Introduction
Research background
In the highly competitive global and Vietnamese economies, the professional tax consultant service industry faces numerous challenges To achieve a competitive edge, firms must provide superior client value, which is crucial for fostering loyalty, enhancing profits, and ensuring long-term survival However, the concept of value can be ambiguous, often differing in interpretation between clients and service providers Scholars argue that understanding how clients perceive value is more critical than the service providers' definitions This complexity is heightened in professional services, where clients struggle to evaluate performance outcomes due to their intangible nature Recognizing clients' views on value is essential for success, particularly for professional firms, as research shows a strong positive relationship between perceived performance and client satisfaction mediated by value in business-to-business services.
Professional tax services, offered by specialized tax firms with expert consultants, are essential in navigating the increasingly complex landscape of tax law, particularly in emerging markets where regulations frequently change These services provide clients with informed advice based on the latest tax legislation and practical experience, which many organizations lack internally As a result, most companies, except those with very simple financial situations, are inclined to engage a professional firm for their tax-related needs.
Research problem
In Vietnam's challenging economic landscape, the increasing number and quality of professional tax service firms have expanded client options, intensifying industry competition Consequently, these firms are prioritizing client perceptions of service performance and value, as these factors are closely linked to client satisfaction, which remains the ultimate objective for all firms (Morgan et al., 2005).
Recent studies have explored client perceived performance and value in business-to-business professional services, revealing a significant link between perceived performance and client satisfaction through value (La, Patterson, and Style, 2009) Additionally, research indicates that higher client satisfaction correlates with increased repurchase intention, loyalty, and a desire for long-term relationships with service providers (Iacobucci et al., 1994; Athanassopoulos et al., 2001) As a result, many researchers aim to identify the factors influencing client perceived performance and validate the connection between perceived performance and client satisfaction across various professional services However, much of the existing research has primarily concentrated on the antecedents of value and its effects on client satisfaction, particularly in the context of business-to-consumer professional services, as outlined by Parasuraman (1985).
Research on client perceived value and satisfaction in the business-to-business (B2B) professional services sector has been limited, with notable contributions emerging from recent studies Notably, La et al (2009) developed a conceptual model addressing client-perceived value and satisfaction from an international perspective, particularly in developing economies Additionally, there have been efforts to create B2B-specific measurement scales tailored to various industries, including engineering consulting and software.
Research objectives
This study investigates client perceived value and satisfaction within the professional tax services sector, emphasizing the distinctive features of these services shaped by tax regulations and current practices, as outlined by La et al.
The 2009 conceptual model serves as a valuable resource for both practitioners and researchers, particularly in the context of varying levels of tax regulation development across countries This study specifically examines business-to-business professional tax services in Vietnam, highlighting the unique challenges and practices within this market.
Further to the above discussion, this study aims to obtain following objectives:
1) To examine the antecedents of client perceived performance;
2) To test the effect of client perceived performance to client perceived value in professional tax services in Vietnam;
3) To test the effect of client perceived value to client satisfaction with professional tax services in Vietnam; and
4) To explore factors/ situations (moderators) leading to the different influence of these factors to client perceived service in the context of Vietnam.
Scope ofthe research
The qualitative analysis aims to verify the relevance of La et al.'s (2009) conceptual model in assessing the significant factors affecting client perceived performance and value in professional tax services in Vietnam This study will identify the various factors and situations that influence these perceptions, ensuring the model's applicability in the Vietnamese context.
• identify factors that reflect the unique characteristics of the professional tax service in Vietnam
Data for quantitative analysis were gathered to validate the identified factors and their moderators The study's sampling frame consisted of clients from tax consultant firms located in Ho Chi Minh City, where many of the largest firms operate These clients range from Da Nang to Ca Mau and represent a diverse array of industries.
Significance ofthe research
This thesis aims to validate the applicability of La et al.'s (2009) conceptual model within the realm of professional tax services in Vietnam It anticipates modifications to the model to better align with the realities of these services through qualitative analysis, which will assess the relevance of existing factors and relationships while potentially introducing new ones related to client-perceived performance, value, and satisfaction Following this, quantitative analysis will provide empirical evidence to support the qualitative findings This research seeks to enhance the understanding of value and satisfaction in business-to-business professional tax services in Vietnam, marking a significant theoretical contribution to the study of client satisfaction from an Asian behavioral perspective.
The research aims to provide valuable managerial implications for professional tax firms by highlighting key factors that significantly influence client-perceived performance and value These factors include technical skills, interpersonal skills, customer orientation, relationships with tax authorities, and overall reputation By gaining a deeper understanding of these elements, tax firms can take actionable steps to better meet client needs and enhance customer satisfaction Additionally, identifying the varying impacts of these factors is crucial for firms to assess their competitive standing in the industry This knowledge enables them to develop effective strategies to improve their competitiveness and achieve greater success.
Structure of the thesis
This thesis consists of five chapters, beginning with Chapter 1, which introduces the research background, objectives, scope, and significance Chapter 2 reviews the literature on client perceived performance, value, and satisfaction in services, along with a qualitative study and hypotheses Chapter 3 discusses the methodology, while Chapter 4 presents the empirical investigation and its findings Finally, Chapter 5 concludes with a discussion of the results, managerial implications, and limitations of the study.
