Factors impact to the implementing of management accounting in startup in Ho Chi Minh City :M.A thesis - Major: Accounting

MINISTRY OF INDUSTRY AND TRADE

INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY

NGUYEN HUYEN TRANG

FACTORS IMPACT TO THE IMPLEMENTING

OF MANAGENT ACCOUNTING IN STARTUP

IN HO CHI MINH CITY

Major: ACCOUNTING

Code: 60.34.03.01

MASTER THESIS

HO CHI MINH CITY, 2022

This M.A thesis was completed at Industrial University of Ho Chi Minh City.

Science supervisor: Ph.D Tran Ngoc Hung: ................................................................

This MS thesis was presented at Industrial University of Ho Chi Minh City date . . .

. . month. . . . year . . . . .

The Council assess of Master thesis include:

1. .........................................................................- Chairman

2. .........................................................................- Reviewer No. 1

3. .........................................................................- Reviewer No. 2

4. .........................................................................- Commissioner

5. .........................................................................- Secretary

Chairman DEAN FUCULTY OF

ACCOUNTING AND AUDITING

THE DUTY OF THE MASTER THESIS

Full name: NGUYEN HUYEN TRANG....................... Code: 17001061 ..................

Date of birth: 17/04/1993............................................... Address: DakLak.................

Major: Accounting ......................................................... Code: 60.34.03.01 ...............

I. MASTER THESIS NAME:

Factors impact to the implementing of management accounting in startup in Ho Chi

Minh City

MISSIONS AND CONTENT:

Determine the factor impact to the implementing of management accounting in

startup in Ho Chi Minh City

Measure the level of each factor

Basing on the researching results, the author suggests solutions to enhance the

possibility of management accounting application in startup in Ho Chi Minh City

for improving their performance.

II. DATE OF DELIVERY: The decision No .1874/QĐ-ĐHCN, October 14th, 2019

III. TASK COMPLETE DAY: ..................................................................................

IV. SCIENCE SUPERVISOR: Ph.D Tran Ngoc Hung

.......................................................................................................................................

Ho Chi Minh City, Jan, …. 2022

SUPERVISOR

(Signature)

CHAIRMAN OF TRAINING

(Signature)

DEAN FUCULTY OF ACCOUNTING AND AUDITING

MINISTRY OF INDUSTRY AND TRADE

INDUSTRIAL UNIVERSITY OF

HO CHI MINH CITY

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

i

ACKNOWLEDGEMENT

To complete the thesis, along with my own efforts, the author has received the

encouragement and help of many people.

The author would like to sincerely express his deep gratitude to Dr. Tran Ngoc

Hung - Lecturer in Accounting and Auditing Faculty of Industrial University of Ho

Chi Minh City. He has enthusiastically and guided the writer throughout the process

of studying, researching and completing the master thesis.

Sincere thanks to the teachers in the Dean of the Faculty of Accounting and

Auditing, Dr. Tran Ngoc Hung - Principal Lecturer in the Accounting and Auditing

Faculty of the Industrial University of Ho Chi Minh City, the Graduate School of

the Industrial University of Ho Chi Minh City has guided and created favorable

conditions for the writer to complete the thesis.

Thank you to the Board of Directors, teachers of the Industrial University of Ho Chi

Minh City for creating all favorable conditions for the writer to complete the thesis

I would like to thank my parents, colleagues and friends for their encouragement

and encouragement throughout the process of writing this thesis.

The author sincerely thanks!

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ABSTRACT

This study aims to find out and measure the level of factors affecting the

applicability of management accounting techniques in startups in Ho Chi Minh

City. Data was collected using both quantitative and qualitative methods. First, in

general research, qualitative methodology was used to find out factors (variables)

that can impact the applicability of management accounting techniques in startups

in Ho Chi Minh City. Second, in detailed research, all variables are measured using

a quantitative method by collecting data through sampling and sending

questionnaires. 300 questionnaires were sent to chief accounts, financial directors,

managers and only 236 questionnaires met the criteria for the data analysis. The

study used a mixed research design approach-a procedure for collecting, analyzing,

and “mixing” both quantitative and qualitative research and methods in a single

study to understand the research problem. Results show that 5 factors affect the

applicability of management accounting techniques in startups in Ho Chi Minh

City. These factors are firm size (FS), CEOs (CE), business strategy (BS), investor

(IV), cultural (CL). Based on the results of the study, enhancing the application of

MA in the startups should depend mainly on the role of major investors, followed

by CEOs skills, perception.

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DECLARATION

I hereby declare that this is my own research work. The research results and

conclusions in the thesis are honest, not copied from any source and in any form.

References to sources (if any) have been properly cited and cited.

