INTRODUCTION
Research motivation
Vietnam, a key player in the ASEAN region, has an economy comprised of three primary sectors: agriculture (including forestry and fisheries), industry (covering mining, construction, and energy production), and commercial services (spanning finance, tourism, culture, education, and health) The agricultural sector is the largest employer, accounting for 50% of the labor force Notably, from 2014 to 2016, the fishery sector contributed approximately 22.5% to the agricultural GDP, employing 7.04% of the labor force, according to the General Statistics Office.
Before 1986, Vietnam's economy operated under a subsidy regime akin to other socialist countries, but a shift to a market-oriented economy in that year led to significant growth The lifting of the U.S embargo in 1994 opened up large commercial opportunities, and Vietnam's accession to ASEAN in 1995 improved its import and export policies By January 2007, Vietnam became the 150th member of the World Trade Organization (WTO) after extensive negotiations The Vietnamese economy is characterized by a multitude of small and medium-sized enterprises (SMEs) that often engage in processing for foreign companies Despite facing challenges during the global economic crisis, especially in outsourcing, Vietnam's diverse population of 90 million, comprising various ethnic groups, has cultivated rich cultural traditions of solidarity and patriotism The Vietnamese people are known for their open-mindedness, hard work, creativity, and progressive spirit, which are essential for fostering cooperation between Vietnamese enterprises and international partners.
Following the Asian crisis in 1998, Vietnam experienced a decline in GDP, dropping to 5.8% in 1998 and 4.7% in 1999 However, by 2000, the economy began to recover, with GDP growth reaching 6.7% and maintaining stable growth rates from 2002 to 2007, peaking at 8.5% in 2007 A significant milestone for Vietnam was the signing of the ASEAN Free Trade Area (AFTA) and the Bilateral Trade Agreements with the United States in December 2001, which transformed the country's economic institutions and trade landscape, fostering more favorable conditions for foreign trade.
In 2007, Vietnam officially joined the WTO, marking a significant milestone in its economic development This accession prompted major revisions in trade and investment laws, enhancing the legal framework, reducing trade barriers, and fostering export growth Since then, Vietnam's economic structure has undergone positive transformations, with an increasing share of industry and services, while the agricultural sector's contribution has gradually declined.
Vietnam has faced significant economic challenges since gaining independence in 1975, particularly as a young nation emerging from a long history of colonization These challenges have persisted for decades, placing immense pressure on Vietnamese enterprises, especially small and medium-sized enterprises (SMEs), which struggle to survive in a competitive market For example, in 2016, the number of bankruptcies surged by 32%, with approximately 60,600 firms closing their doors, 92.5% of which were SMEs, translating to over 220 bankruptcies daily This alarming trend poses a threat to Vietnam's future development Contributing factors to this dire situation include leadership vision, financial conditions, the business climate, competition, and inadequate supply chain models and management practices While many of these issues have been extensively studied, the impact of supply chain management on SMEs remains underexplored, highlighting a gap in understanding that could be crucial for improving business resilience and performance.
Research indicates a significant gap in understanding supply chain models within Vietnamese SMEs (VSMEs), where human resources play a crucial role in determining the success of business strategies and operations Mistakes at the top management level, particularly regarding vision and strategic integration, can lead to poor performance and increased risks of failure, including bankruptcy Given the alarming rate of bankruptcies among VSMEs, this study aims to investigate potential management deficiencies in their supply chain practices.
Research background
The supply chain has been a critical topic of discussion among scholars for decades, gaining increased attention from managers across various industries today Numerous publications have explored aspects of supply chain and supply chain management, as well as factors influencing them However, previous research has primarily focused on these elements in isolation, neglecting to assess how firms perceive their supply chains and how this perception can contribute to sustainable development.
In their 1999 study, Naylor and co-authors emphasized the critical importance of integrating operations within both lean and agile supply chain models They suggested that firms must ensure all activities within the supply chain are closely coordinated to achieve overall success.
Recent studies by Agarwal and Angerhofer highlight the benefits of lean and agile supply chains Agarwal et al found that while lean supply chains can enhance operational profits by reducing costs, agile supply chains yield greater profits by precisely meeting customer demands By effectively combining these models—optimizing the upstream for cost efficiency and the downstream for customer focus—firms can achieve improved operational results Angerhofer et al explored the importance of collaboration within supply chains, identifying various forms such as alliances, joint ventures, outsourcing, and mutual investments Although managing collaboration can be complex, effective management increases the likelihood of attracting investors and stakeholders to the firm.
In recent years, scholars have shown a growing interest in understanding the factors that influence supply chain performance, notably highlighted by the research conducted by Ngai and colleagues in 2011.
