exceed 10 million euros, and the total annual balance
sheet exceeds 10 million euros. Medium-sized enterprises employ less than 250 people,
have an annual turnover of no more than 50 million euros, and have a total annual
balance sheet of more than 43 million euros (European Commission, 2003). Although
SMEs have received little attention in the national media (Storey, 1994) and have little
impact on individuals, they still account for a considerable part of the European
economy, accounting for 99.8% of Europe-19 are SMEs, employing nearly 70% of the
total labor force (European Commission, 2003).
The heterogeneity of small and medium-sized enterprises in terms of scale, resources,
management style and personal relationship (Jenkins, 2004) makes it difficult for them
to adopt the practice of large enterprises. The fundamental difference between large and
small firms is that ownership and management rights are not separated to the same
extent in small firms as in large TNCs (Spence and Rutherfoord, 2000). Control is still
in the hands of owners, which probably enables them to make personal choices about
the allocation of resources (Spence, 1999). The relationship with local authorities is far
closer and more direct than the problems and viewpoints in management, Volume 9,
No.4, Top 91 Enterprises in 2011 (Longo et al., 2005). Therefore, SMEs are particularly
sensitive to issues surrounding social responsibility. Small entrepreneurs "experience
first-hand", as well as his family and employees, the territory he operates, and share
results and worries with them. In addition, the acceptance of corporate social
responsibility is largely due to the personal attitude of the owner/manager (Perez-
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Sanchez, 2003). This is a theme mentioned in the document on SMEs and corporate
social responsibility (Davies and Crane, 2010).
Moreover, compared with large enterprises, small and medium-sized enterprises are
facing some unique problems. For example, SMEs often face tensions just to survive,
serve local rather than global markets, and cope with less stakeholder pressure
(Massoud, 2010). There are many problems in SMEs' access to human resources, such
as the reduction of selection groups, the lack of resources to pay competitive wages, use
professional recruitment or invest in training (De Kok and Uhlaner, 2001)-all of which
hinder the organization's ability to implement its strategy. SME corporate social
responsibility motives and initiatives often take different forms than those of large
companies (Jenkins, 2004; Kusyk and Lozano, 2007; Lepoutre and Heene, 2006;
Spence, 2007; Vives, 2006).
They use less CSR tools, have fewer formal CSR strategies, have less capacity to report
on CSR activities, and have fewer resources to invest in CSR activities than larger
companies (Spence et al., 2000; Graafland et al., 2003; Perrini et al., 2007). SMEs are
more likely to engage in CSR in local communities by supporting local activities,
creating jobs (Jenkins, 2006), generating growth (Wennekers and Thurik, 1999) and
providing innovation (Jenkins, 2006), although many of these activities remain purely
CSR activities.
2.2Theoretical basis of human resources
2.2.1 The concept of human resources
"Human resources" or "human resources", is the concept formed during research,
considering people as a resource, as the driving force of Development: Recent
international and domestic research projects have mentioned the concept of human
resources with different perspectives.
According to the United Nations definition, “Human resource is the skill level,
the knowledge and capacity of the actual or potential human life as a whole for socio-
economic development within copper”.
The management and use of human resources is much more difficult than other
resources because human is a biological - social entity, very sensitive to the interactions
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of people. natural, economic, and social relationships take place in their living
environment.
According to David Begg: “Human resource is the whole professional process
that people accumulate, it is highly appreciated for its potential to bring income in the
future. Like physical resources, human resources are the results of investment in the
past with the aim of bringing income in the future”.
According to Prof. Dr. Pham Minh Hac (2001): “Human resource is the sum of
the labor potentials of a country or a locality, ie the labor force is prepared (at different
levels) ready to participate. a certain labor job, that is the employees with skills (or
abilities in general), by way of meeting the requirements of the labor structure
transformation mechanism, the economic structure towards industrialization. , OS ”.
According to Dr. Nguyen Huu Dung (2004): “Human resources are considered
in terms of social capacity and social dynamism. In the first angle, the human resource
is the source of labor force to the society, is the most important part of the population,
capable of creating material and spiritual values for society. Considering human
resources in the form of potential to help orient human resource development to ensure
continuously improving the social capacity of human resources through education,
training and health care. However, if you just stop at the potential form, it is not enough.
To promote that potential, it is necessary to transform human resources into a dynamic
state into human capital, that is to improve people's social dynamism through policies,
institutions and fully unleash human potential. A human with infinite potential, if free
to develop, to create and to dedicate, to be paid the right value of labor, then that infinite
potential is exploited and promoted to become a huge source of capital”.
Thus, the above concepts show that human resources are not merely the existing
and available workforce, but also include the physical, intellectual and spiritual strength
of individuals in a community, a country that is brought into or able to be used in social
development.
The concept of "human resources" is understood as the concept of "human
resources". When used as a management tool to implement socio-economic
development strategies, human resources include the working age population, with the
ability to work and people outside the working age. Labor involving labor - also known
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as the source of labor. The part of the workforce that includes all people from the
working age or older with the ability and needs to work is called the labor force.
Therefore, considering different angles, there may be different concepts of
human resources, but these concepts all agree on the basic contents: human resources
is the source of labor force for society. Human as the constituent element of the leading
production force, the fundamental resource and the infinite resource of development
cannot be considered merely in terms of quantity or quality. it's a combination of both
quantity and quality; Not only the part of the population in the working age but also the
generations of people with potentials and strengths in natural reform and social reform.
Thus, it can be defined: Human resource is the total quantity and quality of a
person with a combination of mental, physical and moral qualities - the spirit creates
the capacity that I myself. people and society have mobilized, are and will be mobilized
into the process of creative labor for social development and progress.
2.2.2 Human Resources in SMEs
Newman et al. (2014) Tests the human resources factors of small and medium-sized
enterprises in China, and finds that external organizations, enterprise size, age and
growth direction are related to the best human resources practices. Bacon (2014)
inspected small and medium-sized enterprises in Britain in 2004 from the perspective
of personnel, and found that small and medium-sized enterprises have higher
requirements for highly skilled workers than other enterprises. Sheehan (2014) found
the relationship between human resources management and the performance of small
and medium-sized enterprises in the UK.
Fran ç ois (2010) emphasized that human capital affects the development of
international business globalization. La Fuendi Al. It was reported (2011) that human
capital issues supported employment growth in Romanian SMEs. (Hill and Stewart,
2004) discusses the characteristics of SMEs and how these characteristics may affect
the personnel management policies and practices developed in three British SMEs. Redt
Al. (2001) reviewed the results of a survey that studied the relationship between human
resource management best practices and family and non-family businesses. Redt Al.
(2001) By studying ten small and medium-sized enterprises in Malaysia, the importance
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of paying attention to the central role of HRM in achieving quality objectives was
pointed out.
Cunningham et al. This paper reviews and comments on the role of HRM practice of
small and medium-sized enterprises in China in 2007, and puts forward that the
combination of China and the West may be the best way to develop. Barrett and his
partner. (2007) 600 Australian SMEs were tested and it was suggested that SMEs
seeking growth should focus on formal HRM practices through their business plans.
Sutton (2015) reported that according to an exploratory study of British tourism SMEs,
many SMEs did not realize the role of HRM practice in the process of continuous
improvement. Carol et al. (2010) discusses the role of IT adoption by Canadian SMEs
and its relationship with HRM practices.
2.2.3 Factors affecting human resources in SMEs
2.2.3.1Organizational Structure
Some benefits of evaluating the organizational structure of SMEs include adjusting and
confirming the effectiveness of the organizational structure. Two commonly used tests
to evaluate the performance of organizational structure of small and medium-sized
enterprises are based on the suitability of design and good design principles. The
relevance of the design ensures that the organizational structure of small and medium-
sized enterprises meets the purpose and helps to achieve the enterprise goals. It includes
social system value test, strategy test (product-market strategy), personnel test and
feasibility test (constraint). Good design principles include expert culture test
(specialization principle), difficulty integration test (coordination principle),
redundancy level test (knowledge and ability principle), responsibility test (control and
commitment principle) and flexibility test (innovation and adaptation principle).
