Honors Thesis

Title
and
Signature
Page

VIETNAM
ENTREPRENEURSHIP:
DIFFERENCE
IN
CULTURAL
TENDENCIES

BETWEEN
ENTREPRENEURS
AND
NON-‐ENTREPRENEURS

by

Thanh
H.
Nguyen

Submitted
to
Brigham
Young
University
in
partial
fulfillment

of
graduation
requirements
for
University
Honors

Marriott
School
of
Management

Brigham
Young
University

August
2009

Advisor:
Kristie
Seawright
Honors
Representative:
Laura
Bridgewater

Signature:
_________________________________
Signature:
_________________________________

iii

ABSTRACT

VIETNAM
ENTREPRENEURSHIP:
DIFFERENCE
IN
CULTURAL
TENDENCIES

BETWEEN
ENTREPRENEURS
AND
NON-‐ENTREPRENEURS

Thanh
H.
Nguyen

Marriott
School
of
Management

Bachelor
of
Science

The
Global
Entrepreneurship
Monitor
(GEM)
2007
report
(Bosma
et.
al)

highlights
the
large
variation
in
participation
in
entrepreneurship
in
economies—
from
a
low
of
1.8
percent
(Japan)
to
a
high
of
over
16
percent
(Thailand/Peru)
of
the

population.

Various
environmental
factors
have
been
shown
to
impact
the

incidence
of
entrepreneurship.

Culture
is
one
environmental
factor
that
is
expected

to
explain
some
of
this
variation.
“Culture,”
according
to
Hofstede
(1994),
means

“the
collective
programming
of
the
mind
which
distinguishes
the
members
of
one

category
of
people
from
another”
(p.5).
Yet
cross-‐cultural
entrepreneurship

research
to
date
tends
to
evaluate
culture
on
a
national
mean
basis,
disregarding
the

variation
that
exists
within
a
culture
group.

If
entrepreneurs
exhibit
different

culture
characteristics
than
the
national
population,
the
average
tendencies
of
the

population
would
not
be
appropriate
measures
to
properly
evaluate
the
“culture
of

iv
entrepreneurship”
and
the
influence
of
culture
on
the
incidence
of
entrepreneurship

within
an
economy.

Since
the
economic
reform
policy
named
“Đổi
Mới”
(renovation)
was

introduced
in
1986
by
the
communist
government
of
the
Social
Republic
of
Vietnam,

free-‐market
enterprises
have
been
permitted
and,
more
recently,
encouraged.

According
to
McMillan
(2002),
entrepreneurial
activities
have
played
an
important

role
in
Vietnam’s
economic
growth.
By
creating
jobs,
providing
consumer
goods,

lessening
the
market
power
of
state-‐owned
firms,
and
establishing
reform

momentum,
entrepreneurship
has
brought
welfare
gains
for
this
transitioning

economy.
A
recent
study
by
Gerrard
(2003)
suggests
that
Vietnamese
cultural

values
support
entrepreneurial
activity.
The
purpose
of
this
research
is
to
examine

cultural
tendencies
of
entrepreneurs
compared
to
a
control
group
of
non-‐
entrepreneurial
managers.

v

ACKNOWLEDGEMENTS

I
would
like
to
express
my
sincere
gratitude
to
my
advisor,
Professor
Kristie
W.

Seawright,
for
her
mentoring,
guidance,
and
patience.
Despite
her
extremely
busy

schedule
with
her
assignments
and
research
projects,
she
always
took
the
time

necessary
to
meet
with
me
regularly
to
provide
timely
aid
to
my
many
struggles

with
the
project
,
to
teach
me
essential
research
skills,
or
to
encourage
my
efforts.

She
has
also
taught
me
many
wonderful
lessons
besides
the
research
topic
and
I
am

very
grateful
for
that.

I
would
like
to
thank
Professor
Gregory
Taggart
and
my
group
members
in
the

Honors
Writing
300R
class.
They
proofread
more
than
50
percent
of
this
thesis
and

gave
me
much
wonderful
feedback
to
make
the
flow
of
my
thesis
more
natural

sounding.

I
am
grateful
for
my
parents
and
their
support
when
I
was
collecting
data
in

Vietnam.
They
provided
me
with
great
contacts
from
their
business
network
and

followed
up
with
me
often
to
ensure
that
I
met
the
deadline
for
my
data
collection.
I

am
every
grateful
for
their
love,
encouragement,
and
support
during
my

undergraduate
experience.

Lastly,
I
am
indebted
to
Joseph
Kunzelman,
my
ever-‐faithful
personal
English

proofreader.
He
has
proofread
more
than
95
percent
of
all
of
my
undergraduate

vi
papers.
And
so
did
he
with
this
thesis
paper.
I
am
thankful
for
this
patience,
his

diligence,
and
his
support
in
many
ways
during
my
undergraduate
experience.

vii

TABLE
OF
CONTENTS

Title
and
Signature
Page
....................................................................................................
i

Abstract
..............................................................................................................................
i

Acknowledgements
...........................................................................................................
v

Table
of
Contents
............................................................................................................
vii

List
of
Tables
and
Figures
................................................................................................
ix

I.
Introduction
.............................................................................................................
1

II.
Literature
Review
....................................................................................................
3

1.
The
Influence
of
Historical
Events
on
Vietnam’s
Culture
..................................................
3

2.
Vietnam’s
Economic
Status
since
“Đổi
Mới”
(Renovation)
...............................................
7

3.
Entrepreneurship
in
Vietnam’s
Economic
Transition
.......................................................
9

4.
Historical
Influence
on
Culture
........................................................................................
11

5.
Hofstede’s
Culture
Framework
........................................................................................
12

a.
Definition
...................................................................................................................................
12

b.
The
IBM
Studies
.........................................................................................................................
13

c.
Chinese
Value
Survey
.................................................................................................................
19

III.
Development
of
Research
Questions
....................................................................
24

IV.
Methodology
...........................................................................................................
28

1.
Data
Collection
.................................................................................................................
28

2.
Measurement
...................................................................................................................
30

3.
Data
Analysis
...................................................................................................................
31

V.
Results
....................................................................................................................
32

viii
VI.
Discussion
...............................................................................................................
33

1.
Findings
............................................................................................................................
33

2.
Limitations
.......................................................................................................................
38

VII.
Conclusion
..............................................................................................................
39

Appendix
A
......................................................................................................................
46

Appendix
B
......................................................................................................................
49

ix

LIST
OF
TABLES
AND
FIGURES

FIGURE
1:
Values
Associated
with
Confucian
Dynamism
............................................
21

FIGURE
2:
Scores
on
Time
Orientation
for
the
Countries
Surveyed
with
the
Chinese

Value
Survey
........................................................................................................
22

FIGURE
3:
Dimensions
of
Cultures
found
in
the
Three
Studies
...................................
24

FIGURE
4:
Hypotheses
Summary
...................................................................................
28

TABLE
1:
Maximum
Scores
for
Each
Cultural
Dimension
............................................
31

TABLE
2:
T-‐tests
Results
................................................................................................
32

TABLE
3:
Mean
Scores
and
Standard
Deviation
on
Cultural
Dimensions
...................
33

TABLE
4
Summary
of
Findings
......................................................................................
33

1
I. Introduction

Entrepreneurship
plays
an
important
role
in
a
country’s
economic
development.

In
fact,
there
is
a
relationship
between
per
capita
Gross
Domestic
Product
(GDP)

levels
and
early
stage
entrepreneurial
activity.
In
countries
with
low
levels
of
per

capita
GDP,
the
national
economy
exhibits
a
prevalence
of
entrepreneurial
activity

(i.e.
small
businesses)
(Bosma,
2007).
In
Vietnam,
which
has
a
low
per
capita
GDP,

entrepreneurship
has
only
been
around
for
a
little
over
20
years
since
“Đổi
Mới”
or

Renovation
in
1986.

Since
then,
the
private
business
sector
has
been
the
fastest
growing
sector
in

Vietnam’s
economy,
and
entrepreneurship
has
played
an
important
role
in
the

country’s
economic
transition
from
state-‐owned
businesses
to
a
market
orientation

(McMillan,
2002).
Its
positive
impact
on
the
country’s
economy
includes
creating

jobs,
providing
consumer
goods,
lessening
the
market
power
of
state-‐owned
firms,

encouraging
innovation
in
business
operation,
and
bringing
prosperity
to
its
citizens.

