The relationship between the industry competitiveness and factors supporting the development of cluster Case study of the cluster of the digital content industry in Vietnam

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MINISTRY OF EDUCATION AND TRADING
UNIVERSITY OF ECONOMICS OF HO CHI MINH CITY
..……….  ………….
NGUYEN VAN VEN

THE RELATIONSHIP BETWEEN THE
INDUSTRY COMPETITIVENESS AND
FACTORS SUPPORTING THE
DEVELOPMENT OF CLUSTER: CASE STUDY
OF THE CLUSTER OF THE DIGITAL
CONTENT INDUSTRY IN VIETNAM.
Major: Business Management
Code:: 62.34.05.02

SUMMARY OF ECONOMIC DOCTORAL THESIS

Ho Chi Minh City –2015


2

THE WORK HAS BEEN SUCCESSFULLY COMPLETED AT:
UNIVERSITY OF ECONOMICS OF HO CHI MINH CITY

Sience Instructors:
1. Ph.D. NGUYEN VAN DUNG
2. Ph.D. NGUYEN ĐINH LUAN

Opponent 1:

Opponent 2:

The thesis has been defended at University,
at ...... ...... (hour), ...../...../……

This thesis may be found at:
1.
2.
3.


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PUBLISHED SCIENTIFIC WORKS
1. PUBLISHED SCIENTIFIC WORKS
1. Nguyen Van Ven, 2013. Analysis of Progress of Global Digital
Content Industry to apply in Viet Nam. Busines Finance – corporate
finance department - Ministry of Finance, ISSI: 1859-3887 (9): 33-37.
2. Nguyen Van Ven, 2013. Cluster approach: To determined the
Clustering Structure of digital content industry in Viet Nam. Business
Finance – corporate finance department - Ministry of Finance, ISSI:
1859-3887 (10): 16, 17, 18, 19, 23.
3. Nguyen Van Ven, 2013. Cluster development of digital content
industry in Viet Nam. Economy and Forecast Review, ISSN
0866.7120 (18): 56, 57, 58.
4. Nguyen Van Ven, 2015. Recognizing competition, competitiveness
to contributing oriented, policy makers promote Vietnam's economic
growth in the economic integration of the Asian community.
Proceedings of Scientific Conference Asian Economic Community,
opportunities and challenges for Vietnam enterprises. University of

Economics and Finance HCMC, 8/2015.


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CHAPTER 1: OVERVIEW OF THIS RESEARCH
1.1. INTRODUCTION
The need inevitable to use information for the personal making of
decision has existed and has evolved along with the evolution of human
society. In the past, the communication of information among people
without the assistance of information technology encountered many
difficulties because of the geographical distances. Since the information
technology came to life the time for information communication has
considerably improved for people; as a result, everyone may have
opportunities to access information from distance in an easy manner. The
recent advances in technology resulting from the technological convergence
of the three fiels including Information Technology, telecommunications,
and communications has given to the birth of a new economic industry –
Digital Content Industry (DCI). The birth of Information science has made
our world become closer, the development information technology in a
geometric progression has facilitated the growth of information
communcation to serve the business of transportation and supply of goods
and services to different remote places in the World (Friedman, 2005). DCI
is quickly considered as an important economic industry with the function
to supply digital content infrastructure to other interdisciplinary industries
to contribute the whole development of every countries or nations. The
Government is fully aware of the importance of DCI to the national
economy, so the Government (2007) issued the Decision No. 901/QĐ-TTG,
the Decision No.: 55/2007/QĐ-TTg, and the Decision No. 56/2007/QĐ-TTg
in a timely fashion to make consideration and approval of DCI as a key
economic industry in the year 2007, which was the year of the creation of

“Vietnam Institute of Software and DCI as a landmark to initiate many
“studies of matters” concerning Cluster DCI, especially to research the
relationship of Industrial Competitiveness and the assistance by the