Generally, an organizational structure is a hierarchical arrangement of authority lines,
communications, rights and responsibilities of an organization. It assesses how to define
clear roles and responsibilities, and the company's understanding of the personnel
needed to carry out these tasks effectively. The organizational structure is illustrated by
the organization chart, which defines how to allocate, control and coordinate roles,
powers and responsibilities, and how information flows between different management
levels.
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The structure depends on the organization's goals and strategies. Gibson et al. (2015)
Use mathematical simulation models to study the relationship between economic
efficiency and organizational structure, organizational scale and efficiency. Aldama et
al. (2009) Using a questionnaire survey, the relationship between organizational
structure and efficiency was examined through 40 dimensions among Chilean
companies. They found that the social responsibility function of enterprises is closely
related to the organizational structure and the number of employees.
Atkinson et al. (2004) examined the nature of employment relationship in 102 American
SMEs to improve the workplace, and found that workers in SMEs enjoyed all legal
rights without guarantee. Foster et al. (2009) examined the impact of organizational
structure on team performance. Lapton et al. (2014) Discussed the function of Worley
et al (2015)’s knowledge transfer organizational structure, discussed the effect of the
organizational structure and the success of Lean implementation in an American
electronics manufacturer, and pointed out the positive impact on problem-solving
ability. León et al. (2011) examined the impact of organizational structure on the
conceptualization, improvement and development of learning organizations.
2.2.3.2 Organizational Culture
Organizational culture can be defined as the values and beliefs shared by members of
an organization, as well as the way they connect with each other compared with other
organizations, their work and the outside world. Bérard et al. (2010) Tests the impact
of culture on the capabilities of 123 small and medium-sized enterprises in 14 countries.
It shows that international working relations and cultural values have a direct impact on
environmental scanning behavior and an indirect impact on intellectual property
protection capabilities. Silverthorne (2004) reported that OC affects job satisfaction in
Taiwan enterprises. Lee et al. (2004) investigated the relationship between culture and
organizational performance among Singapore companies. Their work shows the power
of culture in influencing the operation of organizations.
Yazici et al. (2007) investigated OC and highlighted the main and dominant
characteristics of success. They also put forward five aspects of culture. Yazici et al.
(2007) investigated the impact of OC on job satisfaction in American enterprises,
concluded that job satisfaction is positively correlated with clan culture, studied the
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impact of effective organizational leadership performance, and found the correlation
between strong culture and long-term organizational performance.
Valencia et al. (2010) examined the relationship between organizational culture (oc)
and product innovation and identified oc as a key factor for Spanish companies to
enhance innovation and develop new products or services. Fortado et al. (2012)
describes and criticizes various aspects of organizational culture-interpersonal
relationships, thinking software, process consultation and appreciation survey-and
concludes that the meaning of culture has changed with the passage of time.
Alonderiene et al. (2010) By sampling 173 managers of Lithuanian small and medium-
sized enterprises, this paper examines the relationship between managers' informal
learning and their job satisfaction. It is found that there is a strong correlation between
these factors and their factors affecting job satisfaction.
Asah et al. (2015) investigated the impact of managers' motivation, personal values and
management skills on the performance of South African SMEs, and found that there is
a positive relationship between these factors.
2.2.3.3 Personnel Training and Promotion in SMEs (PTP)
Small and medium-sized enterprises often lack sufficient knowledge and experience in
human resource management practice. Most small and medium-sized enterprises
oppose providing adequate training, medical care and welfare facilities for their
employees because of the increased cost. Small and medium-sized enterprises are also
less likely to receive management training than large enterprises, because of financial
constraints and information gaps, and few people regard training as a strategic tool.
Improving labor skills is an important issue in the development of small and medium-
sized enterprises, especially the skills of managers directly affect the skills of workers
and the performance of small and medium-sized enterprises. Among the various types
of courses and trainings that small and medium-sized enterprises can and must provide
are quality assurance, software engineering, technical writing, documents and
processes, security, funded projects, innovation and commercialization, and
configuration management.
19 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Panagiotakopoulos (2011) reported that SME owners are not aware of the role of worker
training in improving skills. One proposal is to force owners to obtain training programs
by linking training with funds.
Robertson (2003) emphasized the role of Governments in encouraging training to
improve the skills of owners and managers of SMEs to help provide impetus for the
development of SMEs. Al-Madhoun (2006) discussed the obstacles and weaknesses
that hinder the development and training process of Palestinian SMEs. The study found
the relationship between the development and training process of SMEs and the
obstacles and weaknesses of SMEs.
McPherson et al. (2007) studied the main factors affecting the training approaches of
198 manufacturing SMEs. Research shows that formal training is the foundation of
British growth enterprises. Thassanabanjong et al. (2009) examines the factors that
reduce the gap and methods of investment in training in 438 small and medium-sized
enterprises in Thailand. The research points out that there is a lack of training for owners
and managers of small and medium-sized enterprises.
Jones (2005) reviewed the increase in SME training in Australia. The research pointed
out that the main reasons for the increase are changes in production technology, product
improvement, process technology improvement and the resulting productivity increase.
Zhou et al. This study examined the impact of training on job satisfaction in Australian
companies, and found that job satisfaction is influenced by the company's working
environment and values.
Butler et al. (2007) discusses the role of knowledge transfer in developing individual
skills and improving the efficiency and innovation of SMEs in the United Kingdom,
with an emphasis on related change management issues. McPherson (2007) analyzed
the impact of development activities on the performance of British manufacturing
SMEs. He pointed out that formal training is more effective than informal training in
improving the performance of SMEs.
Gilman et al. (2015) The report said that research on human resources practices in small
and medium-sized enterprises has not been theorized and lacks. They also emphasized
some differences between practical research and theoretical research. Many other
studies have focused on HRM practices in SMEs (Moore, 2006; Marlow, 2002;
20 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Wilkison, 2007; Guest, 2011). Other studies focus on the theoretical perspective of
human resource management in small and medium-sized enterprises (DenHartog, 2004;
Paauwe, 2003; Wirght, 1992).
2.2.3.4 Leadership Style
Great leadership style will empower to solve the problem of confrontation with
reasonable implementation. Leadership helps administrators communicate ideas and
feelings of suggestions and choices to employees. It also empowers workers to
communicate their reactions, views and problems to management. Through possible
two-way communication, the board of directors can expect some pioneers and workers
to become enthusiastic supporters and clear wishes (Garavan, 2012).
Among the leadership types, Brewster, Carey and Dowling (2013) distinguish the
leadership style of free enterprise. They say that this style is considered to require
coordinated representative supervision, while ignoring the standard input to the people
supervised by it. Experienced, well-prepared representatives who require little
supervision belong to the leadership style of liberal enterprises. In any case, not all
representations have those attributes. The corporate style of freelancers will not produce
the leadership or supervision efforts of directors, which may encourage the poor and
uncontrolled generation and increase costs. Autocratic leadership style allows leaders
to solve their choices alone without the contribution of others. Participatory style is
often called fair leadership style. Participatory leaders appreciate the contributions of
colleagues and collaborators, but the task of solving a final choice falls on participatory
pioneers. Participatory leadership supports workers' determination because
representation complements the basic leadership process. This makes them feel that
their assumptions are important. When an organization needs to implement
improvement within the association, participatory leadership style enables employees
to effectively recognize change because they think they are always involved. This style
solves the difficulty that organizations need to solve their choices in a short time
(Akanji, 2015).
In the value-based style, the supervisor who uses the value-based leadership style will
get certain tasks to perform, and reward or discipline colleagues from the perspective
of execution. Managers and colleagues jointly set predetermined goals, and
21 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
representatives agree to implement them under the patience and leadership of
supervisors to achieve these goals. Change; Transformational leadership style is based
on a high number of topologies from governance to meeting goals. Pioneers persuaded
representatives to improve profitability and efficiency through topological structure and
high understanding. This leadership style requires governance to contribute to the
achievement of goals (Chiaburu & Tekleab, 2013).