However,
entrepreneurship
faces
both
opportunities
and
challenges
in

Vietnam’s
transitioning
economy.
Opportunities
include
independent
employment,

wealth
creation
or
escaping
poverty,
rewards
for
innovation,
and
an
increasingly

improved
legal
process
for
business
setup
in
Vietnam.
As
great
as
opportunities
are,

challenges
facing
Vietnamese
entrepreneurs
are
as
great
if
not
higher
than
they

were
more
than
20
years
ago.
They
are
corruption
in
the
government,
time
lost

because
of
red
tape,
capital
acquisition,
and
lack
of
managerial
expertise
(McMillan,

2002).

2
Entrepreneurship
and
the
market
economy’s
history
in
Vietnam
is
fairly
short

compared
to
its
history
of
different
governments
and
economic
systems.
Vietnam’s

history
included
Chinese
domination
at
various
times
over
the
last
1,000
years,
the

invasion
of
the
Mongols
and
the
Champa
for
a
period
of
time,
a
divided
period
for

almost
300
years,
the
French’s
colonization
and
Indochina
war
in
the
19th
century,

the
American
war,
and
finally
the
reign
of
the
Communist
party
after
1975.
All
of

these
historical
events
have
impacted
Vietnam’s
culture.
Vietnam,
indeed,
has
strong

influence
from
both
the
East
(i.e.
Chinese
culture)
and
the
West
(i.e.
France
and
the

U.S.).

All
of
these
layers
of
cultural
influence
must
have
some
influence
on
Vietnam’s

entrepreneurship
development.
Various
researchers
have
tested
the
hypothesis
that

culture
is
related
to
entrepreneurial
expertise.
According
to
Mitchell
et
al.,
culture

matters
in
forming
entrepreneurial
cognitions—mental
maps—such
as
motivation

and
risk
propensity
in
creating
a
new
venture
(2002).
Understanding
culture
and
its

dimensions
will
help
explain
its
influence
on
entrepreneurship
development.

The
purpose
of
this
research
is
to
examine
the
cultural
difference
between

entrepreneurs
and
non-‐entrepreneurs
in
Vietnam.
The
report
of
this
research

begins
with
the
review
of
critical
streams
of
literature:
a
brief
history
of
Vietnam,

Vietnam’s
economic
status
since
“Đổi
Mới,”
entrepreneurship’s
role
in
Vietnam’s

economy,
challenges
and
opportunities
for
entrepreneurs,
culture,
the
influence
of

historical
events
on
Vietnam’s
culture,
and
entrepreneurship.
Four
sections
follow

the
review
of
the
literature:
the
development
of
the
research
question,
methodology,

results,
and
discussions
and
recommendations.

3
II. Literature
Review

1. The
Influence
of
Historical
Events
on
Vietnam’s
Culture

Vietnam
boasts
a
rich
4,000-‐year
history.
Popular
Vietnamese
mythology

believes
that
Vietnam
was
founded
by
Hung
Vuong,
the
first
emperor
of
the
Hung

dynasty
to
rule
the
kingdom
of
Van
Lang
from
2879
to
258
B.C.
Hung
Vuong,
it
is

said,
was
the
oldest
of
one
hundred
children

of
Lac
Long
Quan,
the
dragon
Lord

from
the
sea,
and
Au
Co,
a
mountain
princess.
The
new
kingdom
of
Au
Lac
followed

the
Hung
dynasty;
it
was
created
when
An
Duong
Vuong,
the
chieftain
of
the

neighboring
state,
ousted
the
previous
kingdom.
However,
a
military
commander

from
southern
China
conquered
Au
Lac
in
208
B.C.,
and
eventually
Vietnam
became

a
province
in
the
Chinese
empire
after
the
Han
dynasty
unified
in
111
B.C.

In
the
following
period
of
1,000
years
under
Chinese
control,
the
Vietnamese
had

many
revolts
attempting
to
liberate
the
country
from
the
yoke
of
their
northern

neighbor.
One
of
the
most
popular
uprisings
was
lead
by
the
Trung
sisters
in
39

A.D.–rebelling
against
the
Chinese
attempts
to
tighten
their
administrative
control

and
introduce
new
taxes.
However,
the
Vietnamese
did
not
succeed
until
939,
after

the
ruling
Chinese
empire
had
begun
to
crumble.

The
period
from
939
to
1009
marked
the
early
independence
of
Vietnam.
In
the

next
several
hundred
years,
Vietnam’s
history
witnessed
repeated
dynastic
conflicts,

wars
with
its
neighboring
countries,
and
a
determined
territorial
expansion
toward

the
South.
The
Ly
kings
(1009–1225)
established
the
capital
in
Hanoi,
calling
it

Thang
Long
(Soaring
Dragon),
and
launched
the
“march
south”
campaign.
This

territorial
expansion
strategy
eventually
put
the
Vietnamese
in
conflict
with
their

4
Cham
and
Khmer
neighbors.
During
the
Tran
dynasty
(1225–1400),
the
Vietnamese

successfully
repelled
three
invasions
of
the
Mongols
under
Kublai
Khan.

Commander
Tran
Hung
Dao
is
well-‐known
for
the
battle
on
Bach
Dang
River
which

trapped
the
Mongols’
naval
vessels
with
iron-‐tipped
stakes
as
the
tide
receded.
Tran

Hung
Dao’s
successors
waged
many
wars
against
the
Cham
in
central
Vietnam

during
the
fourteenth
century.

In
1407,
China’s
Ming
dynasty
once
again
seized
control
of
Vietnam
and
turned
it

into
a
province
of
China.
Le
Loi,
one
of
the
country’s
honorable
heroes,
delivered
the

country
from
the
yoke
of
the
Ming
Empire
in
1428
and
established
the
Le
dynasty,

which
reigned
until
1786.
During
their
reign,
the
Le
kings
revamped
the

administrative
system,
introduced
paper
money
(200
years
before
it
was
first
used

in
Europe),
and
enacted
a
law
that
gave
women
near
equality
with
men.
Vietnamese

settlers
continued
to
migrate
south
and
set
up
villages.
In
1471,
the
Vietnamese

defeated
the
Cham,
thereby
extending
Vietnam
south
of
the
present-‐day
city
of

Danang.

Most
of
the
next
three
centuries
saw
the
country
troubled
by
internal
conflict

between
different
families,
namely
the
Mac,
the
Trinh,
and
the
Nguyen.
Despite
the

conflicts,
the
ruling
families
successfully
expanded
the
country
border
to
roughly

what
we
know
today
after
moving
the
Khmer
from
the
Mekong
delta.
The
sixteenth

century
marked
the
first
arrival
of
Westerners
like
Portuguese,
Dutch,
and
English

through
trading
ships
en
route
to
China,
Japan,
and
other
Southeast
Asian
countries.

In
1615,
Jesuit
missionaries
also
arrived
and
converted
more
than
100,000

Vietnamese
to
Catholicism
by
the
end
of
the
seventeenth
century.

5
Beside
external
conflicts,
the
ruling
families
began
to
face
growing
numbers
of

local
rebellions
close
to
the
end
of
the
nineteenth
century.
In
1876,
the
Tay
Son

rebellion,
the
most
celebrated
revolt,
ousted
the
ruling
families
and
reunified
the

country
for
the
first
time
in
two
centuries.
After
their
success,
the
Tay
Son
rebels

implemented
a
series
of
reforms
such
as
punishing
the
landlords
and
redistributing

their
land
to
the
poor.
However,
the
Tay
Son
regime
was
short-‐lived.
In
1802,

Nguyen
Anh,
with
help
from
French
missionaries
and
mercenaries,
took
control
of

the
country
and
reversed
many
of
Tay
Son’s
reforms.
The
Nguyen
rulers
introduced

new
taxes
and
increased
forced
labor
to
build
new
palaces
(e.g.
the
new
capital
in

central
Hue,
modeling
after
the
Forbidden
City
in
Beijing)
and
roads.