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development of Cluster DCI in Vietnam, which will be presented in this
Study.
1.2. BASIC OF THIS RESEARCH
1.3. RESEARCH QUESTIONS
(1) What are the main factors having impacts on industrial
competitiveness of DCI?
(2) How is the perceived total impacts of industrial competitiveness of
DCI in Vietnam?
(3) What are the main factor which may give support to the
development of Cluster DCI?
(4) Whether or not there is a relationship between Industrial competitiveness
and the support to the development of Cluster DCI?
1.4. OBJECTIVES OF RESEARCH
(1) To explore and measure the main factors which have impact on the
competitiveness of DCI; (2) To explore and measure perceive the overall
impacts of competitiveness of DCI in Vietnam; (3) To explore and measure
the supports for cluster developments of DCI; (4) To measure the
relationship between the industrial competitiveness and supports for cluster
development.
1.5. SUBJECT MATTER AND SCOPE OF THIS RESEARCH
1.5.1. Subject matter of the research:
The factors which may have impacts on the industrial competitiveness and
supports for cluster development of DCI.
1.5.2. Scope of the research: The study of Cluster DCI in Vietnam focuses

on main factors having impact on the competitiveness of DCI and supports
for cluster development of DCI. The period for the study commenced in
2009 and ended in 2015.
1.6. RESEARCH METHOD:
Mixing qualitative and quantitative method


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1.7. THE NOVELTY OF THIS TOPIC AND STRUCTURE OF THE
RESEARCH
1.7.1. The novelty of this topic
About the theory: The Thesis has developped the scales in a model
of three main components, that is: (1) agent which has impact on the
industrial competitiveness; (2) perceived of the total impacts of the
industrial competitiveness, and (3) elements belongng to the groups
supporting the Cluster development. The Thesis has verified the
relationship between “the industry’s competitiveness” and the support to
the Cluster development in the DCI in Vietnam; in which the
competitiveness has strong impacts on the support to the development of
Cluster, and “the support to development” has a smaller impact on “the
competitiveness”. In addition, the Thesis has rejected the factor
“geographic proximity” or “geographic concentrations of inter-connected
companies” manifesting in the connotation of the Concepts of Cluster for it
is not suitable to the circumstance of Cluster DCI in Vietnam. A new factor
which has been developed in the group of factors giving support to the
Cluster development is “the soft factor – social capital” in the case of
research of the Cluster of the DCI.
About the practice:, the outcome of the research of the Thesis has
suggested implications for policies and management to help policy makers
to have a reference to a proper direction in making decisions to enhance the

competitiveness and the support to Cluster in the context of the
development of the DCI in Vietnam.
1.7.2. Structure of the research: The study consists of 05 chapters which
are presented in the following order: Chapter 1- Overview of the study;
Chapter 2- Theoretical Foundation and Model; Chapter 3- Research design;
Chapter 4 – Research result; Chapter 5 – Discussion of Research result and
implications for policies and management.


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CHAPTER 2: THEORETICAL FOUNDATION AND MODEL

2.1. BASES OF THEORETICAL FOUNDATION
2.1.1. Competition: Traditionally competition attaches to the Classical
theorists such as Smith (1776), Ricardo (1817); the neoclassical economists
such as Marshall (1890), Walras (1874) and other school theorists like
Robinson (1933). The nature of competition according to the traditional
conception are shown by scholars through the aspects as summarized below.
Traditional conception of competition
Group of
Methods of Objectives of Competitive Consequences Market
orientation
competition competition
space
of competition mechanism
theories
Competition, Low prices,
To obtain
Market
Win-Lose

“Invisible
Balance
antagonism:
the best
more gains
mode:
hand”
between
Trade market
quality
than other
Freedom,
supply and
is a battle field
goods.
competitors
perfect,
demand.
monopoly
Nature of
competition

Source: Author’s Result of Analysis

A number of typical economists with a modern conception of
competition are Friedman (2005), Porter (1990), Barney (1995), Prahalad &
Hamel (1990), Gimeno (2004), Gnyawali & Park (2009), lado & đtg
(1997), Peng & Bourne (2009), Luo (2007) . . . who have pointed out that
the nature of the modern conception of competition is “competition and
cooperation” so that the economy can be impulsed in a global cooperation

environment.