Research in China, Malaysia, and Vietnam reveals that operational competencies and information sharing positively impact supply chain agility across companies of various sizes However, only large firms, such as a major Hong Kong company and a significant garment manufacturer, recognize the role of information technology (IT) in enhancing supply chain agility In contrast, smaller fashion-driven companies acknowledge the importance of IT but do not prioritize its integration, suggesting that IT adoption is influenced by company size This perspective aligns closely with the views of Vietnamese SMEs.
Another research was conducted by Gligor et.al in 2012 (Gligor & Holcomb, 2012) named
The study "Antecedents and Consequences of Supply Chain Agility: Establishing the Link to Firm Performance" highlights that supply chain coordination, cooperation, and communication are positively linked to supply chain agility It emphasizes the crucial role these elements play in enhancing supply chain capabilities and advises managers to focus on improving these activities to boost overall performance.
In their 2012 study, Gligor et al explored the influence of information technology on supply chain agility and firm performance, which prompted DeGroote and Marx to conduct an empirical investigation into this critical relationship Their findings highlight the significant role that IT plays in enhancing supply chain responsiveness and overall business effectiveness.
In 2013, DeGroote and Marx highlighted the significance of information technology (IT) in enhancing supply chain performance Beyond focusing on coordination, cooperation, and communication, their research emphasizes that IT plays a crucial role in enabling supply chains to effectively respond to market changes By improving the adequacy, accuracy, accessibility, and timeliness of information flow among supply chain members, IT not only reduces costs but also enhances product quality, making it an essential element for a successful supply chain.
Information technology and information sharing are increasingly recognized as critical components in the supply chain sector Scholars such as Sufian Qrunfleh and Ing-Long Wu have extensively explored the significance of information sharing in enhancing supply chain success Their research underscores the essential role that effective information exchange plays in optimizing supply chain performance.
In their study, "Supply Chain Information Systems Strategy: Impacts on Supply Chain Performance and Firm Performance," Qrunfleh and Tarafdar (2014) utilized the Q-sort method and Chi-Square analysis to highlight the significance of information sharing within supply chains They found that effective information sharing significantly influences both supply chain and overall firm strategies, emphasizing the need for a well-aligned information sharing strategy to enhance operational performance Complementing these findings, Wu et al (2014) in "Information Sharing and Collaborative Behaviors in Enabling Supply Chain Performance: A Social Exchange Perspective," revealed that both information sharing and collaboration play a crucial role in improving supply chain performance, with evidence of a partial mediation effect.
Rafaela Alfalla-Luque, Wantao Yu, and their co-authors shifted the focus of supply chain research from traditional factors like information sharing and technology to examine the impact of employee and firm commitment on supply chain success Their findings revealed a positive correlation, highlighting the significance of commitment in enhancing supply chain performance In their study titled “The effects of supply chain integration on customer satisfaction and financial performance: An organizational learning perspective,” Yu and colleagues further emphasized the importance of integrating organizational learning to improve customer satisfaction and financial outcomes.
Research indicates a strong correlation between customer satisfaction and supply chain performance, highlighting that customer satisfaction is a key outcome of a firm's commitment A study by Rafaela et al (Alfalla-Luque, Marin-Garcia, & Medina-Lopez, 2015) found that mid-to-large-sized manufacturing companies with higher internal and external integration commitments achieve better performance and enhanced customer satisfaction.
In recent decades, Vietnam has begun to focus on supply chain management, yet comprehensive analyses of supply chain integration and perceptions remain scarce One notable study, "Modelling vegetable marketing systems in South East Asia: phenomenological insights from Vietnam" by Cadilhon et al (2003), provides an overview of food distribution in Vietnam and presents a model for the vegetable supply chain, highlighting the critical role of trust within this sector Additionally, research by Nguyễn Thị Trâm Anh and Huỳnh Phan Thúy Vi contributes valuable insights into the dynamics of supply chains in Vietnam.
Nguyễn & Huỳnh (2010) focus on the seafood processing and exporting sector in Vietnam, specifically examining the export performance of crimp within a single company, F17 Their research analyzes the material sources and the activities of various parties involved in the crimp supply chain Additionally, there is another study that provides a more comprehensive overview of the Vietnamese seafood supply chain.
In her 2006 study, "Seafood Supply Chain Quality Management: The Shrimp Supply Chain Quality Improvement Perspective of Seafood Companies in the Mekong Delta, Vietnam," Vo Thi Thanh Loc highlights the importance of seafood safety and quality protection methods for Vietnamese seafood However, the research leaves a gap regarding the roles of various parties within the supply chain, as the effectiveness of supply chain performance is inherently linked to the collaboration and performance of its participants This underscores the necessity of the current research.