With
the
growing
number
of
Christian
converts,
the
Nguyen
rulers
grew
uneasy

and
started
to
persecute
Christians.
Paris
was
called
to
intervene,
and
French

warships
attacked
the
central
city
of
Danang
in
1858.
Over
the
next
three
decades,

the
French
successfully
fought
any
resistance
and
imposed
control
over
the
whole

country.
Thousands
of
French
administrators
arrived
to
run
the
new
colony
which

was
divided
into
three
administrative
zones,
north,
center,
and
south.
The
French

also
created
the
Indochina
federation,
including
Laos,
Cambodia,
and
Vietnam.
The

French
created
a
new
look
for
the
old
economic
system
by
installing
a
telegraph

system,
building
a
railroad
network,
opening
mines
in
the
north,
establishing
rubber

plantations
in
the
south,
constructing
major
irrigation
systems
in
the
Mekong
delta,

and
expanding
the
land
under
rice
cultivation.

During
the
French
rule,
the
reform
of
Vietnam’s
writing
system
took
place.
Credit

for
this
change
is
given
to
Catholic
missionaries
when
they
in
the
1600s
used
the

6
Roman
alphabet
to
write
the
language
phonetically
and
therefore
created
the

Vietnamese
script.
The
script
was
adopted
by
the
French
as
the
language
of

administration.
Another
trademark
of
the
French
rule
was
the
growing
tension

within
the
traditional
village
structure
because
of
the
introduction
of
a
cash

economy,
the
increasing
emphasis
on
private
property,
and
growing
discord

between
the
rich
and
the
poor
(Buttinger,
1972).

The
French
did
little
to
modernize
the
economy.
They
primarily
took
advantage

of
cheap
raw
materials
and
labor
for
their
industrial
production
gains
(Hiebert,

1996).
By
giving
land
away
to
French
colonial
settlers,
the
French
only
exacerbated

the
problem
of
landlessness
among
the
poor
population.
Heavy
taxes,
forced
labor

on
public
projects,
and
exorbitant
interest
rates
made
life
even
harder
to
live
for

peasants.
By
1939,
less
than
one-‐quarter
of
landowners
controlled
more
than
80

percent
of
the
rice-‐growing
in
the
south.
This
deepened
the
tension
between

peasants
and
landowners.

In
this
historical
context,
Ho
Chi
Minh,
the
son
of
a
poor
scholar
from
central

Vietnam,
emerged
and
took
on
the
role
of
the
country’s
liberator.
He
spent
almost

two
decades
in
different
countries
such
as
the
Soviet
Union,
China,
and
France.
In

1930,
he
formed
the
Vietnamese
Communist
Party
from
three
different
Communist

movements.
At
the
beginning
of
World
War
II,
he
established
a
Communist-‐led

united
front
named
Viet
Minh.
In
1945,
Viet
Minh
cadres
seized
control
of

government
offices.
On
September
2,
Ho
read
Vietnam’s
independence
declaration,

parts
of
which
were
taken
from
the
American
Declaration
of
Independence,
to

declare
Vietnam’s
independence
from
the
French.
However
it
was
not
until
1954

7
that
the
French
were
defeated
at
the
battle
of
Dien
Bien
Phu
by
guerrilla
forces
lead

by
military
strategist
Vo
Nguyen
Giap.
The
French
then
signed
the
peace
accord
in

Geneva
temporarily
dividing
Vietnam
in
two
at
the
seventeenth
parallel.

For
the
next
two
decades,
Vietnam
was
not
only
a
battle
ground
for
a
civil
war

but
also
for
the
cold
war
between
the
world’s
superpowers.
South
Vietnam,
backed

by
the
United
States,
fought
to
contain
communism
while
North
Vietnam,
backed
by

Communist
allies
in
China
and
the
Soviet
Union,
launched
the
revolutionary
war
to

reunite
with
the
south.
However,
in
1973,
the
Paris
peace
agreement
ended
direct

American
involvement
in
Vietnam.
The
civil
war
went
on
without
aid
from
the

United
States
until
April
30,
1975,
when
Communists
took
over
Saigon
and
reunified

the
country
for
the
first
time
in
almost
a
century
(Hiebert,
1996).

2. Vietnam’s
Economic
Status
since
“Đổi
Mới”
(Renovation)

Vietnam
and
its
people
experienced
dramatic
social,
economic,
and
political

changes
after
the
reunification
of
North
and
South
Vietnam
in
1975.
Following
the

reunification,
the
Vietnamese
Communist
Party
(VCP)
introduced
the
socialist

model
of
planning.
This
socialist
platform
featured
central
economic
planning,
farms

and
collectives
managed
by
the
state,
and
state-‐owned
heavy
industry
as
methods
of

achieving
economic
development.
However,
the
combined
effect
of
the
strict

American
embargo,
the
border
conflicts
with
China
in
1979,
the
occupation
of

Cambodia
from
1979
to
1989,
and
the
slowly
weakening
power
of
the
USSR’s

economy
impacted
the
model
and
led
to
serious
macroeconomic
imbalances

(Ronnas
and
Ramamurthy,
2001;
Turner,
2005).
A
stagnant
economy
characterized

8
by
hyperinflation,
widespread
poverty,
budget
deficits,
and
economic
isolation
from

the
world
forced
the
VCP
to
take
action
(Han,
2000).

Admitting
its
mistakes
and
illusions,
the
VCP
then
announced
a
renovation
act

known
as
Đổi
Mới
in
1986.
This
reform
strategy
featured
four
fundamental

components:
(1)
shifting
the
economy
toward
a
market
orientation,
(2)
pushing

price
and
market
reforms,
(3)
opening
the
door
to
foreign
trade
and
investment,
and

(4)
encouraging
private
ownership
development
(Han,
2000;
Ronnas
and

Ramamurthy,
2001;
Turner,
2005).

This
new
economic
strategy
has
proven
to
be
very
effective
for
the
Vietnamese

economy.
In
the
four
years
following
1986,
GDP
grew
between
4
and
9.5
percent
per

year.
This
record
placed
Vietnam
into
the
group
of
fast
growing
economies
in
the

region
such
as
Thailand,
Malaysia,
and
Singapore.
Industrial
output
increased

rapidly,
annual
exports
rose
in
billions
of
dollars,
and
foreign
investment
capital

soared
from
100
million
USD
to
6.6
billion
USD
from
1989
to
1995.
The
whole

country’s
economic
scenery
acquired
a
new
look
(Han,
2000).

Within
the
context
of
economic
excitement,
this
new
strategy
laid
a
firm

foundation
for
the
growth
of
private
business
sectors.
Measures
conducive
to
the

growth
of
entrepreneurship
included
opening
the
market
to
private
businesses,

creating
an
incentive
system
through
freeing
prices,
and
establishing
favorable

institutional-‐legal
groundwork
(Han,
2000).
Strong
evidence
from
Han’s
research

suggests
that
economic
and
technological
conditions
after
Đổi
Mới
were
more

favorable
to
entrepreneurial
activities
when
compared
to
the
adverse
conditions

before
reform.
The
research
also
indicates
that
the
country’s
legal
environment
is

9
more
favorable
toward
entrepreneurship,
although
it
is
still
not
entirely
conducive

to
entrepreneurial
activities
(Han,
2000).

3. Entrepreneurship
in
Vietnam’s
Economic
Transition

Thanks
to
these
favorable
economic
changes
toward
entrepreneurship,
the

private
business
sector
has
been
the
fastest
growing
sector
of
the
Vietnamese

economy.
Its
growth
has
positively
impacted
the
country’s
economy.
The
first
and

most
noticeable
impact
of
entrepreneurial
activities
is
the
creation
of
jobs.
Since

state-‐owned
businesses
shed
jobs
when
downsizing,
the
private
business
sector
was

required
to
pick
up
the
slack.
Roughly
10
million
jobs
were
created
from
1986
to

1995.
Second,
since
new
firms
are
small
and
dynamic,
they
provide
independent

experiments
of
how
to
operate
businesses
through
learning
and
changing
rapidly.

Third,
entrepreneurial
firms
lessen
market
power
of
state-‐owned
firms
by
providing

competitive
disciplines
through
their
innovative
activities.
Together,
these
build

reform
momentum
for
Vietnam’s
transitioning
economy
(McMillan,
2002).

The
transitioned
economy
of
Vietnam
presents
to
entrepreneurs
both

opportunities
as
well
as
challenges.
Though
not
comprehensive
by
any
means,
the

following
opportunities
and
challenges
give
an
idea
of
what
Vietnamese

entrepreneurs
face.