Modern conception of competition
Nature
of
competition

Methods
of
competition

Competition Through innovation
and
to create a core
cooperation capacity; Share Of
in the market information will
place is a
speed up the
game
development of
technologies.

Objectives
Consequences
Competitive
of
of
space
competition
competition

Share of
value
chain on a
win-win
basis

The market
should
be
regulated
by
the State

WinWin

Market
mechanism
“Visible
Hand”

Group
of
orientation
theories
Economic
evolution

Source: Author’s Result of Analysis

2.1.2. Competitiveness: In the work the typical studies of the industrial

competitiveness represent the studies of porter (1990); Mataraarachchi &
Heenkenda (2012), Joshi & Dixit (2011), Savić & đtg (2011), Padurean &
Tuclea (2008), Bakan & Dogan (2012: 449), Mehrizi & Pakneiat (2008),
Choe & Brian (2011a) and Choe & đtg (2011b)...
2.1.3 Cluster


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In the world Cluster has attracted the attention of many practioners
and academics whose typical researches are presented below:
Summary of the process of development of the Cluster concept
Group Academic authors
Meaning column of concepts
1
Marshall (1890), Krugman Industrial cluster definitions on the
(1991a, 1991b) Rosenfeld basis of Marshall’s model of
(1995: 12), Swann & Prevezer agglomeration economy, the content
(1996:1139), Hill & Brennan of the concept manifests through the
(2000: 67-68), NGA (2002), column “geographic concentrations
Brenner (2004), Morosini of companies ”
(2004), Rosenfeld (2005),
Bekele (2006), Cortright
(2006), Glaeser & Gottlieb
(2009: 1005), Porter(1990)
2
Isard (1959), Isard (1959: 33), Industrial cluster definitions which
Roepke & đtg (1974: 15), are derived mainly based on
Czamanski
(1974),
Ó “interindustry

relationships”
hUallacháin (1984: 421), found in input-output tables
Saxenian (1994), Doeringer &
Terkla (1995), Bergman &
Feser (1999), Feser & Lugar
(2002: 3),
3
Porter (1990,1998a, 1998b, Industrial cluster definitions is
1998c, 2000, 2008) và argued in a broader sense to explain
(OECD, 1999: 5)
explaining why establishments group
in geographic distance, including
economies of localization, value
chain linkage, and technology
innovation among others localization
economies, value chain linkage, and
technology innovation is explained
on the basis of Porter’s research
through the meaning column
“geographic concentrations of
companies,
interindustry
relationships,
related
and
supporting industries”.
Source: Chen (2005) and the author’s researches.


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2.2. BASES OF THEORETICAL FOR MODEL BUILDING
2.3. MODEL AND PROPOSAL OF SUPPOSITIONS RESEARCH
The model of research includes three elements : (1) groups of
decisive factors having impact on the competitiveness as being built on four
main pillars- namely including: (a) factor conditions; (b) demand
conditions; (c) related and supporting industries; and (d) firm strategy,
structure, and rivalry; (2) Perceived total impacts of the industrial
competitiveness; (3) supports for cluster development, including: (a)
Government;(b) chance; (c) soft factor – social capital; (e) geographic
concentrations of companies. Through the said description, the interrelation
of the subject matters is modelled into a model of a research of the thesis.
conditions
Source:Factor
Author’s
proposal
Resourcese
s

Labour

Infrastructure

H1c

Market size
s

H1b

H1a

H2a

Conditions
of
New product
demand

H2b

H5

H2c
Business
environment

Supports
Cluster
Development

Industrial
competitiveness

H6

H3a
H3b H4a

Structure

Firm
strategy,
structure,
and
rivalry

Cooperation

H3c

H4b

Added
value

Supply
chain

Related and
supporting
Author’s proposal
industries
Summary of research suppositions:
Ordinal

Group

Oriented
technology
Source:

Suppositions


10
number
1

Elements
belonging to the
group of factor
conditions
(group 1):

- H1a: Labour having the same directional
impact on the total impacts of the industrial
competitiveness of DCI.
-H1b: Infrastructure having same the
directional impact on the total impacts of the
industrial competitiveness of DCI.
-H1c: Resources having the same directional
impact on the total impacts of the industrial
competitiveness of DCI.