Literature review
Literature review
2.1.1 Client perceived performance and its antecedents
Performance refers to the perceived outcomes of a product or service, typically measured on an objective scale ranging from good to bad, such as courteous versus discourteous service (Oliver, 2006) In contrast, quality is an evaluation of performance excellence Despite their distinct definitions, performance and quality are often mistakenly interchanged (Oliver, 2006).
Researchers highlight that service quality differs from product quality due to its unique characteristics, including intangibility, inseparability of provision and consumption, heterogeneity, and perishability (Zeithaml, Parasuraman, and Berry, 1990) These traits, coupled with the intricate technical aspects of professional services such as engineering, consulting, and project management, complicate the evaluation of service quality (La, Patterson, and Style, 2009).
Research on service quality emphasizes its measurement and dimensions, with a consensus identifying three key elements: the quality of results, the quality of interactions, and the quality of the service environment (Pollack, 2008, p.539) The quality of results pertains to the tangible benefits clients receive, which are evaluated objectively In contrast, the quality of interactions involves the subjective assessment of the relationship between clients and service team members, focusing on how effectively inputs are transformed into outputs Lastly, the quality of the service environment encompasses the facilities of the service firm, which are also subject to client evaluation Ghobadian et al (1994, p 50-51) further elaborate on service quality dimensions, including the technical quality of the service and the functional quality of client-provider interactions, alongside factors like company image, service costs, communication, resource allocation, website accessibility, and team member skills Overall, service quality is assessed based on clients' perceived performance of service providers in terms of results, interactions, and the service environment.
According to the European school of thought, particularly the work of Gronroos (1984), clients evaluate service quality through two key dimensions: technical quality and functional quality Technical quality addresses the 'what' aspect, determining whether the service meets client expectations, while functional quality focuses on how the service is delivered Both dimensions significantly influence clients' perceived performance of the service Consequently, understanding client perceived performance is crucial for enhancing service quality and maximizing perceived service value.
Lovelock (1995, 1999) identified two key components of service packages: 'core services' and 'supplementary services.' According to Ferguson, Paulin, Pigeassou, and Gauduchon (1999), core services represent a firm's fundamental competency in generating value for clients In contrast, supplementary services encompass a range of additional elements that support and enhance the core offerings.
In the present of business-to-business professional services especially current practice of tax professional firms, the core service refer to the capability of utilizing technical or
• intellectual know-how/ expertise to provide solutions to a client's issue The core service in
• this context is equivalent to technical quality/ performance in Gronroos' school of thought
(1988 and 1984) Accordingly, supplementary services refer to Gronroos' (1988 and 1984) functional quality/ performance i.e the 'how' (services are delivered) components
Professional services are sought to acquire expertise and resources that organizations lack internally (Czemiawska and Smith, 2010) Many clients often lack the technical knowledge necessary to accurately assess the quality of the services they are purchasing Consequently, clients tend to evaluate the quality and value of professional services based on their perceptions of the service firms' performance (La, Patterson).
• and Style, 2009) Conceptual Model of Client perceived Value and Satisfaction of La,
Patterson and Style (2009) identify two key components that influence client perceived performance: people-related factors, which include interpersonal skills, technical skills, and customer orientation, and firm-related factors, encompassing innovation and reputation Numerous studies, such as those by Day and Barksdale Jr (1992), Paulin, Ferguson, and Payand (2000), and LeBlanc and Nguyen (1996), have examined the impact of a service provider's interpersonal skills, technical abilities, customer orientation, as well as the firm's innovativeness and reputation on perceived performance in both consumer and professional contexts.
Technical skills are a crucial factor clients consider when evaluating a firm's performance, as highlighted by Ellis and Watterson (2001) and Burke (1996) This encompasses personnel's knowledge, expertise, understanding of clients' business models and needs, competitor services, and industry background (Rentz et al., 2002; Coviello et al., 1998) Given the nature of tax professional services, which rely on the latest tax regulations and practices, technical skills significantly impact clients' perceived performance The assessment of technical skills can be linked to the tangible results of services provided, aligning with the concepts of technical quality in Gronroos' (1984, 1988) framework and core services in Lovelock's (1995, 1999) model.
The intangibility and inseparability of service provision necessitate a high level of interaction between service firms and their clients, making interpersonal skills crucial for evaluating the performance of professional service firms (Laing et al., 2002) These skills encompass the ability of team members to communicate effectively both verbally and non-verbally, as well as to foster strong relationships with clients (Rentz et al., 2002) In the realm of professional tax services, the enhancement of interpersonal skills significantly contributes to improving clients' perceived performance.
Recent studies suggest that customer orientation plays a crucial role in enhancing service performance, which in turn influences clients' overall assessment of service quality.
Customer orientation is crucial for firms as it involves gathering and analyzing customer information to identify areas for improvement This process enables businesses to prioritize changes that enhance service and operational efficiency, ultimately driving positive transformation.