Research method and survey participants
The author gathers data on Vietnamese SMEs, focusing specifically on Seafood Producing-Exporting SMEs (VSPESMEs) By utilizing descriptive statistics, the analysis aims to identify development trends and provide insights into why Vietnam, despite being renowned for its diverse seafood exports, holds a minimal share of the global market.
In this study, the author employs FsQCA 2.0 to identify key factors influencing Vietnamese SMEs (VSMEs) and Seafood Producing-Exporting SMEs (VSPESMEs), focusing on their management culture and partnerships.
The author plans to conduct interviews with experts from the Vietnamese seafood producing and exporting industry, including members of the Vietnam Association of Seafood Exporters and Producers (VASEP), to gain deeper insights into underlying trends and phenomena in the sector.
- Survey participants: Managers who is managing Vietnamese SMEs (VSMEs) in general and Seafood Producing-Exporting SMEs (VSPESMEs) in particular.
Main purpose of this study
Vietnam's seafood producing and exporting industry has experienced significant growth in recent years, playing a crucial role in the country's economy This article aims to analyze the strengths and weaknesses of Vietnam's seafood export sector, highlighting the importance of addressing these challenges to ensure sustainable development By identifying key areas for improvement, we can develop essential strategies to enhance the industry's resilience and competitiveness in the global market.
The author aims to strengthen Vietnam's economy by exploring the factors contributing to the underdevelopment of the seafood industry and its low export revenues through a supply chain perspective The study identifies key issues affecting supply chain effectiveness, focusing on cost and customer effectiveness, and highlights the importance of information sharing, technology use, coordination, and management culture It will analyze the characteristics of Vietnamese SMEs, particularly Seafood Producing-Exporting SMEs, to determine which supply chain model—lean or agile—they are utilizing Utilizing FsQCA, the author seeks to identify the primary factors influencing the supply chain performance of these SMEs, ultimately providing actionable solutions for improvement.
To accelerate the development of their supply chains, Vietnamese SMEs (VSMEs), especially those in the seafood producing and exporting sector (VSPESMEs), should consider implementing strategic partnerships, investing in technology for improved efficiency, and enhancing quality control measures Additionally, fostering innovation and sustainability practices will not only boost competitiveness but also meet international market demands Engaging in continuous training and development for employees can further strengthen operational capabilities, leading to a more resilient and agile business model.
This thesis investigates the critical circumstances of supply chains in Vietnamese SMEs, with a specific focus on VSPESMEs, identifying their successes and limitations It aims to offer discussions and recommendations to help Vietnamese SMEs and VSPESMEs address these challenges effectively The research is structured into five comprehensive chapters.
Chapter 1 presents the study's background, identifies the problem, and emphasizes its significance It outlines the research's purpose and key questions, highlights the contributions of the study, and offers a brief overview of the research methodology while addressing its limitations Additionally, this chapter formulates research hypotheses based on the literature review.
Chapter 2 provides a comprehensive literature review of previous studies relevant to our research, establishing a theoretical foundation for the investigation It highlights both conceptual and empirical literature related to supply chains and their components, with a particular focus on the characteristics of agile and lean supply chains.
Chapter 3 focuses on Qualitative Comparative Analysis (QCA) using FsQCA software, highlighting insights from expert interviews in the field It outlines the research methodologies, design, and framework, as well as the development of variable measures Additionally, the chapter details the sampling process, sample selection, data collection methods, and the analytical techniques employed for hypothesis testing.
Chapter 4 focuses on the analysis and interpretation of data, presenting the key findings and results of the study This section is crucial as it effectively showcases the outcomes and insights derived from the research.
Chapter 5 presents the conclusion and offers recommendations for managerial practice and future research It discusses the results from Chapter IV, highlighting their practical implications and addressing the research issues and questions outlined in Chapter 1 Additionally, the chapter identifies limitations and suggests opportunities for future research endeavors.
Organization of dissertation
The supply chain encompasses all activities related to the flow and transformation of goods and services, along with the necessary information exchanges, from raw material suppliers to end customers It involves two primary flows: goods and information, integrating all activities from material sourcing to customer delivery Effective supply chain management necessitates skilled managers with a broad vision, strong connections, and an understanding of the significance of relationships with both suppliers and customers Additionally, the ability to manage risks is crucial for supply chain managers to ensure smooth operations and resilience.