2

Elements
belonging to the
group of
Conditions of

demand (group
2):

- H2a: Digital content market size having the
same directional impact on the total impacts
of the industrial competitiveness of DCI.
- H2b: New products having the same
directional impact on the total impacts of the
industrial competitiveness of DCI
- H2c: Business environment having the
same directional impact on the total impacts
of the industrial competitiveness of DCI.

3

Elements
belonging to the
group of firm
strategy,
structure, and
rivalry (group
3):

- H3a: Production structure having the same
directional impact on the total impacts of the
industrial competitiveness of DCI.
-H3b: Cooperation between
Organizations/companies having the same
directional impact on the total impacts of the
industrial competitiveness of DCI.

- H3c: Technology orientation having the
same directional impact on the total impacts
of the industrial competitiveness of DCI

4

Elements

H4a:

Supply

chain

having

the

same


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belonging to the
group of related
and supporting
industries
(group 4):

directional impact on the total impacts of the
industrial competitiveness of DCI.

H4b: Added value having the same
directional impact on the total impacts of the
industrial competitiveness of DCI.

5

Perceived total
impacts of the
industrial
competitiveness
of DCI

-H5: Perceived total impacts of the industrial
competitiveness of DCI is the directional
impact on Supports to the Cluster
development

6

Supports to
the Cluster
development

- H6: Supports to the Cluster development of
DCI having directional impact on the total
impacts of the industrial competitiveness of
DCI.

CHAPTER 3: RESEARCH DESIGN
3.1. BASES OF THEORETICAL FOR RESEARCH METHOD

3.2 PROCEDURE OF RESEARCH
3.2.1 Mix research method: This study is the combination of qualitative
research and quantitative research. The qualitative research was conducted
through semi-structural interviews of and group discussion with the
surveyed subject matters. Subsequently, the author conducted a preliminary
quantitative research by interviewing persons with legitimate 123
questionnairs representing 95% of the interviewed persons and 360 issued
official questionnairs of which 306 Questionnairs were collected
representing 85% of the interviewed person. The result of the collected
questionnairs meets the requirements of the size of a research sample. The
research process was proposed by the author as follows:


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3.2.2 Research process
PROCEDURES

(1)
Start-up
(qualitative)

Determining
questions for
research

(3)
Concentration
group discussion
(qualitative)

(4)
Semi-structural
interview
(qualitative)

Determination basis
1.Identifying Cluster
2.Framework of theory
3.Model of theory supposition

Studying
resources
of materials

0

Creating scales to
measure factors

(2)
Experimental
research
(qualitative)

QUANTITY

STEPS TO CONDUCT

Experimental
discussion

Outlining questions:
(1)Opinion-exchange slip; (2)Semi-structural
interview; (3)Concentration group discussions

Draft of
questions
for the survey
of opinions

Adjusting the
questionnaire
and scales

Conducting the
concentration group
discussion

Preparation for the
concentration group discussion:
time, place, list of participants,
semi-structural questions

Preparation for the semistructureal interview: time,
place, list of participants,
semi-structural questions

10

16

Data collected from the
concentration group discussion

Conducting the semistructureal interview

6

Data collected from the
semi-structureal interview

(be continued)

(1)

(2)

(3)


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(1)

(continued)

(2)

PROCEDURES

(5)

Recording and
processing data
collected from
concentration
group and semstructural
interview
(qualitative)

(6)
Preliminary
research
(quantitative)