Akanji (2015) also said that value-based pioneers take turns to participate in a trading
process and provide remuneration to subordinates in exchange for achieving specific
goals and fulfilling predetermined commitments. Although value-based leadership,
Reasonable attention to specific goals and reward-based solutions are important and
attractive, but transitional leadership from interest to emotional state, for example, pride
in working with specific administrators, has expanded the scope, i.e. increased the level
of return, completion and viability related to leadership transition.
Havenga (2012) analyzed the leadership models of eight countries and found obvious
comparisons in social measures of leadership behavior, such as Hofstede's power
distance, uncertainty avoidance and individualism. Because the quality circle is highly
dependent on the dynamic correlation of all individuals, there is hesitation in
distinguishing it from the dominant quality circle and other regulatory styles with less
participation. Theoretical articles that tend to link individualism and transformative
leadership. In leadership, basic leadership is a complex and multidimensional problem.
As Rahim (2011) guarantees, although individuals can clearly predict that expanded
experts will make decisions, they may not be sure of the full and branch meanings of
experts. When the responsibility for the organization is widely entrusted to workers, the
desire to contribute to basic leadership often appears. The desire of privilege is
interested in the choice deeply established in the belief of ownership, and has
representation through expansion.
2.3Theoretical basis for Corporate social responsibility (CSR)
2.3.1 Defining CSR
Although corporate social responsibility has become a new topic of research in recent
decades, there is a lot of theory surrounding this topic. There are many theoretical and
experimental studies, but there is no consistent concept of CSR. Wood (2010) argues
22 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
that CSR is difficult to define, with different subjects seeing CSR differently. Each
industry, organization, and government see CSR from its own perspectives and
perspectives, from which there are many different definitions of corporate CSR. Despite
the lack of a coherent definition, all definitions suggest that a company should meet
social expectations when planning environmental management strategies (Gossling and
Vocht, 2007).
In the 1930s, in the Harvard Law Review, the issue of CSR was debated focusing on
managerial responsibility to society (Dodd, 1932). This shows that CSR is in the field
of governance, aiming to emphasize the meaning, mission and expectations from CSR
as well as its impact on the company's status. Then, the first CSR word that appeared in
Bowen's "Social Reponsibilities of the Businessmen" (1953) states that CSR is the
business operator's obligation to propose and enforce Policies that do not prejudice the
rights and interests of others.
Votaw (1972) emphasizes that the term CSR means locally responsible company where
it is operating, but the term is not entirely the same for different organizations. A
definition of corporate social responsibility that has been chosen by many studies is that
of Carroll (1979, 1991) “Social responsibility is all economic, legal, ethical and
philanthropic issues. of an organization that society expects of each certain moment”.
This definition is widely used in social responsibility studies, depending on which
organization the manager can choose from among the four levels above.
Another common European Commission definition of corporate social responsibility
(2001) states that firms integrate social and environmental concerns into their business
operations - yes interaction with stakeholders on a voluntary basis. In 2011, the 2011-
2014 CSR reform strategy introduced a new framework, expanding the scope and
aspects of CSR, covering at least human rights, labor and employment (training,
opportunity diversification, gender equality and worker health, corporate welfare),
environmental issues (such as biodiversity, climate change, efficient resource use,
umbrella prevention Contamination), anti-bribery and corruption. Community
participation and social development assistance, ensuring the integration of disabled
people and protecting the interests of consumers are also an integral part of CSR. The
European Commission considers the promotion of CSR and environmental protection
23 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
through supply chains, responsibility for non-financial disclosure of information,
innovation of tax governance (improved transparency, exchange of information tax fair
competition) are important ways to implement CSR strategy.
According to Stakeholder theory, Hopkins (2007) emphasizes that CSR influences
responsible behaviors with stakeholders inside and outside the business. In other words,
the purpose of CSR is to create an increasingly high standard of living while preserving
company interests for all stakeholders. As analyzed above, CSR is a broad concept and
is described from the point of view of each researcher, depending on the research
context (Dahlsrud, 2008). Therefore, each scholar must choose which CSR concept to
use in accordance with the actual conditions, thereby giving out reasonable strategies,
namely focusing on five aspects: stakeholders, social, economic, voluntary and the
environment.
2.3.2 CSR and SMEs
Some empirical studies have been conducted to investigate the cognition of CSR
concept by small and medium-sized enterprises. Sweeney (2007) found various
definitions of CSR offered by small and medium-sized enterprises in Ireland. This
seems to be correct 'The term means something, but it is not always the same for
everyone' (Zenisek, 1979). However, although there is no widely accepted definition,
which is consistent with the literature that corporate social responsibility can be
explained most realistically by referring to stakeholder theory (VOS, 2003), the
companies participating in this study tend to define corporate social responsibility by
referring to diversified stakeholder responsibilities. The wider community is usually
regarded as an important stakeholder.
Obviously, not all respondents use the word CSR when dealing with topics, and some
people think that it may not be the most appropriate term to represent CSR activities
and ideas (Sweeney, 2007). They tend to vaguely describe CSR as doing business
responsibly.
In addition, in a study by Jenkin (2006), although some companies said it was difficult
to understand the concept of CSR, they could all define its specific meaning in the
context of the company. Corporate social responsibility is considered as a "fully
inclusive" idea to understand the impact of business and have a positive impact on many
24 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
stakeholders through business decisions made. The main stakeholders are employees,
customers and suppliers, shareholders, communities and environment.
While discussing CSR as a concept, some common topics have emerged. Corporate
social responsibility must not be an external factor, but must be incorporated into every
element of the enterprise. Corporate social responsibility is about'resetting something
'above and beyond what is owed to shareholders and providing jobs. Corporate social
responsibility is synonymous with sustainability, which is defined as balancing social,
economic and environmental needs. Corporate social responsibility is about owning the
characteristics and values of a company. Emotional language is often used when
determining CSR; Terms such as' What to do 'and words such as pride, care,
commitment, honesty, encouragement and kindness.
Enterprises usually do not use the term internal CSR to describe their activities, but
usually define it informally and decompose it into environmental management,
community participation and work-life balance; Although CSR is used when talking to
the outside world. Staff usually know the meaning of this word, but once again it is not
used normally. Although all companies have practiced CSR for some years, most of
them only realized that their behavior can be called CSR in the past year or two.
2.3.3 The relationship between Human resources (HR) and Corporate
social responsibility (CSR)
"Human resource management is a moral capital activity, the core of which is related
to human treatment" (Greenwood, 2013, p. 355). Human resource management raises
issues of employee rights, human dignity and social justice that may create moral
dilemmas and tensions for human resource managers and other managers, especially in
a small enterprise that relies on a few people, who usually work together. Human
resources functions in small and medium-sized enterprises (SME) can be performed by
people other than human resources experts. For many small and medium-sized
enterprises, HRM is not the most important part of their business (Bacon & Hoque,
2005), so there is no guarantee of employees specializing in this role. Then, the owner,
executive or manager will play the role of HR expert and allow CSR in their company.
Without expertise, small and medium-sized enterprises often do not use the 'language'
of corporate social responsibility (Baumann-Pauly et al., 2013). Corporate social
25 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
responsibility of such companies is usually carried out informally (Santos, 2011) and
on a special basis (Graafland et al., 2013). How SMEs engage in CSR activities also
often depends on the values and principles of the founder/owner of the company
(Heugens, Kaptein & van Oosterhout, 2008). Does this mean that SMEs have not taken
socially responsible actions? According to Perini and others. (2007), small and medium-
sized enterprises (SMEs); They just don't call it CSR or don't know they executed them.
It may also be the case. Lund-Thomsen et al. (2014) warned that efforts to formalize,
certify and report corporate social responsibility are usually counterproductive.