Opportunities
that
entrepreneurs
realize
are:
independent
employment
(Baughn,

2006);
opportunity
to
create
wealth
is
strong
encouragement
for
entrepreneurs

(Baughn,
2006);
and
legal
processes
regarding
business
setup
are
further
enhanced

through
changes
and
revisions
of
the
constitution
of
Vietnam
(Turner,
2005).
It
has

10
been
more
than
22
years
since
Đổi
Mới
began.

Vietnam’s
economy
still
continues
to

grow
rapidly.
GDP
was
still
growing
at
the
rate
of
8.5%
by
the
end
of
2007.

Industrial
production
has
been
booming
and
is
expected
to
continue
over
the
next

couple
of
years.
Foreign
investment
related
activities
continue
to
accelerate

(Vietnam,
2008).

Challenges
facing
entrepreneurs
include
the
following.
First,
corruption
and

bribery
to
official
government
is
a
must
in
the
process
of
legalizing
businesses

(McMillan,
2002;
Benzing,
2005).
Second,
time
consumption
is
certain
because
of

red
tape
and
hoops
entrepreneurs
have
to
jump
through
(McMillan,
2002,
Benzing,

2005).
Third,
capital
acquisition
is
especially
difficult
because
local
authorities
have

tried
to
implement
their
own
regulations
and
restrictions
on
private
enterprises.

Fourth,
state-‐run
enterprises’
access
to
the
same
source
of
capital
makes
it
more

challenging
for
the
young
entrepreneurs
to
obtain
necessary
capital
for
their
start-‐
up
businesses.
Fifth,
an
unstable
economy
with
high
inflation
and
interest
rates

discourages
foreign
investment
flow
into
the
already
small-‐sized
capital
pool

(Benzing,
2005).
And
finally,
the
lack
of
managerial
experience
is
prevalent
(Benzing,

2005).

The
changes
brought
about
by
different
historical
events,
especially
the

reunification
of
the
country,
the
reign
of
the
Vietnamese
Communist
Party,
and
“Đổi

Mới,”
triggered
the
development
of
entrepreneurship
in
Vietnam.
Those
historical

events
mentioned
earlier
in
this
thesis
also
introduced
great
cultural
influences
on

Vietnam’s
culture.

11
4. Historical
Influence
on
Culture

Since
the
birth
of
the
nation,
Vietnam
has
had
contact
with
many
different

nations
with
distinct
cultures
through
warfare.
It
has
been
influenced
from
both

Eastern
culture
and
Western
culture.

Vietnam’s
Eastern
cultural
influence
came
from
China
and
other
neighboring

countries.
During
the
1,000
years
of
Chinese
domination,
Vietnam
inevitably

absorbed
many
elements
of
Chinese
culture
(i.e.
Chinese
Confucian
social
and

political
philosophy),
making
it
the
only
nation
in
South-‐East
Asia
with
a
close

cultural
affinity
to
China.
Australian
national
university’s
historian
David
Marr

observes,
“If
you
look
at
the
Vietnamese
from
Bangkok,
they
look
very
Chinese,
but

if
you
look
at
them
from
Quangzhou
[China],
they
look
very
Southeast
Asian”
(1993).

Neo-‐Confucianism
was
planted
even
deeper
in
Vietnam’s
society
during
another

brief
period
of
China’s
domination
when
Vietnam
was
ruled
by
the
Ming
dynasty.
It

is
reported
that
much
of
China’s
cultural
impact
on
Vietnam
today
stems
from
this

period.
Though
small
but
visible,
Vietnam’s
culture
was
also
influenced
by
contact

with
the
Cham
and
the
Khmer,
who
introduced
Indian
culture
and
Buddhism

ideology.
This
explains
why
Buddhism
and
Confucianism
both
are
practiced
widely

by
the
majority
of
Vietnamese
today.

Western
cultures
were
introduced
to
Vietnam
during
the
French
colonial
period

and
when
the
United
States
aided
the
South
in
the
war
with
North
Vietnam.
As

mentioned
before,
coming
with
the
French
was
the
introduction
of
Christianity

through
the
effort
of
Catholic
missionaries.

Exposure
to
Western
culture
was

foreign
to
the
Vietnamese
at
the
time.
Eventually,
as
Christianity
took
root
and

12
flourished
in
the
country,
the
Vietnamese
began
to
accept
and
adapt
to
the
new

culture
and
new
ways
of
living.
Though
Confucianism
and
Buhdism
were
still

prominent
by
the
time
the
Americans
arrived
in
support
of
South
Vietnam’s

government,
Vietnam
welcomed
even
more
cultural
influence
from
the
West.
This

explains
why
Vietnam’s
culture
is
very
much
like
that
of
other
Eastern
countries
but,

in
the
mean
time,
has
elements
of
Western
Cultures.

To
better
understand
culture
and
its
dimensions,
this
research
looks
at
the

famous
culture
framework
that
has
been
studied
and
developed
by
Hofstede
in

more
than
90
countries.

5. Hofstede’s
Culture
Framework

a. Definition

The
word
“culture”
has
several
meanings
from
Latin
sources.
In
most

Western
languages,
it
means
“civilization.”
Hofstede
(1991)
calls
this
definition
the

“cultural
one”.
The
other
definition
of
culture,
according
to
Hofstede
(1991),

corresponds
to
a
much
broader
use
among
social
anthropologists.
It
is
“the

collective
programming
of
the
mind
which
distinguishes
the
members
of
one
group

or
category
of
people
from
another”
(1991,
p.5).
Culture
is
not
genetic
but
originates

from
one’s
social
environment.
People
acquire
culture
through
a
long
process
of

learning,
and
not
through
genetic
inheritance
(1991).

Citing
others
sources
of
cultural
anthropology
literature,
Mitchell
et
al.
(2002)

explains
“cultures”
in
similar
terms:
“culture
is
a
collective
mental
knowledge

developed
by
a
group
of
people
exposed
to
a
similar
context”
(2002).
Within
the

13
national
realm,
this
collective
mental
knowledge
can
be
viewed
as
a
resource
to

address
particular
problems
faced
by
the
society
(Mitchell,
2002).
Therefore,

individuals
(entrepreneurs,
for
example)
within
society
will
be
affected
by
that

particular
culture
when
dealing
with
problems.

b. The
IBM
Studies

There
are
different
dimensions
within
national
cultures.
During
the
first
half

of
the
twentieth
century,
social
anthropology
developed
a
theory
that
states
that
all

societies
(i.e.
traditional
or
modern)
face
the
same
problems
but
have
different

answers.
In
1954,
Alex
Inkeles,
a
sociologist,
and
Daniel
Levinson,
a
psychologist,

suggested
four
common
issues
facing
worldwide
in
their
survey
of
English-‐language

literature
on
national
culture
(Hofstede,
1991).
Twenty
years
later,
Hofstede
used

these
four
suggested
issues
as
a
springboard
to
his
study
on
cultural
dimensions

(1991).
Hofstede
studied
a
large
body
of
survey
data
about
the
values
of
people
in

over
50
countries
worldwide.
These
people
were
employees
in
the
local
subsidiaries

of
IBM,
a
large
multinational
corporation.
The
results
show
that
these
employees
are

similar
in
all
aspects
except
nationality.
The
four
basic
problem
areas
predicted
by

Inkeles
and
Levinson
are
found
in
the
IBM
research
data
and
represent
four

dimensions
of
culture:

Power
distance
is
“the
extent
to
which
the
less
powerful
members
of

institutions
and
organizations
within
a
country
expect
and
accept
that
power
is

distributed
unequally”
(Hofstede,
1991,
p.
28).
Institutions
comprise
different
units

of
society
such
as
the
family,
school,
and
community;
organizations
are
work
places

(1991).
According
to
the
Power
Distance
Index
scores,
individuals
belonging
to
high

14
power
distance
cultures
accept
the
power
and
authority
of
their
superiors
without

challenging
because
of
the
superior’s
positions
in
the
hierarchy.
On
the
other
hand,

cultures
with
low
power
distance
may
be
more
power
intolerant.
In
such
cultures,

individuals
may
readily
question
or
challenge
the
power
and
authority
of
the

leaders,
according
to
their
own
self-‐interest
or
when
they
doubt
the
correctness
of

the
leaders
(Hofstede,
1991,
1994).