QUANTITY

STEPS TO CONDUCT

Recording rough
data: Group
discusion, Semistructure

correting
data

Preliminary
survey

Classifying
data into
groups

0

Creating a preliminary opinionexchange table and recording results

Analysis and
presenting

Checking the
reliability of the
Cronbach’s Alpha
scale for the 1st time

Analysing
factors
123

Checking the reliability
of the Cronbach’s Alpha
scale for the 2nd time

(7)
Main research
(quantitative)

(3)

Official
survey

Creating a main opinionexchange table and
recording results

Preparation of
tools for
verification

Verifying the model
on the basis of SEM

Verification
of CFA

Presenting the result of
the research, evaluation
and proposal

306


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3.2.3. Design of qualitative research
3.2.3.1. Pilot Study: The model survey of 10 persons voluntarily
participating in the research was conducted by giving assistance to the
interviewed, evaluating the legibility of the questions, spelling mistakes,
degree of expression of language easy to understand, accuracy of the
contents, time for conducting group concentration discussions and semistructural interviews.
3.2.3.2 The group concentration discussions focusing: On 16 participants
created opportunities to carry out a research into their interrelation and
suggested many new ideas helping the researcher to be profound aware of

the matter subject to the research and simultaneously to receive reactions
and feedbacks in a controlling and systematic manner from the participants
in the research. After the end of the step of the group concentration
discussions, a set of data was recorded and was processed, the findings of
the research have good contribution to the preliminary questionnair.
3.2.3.3 The semi-structural interview: In the semi-structural interview of
6 selected persons, the collected data shows a concrete knowledge,
flexibility, exploitation of reactions and explanation of the circumstances
relating to the research contents. This research also used the Location
Quotient Calculator (LQ) to identy Cluster DCI, using Brainstorming
technique to encourage the discussing group to use their intelligence, using
SPSS Amos Version 20 to help the analysis of orientation data and using
graphical design engineering for SEM model, using the SWOT tool to make
lesson plan for the qualitative analysis to determine the strength and
weakness, opportunities and risks as to the competitiveness of DCI. After
the end of the semi-structural interview, a set of data was recorded and was
processed, the findings of the research have additional contribution to the
perfection of the preliminary questionnair.
3.2.4. Design of quantitative research
3.2.4.1. Preliminary research: A preliminary research was conducted with
135 opinion-exchange slips issued to the parcipants of which 123 legitmate
slips were collected accounting for 91% the interviewed person. In


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preliminary research using the technical expertise to determine Cronback
Apha scale reliability and preliminary studies using Exploring Factor
Analysis To Explain (EFA) appropriate level of scale with concept studies.
The result of the collected slips meets the requirements of the size of a
research sample.

3.2.4.2. The main research: In the main research, the Confirmatory Factor
Analysis (CFA) method was used to determine the reliability of the scale
and the suitability to the model data. A data set after which was created
from such analysis and was processed resulted in a conclusion.
3.2.4.3. Support Tools: The research also used SPSS Amos Version 20 to
give assistance to our analysis of quantitative data, using the graphical
technique for SEM model and exel software to process calculations and
technical indexes collected from the qualitative and quantitative data, using
the Excel processing software calculates the technical indicators from
quantitative data and qualitative indicators and LQ index, using techniques
Brainstorming and SWOT tool.
CHAPTER 4: RESULT OF RESEARCH
4.1. RESULT OF QUALITATIVE RESEARCH
4.1.1. Result of the research of group concentration discussions
The research of group concentration discussions resulted in findings
in the procedure of group discussion, which suggest an adjustment so that
the position of elements can be suitable to the supposition model as follows:
(1) The two elements “information and quality” should be designated as a
scale belonging to the group of “the conditions of the elements necessary
for production and service and conditions of demand”; (2) the eleven
elements that are the elements belonging to the 4 groups having the impacts
on the total competitiveness of the industries should remain unchanged as
stated the researches made in the past; (3) the three elements which the
“Government’s role, soft elements and opportunities” should be changed
into a scale of potential or latent factors of factors giving to support to the
development as expected by the research design. All the findings in the