Consistent with this, Jeppesen et al. (2012) believes that it is wrong to focus on formal
corporate social responsibility, while ignoring the importance of informal corporate
social responsibility practices that often occur in small and medium-sized enterprises.
The term ‘socially responsible HRM’, SRHRM, is considered by some to be 'key to
enhancing employee commitment, thus improving employee performance and
ultimately creating a competitive advantage' (Lechuga Sancho et al., 2018, p. 1233).
BarrenaMartínez et al. (2017, p. 22) list eight socially responsible human resources
practices that can be implemented internally to improve human resources, a sense of
fairness and openness, and to support workplace well-being based on positive values:
✓ Attract and retain employees.
✓ Ongoing training and development
✓ Employment relationship management
✓ Communication, transparency and social dialogue.
✓ Diversity and equality of opportunities
✓ Fair pay and social benefits.
✓ Prevention, health and safety in the workplace. Work-family balance.
In order to achieve organizational goals, companies must manage their resources and
capabilities in the most effective way possible. Human resources literature proves the
importance of appropriate human resources management strategies to achieve
organizational goals (Appelbaun et al., 2001). Therefore, when the social responsibility
of an organization is embodied in economic, social and environmental goals, human
resource management should be oriented to achieve these goals (Cooke, 2010). ISO
26000 Social Responsibility Standard states that "the goal of social responsibility is to
26 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
H1
H2
H3
H4
H5
promote sustainable development". Similarly, the European Union "encourages the
private sector to contribute to the achievement of social and environmental goals,
thereby promoting equitable and sustainable growth and protecting social rights"
(European Commission, 2016, p. 11). In this sense, sustainable development is
considered as "the development that meets the current needs without damaging the
ability of future generations to meet their own needs" (World Commission on
Environment and Development, 1987, p. 23). For companies, sustainable development
is expressed in the sustainability of companies, that is, "business methods that create
lasting value for shareholders by seizing opportunities and managing risks brought
about by economic, environmental and social development" (Sustainability Yearbook,
2008). More and more willing to let the largest companies demonstrate their
commitment to corporate sustainability because the global community is more sensitive
(Ehnert, 2016).
2.4Proposed research model and research hypotheses
2.4.1 Research model
On the basis of the theory and previous studies, the researcher proposed the specific
research model as follows:
Figure 3. 1. Proposed research model
2.4.2 Research hypotheses
➢ Organizational Structure
Structure is a whole set of routes, in which it breaks down its work into specific errands,
and then completes the coordination between them. Goris (2009), Atkinson and others
Organizational Structure
Organizational Culture
Personnel Training and
Promotion in SMEs
Leadership Style
Human
Resources in
SMEs
Corporate
Social
Responsibility
of SMEs
27 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
suggest authoritative structures as a way for governance to achieve its goals. (2004)
Examined the nature of employment relationships in 102 United States SMEs to
improve the workplace and found that SME workers could not be guaranteed all legal
rights. Foster et al. (2009) examined the impact of organizational structure on team
performance. Lupton et al. (2014) discussed the role of organizational structure in
knowledge transfer. Worley et al. (2015) discussed the impact of organizational
structure on the success of lean implementation by US electronics manufacturers and
pointed out the positive impact on problem-solving ability. León et al. (2011) examined
the impact of organizational structure on the conceptualization, improvement and
development of learning organizations. On the basis of the above arguments, hypothesis
1 is formed of the study.
H1: Organizational Structure has a positive impact on human resource management
in small and medium enterprises in Ho Chi Minh City.
➢ Organizational Culture
Organizational culture is a concrete collection of qualities and standards loved by
individuals and collectives within the association, and controls the way they
communicate with each other and with external partners of the association. It is an
arrangement of shared mental doubts that guides clarification and operates in links by
describing behaviors suitable for different situations. While the lifestyle of so many
representative investigators is enthusiastic, skilled and rational, when implementing the
strategic plan of human resources.
Valencia et al. (2010) examined the relations between organizational culture (OC) and
product innovation and identified OC as a key factor for Spanish companies to enhance
innovation and develop new products or services. Fortado et al. (2012) described and
criticized various aspects of organizational culture-interpersonal relationships, thinking
software, process counseling and appreciation surveys-and concluded that the meaning
of culture has changed over time. Alonderiene et al. (2010) tested the relationship
between informal learning and job satisfaction of managers through a sample survey of
173 managers in Lithuanian SMEs. It is found that there is a strong correlation between
these factors and their factors affecting job satisfaction. On the basis of the above
arguments, hypothesis 2 is formed of the study.
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H2: Organizational Culture has a positive impact on human resource management
in small and medium enterprises in Ho Chi Minh City.
➢ Personnel Training and Promotion in SMEs
Thassanabanjong et al. (2009) examined the factors that narrow the gap in training and
methodological investment among 438 SMEs in Thailand. The research points out that
there is a lack of training for owners and managers of small and medium-sized
enterprises.
Jones (2005) reviewed the increase in SME training in Australia. The research pointed
out that the main reasons for the increase are changes in production technology, product
improvement, process technology improvement and the resulting productivity increase.
Choo et al. (2007) examined the impact of training on job satisfaction of employees in
Australian companies, and found that job satisfaction is influenced by working
environment and company values. On the basis of the above arguments, hypothesis 3 is
formed of the study.
H3: Personnel Training and Promotion has a positive impact on human resource
management in small and medium enterprises in Ho Chi Minh City.
➢ Leadership Style
Leadership style encourages creativity, innovation, discussion and information to
encourage and improve the overall communication of the team. Reputation is the
foundation of leadership, and employees hope that leaders are honest, inspiring, capable
and enterprising. A reliable leader must be regarded as a person with profound
knowledge and moral qualities. Trust fosters a cooperative and collaborative
relationship, in which employees are responsible for voluntarily accomplishing work-
related goals. In order for trust to exist, there must be trust between leaders and
followers. Among the leadership types, Brewster, Carey and Dowling (2013)
distinguish the leadership style of free enterprise. They say that this style is considered
to require coordinated representative supervision, while ignoring the standard input to
the people supervised by it. Experienced, well-prepared representatives who require
little supervision belong to the leadership style of liberal enterprises. In any case, not
all representations have those attributes. The corporate style of freelancers will not
produce the leadership or supervision efforts of directors, which may encourage the
29 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
poor and uncontrolled generation and increase costs. On the basis of the above
arguments, hypothesis 3 is formed of the study.
H4: Leadership Style has a positive impact on human resource management in
small and medium enterprises in Ho Chi Minh City.
➢ The impact of Human Resource on Corporate Social Responsibility of Small
and Medium-sized Enterprises in Ho Chi Minh City
According to Greenwood (2013, p. 355), human resource management is a kind of
moral capital activity, and its basic core is related to the treatment of people. Human
resource management raises issues of employee rights, human dignity and social justice
that may create moral dilemmas and tensions for human resource managers and other
managers, especially in a small business that relies on a few people, who usually work
together. Human resources functions in small and medium-sized enterprises (SME) can
be performed by people other than human resources experts. For many small and
medium-sized enterprises, hrm is not the most important part of their business (bacon
& hoque, 2005), so there is no guarantee of employees specializing in this role. Then,
the owner, executive or manager will play the role of HR expert and allow CSR in their
company. On the basis of the above arguments, hypothesis 3 is formed of the study.
H5: Human Resource has a positive impact on Corporate Social Responsibility in
SMEs in Ho Chi Minh City
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Research Methodology
Research method used by the author is a mixed research method including: (1)
Qualitative research and (2) Quantitative research.
3.1.1 Qualitative
Qualitative research to explore, adjust, supplement and complete the scale for the
proposed research model. Qualitative research is carried out through the following
steps: In-depth interviews to collect personal opinion, including 2 groups: Group 1
includes 05 currently working as employees at small and medium enterprises in Ho Chi
Minh City, group 02 includes 03 people who are in the leadership of some small and
medium enterprises in Ho Chi Minh City.