Dominique Estampe et al said Supply chain management creates value for companies, customers and stakeholders interacting throughout a supply chain (Estampe, Lamouri, Paris, & Brahim-Djelloul,
In 2013, it was revealed that an effective supply chain can significantly enhance a company's value, emphasizing the need for businesses to invest in robust supply chain systems Additionally, successful supply chain management relies on the active collaboration of all stakeholders, including suppliers, firms, and customers By fostering strong interactions among these parties, companies can achieve greater success in their supply chain operations.
Supply chains are essential for companies to efficiently deliver products to customers, encompassing the entire process from raw materials to final products Depending on a company's size and globalization strategy, it is crucial to select an appropriate supply chain model that optimizes profits while minimizing costs and labor The supply chain involves three key flows: product flow, information flow, and value flow, which are integral to its overall effectiveness.
LITERATURE REVIEW
Supply chain
The supply chain involves all activities related to the movement and transformation of goods and services, including the essential information flows from raw material suppliers to end users It encompasses two primary streams: goods and information, linking material suppliers to customers Effective supply chain management necessitates skilled managers who possess a broad vision, strong connections, and an understanding of the significance of relationships with both suppliers and customers Additionally, the ability to manage risks is a crucial requirement for supply chain managers.
Dominique Estampe et al said Supply chain management creates value for companies, customers and stakeholders interacting throughout a supply chain (Estampe, Lamouri, Paris, & Brahim-Djelloul,
In 2013, it was revealed that an effective supply chain can significantly enhance a company's value, highlighting the necessity for businesses to invest in robust supply chain systems Furthermore, successful supply chain management relies on the active collaboration and interaction among all stakeholders, including suppliers, firms, and customers, emphasizing that strong relationships are crucial for achieving supply chain success.
Supply chains are essential for companies to deliver products quickly, encompassing the entire process from raw materials to final products Each organization must select an appropriate supply chain model based on its business scale and globalization strategy to maximize profits while minimizing costs and labor (Kee & Hoekman, 2007; Thomas & Griffin, 1996) The supply chain involves three primary flows: product flow, information flow, and value flow, aimed at reducing costs, inventory, and cycle time while enhancing benefits This study focuses on product flow, which includes key components like factories, transportation, warehouses, distribution facilities, wholesalers, and retailers (Thomas & Griffin, 1996) An efficient transportation system enables just-in-time (JIT) delivery, ensuring goods reach customers promptly, which can save time and money through collaboration with transportation companies (Hill, 2000) Successful companies such as Unilever, P&G, Nokia, Adidas, McDonald's, Samsung, and Dell exemplify the effectiveness of the supply chain model (Levi, Kaminsky, & Levi, 2004) Consequently, to thrive in today's competitive global markets, businesses must invest in and prioritize the establishment of effective supply chains (Thomas & Griffin, 1996).
An effective supply chain policy can significantly reduce average inventory levels and associated costs (Chan & Lee, 2000) A supply chain encompasses a network of organizations linked through various processes that create value for consumers (Kee & Hoekman, 2007) While once considered a desirable strategy, many organizations are now prioritizing their core business and outsourcing non-essential activities (Thomas & Griffin, 1996) Research indicates a relationship between supply chain efficiency and firm size (Martinez & Pérez, 2004) For most companies, managing a supply chain involves coordinating a global network of manufacturing and distribution facilities, encompassing activities such as purchasing, manufacturing, logistics, distribution, transportation, and marketing Different firms often own various links in this chain, which connects suppliers and users, facilitating the entire value chain from raw materials to the final product consumed by customers (Hill, 2000).
Supply chain management (SCM) enhances quality, cost efficiency, and customer service while also mitigating risks for small and medium-sized enterprises (SMEs) It focuses on fostering trust, facilitating information exchange regarding market demands, innovating product development, and lowering expenses.
The primary goal of a supply chain is to free up management resources for fostering meaningful, long-term relationships (Vrijhoef & Koskela, 2000) Trust plays a crucial role in leveraging collaborative opportunities with knowledgeable coordinators and partners, facilitating access to valuable insights from external project collaborators (Murray & Murray, 2013) By effectively establishing strong relationships and building trust among team members, businesses can streamline the development of new products and rapidly enhance their market presence.
: Flow of materials and products
Sources: from Levi, Kaminsky, and Levi (Thomas D J., 1996)
In the Vietnamese seafood supply chain, fishers provide raw materials to manufacturers, who then produce seafood products for export Typically, Vietnamese manufacturers handle all aspects of the process without relying on agents for distribution The exported products are sold to overseas importers, or wholesalers, who then supply retailers or end users This research focuses on understanding the relationships between fishers, manufacturers, and importers within the context of Vietnamese seafood exporting SMEs.