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research of the group discussions serve as a basis to complete the scale of

the quantitative research, giving additional foundation to the theories of
research models.
4.1.2 Result of the research of semi-structural interviews
The semi-structural interviews results in new findings including 05
elements (Business ethics and intellectual property, leaders’skills to use the
computer, people’s inclination to new technologies and policy maker’s
expert in as professional field) which overlap the elements in the design of
research supposition model (“customer’s expert” and “Government’s role”).
However, the 02 elements (business ethics and intellectual property) is not
much characterized by the role of representative elements in this model
(these elements may be eliminated in the model after there were solutions to
remedy the real situation of this matter) so in this research model the
consideration to these elements were not given. The 03 elements ( leaders’
computer skills, people’s liking new technologies and the policy maker’s
expert) were considered in the design as a common meaning for 02 scale
(the user’s expert and the Government’s support role). Similar to the group
discussion, all the findings in the semi-structural interviews helps us to
complete the scale used in the research supposition model.
4.1.3. Results of design scales
The scales are established on the basis of expressions given and researches
conducted in the past and the general qualitative research as follows:
(1) The scale of the impact of the factor conditions
Labour:
DKYT_LD1: Availability of labour with a high skill level and
creativity to guarantee the production of the DCI
DKYT_LD2: Labour with skill in professional management of
the DCI.
DKYT_LD3: Educational and training institutes able to supply
well-qualified labour as required by the production
and service of the DCI.

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DKYT_LD4: Quality in education and training to meet at all time
the demand for the production and service of the
DCI.
DKYT_LD5: High labour Efficiency and productivity.
Infrastructure:
DKYT_CSHT1: High-speed link of telecommunication able to meet
the demand for the production and service of the
DCI.
DKYT_CSHT2: Quality of telecommunication service.
DKYT_CSHT3: Quality in the update service to upload information
to internet websites to the customer’s satisfaction at
all time.
DKYT_CSHT4: Reasonable costs for telecommunication services.
Resources:
DKYT_NL1: Ready to provide the sources of rough information
from individuals, organizations, businesses,
industries and national data for the production and
service of the DCI.
DKYT_NL2: It is easy for the companies operating in DCI to
access to preferential capital source for production
and service activities.
DKYT_NL3: Reasonable costs for source of rough information
DKYT_NL4: The content of the rough information having good
quality.
DKYT_NL5: Political Stability facilitating the activities of
production and service of the DCI.
DKYT_NL6: Labour working in the DCI having good living

environment.
DKYT_NL7: Good working conditions for the labour in the DCI.


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(2) Scale measuring the impact of the demand conditions
Market size:
DKNC_TT1: Domestic Expansion of DCI is good.
DKNC_TT2: Expansion of DCI to foreign countries is good.
DKNC_TT3: Expansion of the size of domestic and foreign
markets for DCI attracts capital for the industrial
business and production.
DKNC_TT4: Expansion of markets for customers who have
knowledge and expert about the products and
services of DCI.
New Product:
DKNC_SP1: Capable of well - developing new products and
service of DCI to meet market demands.
DKNC_SP2: Businesses reacting quickly to and having creativity
before the changes in the demand of the products
and services of DCI.
DKNC_SP3: High Quality and Reliability in the products and
services of DCI done and supplied by domestic
companies.
Business environment:
DKNC_MTKD1: Businesses having profound knowledge of their
business environment and receiving sustainable
support to their DCI products and services.
DKNC_MTKD2: Businesses in the DCI in Vietnam showing a
strong business spirit.