Interviews were conducted for each person and duration of each interview lasted 30
minutes with the following specific steps.
(1) Introduce the purpose and meaning of the interview.
(2) Introduce a research model on the impact of human resources on social
responsibility in small and medium enterprises in Ho Chi Minh City and explain in
detail each factor.
(3) Use open-ended questionnaires and ask interviewees to comment on elements of the
proposed research model on the basis of their own business practices and their
assessment of relevance model and scale factors in his tissue.
(4) Summarize the comments.
The results of ten in-depth interviews were summarized, selected and recorded by the
author of many people.
(In-depth interview outline is detailed in Appendix 1).
3.1.2 Quantitative research
After qualitative research, quantitative research will be conducted. Data were collected
through survey questionnaires and stored using Excel software and then analyzed
through SPSS 16.0 software. The author conducted the scale reliability test by
Cronbach's Alpha coefficient, explored EFA factor analysis, correlation analysis,
multivariate regression analysis to determine the relationships of factors in the proposed
research model.
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3.2. Building questionnaires and encoding scale
After synthesizing documents and opinions from group discussion results, the
researcher has drawn four factors that affect human resource management activities in
small and medium enterprises in Ho Chi Minh City. including: (1) Organizational
Structure; (2) Organizational Culture; (3) Personnel Training and Promotion in SMEs;
(4) Leadership style
Below, the researcher builds and encodes the scales for the above factors with specific
observed variables as follows:
Table 3. 1. Scale coding
Component
Name
Encode Scale References
Organizational
Structure
OS_1
Enterprises clearly define the
functions, descriptions, powers
and responsibilities for each
position
Atkinson et al.
(2004)
Fosteret al.
(2009)
Luptonet al.
(2014)
OS_2 Management can make employees
feel part of the company and help
them understand what the
company provides for their
personal development.
OS_3 Management believes that staff
should be motivated, trained,
informed and rewarded to improve
productivity, and that this process
should be continuous and shared at
different management levels.
OS_4 The company foresees the need for
new personnel to fill various
positions in the short and medium
term.
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Organizational
Culture
OC_1
The company has good oral and
written communication skills to
create an effective flow of
information through different
levels of the company
Valencia et al.
(2010)
Fortado et al.
(2012)
Alonderiene et al.
(2010)
OC_2 The company regularly organizes
social and sporting events for its
employees
OC_3 The company uses team spirit to
motivate at all levels of the
company, including management
and operation
OC_4 Employees' creativity is
stimulated, problem-solving
suggestions are welcomed, and
successful ideas are rewarded
Personnel
Training and
Promotion in
SMEs
PTP_1
The company rewards employees
for their contribution to meeting
the company's goals (for example,
innovation, quality and
productivity)
Thassanabanjong
et al. (2009
Jones (2005)
Choo et al.
(2007)
PTP_2 The company regularly evaluates
the performance of employees.
PTP_3 The company determines the
procedures for guiding and
training the survival of new
employees
Leadership
style
LS_1
The communication ability
between leaders and employees
has a positive effect on the
33 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
implementation of human resource
strategy in our organization
Brewster, Carey
and Dowling
(2013
LS_2 Participatory Leadership Promotes
Staff Morale in Implementing
Human Resource Strategy
LS_3 Leaders supported by employees
achieve the success of human
resources strategy in our
organization
LS_4 Leaders show concern for
performance when implementing
human resources strategies to win
the trust of other employees
Human
Resources in
SMEs
HRM_1
I received enough opportunities for
training and development
Gould-William et
al. (2005)
HRM_2 Teamwork is always encouraged
in my company
HRM_3 My company has a strict
recruitment process
Corporate
Social
Responsibility
of SMEs
CSR_1
The company provides goods and
services that fully meet legal
requirements
Carroll A. B.
(1999); Turker D.
(2009);
CSR_2 The company always aims to
provide perfect services but
minimize the impact on the
environment
CSR_3 The company performs tax
obligations regularly and
continuously
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CSR_4 The company fully realizes the
social responsibility for the
employees
3.3 Methods of sampling and data collection
3.3.1 Methods of collecting primary data
The author used a convenient sampling method for this study. During research. The
researcher distributes survey questionnaires to current employees working in small and
medium enterprises in Ho Chi Minh City through the online survey tool google form.
Through the information collection process that was conducted, after screening the
invalid surveys, there were 350 remaining samples. The number of collected samples is
greater than the minimum number of samples and thus qualifies for analysis. The author
entered the software and analyzed survey data to conclude the hypotheses and test the
research model. The final results from SPSS 16.0 will be analyzed, explained and
presented in chapter 4 of this thesis.
3.3.2 Sample size
Overall sample
The sample is employees working in small and medium enterprises in Ho Chi Minh
City, the research samples are taken through the online survey tool Google form to see
how the employees rate. How about the elements of human resource management
activities to corporate social responsibility.
Sample size
According to Bollen (1989) cited in Cao Hao Thi & Swierczek (2010), the sample rate
per observed variable must ensure a minimum of 5: 1. Meanwhile, McDaniel and Gates
(3507) suggest that the acceptable sample size for most studies is between 30 and 500.
The number of variables observed in this study is 23 observed variables. Therefore, the
minimum number of samples is: 22 x 5 = 110 samples.
3.4 Analyzing data plan
3.4.1 Reliability analysis by Cronbach’s alpha
Cronbach's Alpha Confidence Coefficient Assessment: Purpose This method allows the
analysis to find the question items to be retained and the question items to be removed
35 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
in the items to be checked (Hoang Trong and Chu Nguyen Mong Ngoc, 2008) or in
other words helps eliminate observed variables, failed scales. Observed variables with
Corrected Item-Total Correlation coefficients of less than 0.3 will be disqualified and
the standard of choosing the scale when Cronbach's Alpha coefficient is 0.6 or higher.
Many researchers agree that when Cronbach's Alpha's from 0.8 or higher to near 1, a
good scale, from 0.7 to nearly 0.8 is usable. There is also a researcher who suggests that
Cronbach's Alpha 0.6 or higher is usable where the concept of measurement is new or
new to the respondent in the context of the study (Hoang Trong and Chu Nguyen Mong
Ngoc, 2008).
3.4.2 Exploratory Factor Analysis – EFA
Factor analysis is mainly used to evaluate convergence and discriminant validity.
This method is very useful for determining the set of variables needed for the research
problem and is used to find relationships among variables. In the EFA factor analysis,
researchers are often interested in a number of criteria including:
The Kaiser-Meyer-Olkin measure of sampling adequacy (KMO) index: is an
indicator used to examine the adequacy of factor analysis. Large value of KMO
(between 0.5 and 1) is sufficient condition for factor analysis is appropriate. If the KMO
index is less than 0.5, factor analysis is likely not appropriate with the data. Bartlett's
test (in factor analysis, it is necessary to test the correlation of variables with each other
(H0: variables are not correlated with each other in the population) .If hypothesis H0 is
not rejected, then factor analysis likely not appropriate.If this test is significant (sig.
<0.05), the observed variables are correlated in the population (Hoang Trong and Chu
Nguyen Mong Ngoc, 2008).
Factor loadings: are single correlation coefficients between variables and factors,
this coefficient is ≥ 0.5 (Hair et al., 1998).
The scale is accepted when the total extracted variance is greater than 50%
(Gerbing and Anderson, 1988). Principal Component Analysis extraction method is
used in factor analysis to scale independent components. The eigenvalue (representing
the variation explained by each factor) is greater than 1.
Difference between factor load factor of an observed variable between factors is
≥ 0.3 to ensure differentiating value between factors.
36 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
3.4.3 Regression analysis
After analyzing the EFA and testing the reliability of the scales, the satisfactory
scales were determined with the mean and the control variables were coded to conduct
correlation analysis. The author used Pearson's correlation coefficient (r) to check the
linear relationship between the factors. If the correlation coefficient between the
dependent and independent variables is large, it proves that they are related and can be
suitable for linear regression analysis. The absolute value of r tells us how strict a linear
relationship is. The closer the absolute value of r is to 1, the more closely correlated the
two variables are and vice versa (Hoang Trong and Chu Nguyen Mong Ngoc, 2008).