M.A CANDIDATE

(Signature)

Nguyen Huyen Trang

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TABLE OF CONTENTS

TABLE OF CONTENTS.......................................................................................... iv

LIST OF FIGURES.................................................................................................. vii

LIST OF TABLES .................................................................................................. viii

ABBREVIATIONS................................................................................................... ix

INTRODUCTION.......................................................................................................1

CHAPTER 1 LITERATURE REVIEW ................................................................5

1.1 Oversea key research .....................................................................................5

1.1.1 Overview......................................................................................................5

1.1.2 Consideration .............................................................................................10

1.2 Vietnam key research ..................................................................................10

1.2.1 Overview....................................................................................................10

1.2.2 Consideration .............................................................................................13

1.3 Gap research and the aim of study ..............................................................14

1.3.1 Determining the gap research ....................................................................14

1.3.2 The aim of study ........................................................................................14

CHAPTER 2 THEORETICAL FOUNDATIONS ABOUT MANAGEMENT

ACCOUNTING AND FACTOR IMPACT TO THE IMPLEMENING OF

MANAGEMENT ACCOUNTING IN STARTUP ..................................................16

2.1 Management accounting overview..............................................................16

2.1.1 Management accounting concepts.............................................................16

2.1.2 The role and function of management accounting ....................................17

2.1.3 Content of management accounting ..........................................................18

2.2 Characteristics of startup .............................................................................22

2.2.1 Startup concept ..........................................................................................22

2.2.2 Characteristics of startup ...........................................................................23

2.2.3 Current disadvantages, advantages when implementing management in

startup 23

2.3 Factor impact to the implementing of management accounting in startup .24

v

2.4 Grounded theory related to the factor impact to the implementing of

management accounting .......................................................................................30

2.4.1 Contingent theory ......................................................................................30

2.4.2 Development of hypotheses.......................................................................30

CHAPTER 3 RESEARCH METHODOLOGY...................................................32

3.1 Research process..........................................................................................32

3.1.1 Research design .........................................................................................32

3.1.2 Frame research...........................................................................................33

3.1.3 Process research.........................................................................................34

3.2 Research model of factors impact to the implementing management

accounting in startup.............................................................................................35

3.3 Qualitative method ......................................................................................36

3.3.1 Qualitative method design .........................................................................36

3.3.2 Experts’ discussion ....................................................................................36

3.3.3 Research hypothesis design .......................................................................38

3.4 Quantitative method ....................................................................................39

3.4.1 Building scales...........................................................................................39

3.4.2 Design of quantitative research..................................................................41

3.4.3 Model .........................................................................................................41

CHAPTER 4 RESEARCH RESULTS AND DISCUSSION ..............................43

4.1 Quantitative research results........................................................................43

4.1.1 Test the reliabilities of scales.....................................................................43

4.1.2 Exploratory factor analysis........................................................................48

4.1.3 Pearson correlation ....................................................................................51

4.1.4 Regression analysis....................................................................................52

4.2 Discussions..................................................................................................53

4.3 Recommended solutions..............................................................................56

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS ........................60

5.1 Conclusions .................................................................................................60

5.2 Recommendations .......................................................................................61

5.3 Limitations and directions for further research ...........................................63

vi

LIST OF STUDENTS PUBLISHED WORKS ........................................................64

REFERENCES..........................................................................................................65

REFERENCES Vietnamese......................................................................................65

REFERENCES english .............................................................................................66

APPENDIX...............................................................................................................72

CURRUICULUM VITAVE ...................................................................................105

vii

LIST OF FIGURES

Figure 2.1 Figure of factors influencing MCSs according to research by Samagaioa

.et al (2018) ...............................................................................................................25

Figure 2.2 Figure of factors influencing MCSs according to research by Crespoa .et

al, (2018) ...................................................................................................................26

Figure 2.3 Figure of factors influencing MCSs according to research by Davila and

Foster (2007) .............................................................................................................27

Figure 3.1 Research framework diagram..................................................................34

Figure 3.2 Process research diagram.........................................................................35

Figure 3.3 Summary of factor affecting the application of management accounting

in start-ups in Ho Chi Minh City...............................................................................39

viii

LIST OF TABLES

Table 4.1 Reliability Statistics of Firm size ..............................................................43

Table 4.2 Item-Total Statistics of Firm size..............................................................43

Table 4.3 Reliability Statistics of CEO.....................................................................44

Table 4.4 Item-Total Statistics of CEO.....................................................................44

Table 4.5 Reliability Statistics of business strategy..................................................45

Table 4.6 Item-Total Statistics of business strategy .................................................45

Table 4.7 Reliability Statistics of investor................................................................46

Table 4.8 Item-Total Statistics of investor................................................................46

Table 4.9 Reliability Statistics of cultural.................................................................46

Table 4.10 Item-Total Statistics of cultural ..............................................................47

Table 4.11 Reliability Statistics of the possibility of implementing management

accounting in Startup in Ho Chi Minh City ..............................................................47

Table 4.12 Item-Total Statistics of the possibility of implementing management

accounting in Startup in Ho Chi Minh City ..............................................................48

Table 4.13 KMO and Bartlett's Test result ...............................................................48

Table 4.14 Total Variance Explained result..............................................................49

Table 4.15 Rotated Component Matrix result...........................................................50

Table 4.16 Correlations result...................................................................................51

Table 4.17 Coefficients result ...................................................................................52

Table 4.18 Model Summary......................................................................................53

Table 4.19 Anova analysis........................................................................................53