A supply chain can be viewed as a logistics network, where strong connections among participants enhance operational efficiency (Gartner) As a result, organizations are increasingly focused on optimizing their supply chains to minimize costs and eliminate ineffective activities (Chan & Lee, 2005).
On-time delivery is crucial in supply chain management, heavily reliant on effective planning (Sánchez & Pérez, 2005) Inventory plays a vital role in this process, as highlighted by Dror and Ball, who describe the inventory-routing problem where customers keep a local stock of products, like heating oil, and consume it daily (Dornier, R Ernst, & Kouvelis, 1998) Additionally, Hill emphasizes that efficient supply management can reduce transportation costs and inventory holding time (Levi, Kaminsky, & Levi, 2004) This involves a delicate balance: inventory management aims to lower stock levels while enhancing fill rates, all while ensuring timely delivery (Arend & Wisner).
A warehouse is a crucial facility for businesses, serving as a storage space for large quantities of products before they are distributed to retail stores Efficient inventory management is essential for companies to ensure they have the necessary stock to meet consumer demand (Croom, Romano, & Giannakis, 2000).
In a supply chain, each stage can impact the accuracy of others, highlighting the need for firms to establish an effective physical configuration This infrastructure should optimize the roles of manufacturers, distribution centers, and retailers to enhance the flow of consumption.
Liu identified several key benefits of an effective supply chain, including the reduction of the bullwhip effect, enhanced operational efficiency, lower inventory levels, shorter cycle times, and the attainment of acceptable quality standards (Fiala, 2005) However, since companies operate at varying scales and require distinct action models (Lee, 2004), a one-size-fits-all supply chain model is impractical.
All firms, whether in manufacturing or services, maintain inventories at various levels, including end-items, assemblies, components, and raw materials, to ensure operational independence and manage fluctuations in demand, supply, and lead times while achieving economies of scale High inventory levels are crucial for smooth operations and excellent customer service, prompting management to meticulously calculate the associated holding costs, which typically range from 20% to 40% of the item's unit value Therefore, organizations must strategically determine the optimal locations and methods for inventory establishment The term "distribution center" is commonly used interchangeably with "warehouse," and effective product shipping is essential to meet customer requirements.
Every enterprise aims to enhance revenue, reduce costs, boost profits, and achieve long-term sustainable development To reach these objectives, companies must prioritize cost-benefit analysis and strategic decision-making, playing a crucial role in their attainment and sustainability efforts.
The producer will create a network of partnerships that includes material suppliers, distribution hubs, and sellers, such as wholesalers and retailers A wholesale salesperson plays a crucial role in marketing products or services within a business-to-business context.
Small and Medium Sized firms (SMEs)
Small and medium-sized enterprises (SMEs) are crucial to the economy, representing a significant percentage of businesses in every country and driving innovation and economic development (Acs, Morck, Shaver, & Yeung, 1997) A robust SME sector correlates with a strong economy, while weak SMEs can negatively impact economic stability Additionally, SMEs significantly influence environmental factors through their input and output requirements (Gerrans & Hutchinson, 2000) Beyond their economic contributions, small and medium businesses play a vital role in job creation, helping to reduce local unemployment and bolster community welfare.
To develop themselves, SMEs pursuade cooperative strategies to enrich their knowledge base about export markets and can therefore improve their performance (Haahtia, Madupub, Yavasc, & Babakus,
Knowledge management has gained traction in small and medium-sized enterprises (SMEs), particularly at the operational level, with firm size positively influencing HR formality and, in turn, owners’ perceptions of firm performance The success of sustainable SMEs heavily relies on their strategic approaches, as networks of SMEs are crucial for tackling systemic issues related to industrial ecology, enterprise resilience, and global supply chain sustainability Given that SMEs constitute the majority of businesses, the rapid advancement of communication technologies facilitates diverse networking opportunities Public technology policies aimed at SMEs should be tailored to their unique requirements, emphasizing the enhancement of vertical linkages and providing support throughout the innovation process Various factors influence the sustainable growth of SMEs, and collaborative sustainability strategies yield synergistic effects, benefiting both the enterprises and the broader community This paper highlights the advantages of sustainable SMEs compared to multinational enterprises (MNEs) and outlines incentives for SMEs to enhance sustainability, such as becoming attractive investment targets for larger firms and forming competitive networks in niches where larger companies struggle.
To enhance global supply chain sustainability, small and medium-sized enterprises (SMEs) are emerging as highly efficient suppliers by adopting sustainable practices As successful models of sustainable SMEs develop, forming networks among these enterprises may be crucial for tackling the systemic challenges related to industrial ecology and enterprise resilience Given that SMEs constitute the majority of businesses, the rapid advancement of communication technologies facilitates diverse networking opportunities, thereby strengthening their collective impact on sustainability efforts.