In
high
power
distance
countries,
inequalities
among
individuals
are

expected;
children
are
to
be
obedient
to
parents
and
older
siblings;
less
powerful

people
depend
on
more
powerful
people.
At
school,
students
pay
respect
to
teachers

and
view
them
as
gurus
who
transfer
wisdom.
Teachers
take
all
initiatives
in
the

classroom.
In
contrast,
the
reverse
is
true
in
low
power
distance
cultures.
Parents

and
children
treat
other
more
as
equals,
inequalities
are
minimized,
and

independence
is
encouraged.
In
school
settings,
initiatives
are
often
students’

responsibilities,
students
treat
teachers
more
as
equals,
and
teachers
are
experts

who
transfer
impersonal
truths.
The
work
place
experience
then
follows
the
family

and
school
experience.
It
holds
true
that
attitudes
towards
parents
and
teachers

easily
transfer
to
attitudes
towards
bosses.
Findings
show
that
Latin,
Asian,
and

African
countries
score
high
on
the
power
distance
scale
(Hofstede,
1994,
p.
6).

Individualism
versus
Collectivism.
Individualism
describes
societies
in
which

ties
between
individuals
are
loose
and
the
individual’s
interest
is
the
top
priority.
In

contrast,
collectivism
describes
societies
in
which
individuals
from
birth
onward

belong
to
strong,
cohesive
in-‐groups
that
foster
loyalty,
and
the
group’s
interests

take
precedence
over
that
of
individuals.
This
dimension
strongly
associates
with

15
work
goals
items.
In
cultures
with
strong
individualist
tendencies,
values
often

center
on
time
for
personal
life
and
family,
freedom
to
adopt
an
individual
approach

to
the
job,
and
challenges
allowing
a
sense
of
accomplishment.
They
stress
the

individual’s
independence
from
the
organization.
On
the
other
hand,
training

opportunities,
good
physical
working
conditions,
and
having
valuable
skills
for
the

job
are
more
important
goals
for
the
collectivist
pole.

Personal
career
comes
before
the
welfare
of
the
organization
for
those
with

strong
individualism
cultural
tendencies,
whereas
the
organization’s
interest
is
the

primary
concern
for
those
that
favor
collectivism.
It
is
also
worth
noting
that
career

mobility
is
greater
in
individualistic
societies
than
in
collectivism.
For
example,

people
belonging
to
individualistic
societies
exhibit
obligations
to
self-‐interest,
self-‐
actualization,
and
guilt.
In
collectivist
societies,
the
individual’s
obligations
to
family

or
in-‐group
are
harmony,
respect,
and
shame
(Hofstede,
1994,
p.
2).
Another

interesting
finding
from
the
research
is
that
individualistic
countries
tend
to
be

wealthy
while
collectivist
countries
are
poorer

(Hofstede,
1991).
Developed
and

Western
countries
exhibit
high
scores
for
individualism
while
collectivism
prevails

in
less
developed
and
Eastern
societies
except
for
Japan
which
positions
in
the

middle
(Hofstede,
1994,
p.
6).

Masculinity
versus
Femininity.
As
mentioned
in
the
previous
two
paragraphs,

answers
to
six
work
goals
items
produced
the
individualism
versus
collectivism

dimension.
The
analysis
of
the
answers
to
eight
other
work
goals
items
reveals

another
dimension
labeled
masculinity
versus
femininity.
Those
eight
work
goals

items
are
divided
evenly
for
the
masculine
pole
and
feminine
pole.
For
the

16
masculine
side,
it
is
important
to
have
opportunity
for
high
earnings,
be
recognized

for
accomplishment,
advance
in
jobs,
and
be
challenged.
For
the
opposite,
feminine

side,
good
working
relationships,
cooperation,
comfortable
living
environment,
and

secure
employment
are
desirable
(Hofstede,
1991).

Based
on
that
information,
masculinity
describes
cultures
in
which
social

gender
roles
are
clearly
distinguished.
In
such
societies,
men
are
to
be
tough,

assertive,
and
focused
on
material
success
whereas
women
are
to
be
more
modest,

caring,
and
concerned
with
quality
of
life.
Femininity
describes
cultures
in
which

social
gender
roles
are
not
strictly
distinct.
Both
men
and
women
tend
to
be
modest,

caring,
and
worried
about
quality
of
life.
For
example,
in
cultures
characterized
by

extreme
masculinity,
men
are
the
providers
in
households
by
having
male

occupations
while
women
are
to
be
at
home
or
work
in
female
oriented
jobs;
fathers

are
tough
and
deal
with
facts
while
mothers
are
caring
and
deal
with
feelings;
boys

do
not
cry
and
fight
back
when
attacked
while
girls
cry
and
should
not
fight;

student’s
failure
at
school
is
a
big
deal;
managers
are
expected
to
be
aggressive
and

decisive.
In
contrast,
in
feminine
cultures,
both
men
and
women
can
be
providers

for
households
and
pursue
different
careers
of
their
choice
and
can
be
well

represented
within
any
given
occupation;
dads
and
moms
are
caring
and
deal
with

facts
as
well
as
feelings;
both
girls
and
boys
cry
but
neither
should
fight;
failing
in

school
is
a
minor
accident;
managers
use
intuition
and
strive
for
consensus

(Hofstede,
1994,
1991).
According
to
the
analysis,
the
degree
of
aggressiveness
is

quite
high
in
Japan,
Germany,
Austria,
and
Switzerland
and
is
quite
low
in
France,

Spain,
and
Thailand
(Hofstede,
1994,
p.
6).

17
Uncertainty
avoidance.
The
three
dimensions
mentioned
previously
refer
to

three
types
of
expected
social
behavior:
behavior
toward
people
with
higher
or

lower
rank,
behavior
toward
the
group,
and
behavior
according
to
one’s
sex.
This

fourth
dimension
refers
not
to
social
behavior
but
to
man’s
search
for
truth.

Differences
among
societies
on
the
uncertainty
avoidance
scale
were

originally
identified
as
a
byproduct
of
power
distance.
According
to
Hofstede,
the

term
uncertainty
avoidance
is
borrowed
from
American
sociology.
As
human
beings,

individuals
have
to
face
the
fact
that
they
do
not
know
with
certainty
what
will

happen
tomorrow
or
in
the
future
and
therefore
have
developed
ways
to
alleviate

this
anxiety.
Feelings
of
uncertainty
are
subjective
and
learned
throughout
the
life
of

an
individual.
They
are
personal
and
or
shared
with
other
members
of
one’s
society

(Hofstede,
1991).

Based
on
findings
in
the
IBM
research,
uncertainty
avoidance
is
defined
as

the
degree
to
which
individuals
of
a
culture
feel
threatened
by
uncertain
situations.

It
measures
the
emotional
responses
that
individuals
exhibit
toward
uncertainty,

ambiguity,
and
changes.
Cultures
that
exhibit
weak
uncertainty
avoidance
are

characterized
by
individuals
who
welcome
change
and
thrive
on
new
opportunities

because
they
consider
them
necessary
for
growth
and
development.
In
such

societies,
students
prefer
open-‐ended
learning
situations
and
good
discussions;

teachers
may
say
‘I
don’t
know;’
parents
have
lenient
rules
for
children;
there

should
not
be
more
rules
than
are
strictly
necessary.
On
the
other
hand,
in
cultures

scoring
high
on
uncertainty
avoidance,
individuals
dislike
changes
and
try
to
avoid

uncertainty
or
ambiguity
whenever
possible.
Students
are
more
comfortable
with

18
structured
learning
experiences
and
are
concerned
about
right
answers;
teachers

are
expected
to
have
all
the
answers;
parents
have
strict
rules
for
their
children;

there
are
many
rules
even
if
some
of
them
never
work
(Hofstede,
1991).

However,
uncertainty
avoidance
should
not
be
mistaken
for
risk
avoidance.

Uncertainty
is
to
risk
as
anxiety
is
to
fear.
Fear
and
risk
both
focus
on
something

specific:
fear
focuses
on
an
object
and
risk
focuses
on
an
event.
Risk
is
associated

with
a
percentage
of
probability
that
a
particular
event
may
happen.
Uncertainty

and
anxiety
have
no
focus.
Uncertainty
has
no
probability
attached
to
it,
and
anxiety

has
no
object
(Hofstede,
1991).
As
soon
as
uncertainty
becomes
risk,
it
ceases
to
be

a
source
of
anxiety
but
converts
to
be
a
source
of
fear.