Understanding customer needs is crucial for designing improved services, which in turn enhances perceived value for clients By leveraging insights into customer preferences, businesses can create offerings that resonate more effectively with their target audience.
Innovation is widely recognized in marketing and management literature as a key driver of superior performance and competitive advantage (Agarwal, Erramilli and Dez 2003; Han, Kim and Srivastava 1998; Zahra, de Belardino and Boxx, 1998) It influences a firm's performance both directly and indirectly (Agarwal, Erramilli and Dez 2003; Vakola 2000; Bharadwaj, Varadarajan and Fahy, 1993) However, in the context of professional tax services, the impact of innovation on firm performance remains unclear due to the regulatory nature of tax services Therefore, further research is needed to explore the role of innovation in enhancing the performance of professional tax firms.
A firm's overall and specific functional reputation significantly influences choice criteria in business-to-business professional services Defined as a combination of economic and non-economic factors based on past actions, a firm's reputation plays a crucial role in the selection of professional tax services, which blend business and legal consulting Due to the inherent uncertainty in the selection process, clients often depend on a firm's reputation, established through word-of-mouth and a proven track record This reliance on reputation facilitates client engagement, particularly when clients lack the expertise to assess the technical quality of professional services Consequently, a strong reputation enhances client trust and positively impacts their perceived value of the services provided.
In Vietnam, the demand for professional tax services is increasing, both in quality and quantity, with many companies now opting for outsourcing in this area As a result, clients often lack a structured process to assess the quality of these services Consequently, they tend to evaluate a firm's performance based on a resource-based view, focusing on the firm's resources and capabilities.
Qualitative analysis
Professional tax services in Vietnam are shaped by current tax regulations and practices, yet their adoption remains limited primarily to large corporations and foreign-owned companies due to high costs and the complexity of financial transactions These firms prioritize establishing effective tax systems, highlighting the unique demands of the Vietnamese market To gain insights into client perceptions and satisfaction within this sector, a qualitative study was conducted through in-depth interviews, with 60% face-to-face and 40% via telephone, involving three senior managers from notable professional tax firms, including two from Ernst & Young Co., Ltd and one from Nexia ACPA Auditing & Consulting.
The interviews, conducted with representatives from Co Ltd and two chief accountants, lasted approximately thirty minutes each The collected information was analyzed using a sentence method, focusing on key phrases within the responses to identify main points related to the questions posed Conclusions were drawn and subsequently confirmed with the interviewees to ensure accuracy.
The interviews revealed that technical skills, interpersonal skills, customer orientation, and reputation significantly influence client perceived performance However, the link between a firm's innovation and perceived performance was not established, primarily due to the nature of professional tax services, which are governed by external tax regulations In Vietnam's developing economy, strategies for effective operations often mirror those of developed countries, limiting the impact of innovation on client perceptions Research by La, Patterson, and Style (2009) supports this, indicating that clients often lack the technical judgment to assess the value of innovation Additionally, the firm's international experience plays a moderating role in the relationship between reputation and perceived performance.
The in-depth interview results highlighted two key factors influencing client perceived performance: service fee and the relationship with tax authorities The service fee is viewed as a benchmark that allows clients to assess service quality among competitors and shape their performance expectations Clients often associate higher service fees with superior service quality, leading to an enhanced perception of the firm's performance This concept aligns with the reference price theory in consumer services, where expected service quality significantly impacts the formation of reference prices, as supported by various authors, including Ziethaml.
In the realm of services, particularly 'pure' services that lack tangible elements, consumers often rely on price as an indicator of service quality and perceived performance This reliance on pricing cues is crucial for evaluating potential service quality, as highlighted by Dickinson and Dickinson (2012).
A strong relationship with tax authorities significantly impacts the effectiveness of professional tax services in Vietnam, especially given the slow development of tax regulations amidst the rapid growth of complex economic transactions Due to the lack of clear guidance for complicated tax cases, tax authorities often interpret regulations independently, which can affect how they examine specific companies Most clients seeking professional tax services face challenging tax issues without definitive regulatory guidance In this context, a good rapport with tax authorities provides substantial value, facilitating smoother interactions and insights into the practices of tax officials Consequently, clients recognize and appreciate the expertise of professional tax firms, leading to a higher perception of their performance.
The relationship between clients and tax authorities significantly influences perceived performance, which varies based on the type of tax services engaged Professional tax services can be categorized into two main types: compliance services and advisory services Compliance services focus on helping clients adhere to tax regulations effectively.
Companies must file their corporate income tax declaration annually within 90 days after the end of the tax year, as mandated by regulations To navigate future operations, such as launching a new business line, management often seeks advisory services to ensure compliance with tax regulations Engaging a professional firm can provide valuable insights on regulatory compliance, tax savings, operational improvements, and risk management Additionally, professional tax advisory services can assist clients in audit defense, including communicating with tax authorities and drafting official responses to their inquiries Notably, compliance services typically involve minimal interaction with tax authorities.