In Vietnam, Decree No 56/2009/ND-CP defines small and medium-sized enterprises (SMEs) as business establishments registered under business law, categorized into three levels: micro, small, and medium This classification is based on total capital, with total assets determined by the enterprise's balance sheet, and the average number of employees, prioritizing total capital as the main criterion.
Table 2.2 Size of firms according to Article 3 of Decree No 56/2009/ND-CP
Micro enterprises Small enterprises Medium enterprises
VND 10 billion to 50 VND billion
Source: (Government of Republic Socialist of Vietnam, 2009)
According to the regulations, small and medium-sized enterprises (SMEs) are defined as businesses that employ up to 300 individuals and possess capital of up to VND 100 billion, primarily operating in the manufacturing sector.
Mr Tran, Deputy Director of the Ministry of Trade of Vietnam, highlights the fragility of supply chains for essential items, noting that the connections between different segments are weak (Tran, 2012) This emphasizes the urgent need for Vietnamese enterprises to focus on developing and sustaining robust supply chains to enhance their business performance and effectively compete with the rapidly growing foreign companies in Vietnam.
Table 2.3 Number of enterprises in Vietnam during 2010-2014
Number of enterprises in total 279,360 324,691 346,777 373,213 402,326 Number of firms in Fishing and aquaculture
Number of SMEs in Fishing and aquaculture
Source: Vietnamese GSO from 2010 to 2015
According to data from VCCI (2012), Vietnamese enterprises have been steadily increasing, with small and medium-sized enterprises (SMEs) making up 97 percent of the total SMEs play a crucial role in the economy by employing approximately 51 percent of the labor force, significantly contributing to addressing unemployment in Vietnam Furthermore, these enterprises account for over 40 percent of the country's GDP each year (Cao, 2013) Therefore, the sustainable development of SMEs is essential for the rapid and stable growth of Vietnam.
Perception of supply chain
Perception, as defined by the Oxford Living Dictionary, refers to the ability to recognize and interpret information through the senses, encompassing sight, sound, and awareness This concept highlights an individual's acknowledgment and belief in what they consider to be true.
Perception, as defined by the Cambridge Dictionary, refers to a belief or opinion shaped by how things appear, and in a business context, it reflects how individuals feel about a company, product, or service When managers' perceptions align with reality, their decisions can effectively guide the organization and its supply chain towards success Conversely, inaccurate perceptions can hinder a firm's growth and competitiveness in the market.
Perception, as defined by the Business Dictionary, is the process through which individuals interpret sensory information to form a coherent understanding of their surroundings Although this understanding is often based on incomplete or unreliable data, it serves as a practical reality that influences human behavior Consequently, accurate perception leads to appropriate actions, while misconceptions can result in misguided behaviors and negative outcomes.
This study explores how perception impacts the development of supply chains in Very Small and Medium Enterprises (VSMEs) When VSME managers possess a clear understanding of supply chain dynamics, they can effectively guide their firms toward success Conversely, misconceptions can lead to detrimental decisions, jeopardizing both the firm and the supply chain.
Supply chain performance and firm performance
Supply chain management (SCM) plays a crucial role in creating value for companies, customers, and stakeholders throughout the supply chain It is a key component of competitive strategy that enhances organizational productivity and profitability Furthermore, the performance of the supply chain significantly impacts overall business performance, with firms that maintain higher information quality in their supply chain alignment achieving better outcomes.
Management culture and commitment, akin to partnership, are crucial internal factors influencing supply chain performance For improvement to occur, it is essential that the cost position is communicated transparently (Voigt & Inderfurth, 2012) Consequently, fostering trust and trustworthiness in supply chain interactions significantly enhances overall performance, as noted by Wu, Chuang, and Hsu.
A high level of trust is essential for practitioners seeking to establish collaborative relationships, as it serves as the foundation for addressing key social exchange issues like commitment, reciprocity, and power dynamics Without initial trust, these critical elements cannot be effectively managed, hindering the development of a successful partnership Thus, fostering trust is a fundamental strategy for creating long-term collaborations (Wu, Chuang, & Hsu, 2014).
Supply chain management strategies can be categorized as agile, lean, or mixed, with each approach serving different market needs An agile supply chain, as defined by Christopher (2000), prioritizes effectiveness to meet volatile demand and high requirements, while a lean supply chain excels in predictable markets with low requirements, focusing on cost reduction and quality (Yusuf et al., 2004) Although fewer companies adopt agile practices compared to lean, the former can still yield cost savings in less growth-oriented industries (Khalili-Damghani & Tavana, 2013; Gligor et al., 2015) Understanding the considerations of Vietnam’s small and medium-sized enterprises in developing their supply chains is crucial and will be explored further.