Almost
simultaneously
with
the
results
of
the
IBM
studies,
a
group
of

researchers
from
nine
Asian
and
Pacific
countries
published
results
of
another

cross-‐culture
value
survey.
This
group
of
researchers
modified
the
Rokeach
Value

Survey,
which
is
a
well-‐known
questionnaire
developed
by
psychologist
Milton

Rokeach
for
measuring
values
in
American
society
(Hofstede,
1991).

Then
they

collected
data
on
this
modified
version
from
100
psychology
students
(50
men,
50

women)
in
10
different
countries
(Ng.
et
al.,
1982,
pp.
196-‐205).
This
research
used

six
of
the
same
countries
that
were
used
by
the
IBM
studies.
When
comparing
the

two,
all
four
dimensions
identified
in
the
IBM
studies
were
also
present
in
this

research
data.
This
overlap
is
remarkable
because
the
two
different
studies
used

two
completely
different
questionnaires
on
different
populations
in
different
years

in
only
partly
overlapping
sets
of
countries.
Thus,
this
agreement
strongly
supports

the
universality
of
the
four
IBM
culture
dimensions
(Hofstede,
1988).

19
c. Chinese
Value
Survey

There
is
a
concern
about
cultural
biases
in
the
researchers’
minds
that
affect

the
results
of
the
two
research
projects
mentioned.
The
IBM
studies
used
a

questionnaire
developed
by
a
team
of
Western
researchers
from
Britain,
Holland,

France,
Scandinavia,
and
the
U.S.
The
Rokeach
Value
Survey
was
a
U.S.
instrument

for
measuring
values
in
American
society.

Thus,
questions
from
these
two

questionnaires
do
not
necessarily
capture
key
relevant
constructs
for
non-‐Western

respondents
and
answers
to
these
questions
do
not
accurately
reflect
their
cultural

values.
Therefore,
this
led
to
the
development
of
the
Chinese
Value
Survey
(CVS)

(Hofstede,
1988).

Michael
Harris
Bond,
a
senior
lecturer
in
psychology
at
the
Chinese

University
of
Hong
Kong
and
a
cross-‐cultural
management
trainer
for
multinational

corporations
in
Hong
Kong
since
1974,
found
one
solution
to
address
this
cultural

bias
issue.
He
asked
a
number
of
Chinese
social
scientists
to
prepare
a
list
of
basic

values
for
Chinese
people
in
Chinese.
Through
the
process
of
elimination
of

redundant
items
and
adding
other
items
from
his
research,
he
arrived
at
a

questionnaire
of
40
questions
(i.e.
CVS)
that
was
subsequently
translated
into

English.
This
survey
then
was
administered
to
100
students
(50
males
and
50

females)
in
each
of
22
countries
from
all
five
continents.
Translations
into
local

language
were
made
directly
from
Chinese.
Western
minds
may
find
some
of
these

questions
strange
just
as
Eastern
minds
find
questions
from
the
IBM
studies
or
the

Rokeach
Value
Survey
unusual
(Hofstede
1991,
1988).

20
Before
further
discussing
the
findings
from
this
Chinese
Value
Survey,
it
is

important
to
understand
the
Confucian
teachings
from
which
many
questions
of
the

survey
are
derived.

Confucius’
Teachings.
Confucius
(around
500
B.C.)
held
a
position
similar
to

that
of
the
Greek
philosopher
Socrates.
Confucianism
is
not
a
religion
but
a
set
of

pragmatic
rules
for
daily
life.
The
following
are
the
key
principles
of
Confucian

teaching.
First,
the
stability
of
society
is
based
on
unequal
relationships
between

people
(Some
of
these
relationships
are
ruler-‐subject,
father-‐son,
older
brother-‐
younger
brother,
husband-‐wife,
and
senior
friend-‐junior
friend).
The
juniors
owe

the
seniors
the
respect
and
obedience
while
the
seniors
owe
the
juniors
protection

and
consideration.
Second,
the
family
is
considered
the
prototype
of
all
social

organizations.
Individuals
learn
to
overcome
their
individuality
so
as
to
maintain

harmony
in
the
family.
Social
interactions
are
conducted
in
such
a
way
that
it
would

maintain
one’s
“face,”
meaning
one’s
dignity,
self-‐respect,
and
prestige.
Third,

virtuous
behavior
toward
others
consists
of
treating
others
as
one
would
like
to
be

treated
oneself.
And
finally,
virtue
with
regard
to
one’s
tasks
in
life
consists
of
trying

to
acquire
skills
and
education,
working
hard,
not
spending
more
than
necessary,

being
patient,
and
persevering.
Moderation
is
prevalent
in
all
things
(Hofstede,
1980,

1984).

Confucian
Dynamism
(or
Long-‐term
versus
Short-‐term
Orientation).
In
spite
of

the
completely
different
sets
of
questions,
different
populations,
and
different
mix
of

countries
with
some
overlap,
the
results
were
stunning.
One
CVS
dimension

corresponds
to
Power
Distance,
another
to
Individualism/Collectivism,
and
a
third

21
to
Masculinity/Femininity.
Again,
the
three
dimensions
common
to
the
CVS
and
IBM

studies
refer
to
expected
social
behavior:
behavior
toward
people
with
more
or
less

power,
toward
the
group,
and
as
a
function
of
one’s
sex.
Indeed,
these
dimensions

appear
to
be
universal.

To
the
surprise
of
the
researchers,
the
Uncertainty
Avoidance
was
not

present
in
the
CVS
data.
Instead,
the
CVS
strikingly
reveals
another
unique

dimension
made
up
of
the
values
indicated
in
Figure
1
(see
table
below).
Values
on

the
left
side
of
the
figure
are
more
important
to
countries
that
score
high
on
this

dimension;
and
those
values
on
the
right
are
more
important
for
countries
that

score
low.

FIGURE
1:
Values
Associated
with
Confucian
Dynamism

The
relative
importance
of:
But
the
relative
unimportance
of:

Persistence
(perseverance)

Ordering
relationship
by
status
and

observing
this
order

Thrift

Having
sense
of
status

Personal
steadiness
and
stability

Protecting
your
face

Respect
for
tradition

Reciprocation
of
greetings,
favors,
and

gifts

Source:
Hofstede,
G.,
&
Bond,
M.
H.
(1988).
The
Confucius
connection:
From
cultural
roots
to

economic
growth.
Organizational
Dynamics,
16(4),
5-‐21.

This
dimension
is
named
“Confucian
Dynamism”
because
values
on
both

sides
are
in
line
with
Confucius’
teachings
mentioned
in
the
sub-‐section
above.
The

values
on
the
left
correspond
to
those
teachings
of
Confucius
that
are
more
oriented

toward
the
future
(or
long-‐term
orientation),
while
those
on
the
right
correspond
to

Confucian
values
oriented
toward
the
past
and
the
present
(or
short-‐term

orientation).
For
the
purpose
of
uniformity
with
other
Hofstede
research,
from
this

point
on,
the
“Confucian
Dynamism”
dimension
will
be
labeled
as
“Time
Orientation.”

22
Scores
for
Time
Orientation
for
the
countries
surveyed
with
the
CVS
are
listed
in
the

last
column
of
Figure
2.

FIGURE
2:
Scores
on
Time
Orientation
for
the
Countries
Surveyed
with
the

Chinese
Value
Survey

Country

Time
Orientation

Index
Rank

Australia
31
11-‐12

Brazil
65
5

Canada
23
17

Germany
(F.R.)
31
11-‐12

Great
Britain
25
15-‐16

Hong
Kong
96
1

India
61
6

Japan
80
3

Korea
(S)
75
4

Netherlands
44
9

New
Zealand
30
13

Pakistan
0
20

Philippines
19
18

Singapore
48
8

Sweden
33
10

Taiwan
87
2

Thailand
56
7

United
States
29
14

Source:
Adopted
from
Hofstede,
G.,
&
Bond,
M.
H.
(1988).
The
Confucius
connection:
From
cultural

roots
to
economic
growth.
Organizational
Dynamics,
16(4),
5-‐21.