DKNC_MTKD3: Businesses in the DCI in Vietnam ready to be
faced with risks.
(3) Scale measuring the impact of firm strategy, structure, and rivalry.
Structure (Industrial structure):
CL_CT1: The presence of many big foreign companies in the DCI


19
in the market in Vietnam.
CL_CT2: Flexibility in the system of industrial production and
business of DCI services.
CL_CT3: Businesses with DCI production and service
continuously improving their production models to meet
market demands at all time.
Cooperation:
CL_HT1: Close cooperation among business in the Cluster of this
industry.
CL_HT2: Businesses actively improving their general knowledge
of Cluster DCI.
CL_HT3: Rapid development of the network of businesses carrying
on production and services of DCI in the Cluster.
CL_HT4: Positive cooperation and participation in the activities of
civil society and community concerning the supply of digital
content.
Orientation of technology:
CL_DHCN1: High degree in applying new technologies to exploit the
resources of digital content so that such resources can
serve production activities of businesses in Vietnam
CL_DHCN2: Efficient Transfer of digital technology to business in
Vietnam.

CL_DHCN3: Vietnamese leaders in businesses having high awareness
of the benefits to be gained from the continuous
improvement of technologies for the exploitation of
digital resources to serve their production and business
activities.
CL_DHCN4: High degree in applying and improving continuously
new technologies in business operating in the activities
of DCI production and service in Vietnam.


20
(4) Scale measuring the impact of related and supporting industries
DCI Supply Chain:
CN_CCC1: Capacity for providing supporting services by supporting
and related industries to meet the demands or DCI
Production and Business is good.
CN_CCC2: Ability of supporting services to meet the demands of DCI
production and business is good.
CN_CCC3: Quality of the supporting services provided by supporting
and related industries to the activities of production and
business in the Cluster of DCI in Vietnam is good.
CN_CCC4: Model of the structure of scientific supply chain which is
sustainable and suitable to the types of products and
service of DCI.
Added value of DCI:
CN_GTGT1: Capacity of the supporting and related industries for
contributing added value to the DCI supply chain is good.
CN_GTGT2: Understand and knowledge of supporting and related
industries about the possibility to add value to the DCI
Supply chain is good.

CN_GTGT3: Readiness of supporting and related industries for
participating in and sharing value and knowledge is good.
(5) Scale measuring the total impact of the industrial competitiveness
TD_NLCT1: General impact of the competitiveness of the DCI in
Vietnam is strong (Type C).
TD_NLCT2: Determining that benefits are more than costs payable for
enhancing the competitiveness of this Industry (Type A)
TD_NLCT3: Do you agree or not that the competitiveness of the DCI in
Vietnam can meet the domestic and international
demands? (Type A)


21
(6) Scale measuring the impact of the supporting factors for the
development of the Cluster of Supporting and related industries.
HTPT1: Government’s supporting role in planning the policies to
enhance the competitiveness of this industry and to speed up the
development of Cluster?
HTPT2: Role of soft factors –social capital of businesses in the DCI in
their rapid deployment of conversion from the present social
connecting networks to digital connecting networks like virtual
networks Zing me, Facebook, Twitter, Zalo, working
websites…?
HTPT3: Chane factors for businesses (such as specific characteristics
(weather), good location (terrain), special talent (People’s
unity), lucky factors; new invention, political decisions made by
foreign Governments…)?
HTPT4: Factor of the Geographical concentration of DCI (businesses
in the same industry will be located close to each other
geographically)?

4.2. Result of quantitative research
4.2.1. Result of the preliminary research
The result of the preliminary research demonstrates the following
things: (a) The set of scales measuring the reliability is a basis for creating a
Questionnair which will be used in the main research; (b) the data set
suitable for an analysis of the factors model and scales measuring the
orientation explains the classification of groups of factors; (c) The scale
measuring exclusive observation variables of DKYT_LD4, DKYT_CSHT3,
DKYT_TT3, CL_DHCN2, CN_CCC2, has not impact on the research
concept; (d) the scale measuring the implicit variable HTPT4 –
Geographical concentration of businesses in Cluster has a general low
correlation coefficient 0.143 <0.3, which demostrates that the people who
answered the questions did not concur with the concept of the scale