According to Naylor, Naim, and Berry (1999), there are two main paradigms in supply chain management: lean and agile Lean supply chains focus on eliminating waste and ensuring a consistent production schedule, making them ideal for environments with low demand for diverse products In contrast, agile supply chains leverage market knowledge to capitalize on profitable opportunities in volatile markets, making them suitable for high demand and variety in products This research aims to identify which supply chain structure is utilized by VSPESMEs.
CHAPTER 3 SUMMARY: In this chapter, author design research path and choose research method which is appropriated and reasonable for the research Moreover, in order to make the research sound and deep, this dissertation also uses expert interview method With this combination, the research is expected to provide good result as well as foundation for making some suggestions.
FRAMEWORK AND METHODOLOGY
Framework
According to research by Kannana & Tan (2005), the key elements that drive a firm's success and business performance are just-in-time management, quality control, and an effective supply chain These interconnected factors significantly impact a company's overall performance Therefore, for manufacturing firms to thrive in a competitive market, it is essential to refine their goals and strategies in all aspects of just-in-time management, quality assurance, and supply chain optimization.
Reviewing the same issue, we can find out another research form Gunasekaran and McGaughey
A well-structured supply chain is crucial for the performance of a business, as highlighted by Gunasekaran and McGaughey (2003) They identified six key dimensions that contribute to an effective supply chain: partnership, information technology, operational flexibility, performance measurement, management commitment, and demand characterization Additionally, they noted four other influential factors: the role of management, the impact of organizational structure, the importance of education and training, and cultural and behavioral issues.
(Gunasekaran & McGaughey, 2003) These factors were introduced by Tan, et al in 1999 (Tan, Kannan, Handfield, & Ghosh, 1999)
Thus, from above literatures, I build up a framework to determine a business performance as figure 3.2 below
The outcome of a supply chain is influenced by the interplay of four key factors: cost effectiveness, information sharing, information technology, and partnership management culture Variations in these factors lead to distinct results in supply chain performance.
This study focuses specifically on evaluating supply chain performance as a critical factor influencing overall business performance, as supported by Blackhurst, Cantor, and Crum (2015) By identifying the key factors impacting supply chains, the author aims to pinpoint the weaknesses of Vietnamese SMEs (VSMEs) and the stages where their performance falls short.
Research process and methodology
Qualitative Comparative Analysis (QCA) is both a broad research approach and a specific analytical technique (Wagemann & Schneider, 2010) FsQCA, a leading software tool, computes logical truth tables to identify key factors in the development of supply chains for Very Small and Medium Enterprises (VSPESMEs) This technique utilizes fuzzy set scores to represent causal conditions and outcomes (Ragin, 2000) The fuzzy program enables users to create configurations from single sets coded either dichotomously or fuzzily, statistically evaluate the sufficiency of these configurations using various benchmarks, and streamline sufficient configurations to their common logical elements (Longest and Vaisey, 2008) QCA effectively analyzes cases with differing causally relevant factors.
Related Literatures and Studies Research model
Conclusion and implication Interpreting the
Qualitative Comparative Analysis (QCA) emphasizes specific case types that combine causal precursors, as noted by Woodside and Zhang (2012) It features three key characteristics: equifinality, asymmetry, and causal complexity This makes QCA a valuable tool for identifying the characteristics of interventions, practices, and assumptions, highlighting that multiple pathways can lead to the same outcome, which aligns with the objectives of this research.
In this study, the authors analyze participant evaluations of key supply chain elements by calculating the mean and mode scores derived from questionnaires These elements are based on research conducted by Naylor et al (1999), and the findings will be summarized in Table 4.1.
To gain insights into the priorities and essential elements of supply chain design from the perspective of VSPESMEs’ managers, the authors employed Qualitative Comparative Analysis (QCA) using FsQCA software QCA focuses on set relationships rather than mere correlations, aligning with the theoretical frameworks commonly used in social sciences (Ragin, 2000) The authors transformed conventional variables into fuzzy set membership scores, which range from 0.00 to 1.00, by using the celebration function of the FsQCA software This process involved defining interval scale values that correspond to three quantitative anchors for fuzzy sets: a full membership threshold (fuzzy score = 0.95), a non-membership threshold (fuzzy score = 0.05), and crossover anchors The original values of 7.0, 4.0, and 1.0 were assigned to represent full membership, full non-membership, and crossover points, respectively The calibration function was then utilized to export fuzzy values, with the results presented in Table 4.2, offering various solutions for VSPESMEs’ managers Additionally, insights from the authors' Vietnamese background contributed to empirical suggestions based on their observations.