Clients prioritize the firm's relationship with tax authorities when seeking advice on tax issues Practical experiences from interviewees reveal that this relationship significantly impacts perceived performance, particularly in advisory services compared to compliance services.
The role of Country of Origin (COO) as a moderator in the relationship between technical skills, interpersonal skills, customer orientation, innovation, reputation, and perceived performance remains unverified in the context of Vietnam's professional tax services Despite the localization strategies adopted by many tax firms, the number of foreign tax consultants in Vietnam has significantly decreased in recent years This decline has not adversely affected the service quality or performance of local professional tax firms Although foreign consultants possess advanced knowledge in tax and legal matters, they often lack a deep understanding of Vietnam's tax practices Language barriers further complicate their interactions with tax authorities, leading to discomfort among clients who require assistance during challenges with tax authorities Additionally, Vietnamese chief accountants prefer to engage with local tax consultants, reinforcing the trend toward domestic expertise in tax services.
A literature review reveals that the relationship between the performance of professional service providers and client satisfaction is influenced by the client's buying experience Specifically, varying levels of client experience affect how perceived performance impacts perceived value However, qualitative analysis does not support this claim, as individuals in charge of tax, finance, or accounting departments typically possess relevant experience, which is a key criterion for their appointments Even if a firm is providing tax services for the first time, the chief accountant or other representatives likely have prior experience interacting with service firms This familiarity allows clients to evaluate the performance and value of the services they receive Therefore, in the context of professional tax services in Vietnam, client buying experience does not serve as a moderator in the relationship between perceived performance and client perceived value.
Table 1: Summary of qualitative analysis' results
No.,~ I' FaCtor/ Moderator qualitative conceptual analysis model
Factors having significant effect to client perceived performance
6 Service fee Not included Introduced
7 Relationship with tax authority Not included Introduced
Firm's international experience as a moderator
8 in the relationship of reputation and perceived Included Confirmed performance
Nature of professional tax services as a moderator in the association between
9 Not included Introduced relationship with tax authorities and perceived performance
Effects of COO as a moderator in the
10 Included Not confirmed relationship of client perceived performance
Client buying experience as a moderator in the ll relationship between perceived performance Included Not confirmed and client perceived value
The results of quahtattve analysts are Illustrated m the below figure:
Figure 1: Summary of qualitative analysis' results
Hypothesis
This study aims to provide managerial insights into the practice of professional tax services in Vietnam by examining client-perceived value and satisfaction in business-to-business contexts The findings are grounded in a comprehensive literature review and validated through qualitative analysis.
Clients frequently rely on their perception of a service firm's performance to evaluate the quality and value of purchased services, particularly when they lack the technical knowledge to make informed assessments (La, Patterson, and Style, 2009) This trend is supported by various studies conducted in both consumer and professional contexts (e.g., Day and Barksdale Jr., 1992; Paulin, Ferguson, and Payand, 2000).
A study by LeBlanc and Nguyen (1996) explored the influence of service provider behaviors—specifically interpersonal skills, technical skills, and customer orientation—along with the firm's innovativeness and reputation on client perceived performance The qualitative analysis revealed that while interpersonal skills, technical skills, customer orientation, and reputation significantly affect client perceived performance, innovation did not show a similar impact Consequently, in the realm of business-to-business professional tax services, it is proposed that these factors play a crucial role in shaping client perceptions.
• H 1: Technical skills have significant effect to client perceived performance;
• H2: Interpersonal skills have significant effect to client perceived performance;
• H3: Customer orientation has significant effect to client perceived performance;
• H4: Reputation has significant effect to client perceived performance;
The qualitative analysis identified two key factors that significantly influence client perceived value: service fee and the relationship with the tax authority The service fee is viewed as an indicator of service quality in consumer services, and this thesis further investigates its applicability within professional services, particularly in the realm of professional tax services.
In Vietnam, the relationship with the tax authority highlights the distinctive characteristics of professional tax services, as noted by industry experts in qualitative analyses This thesis aims to empirically validate this assertion.
• H5: Service fee has significant effect to client perceived performance;
• H6: Relationship with tax authority has significant effect to client perceived performance;
According to Razavi et al (2012), client perceived value encompasses what customers expect from a service, which is closely linked to perceived quality, as highlighted by Jayanti and Ghosh (1996) Numerous studies, including those by Andreassen and Lindestad (1998) and Chang and Wang (2011), confirm a positive correlation between perceived performance and value Additionally, McDougall and Levesque (2000) found that perceived value significantly influences client satisfaction, even surpassing the impact of service quality Therefore, the following hypotheses are proposed.
• H7: A firm's perceived performance has significant effect to client perceived value
• H8: Client perceived service have significant effect to client satisfaction
Professional tax services encompass two main categories: compliance services, which help clients adhere to tax regulations, and advisory services, which tackle tax issues during audits and create effective tax strategies for future operations Experts in the field suggest that the relationship with tax authorities significantly impacts perceived performance, particularly in advisory services compared to compliance services Thus, it is hypothesized that the effectiveness of advisory services is more closely linked to client relationships with tax authorities.