Multivariate regression analysis to evaluate the suitability of the model, the
method used is the method put in turn "Enter". Researchers often use the coefficient R2
(R Square) to evaluate the appropriateness of the research model. The F test in the
variance analysis table will show whether the dependent variable is related to the entire
independent variable (Sig. <0.05, suitable building model and vice versa).
Based on VIF coefficient, when performing multivariate regression, we click the
Statistics button, and then choose Collinearity diagnostics. If the VIF (variance inflation
factor)> 4, there is a sign of multiple collinearity, this is not desirable. If VIF <4: not
multicollinearity
Analysis of variance is used to compare the mean of populations. In the content
of this thesis, the author uses one-factor variance analysis (One - Way ANOVA) to
determine the differences in online buying decisions between different groups of
customers. According to Hoang Trong and Chu Nguyen Mong Ngoc (2008), the
analysis conditions for ANOVA:
- Levene test: "Equal variance", if Sig <0.05, the variance between groups is
different, so the ANOVA analysis results cannot be used, then the Tamhane's T2 test
must be used to determine. If Sig ≥ 0.05, the variance between different groups is the
same, so the ANOVA analysis can be used.
- Test of ANOVA: If Sig> 0.05, it is not enough to confirm the difference
between groups. If Sig ≤ 0.05, you qualify to confirm the difference between the groups.
37 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
CHAPTER 4: RESULTS AND DISCUSSION
4.1 Data description
Through 350 valid questionnaires that the researcher earned, the survey sample has the
following characteristics:
Table 4. 1. Sample descriptive statistics
Criteria Frequency
(people)
Ratio (%)
Sex Male 228 65.1
Female 122 34.9
Age
From 22-30 years
old
134 38.3
From 30-40 years
old
149 42.6
From 40 to 50
years old
54 15.4
From 50 - 60 years
old
13 3.7
Academic level
Intermediate 21 6.0
College 92 26.3
University 210 60.0
University or
higher
27 7.7
Seniority Less than 5 years 37 10.6
From 5 - 10 years 207 59.1
Over 10 years 106 30.3
Earnings Under 10 million 171 48.9
From 10 - 20
million
146 41.7
From 21 - 30
million
26 7.4
38 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Over 31 million 7 2.0
4.2 Reliability analysis
4.2.1 Testing the reliability of the scale “Organizational Structure”
Table 4. 2. Results of testing Cronbach's Alpha coefficients of the scale
"Organizational Structure"
Reliability Statistics
Cronbach's
Alpha
N of
Items
.759 4
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
OS_1 9.79 7.912 .596 .681
OS_2 9.84 7.392 .634 .658
OS_3 9.80 8.940 .453 .754
OS_4 9.99 7.645 .550 .707
The factor "Organizational Structure" has Cronbach's Alpha coefficient of 0.759> 0.7.
This can conclude that the factor "Organizational Structure" reaches the scale reliability.
In which, the observed variables OS_1, OS_2, OS_3 and OS_4 have correlation
coefficients with the total variable respectively 0.596; 0.634; 0.453, 0.550 are both
greater than 0.3. At the same time, Cronbach's Alpha coefficients if the types of
observed variables OS_1, OS_2, OS_3 and OS_4 are 0.681, 0.658, 0.754, and 0.707
respectively are less than 0.759, this can conclude that the observed variables meet the
requirements. measure the factor "Organizational Structure".
39 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.2.2 Testing the reliability of the scale “Organizational Culture”
Table 4. 3. Results of testing Cronbach's Alpha coefficients of the scale
“Organizational Culture”
Reliability Statistics
Cronbach's
Alpha
N of
Items
.916 4
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item Deleted
OC_1 9.69 7.239 .747 .912
OC_2 9.77 6.643 .745 .915
OC_3 9.73 6.502 .860 .873
OC_4 9.71 6.314 .892 .862
The factor “Organizational Culture” has Cronbach's alpha coefficient of 0.916> 0.7,
this can conclude that the factor “Organizational Culture” achieves scale reliability.
In which, the observed variables OC_1, OC_2, OC_3 and OC_4 have correlation
coefficients with the total variable respectively 0.747, 0.745, 0.860, 0.892 are greater
than 0.3. At the same time, Cronbach's Alpha coefficients if the variable types of
observed variables OC_1, OC_2, OC_3 and OC_4 respectively 0.912, 0.915, 0.873,
0.862 are all less than 0.916, this can conclude that the observed variables are
satisfactory to measure the factor “Organizational Culture”.
40 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.2.3 Testing the reliability of the scale “Personnel Training and Promotion in
SMEs”
Table 4. 4 Results of testing Cronbach's Alpha coefficients of the scale “Personnel
Training and Promotion in SMEs”
Reliability Statistics
Cronbach's
Alpha
N of
Items
.824 3
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item Deleted
PTP_1 7.26 3.077 .641 .797
PTP_2 7.18 2.503 .705 .734
PTP_3 7.31 2.674 .703 .734
Factor “Personnel Training and Promotion in SMEs” has Cronbach's Alpha
coefficient of 0.824> 0.7. This can conclude that the factor “Personnel Training and
Promotion in SMEs” achieves the reliability of the scale. In which, the observed
variables PTP_1, PTP_2, PTP_3 have correlation coefficients with the total variable
0.641, 0.705, 0.703, which are all greater than 0.3. At the same time, Cronbach's Alpha
coefficients, if the types of variables PTP_1, PTP_2, PTP_3 are 0.797, 0.734, 0.734
respectively less than 0.824, it can be concluded that the observed variables are
satisfactory to measure the factor “Personnel Training and Promotion in SMEs”.
41 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.2.4 Testing the reliability of the scale “Leadership style”
Table 4. 5. Results of testing Cronbach's Alpha coefficients of the scale “Leadership
style”
Reliability Statistics
Cronbach's
Alpha
N of
Items
.846 4
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item Deleted
LS_1 9.98 6.312 .817 .746
LS_2 9.94 6.939 .654 .818
LS_3 9.97 7.240 .623 .830
LS_4 10.02 6.833 .648 .821
Factor “Leadership style” has Cronbach's Alpha coefficient of 0.846> 0.7. This can
conclude that “Leadership style” factor achieves scale reliability. In which, the
observed variables LS_1, LS_2, LS_3, LS_4 have correlation coefficients with the total
variable respectively 0.817, 0.654, 0.623, 0.648 are all greater than 0.3. At the same
time, Cronbach's Alpha coefficients, if the variable types of the observed variables
LS_1, LS_2, LS_3, LS_4 are 0.746, 0.818, 0.830, 0.821, respectively less than 0.846,
this can conclude that the observed variables meet the requirements to measure the
factor “Leadership style”.
42 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.2.5 Testing the reliability of the scale “Human Resources in SMEs”
Table 4. 6. Results of testing Cronbach's Alpha coefficients of the scale “Human
Resources in SMEs”
Reliability Statistics
Cronbach's
Alpha
N of
Items
.833 3
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item Deleted
HRM_
1
7.23 5.099 .678 .784
HRM_
2
7.07 4.929 .682 .781
HRM_
3
7.08 5.008 .722 .742
Factor “Human Resources in SMEs” has Cronbach's alpha coefficient of 0.833> 0.7.
This can conclude that the factor “Human Resources in SMEs achieves scale
reliability. In which, the observed variables HRM_1, HRM_2, HRM_3 have correlation
coefficients with the total variable 0.678, 0.682, 0.722 respectively greater than 0.3. At
the same time, Cronbach's Alpha coefficients if the types of observed variables HRM_1,
HRM_2, HRM_3 are 0.784, 0.781, 0.742, respectively less than 0.833, this can
conclude that observed variables meet the requirements to measure the factor “Human
Resources in SMEs”.