Another
striking
result
of
the
CVS
data
is
that
there
is
a
strong
correlation

between
the
newfound
dimension
and
economic
growth
across
all
22
countries

where
the
CVS
was
conducted.
For
example,
the
four
countries,
i.e.
Hong
Kong,

Taiwan,
Japan,
and
South
Korea,
holding
the
top
positions
on
the
Time
Orientation

scale,
exhibited
high
economic
growth
over
the
period
of
1965
to
1985
and
beyond.

The
Chinese
and
Japanese
were
known
for
their
thrift
and
perseverance
values

before
their
economic
boom
starting
in
the
1960s;
their
beliefs
in
tradition
and

saving
“face”
were
heavily
shaken
by
the
events
of
the
1940s
and
1950s.
Therefore,

23
the
development
of
the
“Time
Orientation”
dimension
does
not
seem
to
be

associated
with
fast
economic
growth
in
these
countries.

Hofstede
and
Bond
believe
that
the
logical
link
between
economic
growth

and
this
dimension
is
entrepreneurship.
The
value
of
“ordering
relationship
by

status
and
observing
this
order”,
which
creates
a
sense
of
hierarchy,
makes
the

entrepreneurial
role
easier
to
play.
The
value
of
“thrift”
leads
to
higher
savings,

which
supports
future
capital
investment.
The
value
of
“having
a
sense
of
shame”

supports
sensitivity
to
social
contacts,
which
is
an
important
aspect
of

entrepreneurship.
Finally,
the
value
of
“perseverance”
suggests
a
determined

attitude
in
pursuing
goals.

This
CVS
study
also
reveals
that
there
are
differences
between
Western
and

Eastern
minds.
Though
the
Western
and
Eastern
cultures
share
the
first
three

cultural
dimensions,
they
split
at
the
fourth
dimensions.
The
IBM
studies
and
the

CVS
study
reveal
that
the
uncertainty
dimension
might
be
unique
to
the
Western

culture
while
the
Time
Orientation
dimension
might
be
only
unique
to
the
Eastern

culture
(Hofstede,
1988).

To
recap
what
we
have
discussed
so
far
in
this
“culture”
section,
three

different
studies,
i.e.
the
IBM
studies,
the
Rockeach
Value
Survey,
and
the
Chinese

Value
Survey,
conducted
in
93
countries,
reveal
five
different
valuable
dimensions
of

culture
(See
Figure
3).
These
dimensions
are
widely
used
in
business
as
the
process

of
globalization
involves
more
and
more
countries.

24
FIGURE
3:
Dimensions
of
Cultures
found
in
the
Three
Studies

Dimensions
of

Cultures

Hofstede’s
IBM

Studies

Rockeach
Value

Survey

Chinese
Value

Survey

Power
Distance
ü
ü
ü

Collectivism
ü
ü
ü

Masculinity
ü
ü
ü

Uncertainty
Avoidance
ü
ü

Time
Orientation

ü

III. Development
of
Research
Question

Historical
events
affect
the
development
of
culture.
Such
was
the
case
in
Vietnam.

As
mentioned
in
the
literature
review
sections,
association
with
different
countries

and
cultures,
mostly
through
warfare,
has
influenced
the
current
Vietnamese
culture.

The
first
major
cultural
influence
came
from
the
Eastern
countries
such
as
China,

Cambodia,
and
India,
which
brought
Confucianism,
Buddhism,
and
Hinduism
into

Vietnam.
The
second
cultural
influence
came
from
two
Western
countries,
namely

France
and
the
United
States,
which
introduced
Christianity
to
the
Vietnamese.

Therefore,
elements
of
Eastern
culture
and
Western
culture
mix
and
intertwine
to

form
the
current
Vietnamese
culture.

As
discussed
earlier,
culture
is
“the
collective
programming
of
the
mind
which

distinguishes
the
members
of
one
group
or
category
of
people
from
another”

(Hofstede,
1991,
p.5).
Thus,
it
is
reasonable
to
conclude
that
culture
grows
out
of

experiences.
For
example,
entrepreneurs
have
some
distinguishing
experiences

when
compared
with
non-‐entrepreneurs.
According
to
Mitchell
et
al.
(2000),

entrepreneurs
possess
certain
traits
and
characteristics
that
do

not
have,
such
as
the
ability
to
arrange
the
contacts,
relationships,
resources,
and

25
assets
of
a
venture;
the
ability
to
quickly
identify
an
opportunity
and
make
a

decision;
and
the
willingness
to
tolerate
risks.
Those
traits
form
a
collective

programming
of
the
mind,
according
to
Hofstede’s
definition
of
culture,
which

distinguishes
the
two
groups.

This
lead
to
the
development
of
the
research
question:
are
there
differences
in

cultural
tendencies
between
entrepreneurs
and
in
Vietnam?

1.
Power
distance:
Confucius’
teachings
are
still
prevalent
in
Vietnamese
society

today.
Confucius’
first
principle

(i.e.
the
stability
of
a
society
is
based
on
unequal

relationships
between
people)
is
widely
observed.
According
to
Hofstede’s

definition
of
power
distance,
less
powerful
members
expect
and
accept
that
power

is
distributed
unequally
in
a
society
ranked
high
on
the
power
distance
scale.
With

this
in
mind,
it
is
logical
to
assume
that
Vietnamese
culture
is
ranked
high
on
the

power
distance
scale.
This
assumption
is
congruent
with
the
findings,
which

indicate
that
most
Asian
countries
tend
to
be
on
the
higher
end
of
the
power

distance
scale
(Hofstede,
91)
even
though
Hofstede
never
studied
Vietnam’s
culture

in
his
culture
research
(Hofstede
conducted
his
studies
before
Vietnam
opened
to

foreign
contacts).
In
addition,
Vietnam
has
been
shown
to
be
the
only
country
in

Southeast
Asia
with
a
close
cultural
affinity
to
China
(Hiebert,
1996;
Gerrard,
2003).

My
first
hypothesis
is
that
the
mean
score
for
the
is
expected
to

be
higher
than
that
of
the
entrepreneurs
on
the
power
distance
scale
(since
the
non-‐
entrepreneurs
are
the
less
powerful
group).

2.
Collectivism:
Vietnam
society
overall
is
expected
to
exhibit
more
collectivism

since
Hofstede’s
research
reveals
that
collectivism
prevails
in
many
Eastern

26
countries.
As
a
result,
Vietnamese
entrepreneurs
and
are

expected
to
be
more
collectivistic
than
their
counterparts
in
Western
countries.

However,
entrepreneurs
should
have
a
much
lower
mean
score
than
non-‐
entrepreneurs
do
because
entrepreneurs
often
display
self-‐interest
over
group’s

interest
by
having
their
own
business.
Thus,
I
expect
that
entrepreneurs
score
much

lower
than
do.

3.
Masculinity:
Research
results
for
the
masculinity
level
in
Vietnam
or
in
China

are
not
readily
available.
Even
if
the
result
for
China
on
this
dimension
were

available,
it
still
would
have
been
difficult
to
make
any
correlation
based
on
the
fact

that
Vietnam
has
close
cultural
affinity
to
China
since
close
cultural
affinity
does
not

mean
that
their
cultures
are
exactly
the
same.
This
makes
it
more
challenging
to

suggest
whether
the
entrepreneurs
score
more
than
the
do
on

the
masculinity
scale
or
not.
However,
entrepreneurs
have
been
proven
to
possess

the
willingness
ability
to
seek
out
new
situations
and
to
get
on
with
the
tasks
at

hand
(Mitchell
et
al.,
2000).
Based
on
this
willingness
or
assertiveness
to
drive
the

business
and
to
get
on
with
the
venture,
I
expect
entrepreneurs
to
score
higher
than

the
on
the
masculinity
scale.

4.
Uncertainty
Avoidance:
As
defined
earlier,
uncertainty
avoidance
describes
the

degree
to
which
individuals
feel
threatened
by
uncertain
situations
or
unknown

factors.
In
creating
a
new
venture,
entrepreneurs
constantly
encounter
uncertain

situations
such
as
sudden
changes
of
the
market
where
entrepreneurs
are
currently

doing
business
and
the
unpredictable
fluctuation
in
the
business
environment
in

which
entrepreneurs’
businesses
operate.
Notice
carefully
that
these
situations
have

27
neither
focus
nor
probability
attached
and
therefore
remain
as
uncertain
situations.

Non-‐entrepreneurs,
however,
experience
less
uncertainty
because
they
mainly
work

within
established
businesses
or
organizations
and
receive
a
regular
paycheck.