• H9: The relationship between relationship with tax authority and perceived performance will be stronger in advisory services than in compliance services (nature of engaged services);
According to La, Patterson, and Style (2009), clients perceive a firm's international experience as a key factor that enhances its reliability, capability, and credibility These attributes significantly influence how clients evaluate the firm's reputation Consequently, the international experience of a firm serves as a moderating variable in the relationship between its reputation and the performance perceived by clients.
• HlO: The relationship between reputation and perceived performance will be stronger under high (rather than low) level of firm's international experience
Figure 2: Proposed Conceptual Model of Client Perceived Value and Satisfaction in Business-to-Business Professional Tax Services in Vietnam
Customer orientation Reputation Service fee
Relationship with tax authorities experience
Methodology
Methodology
This study focused on clients of tax consultant firms located in Ho Chi Minh City, where many of the largest firms are based The clientele spans from Da Nang to Ca Mau and represents a diverse range of industries.
The adopted questionnaire, based on previous research, underwent a thorough pre-testing phase with academic and industrial experts to identify ambiguous questions and ensure the face and content validity of the measurement scales This pre-test, similar to the study by File, Cermak, and Prince (1994), aimed to refine the wording of the items Feedback indicated that a 5-point scale was more comfortable for participants compared to a 7-point scale, which caused some confusion Consequently, the final questionnaire was designed using a 5-point scale for all constructs.
The final questionnaire was formatted into an online survey and distributed to clients of professional tax firms in Ho Chi Minh City In addition, face-to-face interviews were conducted when feasible to enhance the survey process Out of 227 questionnaires sent, 132 responses were received, with 120 deemed usable after excluding those with numerous unanswered questions or insufficient information.
According to Stevens (1996), a sample size of 120 is deemed appropriate for social science research, as it requires approximately 15 subjects per predictor to ensure a reliable equation Given that the research model in this thesis includes 8 predictors, the 120 observations collected are acceptable for the study.
Tabachnick and Fidell (2007) provide a formula for determining the necessary sample size for research, expressed as N > 50 + 8m, where m represents the number of independent variables In this research thesis, with 8 independent variables, the required sample size exceeds 114 observations Therefore, a total of 120 observations is deemed adequate for establishing a reliable equation.
Measurement
The constructs in the study were assessed using multiple-item scales, primarily derived from the research on "Client Perceived Value in Professional B2B Services - An International Perspective in Developing Economies" by La, Patterson, and Style (2009) These scales were largely based on existing literature in international marketing and services, tailored to fit the context of Professional B2B Services For example, interpersonal and technical skills were sourced from Rentz et al (2002), while customer orientation was based on Saxe and Weitz (1982) Additionally, reputation was adapted from Caruana's (1997) modifications, and indicators for client perceived performance were drawn from the study by Petterson, Johnson, and Spreng (1997).
In a qualitative analysis involving in-depth interviews with industry experts and clients of professional tax firms in Vietnam, key variables such as service fee, relationships with tax authorities, and the nature of engagement were identified Participants expressed that these variables could be quantified using specific indicators Due to the unique characteristics of professional tax services in Vietnam and the absence of existing theories addressing these variables in this context, the suggested indicators from the interviews were utilized for further analysis.
Regarding value concept, it has been studied in consumer services However, it is challenging to measure perceived value in a B2B service setting (La, Patterson and Style,
2009) Thus, multiple items measuring client perceived value were taken from various studies
Research by Eggert and Ulaga (2002), Sweeney, Soutar, and Johnson (1999), and Patterson and Spreng (1997) highlights the importance of client satisfaction However, La, Patterson, and Style (2009) noted that a validated measurement scale for client satisfaction in the professional B2B service context is lacking To address this gap, their study utilized five measurement items derived from earlier studies by McDougal and Levesque (2000) and Caruana, Money, and Bethon (2000) This current study follows the methodology established by La, Patterson, and Style (2009) to assess client satisfaction.
The measurement of a firm's international experience is based on the framework established by La, Patterson, and Style (2009), which itself was derived from the original metrics of international competence developed by Cavusgil and Zou (1994), with adjustments made to the wording for clarity.
The table below summarizes the items and scales used to measure the constructs in this thesis, with additional details about the original scales available in Appendix 1.