The study employs the Truth Table fsQCA algorithm to evaluate the significance of various factors in the supply chain of VSPESMEs This method integrates key indicators such as reliability, practical significance, and explanatory ratios to derive a comprehensive solution.
The Truth Table Algorithm is a vital tool in fsQCA analysis, enabling researchers to evaluate the influence of various factors on research outcomes By converting data into the fsQCA scale through calibration, the Truth Table algorithm generates a foundation for critical analysis This data matrix consists of 2^k rows, where k represents the number of model elements, with each row illustrating a unique combination of factors For further fuzzy analysis, the Truth Table must be filtered based on two criteria: frequency and consistency (Ragin, 2008) Frequency indicates how often each element appears in the Truth Table for the research dataset Researchers recommend a frequency threshold of 1 or 2 for studies with small to medium sample sizes (n < 200), while larger samples (n > 200) should utilize higher thresholds (Leischnig, Henneberg, and Thornton, 2014) Thus, a suitable frequency threshold is essential for this study.
After filtering the Truth Table and conducting basic analysis algorithms, the solutions are exported, representing various combinations of input factors corresponding to outputs A scale factor must reach a minimum level of 0.4 to be deemed credible and acceptable (Emmenegger, 2011) The analysis aims to draw conclusions about the impact of these factors on the results and evaluate the significance of each factor within the model This research builds on the foundational Truth Table analysis and qualitative methods, utilizing fsQCA as outlined by Ragin (2008), Emmenegger (2011), and Leischnig et al (2014).
The threshold frequency is set at 1, while a consistent coefficient requires a value larger than 0.9 Additionally, the net coverage must exceed 0.4 To analyze the data effectively, the FsQCA 2.0 software is utilized to refine the necessary algorithms.
Prior to conducting the official survey, the authors performed a pilot test by distributing questionnaires to ten directors and vice directors from manufacturing companies participating in the Keieijuku 6 course at VJCC HCMC in April 2015 This pilot aimed to gather feedback on the questionnaire, revealing that most participants were unfamiliar with supply chain concepts, as supply chain management is relatively new in Vietnam Despite this lack of familiarity, all participants successfully completed the questionnaire without confusion, indicating its clarity Following the pilot test, the questionnaire was revised and subsequently distributed to Vietnamese seafood companies Insights into participants' experiences and knowledge of supply chain management are detailed in Chapter 4.
QCA focuses on analyzing set relationships rather than correlations, emphasizing set-theoretic relationships in social science (Ragin, 2000) This method evaluates cases based on various causally relevant conditions (Woodside & Zhang, 2012), making it suitable for examining specific case types linked to causal precursors Additionally, descriptive statistics, including years of experience and positions of surveyed individuals within companies, will be analyzed using Excel, while further data will be gathered through the author's observations during the research period.
To analyze the relationship between various factors and their impact on flexibility and cost, SPSS 20 is utilized This approach offers deeper insights into the developmental trends of the supply chains for VSMEs and VSPESMEs.
Based on survey results, this analysis identifies key elements that capture the attention of managers in Vietnamese small and medium-sized enterprises (VSMEs) By examining the strengths, weaknesses, opportunities, and threats faced by Vietnamese SMEs, the author aims to propose effective solutions for food manufacturing companies and other enterprises in Vietnam to thrive in today's highly competitive environment.
Survey questions will be sent to managers of VSMEs and VSPESMEs especially in Heads of Business Department, vice directors and directors in HCMC
To investigate gang expansion, I will review literature and conduct interviews and surveys to gather crucial information These sources will offer essential background on key research questions, highlight the topic's current relevance, and present various perspectives to analyze the origins, organization, and evolving supply chains in Vietnamese SMEs.
This study conducts a comprehensive review of literature from various sources, including electronic and print materials, books, newspaper articles, and magazines, alongside statistics from the Vietnamese General Statistics Organization (GSO) covering the years 2005 to 2012 It aims to gather specific information related to logistics, transportation, and supply chain activities, providing a solid framework for evaluating the research topic effectively Key areas of focus will include relevant statistics, observations, and theoretical insights on supply chain management.
Building theory from multiple case studies is an effective method for collecting rich empirical data, as noted by Eisenhardt and Graebner (2007) This approach was successfully utilized by Jayaram and colleagues to analyze the relationship between supply chain management capabilities in small and medium-sized family businesses (Jayaram, Dixit, & Motwani, 2014).