22
measuring “ the geographical concentration” as a factor supporting to the
development of DCI Cluster.
4.2.2. Result of the main research
The main research recorded the findings: (a) affirming that the set of
scales for the main research is reliable; (b) the research modle is suitable to
the market data set; (c) the model of research suppositions gurantees the
requirements of SEM technological standards, so the model of research
suppositions remains unchanged of which factors were not adjusted; (d) the
Bi-directional impacts of the relationship of the general competitiveness of
the industry and the factors supporting to the development of Cluster at
average degree are found out and are suitable to the research supposition
and the oriented research (the correlation result is as follows: HTPT <--NLCT: β1 =0.561; NLCT <--- HTPT: β2 =0.460), which demonstrates that
the competitiveness of the DCI in Vietnam is at an average degree and
which implies that the promulgated policies must be implimented so that it

is possible to enhance the industrial competitiveness and to support the
development of the Cluster of DCI in Vietnam. The factors “market size” in
this model has a highest degree of competitiveness (NLCT <--- Market:
β6=0.199) and the skilled labour element has the lowest degree of
competitiveness (NLCT <--- Labour: β3=0.069). Result of verification of
structural equation modeling SEM (Standardized) as shown in the table
below:
Degree of standard
acceptable
The consistent for model data
Chisquare, P
0.000
> 0.05, If P<0.05
continue to check
Chisq/df to affirm the
data set for the
research.
Chisq/df
1.367
χ2/df <2.0, <3.0, <
5.0
Coefficient

Result

Remark
The meaning degree
is not ensured, next
indexes must be
examined.

Good Suitability of
data


23
GFI

0.862

TLI

0.967

NFI

0.900

CFI

0.971

RMSEA

0.035

Reliability of the scale
Unitary
Good
feature
Suitability

of data
Convergence 0.666 –
value
0.994
Discriminant
value

P=0.000

<0.8 & <0.9, >0.9,
>=0.95
<0.8 & <0.9, >0.9,
>=0.95
<0.8 & <0.9, >0.9,
>=0.95
<0.8 & <0.9, >0.9,
>=0.95
< 0.08

Good Suitability of
data
Good Suitability of
data
Good Suitability of
data
Good Suitability of
data
Good Suitability of
data for the model

Suitability of data for
market

Observational
variables attaining
unitary feature
The scale meeting the
requirements of
convergence
Correlation factor of
each pair of concepts
different in compared
with 1 at the
reliability of 95%,
the concepts attain a
discriminant value
and have a statistical
meaning.
Good satisfaction of
requirements

Weight >=0.5

Correlation factor
between the concepts
and P_value < 0.05

General
0.991
>=0,70

reliability
coefficient
Average
Satisfaction of
variance
0.713
>=0.5
requirements
extracted
Result: (1) In spite of the Chisquare (P =. 000) other indexes ensure the research
standards; (2) The model is suitable to the market data set; (3) The scales attained
high degree of reliability.


24
Result of verification of the research model:

Source : Author’s researches


25
The summary of the main research as shown in the table below:
correlation

Impact
index

Degrees of impact
Weak Average Strong
(+)

(++)
(+++)

NLCT<--- Labour

β3=0.069

X

NLCT<--- Infrastructure

β4=0.115

X

NLCT<--Resources

β5=0.152

X

NLCT<--Market

β6=0.199

X

NLCT <---Product

β7=0.078

X

NLCT <--- Business environment

β8=0.115

X

NLCT <--- Structure

β9=0.105

X

NLCT <--- Cooperation

β10=0.130 X

NLCT <--- Oriented technology

β11=0.199 X

NLCT <--- Supply chain

β12=0.182 X

NLCT<---Added value

β13=0.123 X

HTPT <--- Competitiveness

β1=0.561

X

NLCT<--- Support development

β2=0.460

X

Ratio

84.6% 15.4%

0%

Result of General evaluation:
1. The decisive elements of the competitiveness of the DCI has low rate
(β2-> β13=< 0.5).
2. The awareness of the general impact of the competitiveness of the DCI
having an impact on the factors supporting to the development of the
Cluster of the DCI is at an above-average degree (β1 =0.561).
3. The supporting factors having impact on the competitiveness of the DCI
is at a near-average degree (β2=0.460).