Table 2: Summary of indicators of the constructs used in the research model
• Ability to express him/herself non-verbally
• General speaking! communication skills Interpersonal • Awareness and understand of the non-verbal communication of skills others
• Ability to control and regulate non-verbal display of emotion
(Scale: 1 = Very Poor; 5 = Very Excellent) (Below are additional items suggested by the expert panel and drawn from other studies)
• Knowledge of our needs/ issues
• Competence of the service provider team
(Scale: 1 = Very Poor; 5 = Very Excellent)
• Tried to help us achieve our goals orientation
• Offered the service that is best suited to our problem
(Below are additional items suggested by the expert panel and drawn from other studies)
• Was willing to disagree with us in order to help us make a better decision
• Pro-active in contact us to discuss about our issues/ problems
(Scale: 1 = Strongly disagree; 5 = Strongly agree) (Below are additional items suggested by the expert panel and drawn from other studies)
• Expertise in this specific area
• Competitive competence of service provider team
(Scale: 1 = Not well regarded; 5 = Well regarded) (Below are additional items suggested by the expert panel)
• The service fee was used as a benchmark for the service quality
(Scale: 1 = Strongly disagree; 5 = Strongly agree)
• Good relationship with tax authorities
• Abilities to discuss/ negotiate with relevant tax authorities regarding our issues
• With information/ advice from the service provider team, we are not surprised at the practice of relevant tax authorities
(Scale: 1 = Strongly disagree; 5 = Strongly agree) (Below are additional items suggested the expert panel other studies)
• Kept your Company regularly informed of progress
• Made sure the service provider team understood your Company's aims and goals
• The tax consultant team made sure thoroughly understood the i' problem before commencing
• Responded promptly when your Company contact the tax
• Produced reports and presentations of the highest standard
• Went "the extra mile" when necessary to ensure you were satisfied at the end of the assignment
(Scale,ã 1 =Strongly disagree; 5 = Strongly agree)
• Firm X has delivered what your Company want and expected
Considering the fees paid, the client felt that Company X delivered good value for money In comparison to other firms offering similar services, Firm X provided superior value overall.
(Scale: 1 =Strongly disagree; 5 = Strongly agree)
• Your Company is very satisfied with our decision to commission firm X
Client • If your Company had to do it all over again, your Company satisfaction would choose the same firm
• Firm X has met or exceeded your Company's expectations
(Scale: 1 =Strongly disagree; 5 = Strongly agree)
• Firm X's international experience in this type of project is substantial
• Firm X had allocated a sizable number of full time employees on Firm's the ground to work on the project international • Firm X had a significant number of clients in international experience markets
• Firm X' s experience in dealing with international clients is considerable
(Scale: 1 = Strongly disagree; 5 = Strongly agree) other studies)
Choosing a professional tax firm with a strong relationship with tax authorities can enhance the reliability of their advisory services However, the nature of this relationship does not significantly influence the decision-making process when selecting a firm for compliance services.
(Scale: 1 = Strongly disagree; 5 = Strongly agree)
The above scales were then used to develop the questionnaire for further steps The final questionnaire (English version) is disclosed in Appendix 1.
Data Analysis
Purifying data 3 2
To ensure data accuracy, it's crucial to purify collected data by identifying and correcting mistakes that occurred during the collection and summarization process, such as missing values caused by typos, and detecting outliers that can skew the results.
Frequency analysis reveals that the dataset is complete, consisting of 120 valid observations with no missing values Additionally, the distribution of each item approximates a normal distribution, as indicated by Skewness and Kurtosis values falling between -1 and 1 Exploratory analysis identifies thirteen outliers, specifically observations numbered 14, 16, and 19.
27, 40, 48, 50, 62, 69, 72, 86, 117 and 118) in total for three (03) dependent variables in the research model (i.e Perceived Performance, Client Perceived Value and Client Satisfaction) After elimination of outliers, the data set has 107 observations left
Results of the above analysis are disclosed in detailed in Appendix 2.
Measurement analysis
To purify the measures, Cronbach's Alpha and Exploratory Factor Analysis ("EPA") were employed
Evaluating scale based on Cronbach 's Alpha
Cronbach's Alpha analysis indicated good measures (Nunnally, 1978) when all
Cronbach's Alpha coefficients for each ofthe scales are above 0.7 as in Table 1 below
Table 3: The Cronbach alpha coefficients of components
Based on the above analysis, Cronbach Alpha are all above 0.7 Thus, these scales are considered appropriate to further analysis in next steps Please refer to Appendix 2 - The 1st
Cronbach alpha coefficients of components for further details of the above Cronbach alpha analysis
Evaluating scale by using Exploratory Factor Analysis ("EFA '')
After checking the reliability of the scale, EF A is employed That the method is chosen to analyze the factors is the principal components method with varimax rotation
To assess the convergence of items in measuring a variable and to evaluate the discriminant validity of variables within the research model, Exploratory Factor Analysis (EFA) was performed on both independent and dependent variables.
The results of the KMO and Bartlett's test in the factor analysis indicate a high KMO coefficient of 0.872, which exceeds the acceptable threshold of 0.5, along with a significance level of 0.000, confirming that the exploratory factor analysis (EFA) is suitable for the data.
With eigenvalues greater than 1, there are seven (7) factors extracted and the extracted variance was 70.220% (greater than 50%), which met requirement
Table 3 below is the extracted factors and its items as well as loading factor of each item
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization.' a Rotation converged in 7 iterations
Variables with a factor loading of less than 0.5 were excluded due to the small sample size (Field 2000, p 440) An analysis was performed in SPSS to remove any loading factors below this threshold The Rotated Component Matrix (Table 4) indicated that PER25 and CLI.PER28 had loading factors lower than 0.5, leading to their removal from the research factors, as their contribution to factor estimation was deemed insignificant.