43 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.2.6 Testing the reliability of the scale “Corporate Social Responsibility of SMEs”
Table 4. 7. Results of testing Cronbach's Alpha coefficients of the scale “Corporate
Social Responsibility of SMEs”
Reliability Statistics
Cronbach's
Alpha
N of
Items
.857 4
Item-Total Statistics
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item Deleted
CSR_1 10.19 11.571 .706 .815
CSR_2 10.07 11.891 .674 .829
CSR_3 10.11 11.665 .711 .813
CSR_4 10.18 11.558 .710 .814
Factor “Corporate Social Responsibility of SMEs” has Cronbach's alpha coefficient
of 0.857> 0.7. This can conclude that the factor “Corporate Social Responsibility of
SMEs” achieves the reliability of the scale. In which, the observed variables CSR_1,
CSR_2, CSR_3, CSR_4 have correlation coefficients with the total variable
respectively 0.706, 0.674, 0.711, 0.710 are all greater than 0.3. At the same time,
Cronbach's Alpha coefficients if the variables of the observed variables CSR_1, CSR_2,
CSR_3, CSR_4 are 0.815, 0.829, 0.813, 0.814 respectively are smaller than 0.833, this
can conclude that the observed variables are satisfactory to measure the factor
“Corporate Social Responsibility of SMEs”.
44 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
4.3 Exploratory factor analysis
4.3.1 EFA test results of the independent variable
Hypothesis H0: The observed variables have no correlation in the population.
Table 4. 8. Results of KMO and Barlett testing of the independent variables
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.826
Bartlett's Test of
Sphericity
Approx. Chi-Square 2.776E3
df 105
Sig. .000
45 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Total Variance Explained
Comp
onent
Initial Eigenvalues
Extraction Sums of
Squared Loadings
Rotation Sums of Squared
Loadings
Total
% of
Varianc
e
Cumulat
ive % Total
% of
Variance
Cumulati
ve % Total
% of
Varianc
e
Cumulative
%
1 5.052 33.681 33.681 5.052 33.681 33.681 3.216 21.437 21.437
2 2.503 16.684 50.365 2.503 16.684 50.365 2.782 18.548 39.985
3 1.708 11.384 61.749 1.708 11.384 61.749 2.344 15.630 55.615
4 1.330 8.866 70.614 1.330 8.866 70.614 2.250 15.000 70.614
5 .706 4.707 75.322
6 .646 4.304 79.626
7 .550 3.667 83.292
8 .510 3.401 86.693
9 .452 3.012 89.705
10 .364 2.425 92.131
11 .334 2.228 94.358
12 .289 1.925 96.283
13 .256 1.704 97.987
14 .198 1.318 99.305
15 .104 .695 100.000
Extraction Method: Principal
Component Analysis.
KMO coefficient = 0.826 satisfying the condition 0.5 <0.826 <1. Barlett test:
Significance level = 0.000 <0.05: satisfactory. KMO and Barlett tests in factor analysis
show that H0's hypothesis is rejected (Significance level = 0.000); KMO coefficient is
0.826 (> 0.5), this result shows that the observed variables in the population are
46 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
correlated and factor analysis (EFA) is appropriate or in other words, the survey data.
closely matched with market data.
There are 4 factors extracted from the EFA analysis with: At eigenvalue = 1,330, 4
factors are extracted and no new factors are formed compared to the original proposed
research model, the total extracted variance is 70,614 %. Thus, the total variance
extracted is satisfactory. Detailed analysis results are presented in the following table:
Table 4. 9. Rotation matrix of the dependent variables
47 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Rotated Component Matrixa
Component
1 2 3 4
OC_4 .933
OC_3 .919
OC_1 .852
OC_2 .817
LS_1 .872
LS_3 .793
LS_2 .768
LS_4 .751
OS_2 .797
OS_4 .713
OS_1 .704
OS_3 .686
PTP_2 .872
PTP_3 .833
PTP_1 .791
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 5
iterations.
From the results of the EFA discovery factor analysis, the observation variable of the
(1) Organizational Structure; (2) Organizational Culture; (3) Personnel Training and
Promotion in SMEs; (4) Leadership style all have factor load factors greater than 0.5 so
the observed variables of the elements "(1) Organizational Structure; (2) Organizational
48 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Culture; (3) Personnel Training and Promotion in SMEs; (4) Leadership style has not
changed.
4.4.2 EFA test results of the dependent variable
The results of the discovery factor analysis of the dependent variable Human
Resources in SMEs showed that the KMO coefficient = 0.721 satisfies the condition
0.5 <0.721 <1. Barlett test: Significance level = 0.000 < 0.05: satisfactory. At the same
time, the variance of the dependent variable is 75,005%; eigenvalue coefficient = 2.252.
Besides the factor load coefficients of the dependent variable are greater than 0.5, it can
be concluded that the observed variables of the dependent variable are reliable and
qualified enough to measure the observed variables of the dependent variable. In
summary, the dependent variable “Human Resources in SMEs” is measured by the
observational variables HRM_1, HRM_2, HRM_3.
Table 4. 10 Summary of EFA analysis results for the dependent variable Human
Resources in SMEs
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.721
Bartlett's Test of
Sphericity
Approx. Chi-Square 403.986
df 3
Sig. .000
49 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Total Variance Explained
Comp
onent
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.252 75.055 75.055 2.252 75.055 75.055
2 .410 13.669 88.725
3 .338 11.275 100.000
Extraction Method: Principal Component
Analysis.
Table 4. 11. The dependent variable rotation matrix Human Resources in SMEs
Component Matrixa
Component
1
HRM_3 .882
HRM_2 .859
HRM_1 .857
Extraction Method:
Principal Component
Analysis.
a. 1 components
extracted.
The results of the exploratory factor analysis of the dependent variable Corporate
Social Responsibility of SMEs showed that the KMO coefficient = 0.825 satisfies the
condition 0.5 <0.825 <1. Barlett test: Significance = 0.000 <0.05: satisfactory. At the
same time, the extracted variance of the dependent variable is 69.958%; eigenvalue
50 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
coefficient = 2.798. Besides the factor load coefficients of the dependent variable are
greater than 0.5, it can be concluded that the observed variables of the dependent
variable are reliable and qualified enough to measure the observed variables of the
variable. dependent. In summary, the dependent variable “Corporate Social
Responsibility of SMEs” is measured by observational variables CSR_1, CSR _2, CSR
_3, CSR_4
Table 4. 12 Summary of EFA results for dependent variableCorporate Social
Responsibility of SMEs
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.825
Bartlett's Test of
Sphericity
Approx. Chi-Square 598.753
df 6
Sig. .000
Total Variance Explained
Comp
onent
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Total
% of
Variance
Cumulative
% Total
% of
Variance
Cumulative
%
1 2.798 69.958 69.958 2.798 69.958 69.958
2 .444 11.103 81.060
3 .396 9.908 90.969
4 .361 9.031 100.000
Extraction Method: Principal Component
Analysis.
51 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Table 4. 13 The dependent variable rotation matrix Corporate Social Responsibility of
SMEs
Component
Matrixa
Component
1
CSR_3 .844
CSR_4 .843
CSR_1 .841
CSR_2 .818
Extraction Method:
Principal
Component
Analysis.
a. 1 components
extracted.
4.4 Regression analysis
4.4.1 Pearson correlation analysis
Table 4. 14. Correlation matrix between the dependent variable and the variable
Human Resources in SMEs
52 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Correlations
OS OC PTP LS HRM
OS Pearson
Correlation
1
Sig. (2-tailed)
N 350
OC Pearson
Correlation
.250** 1
Sig. (2-tailed) .000
N 350 350
PTP Pearson
Correlation
.398** .166** 1
Sig. (2-tailed) .000 .002
N 350 350 350
LS Pearson
Correlation
.415** .294** .304** 1
Sig. (2-tailed) .000 .000 .000
N 350 350 350 350
HRM Pearson
Correlation
.606** .346** .450** .544** 1
Sig. (2-tailed) .000 .000 .000 .000
N 350 350 350 350 350
**. Correlation is significant at the 0.01 level (2-
tailed).