Their
choice
of
employment
suggests
a
desire
to
work
in
a
less
uncertain

environment.

In
addition,
it
is
already
established
that
Vietnam
has
elements
from
both

Western
and
Eastern
cultures.
Though
this
dimension
is
uniquely
found
in
the

Western
culture,
it
is
still
valid
to
ask
questions
measuring
this
dimension
of

Vietnamese
entrepreneurs
and
non-‐entrepreneurs.
Therefore,
my
hypothesis
is
that

entrepreneurs’
mean
score
in
this
dimension
is
expected
to
be
lower
or
much
lower

than
that
of
the
non-‐entrepreneurs–
indicating
greater
comfort
working
in
an

environment
characterized
by
change
and
uncertainty.

5.
Time
Orientation:
Found
in
the
Chinese
Value
Survey,
individuals
orient

toward
the
future
(or
long-‐term
orientation)
when
they
value
perseverance,
order

relationships
by
status
and
observe
this
order,
thrift,
and
having
a
sense
of
status

(left
column
of
Figure
1).
On
the
other
hand,
if
they
value
the
values
in
the
right

column
of
Figure
1,
they
orient
toward
the
past
(or
short-‐term
orientation)

(Hofstede,
1988).
It
is
difficult
to
determine
whether
Vietnamese
culture
has
a
long-‐
term
or
short-‐term
orientation
since
research
has
not
been
done.
Predicting

whether
entrepreneurs
or
orient
more
toward
the
future
or
the

past
is
a
difficult
task.
However,
I
expect
to
see
that
entrepreneurs
lean
toward
the

long-‐term
(future)
orientation
since
they
need
to
have
more
characteristics
on
the

28
left
column
and
less
on
the
right
column
in
order
to
be
successful
in
an
ever

increasingly
competitive
entrepreneurial
environment.

Below
is
the
table
summarizing
all
of
my
hypotheses.

FIGURE
4:
Hypotheses
Summary

Cultural
Dimensions
Entrepreneurs’
Score
Non-‐entrepreneurs’
Score

Power
Distance
Lower

Higher

Collectivism
Lower

Higher

Masculinity
Higher
Lower

Uncertainty
Avoidance
Lower
Higher

Time
Orientation
Higher
Lower

IV. Methodology

The
first
part
of
this
section
will
focus
on
how
the
survey
instrument
was

prepared
before
collecting
the
data,
how
the
data
were
collected,
and
what

measures
were
used
to
ensure
the
accuracy
of
the
data
set.
Following
the
discussion

on
data
collection
will
be
the
data
measurement
and
data
analysis
sections.

1. Data
Collection

A
purposeful
sample
of
entrepreneurs
and
business
managers
from

proportionally
representative
Vietnamese
ethnic
groups
was
collected
to
test
the

hypotheses.
All
respondents
are
strictly
native
Vietnamese
and
had
to
be

Vietnamese
citizens
to
be
qualified.
Some
of
the
Vietnamese
respondents
meet
the

previous
two
criteria
but
have
studied
abroad
for
a
period
of
time;
they
currently

reside
in
Vietnam.
The
survey
was
conducted
in
Ho
Chi
Minh
City,
the
country’s

financial
hub,
where
the
population
is
most
diverse.

29
Data
were
collected
from
220
respondents.
Of
these,
110
were
entrepreneurs

who
had
either:
(a)
started
more
than
one
business,
at
least
one
of
which
is
a

profitable
ongoing
entity;
or
(b)
started
at
least
one
business
that
has
been
in

existence
for
at
least
two
years.
The
other
110
respondents
were
business

professionals
or
managers
who
had
either
not
previously
started
a
venture,
or
only

had
the
business
for
less
than
two
years.
They
were
employed
in
a
variety
of

industries
and
in
a
variety
of
levels
and
positions
within
their
organizations.
For
the

purpose
of
reference,
the
sample
from
the
entrepreneur
population
and
the
sample

from
the
business
professionals
or
managers
population
will
be
classified
as
the

entrepreneur
group
and
the
manager
group
respectively.

Business
professionals

and
managers
were
chosen
for
the
purpose
of
controlling
for
alternative
explanation

for
the
differences
found
in
the
two
groups
based
upon
management
experience.

The
survey
instrument
was
translated
into
Vietnamese.
Survey
translation

was
carefully
managed.
A
native
Vietnamese
speaker,
the
author
of
this
research,

who
is
fluent
in
English,
translated
the
survey
instrument
into
Vietnamese.
The

author
worked
closely
with
his
coaching
professor,
talking
through
the
meaning
of

each
question
to
ensure
that
the
appropriate
meaning
would
be
communicated.
A

native
English
speaker,
who
is
fluent
in
Vietnamese,
then
back
translated
into

English.
Both
translators
met
with
the
author’s
coaching
professor
to
reconcile
any

discrepancies
in
the
translation.
However,
even
with
the
care
taken
to
translate
the

survey
instrument,
it
is
still
limited
by
its
origin
in
the
North
American
research

tradition,
using
theory
and
methods
derived
from
predominantly
Western
journals

(Hofstede,
1994).

30
Local
assistants
personally
administered
the
pre-‐tested,
self-‐administered,

structured
survey
to
all
participants.
This
personal
approach
resulted
in
a
98

percent
response
rate;
only
a
small
number
of
the
surveys
were
rejected
for

incompletion
or
refusal
to
participate.

2. Measurement

There
were
two
parts
in
the
survey
instrument
used
for
this
research.
The

first
part
comprised
eight
questions
in
which
the
last
four
questions
determine

whether
the
participant
is
an
entrepreneur
or
non-‐entrepreneur
(see
appendix
A).

These
questions
have
been
validated
in
entrepreneurial
research
in
various

international
contexts
different
by
Mitchell
et
al.
(2000,
2002).

The
second
part
of
the
survey
instrument
consisted
of
23
questions

measuring
cultural
tendencies
based
on
the
five
selected
cultural
dimensions
(see

appendix
A).
These
dimensions
were
measured
on
a
five-‐point
likert
scale.
These
23

questions
that
comprise
this
portion
of
the
survey
were
validated
by
Donthu
and

Yoo
(1998)
and
have
been
used
in
other
research
such
as
in
Youngdahl
et
al.
(2003)

(see
appendix
B).
A
sample
of
the
survey
instrument
can
be
found
in
appendix
A.

Each
respondent
has
a
total
score
in
each
of
those
five
areas
based
on
their

responses.
Each
response
is
on
a
scale
of
1
–
5.
The
number
of
items
in
each
scale

determines
the
maximum
score
for
each
construct.
Table
1
shows
the
number
of

items
and
maximum
possible
score
for
each
construct.

31
TABLE
1:
Maximum
Scores
for
Each
Cultural
Dimension

Cultural
Dimensions
Number
of
Items
in
Construct
Maximum
Score

Power
Distance
4
20

Collectivism
6
30

Masculinity
4
20

Uncertainty
Avoidance
5
25

Time
Orientation
4
20

3. Data
Analysis

The
research
question
was
tested
using
a
series
of
five
T-‐tests,
a
common

tool
used
to
evaluate
differences
between
the
means
of
two
groups.
The
test
was

used
to
examine
cultural
differences
between
the
two
groups
in
each
of
five

different
areas:
power
distance,
individualism
versus
collectivism,
masculinity

versus
femininity,
uncertainty
avoidance,
and
time
orientation.
Using
T-‐tests,
I

tested
the
difference
between
the
means
in
cultural
tendencies
of
the
two
subject

groups
(entrepreneurs
and
non-‐entrepreneurs)
on
each
construct.

During
the
development
and
pretesting
process,
researchers
observed
that
a

small
percentage
of
respondents
did
not
fully
complete
the
survey;
they
left
one
or
a

few
questions
unanswered.
These
are
identified
as
“irresponsible”
respondents
who

did
not
take
adequate
time
to
finish
the
survey
or
did
not
give
appropriate
thought

to
their
responses
(Seawright
and
Sampson,
2007).
Out
of
218
completed
surveys,

ten
were
not
complete.
Since
their
responses
would
detract
from
the
study
and

serve
as
noise
to
the
dataset,
and
because
ten
represents
a
small
percentage
out
of

218
surveys,
these
responses
were
eliminated
from
the
dataset.
This
left
208
usable

cases
for
data
analysis.

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