Also based on the above analysis, there are seven (7) factors extracted in which five
The study evaluates five key factors—Technical Skills, International Skills, Customer Orientation, Relationship with Tax Authorities, and Client Satisfaction—using the same items outlined in the proposed research model discussed in Chapter 2 Additionally, two other factors are assessed: one through items related to Reputation and Service Fee, and the other through items measuring Perceived Performance and Client Perceived Value, as defined in the proposed research framework.
In this thesis, the service fee is viewed as a benchmark for clients to assess the quality of services among competitors, serving as an indicator of a firm's reputation in the professional tax consulting industry A higher service fee suggests a stronger reputation, leading to the conclusion that service fees are a vital measure of service quality and reputation Consequently, the service fee factor is excluded, and its elements will be integrated into the Reputation factor for evaluating professional tax services in Vietnam.
In the context of professional tax services in Vietnam, Perceived performance and Perceived value are intertwined, leading to the concept of Perceived service, which reflects clients' evaluations based on the benefits received versus the costs incurred This relationship suggests that factors influencing Perceived performance are likely to affect Perceived service similarly, as Perceived service is derived from Perceived performance metrics Furthermore, satisfaction arises from the comparison between expectations and actual performance during a service experience, indicating that Perceived service significantly impacts client satisfaction.
In line of the above, below table is summary of factors and its items for further analysis
1 Technical skills TEC 1, TEC 2, TEC 3
2 Interpersonal skills INT 4, INT 5, INT 6, INT 7
3 Customer Orientation CUS 8, CUS9, CUS 11
4 Reputation REP 12, REP 13, REP 14, SER 15, SER 16
5 Relationship with tax authorities REL17,REL18,REL19
6 Perceived service PER 20, PER 21, PER 22, PER 23, PER 24,
7 Client satisfaction CLI.SAT 29, CLI.SAT 30, CLI.SAT 31
Please refer to Appendix 4 for further details about EF A results
Next, in order to ensure the all the measures are still acceptable for all items in new groups, Cronbach's Alpha was conducted again
Table 6: The Cronbach alpha coefficients of new components
All items in the new factors exhibit a Cronbach Alpha above 0.7, indicating that these scales are suitable for further analysis For detailed results of the Cronbach Alpha analysis, please refer to Appendix 5.
In addition, statistical descriptive analysis was also conducted to give an overview of tested variables and the result is illustrated in Appendix 6.
Hypothesis testing
EF A was conduct to refine the model in the context of Vietnam to come up with the testing model as illustrated in the figure below:
Figure 3: Conceptual Model of Client Perceived Value and Satisfaction in Business-to-Business Professional Tax Services in Vietnam
In line with that, hypothesis of the research are also revised as follow:
• Hl: Technical skills have significant effect to client Perceived service;
• H2: Interpersonal skills have significant effect to client Perceived service;
• H3: Customer orientation has significant effect to client Perceived service;
• H4: Reputation and Service fee has significant effect to client Perceived service;
• H5: Relationship with tax authority has significant effect to client Perceived service;
• H6: Client Perceived service has significant effect to client satisfaction;
• H7: The relationship between relationship with tax authority and perceived; performance will be stronger in advisory services than in compliance services (nature of engaged services); and
• H8: The relationship between reputation and perceived performance will be stronger under high (rather than low) level of firm's international experience
From the results of factor analysis was conducted to explore the values of the new variables
Technical skills= Mean (TECI, TEC2, TEC3)
Interpersonal skills= Mean (INT4, INT5, INT6, INT7)
Customer orientation= Mean (CUSS, CUS9, CUSll)
Reputation= Mean (REP12, REP13, REP14, SER15, SER16)
Relationship with tax authorities = Mean (REL 17, REL 18, REL 19)
Perceived service = Mean (PER20, PER21, PER22, PER23, PER24, CLI.PER26, CLI.PER27)
Client satisfaction= Mean (CLI.SAT29, CLI.SAT30, CLI.SAT31)
Regression analysis for factors affecting Perceived Service
After conducting a Cronbach Alpha test and Exploratory Factor Analysis (EFA), five key factors influencing perceived service were identified A regression analysis using SPSS was performed to examine the relationships between these factors and perceived service.
The first regression analysis indicates that there are two (02) outliers i.e observation
After removing two observations from the data set, a total of 105 observations were utilized for the regression analysis The results revealed a correlation coefficient exceeding 0.4 between perceived performance variables and other variables Additionally, with a significance value less than 0.05, it is justified to include all independent variables—technical skills, interpersonal skills, customer orientation, reputation, and relationship with tax authorities—in the model.
In addition, residuals (errors) are normally distributed given its Skewness and Kurtosis are among -1 to 1 (refer to Appendix 7) No outlier was figured out in the second regression
In conclusion, all regression assumptions were thoroughly tested and met, confirming the suitability of regression analysis for examining the factors influencing Perceived Service The following is a summary of the regression results.