Based on Pearson correlation matrix table shows that there is correlation between the
variable Human Resources in SMEs with the independent variables as (1)
Organizational Structure; (2) Organizational Culture; (3) Personnel Training and
53 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Promotion in SMEs; (4) Leadership style with correlation coefficient ranges from 0.346
to 0.606. The research model of factors affecting service quality is:
𝑯𝑹𝑴 = 𝜶𝟏𝑶𝑺 + 𝜶𝟐𝑶𝑪 + 𝜶𝟑𝑷𝑻𝑷 + 𝜶𝟒𝑳𝑺
Below are the results of testing the correlation between the variable Human Resources
in SMEs and the variable Corporate Social Responsibility of SMEs
Table 4. 15 Correlation matrix between the variable Human Resources in SMEs and
the variable Corporate Social Responsibility of SMEs
Correlations
HRM CSR
HRM Pearson
Correlation
1 .774**
Sig. (2-tailed) .000
N 350 350
CSR Pearson
Correlation
.774** 1
Sig. (2-tailed) .000
N 350 350
**. Correlation is significant at the 0.01
level (2-tailed).
Considering the correlation between the two variables HRM and CSR shows a high
correlation with a correlation coefficient of 0.774.
This shows a linear relationship between the independent variables and the dependent
variable HRM and at the same time there exists a linear relationship between HRM and
the CSR variable.
4.4.2 Verify multivariate linear regression model
4.4.2.1 Relationship between the independent variables and the dependent variable
Human Resources in SMEs
54 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
Table 4. 16 Summary of regression model of factors influencing human resource
management in SMEs in Ho Chi Minh City
Model Summaryb
Mode
l R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .720a .518 .512 .75101 1.768
a. Predictors: (Constant), LS, OC, PTP,
OS
b. Dependent Variable: HRM
From the model summary table, we can see, used to evaluate the suitability of the
multivariate linear regression model, the adjusted R2 coefficient is 0.512. That means
51.2% variation of dependent variable “HRM” is explained by 4 independent factors
including: OS, OC, PTP and LS. This shows that this multivariate linear regression
model is consistent with the data set of the sample at 51.2%, ie the independent variables
explain 51.2% of the variation of the dependent variable “HRM”.
Table 4. 17 Testing the appropriateness of the multivariate linear regression model of
factors affecting human resource management activities in SMEs in Ho Chi Minh City
ANOVAb
Model
Sum of
Squares df
Mean
Square F Sig.
1 Regression 209.089 4 52.272 92.679 .000a
Residual 194.584 345 .564
Total 403.673 349
a. Predictors: (Constant), LS, OC, PTP,
OS
b. Dependent Variable: HRM
From the table ANOVA can be seen, testing hypothesis on the overall suitability of the
model, the value F = 92,679 with Sig. = 0,000 <5%. Prove that the population R2 is
55 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
different from zero. It means that the built-up linear regression model is consistent with
the whole (more specifically, the overall R2 cannot be specified, but we know it will
other than 0, but nonzero means that the independent variables have impact on the
dependent variable).
Table 4. 18 Statistical parameters in the regression model of factors affecting human
resource management activities in SMEs in Ho Chi Minh City
Coefficientsa
Model
Unstandardized
Coefficients
Standardiz
ed
Coefficient
s
t Sig.
Collinearity Statistics
B Std. Error Beta Tolerance VIF
1 (Consta
nt) -.613 .241
-
2.54
8
.011
OS
.447 .052 .376
8.62
1
.000 .735 1.361
OC
.171 .050 .135
3.42
2
.001 .892 1.121
PTP
.256 .056 .189
4.58
0
.000 .817 1.224
LS
.368 .054 .291
6.83
1
.000 .771 1.297
a. Dependent Variable:
HRM
In Table 4.18 it is found the Sig values. showing relatively high reliability, evenly <0.05
(the largest is 0.011). On the other hand, the analytical results show that the VIF
56 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
coefficients of the Beta coefficients are less than 10 (the maximum is 1,361) and the
Tolerance coefficient is> 0.5 (the smallest is 0.771). From there, we can conclude that
no multicollinearity phenomenon occurred (Hoang Trong - Mong Ngoc, 2008). At the
same time, the significance level of the 2-sided test between the independent variables
and the dependent variable satisfies the condition (Sig. 2-tailed = 0,000 <0.05).
4.4.2.2 Relationship between the variable Human Resources in SMEs and the dependent
variable Corporate Social Responsibility of SMEs
The second multiple regression results were performed to test hypothesis H5. The
results show that human resources have a significant positive impact on the social
responsibility of SMEs in Ho Chi Minh City with beta = 0.774 and p <0.05. Here are
the results:
Table 4. 19. Summary table
Model Summaryb
Mode
l R R Square
Adjusted R
Square
Std. Error of
the Estimate
Durbin-
Watson
1 .774a .600 .599 .70493 1.855
a. Predictors: (Constant), HRM
b. Dependent Variable: CSR
Table 4. 20 Statistical parameters in the regression model
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
Collinearity
Statistics
B Std. Error Beta
Toleranc
e VIF
1 (Constant) .525 .131 4.023 .000
CSR .801 .035 .774 22.831 .000 1.000 1.000
From the above result we lose the value of Sig. all show high reliability, both <0.05. In
addition, the VIF coefficients of the Beta coefficients are all less than 10 (the maximum
57 | P a g e w r i t t e n b y d i c h v u t h u c t a p . c o m
is 1.545) and the Tolerance coefficient is> 0.5 (the minimum is 0.647), indicating that
no multicollinearity has occurred.
4.5.3 Multiple regression equations and conclusions about the hypotheses
Based on Table 4.18 on statistical parameters in the regression model of factors
affecting human resource management activities in small and medium enterprises in Ho
Chi Minh City by Enter method, regression equation Multivariate multi-linearity of
factors affecting human resource management activities in small and medium
enterprises in Ho Chi Minh City, specifically as follows:
HRM= 0.376*OS + 0.135*OC + 0.189*PTP + 0.291*LS
Or to be understood more clearly:
Human Resources in SMEs = 0.376* Organizational Structure + 0.135*
Organizational Culture + 0.189* Personnel Training and Promotion in SMEs +
0.291* Leadership style
Based on Table 4.20 on statistical parameters in the regression model of effects
of Human Resources in SMEs on Corporate Social Responsibility of SMEs by the Enter
method, the multiple linear regression equation is as follows:
CSR = 0.774*HRM
Or more clearly
Corporate Social Responsibility of SMEs = 0.774* Human Resources in SMEs
From the above results, there are 04 factors that have a positive impact on Human
Resources in SMEs, including: Organizational Structure, Organizational Culture,
Personnel Training and Promotion in SMEs, Leadership style. At the same time,
Human Resources in SMEs have a positive impact on Corporate Social Responsibility
of SMEs. From there, we have the following conclusions about the hypotheses of the
study:
Table 4. 21. Summary of research hypotheses
Hypothesis Sig
coefficient
Result
H1. Organizational Structure has a positive impact on
human resource management activities in small and
medium enterprises in Ho Chi Minh City.
.000<0.05 Accept
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H2: Organizational Culture has a positive impact on
human resource management in SMEs in Ho Chi
Minh City.
.001<0.05 Accept
H3: Personnel Training and Promotion has a positive
impact on human resource management activities in
small and medium enterprises in Ho Chi Minh City.
.000<0.05 Accept
H4: Leadership Style has a positive impact on human
resource management activities in small and medium
enterprises in Ho Chi Minh City.
000<0.05 Accept
H5: Human Resource has a positive impact on
Corporate Social Responsibility in SMEs in Ho Chi
Minh City
000<0.05 Accept