Table 7: Summary of regression results: Factors having impacts on Perceived Service
1 789 .622 603 42020 622 32.620 5 99 .000 a Predictors: (Constant), technical skills, interpersonal skills, customer orientation, reputation, relationship with tax authorities b Dependent Variable: Perceived service
The results presented in the table indicate that the model and each independent variable are statistically significant, with a p-value less than 0.05 The F ANOVA value is 32.629, and the adjusted R² coefficient is 0.603, suggesting that the linear regression model is appropriate This means that 60.3% of the variation in Perceived Service variables can be explained by the five identified components The relationships between the independent and dependent variables are summarized in the table below.
Table 8: Relationship among independent variables (Technical Skills, Interpersonal Skills, Customer Orientation, Reputation, Relationship with Tax Authorities) and dependent variable (Perceived Service)
Model Coefficients Coefficients Sig Statistics
B Std Error Beta Tolerance VIF
Reputation 256 077 258 001 627 1.594 a Dependent Variable: Perceived service
A small Variance Inflation Factor (VIF) value, specifically less than 10, indicates that the independent variables are not closely related, suggesting that multicollinearity is not present Consequently, the relationships among the independent variables do not significantly influence the outcomes explained by the regression model.
In summary, Hl, H2, H3, H4 and H5 are all supported that indicates that Technical skills, Interpersonal skills, Customer orientation, Reputation and Relationship with tax authorities have positive impacts on Perceived Service
Figure 4: Regression results: Factors having impacts on Perceived Service
Regression analysis between Perceived service (independent variables) and Client satisfaction (dependent variable)
In this regression analysis, six assumptions were tested and met, similar to previous analyses The correlation coefficients between perceived performance variables and other variables exceeded 0.4, indicating a strong relationship Additionally, the significance value was less than 0.05, confirming the appropriateness of including the independent variable (PER.SER) in the model.
In addition, residuals (errors) are normally distributed given its Skewness and Kurtosis are among -1 to 1 (refer to Appendix 8) No outlier was figured out in this regression
To sum up, all the assumptions of regression were tested and satisfied the requirement Hence, regression analysis is considered appropriate to test factor affecting Client Satisfaction
Below is a summary of regression results:
Table 9: Summary of regression results: Factor having impact on Client Satisfaction
R Adjusted Error of Model R Square R Square the R Square F Change dfl df2 Sig F
1 749 8 562 557 47353 562 131.976 1 103 8 000 a Predictors: (Constant), PER.SER b Dependent Variable: CLI.SAT
The results indicate that the model and each independent variable are statistically significant, with a p-value less than 0.05 The ANOVA results show F(1, 103) = 131.976, and the adjusted coefficient of determination (R²) is 0.557 This suggests that the linear regression model is appropriate, as it explains 55.7% of the variation in the Client Satisfaction variable, attributed to Perceived Service.
The figures indicating the relationship among independent variables and dependent variable are summarized in below table
Table 10: Relationship between independent variable (perceived service) and dependent variable (client satisfaction)
U nstandardized Standardized Coefficients Coefficients Collinearity Statistics
800 070 749 000 1.000 1.000 service a Dependent Variable: Client satisfaction
A small Variance Inflation Factor (VIF) value, specifically less than 10, indicates that the independent variables are not closely related, suggesting that multicollinearity is not present Consequently, the relationship among the independent variables does not significantly impact the outcomes explained by the regression model.
In summary, H6 is supported that indicates that Perceived Service have positive impact on Client Satisfaction.
Moderator testing
The Chow test, developed by Chow in 1960, is a statistical and econometric method used to assess the equality of coefficients in two linear regressions based on different datasets This test is particularly useful for analyzing whether independent variables exert varying effects across distinct subgroups within a population.
In the case, the data can be split into group and each group can model as:
The Chow test's null hypothesis posits that the parameters a1, a2, b1, b2, and c1, c2 are equal Additionally, it assumes that the model errors (E) are independent and identically distributed, following a normal distribution with an unknown variance.
The Chow test was utilized to examine the moderating effects of a firm's international experience and the nature of the engaged service on the relationship between reputation and perceived service, as well as the relationship with tax authorities and perceived service Two separate Chow test analyses were performed, incorporating linear regression for both combined data and distinct groups: foreign firms and local firms for the moderator of international experience, and advisory services and compliance services for the moderator of the nature of engaged services.
Table below summarize the results of the above steps
Table 11: Summary of Chow test results
Moderator Null hypothesis of Chow test F- value Fcritical Conclusion
Firm's Firm's international experience 0.993 international does not moderate the experience relationship between Reputation
The F-value of perceived service is 3.086, which is lower than the critical F-value of 3.086 at a p-value of 0.05 This indicates that the nature of engaged services does not moderate the relationship between taxpayers and tax authorities.
The analysis reveals that the F-values for both the firm's international experience and the nature of engagement are below the critical F-value (2, 101) at a significance level of p = 0.05, leading to the conclusion that the null hypotheses H7 and H8 cannot be rejected This indicates that the firm's international experience does not influence the relationship between reputation and perceived service, nor does the nature of engaged services affect the relationship between interactions with tax authorities and perceived service Further details on the Chow test formula and its results can be found in Appendix 8.
Figure 5: Summary of thesis results