Luận văn thạc sĩ UEH determinants of the adoption of technological innovation by logistics services

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

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NGUYEN THI KIM HA

DETERMINANTS OF THE ADOPTION OF TECHNOLOGICAL

INNOVATION BY LOGISTICS SERVICES PROVIDERS

IN VIETNAM

MASTER OF BUSINESS ADMINISTRATION THESIS

HO CHI MINH CITY - 2011

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MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

------------------------------

NGUYEN THI KIM HA

DETERMINANTS OF THE ADOPTION OF TECHNOLOGICAL

INNOVATION BY LOGISTICS SERVICES PROVIDERS

IN VIETNAM

Major: Business Administration

Major Code: 60.34.05

MASTER OF BUSINESS ADMINISTRATION THESIS

INSTRUCTOR: PROFESSOR NGUYEN DONG PHONG

HO CHI MINH CITY - 2011

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ACKNOWLEDGEMENT

First of all, I would like to express my heartfelt gratitude to my research

supervisor, Professor Nguyen Dong Phong, for his precious guidance, experience

sharing, ceaseless encouragement and highly valuable suggestions throughout the

course of my research.

I would like to convey my sincere thanks to Dr. Tran Ha Minh Quan, for

providing valuable guidance, comment and enthusiastic support.

My special gratitude is extended to all instructors and staffs at Faculty of

Business Administration and Postgraduate Faculty, University of Econimics

HoChiMinh City (UEH) for their support and the valuable knowledge during my

study in UEH.

I wish to take this opportunity to express my appreciation to Professor

Nguyen Dong Phong and UEH Board of Directors for establishing MBA program

in English.

I also extend my sincere thanks to Lecturer Dang Vinh Phuc for his valuable

support and data analysis experience during my research.

Last but not least, the deepest and most sincere gratitude go to my beloved

parents, my sisters and my closest friends for their boundless support, abundant love

and encouragement throughout my period of study. This is the special

encouragement to help me complete this study.

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ABSTRACT

The growth of Vietnam’s economy is the effort contributed partially by

considerate development of logistics service industry. In this industry, technological

innovation adoption is one of the most promising and potential premise to increase

supply chain visibility and improve process efficiency. Vietnam’s logistics service

providers should pay attention to adopt more efficient logistics technologies to

provide better services for their customers. However, first of all, the requirement to

identify determinants affecting technological innovation adoption is considered as

important goals in any logistics firms. This article studies the factors influencing the

adoption of technological innovations by logistics service providers in Vietnam.

Based on the technology–organization–environment (TOE) framework (Tornatzky,

M. Fleischer, 1990) and outstanding characteristics selected from logistics industry

(Chieh-Yu, 2006), six variables (explicitness of technology, accumulation of

technology, organizational encouragement, quality of human resource,

governmental support and environmental uncertainty) are proposed to help predict

innovation adoption. Data collected from 150 logistics service providers in Ho Chi

Minh city is tested against the proposed research model using linear regression. The

findings suggest that five of six variables have positive effect on innovation

adoption. We find that the adoption of technological innovations is significantly

influenced by explicitness of technology, accumulation of technology,

organizational encouragement, quality of human resource, and environmental

uncertainty. However, governmental support does not show the significant impact

on adoption. The results and implications included in our study contribute to an

expanded understanding of the determinants that affect innovation adoption in

logistics service providers.

Key words: technological innovation adoption, logistics service providers,

technology-organization-environment framework.

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CONTENTS

Acknowledgement....................................................................................... 3

Abstract....................................................................................................... 4

Contents ..................................................................................................... 5

List of Tables .............................................................................................. 7

List of Charts............................................................................................... 8

List of Figures............................................................................................. 9

CHAPTER1: Introduction....................................................................... 10

1.1. Research background .................................................................... 10

1.2. Research objective ........................................................................ 12

1.3. Research scope and research design .............................................. 12

1.4. Research structure......................................................................... 13

CHAPTER 2: Literature review and research model ............................ 14

2.1. Theoretical framework .................................................................. 14

2.1.1. Definition of innovation .............................................................. 14

2.1.2. Innovation adoption in logistics technologies............................... 17

2.1.2.1. Logistics and supply chain management ...................................... 17

2.1.2.2. Logistic services providers and role of innovation for their

services ………………………………………………………… 18

2.1.2.3. Four categories of logistics technologies…………………………19

2.1.3. Determinants of innovation .........................................................22

2.2. Research model ..............................................................................25

CHAPTER 3: Methodology ..................................................................... 30

3.1. Research process ........................................................................ 30

3.2. The measurement scales .............................................................. 31

3.2.1. Adoption of innovation ............................................................... 32

3.2.2. Explicitness of technology ........................................................... 32

3.2.3. Accumulation of technology ........................................................ 32

3.2.4. Organizational encouragement .................................................... 32

3.2.5. Quality of human resource ........................................................... 33

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3.2.6. Governmental support.................................................................. 33

3.2.7. Environmental uncertainty ........................................................... 33

3.3. The pilot research ........................................................................ 34

3.4. The main research........................................................................ 35

3.4.1. Sampling...................................................................................... 35

3.4.2. Sample size.................................................................................. 36

3.4.3. Survey method............................................................................. 36

3.4.4. Data collection and analysis......................................................... 37

CHAPTER 4: Research result and finding discussion ........................... 38

4.1. Descriptive statistics of sanple ...................................................... 38

4.1.1. Final sample ................................................................................. 38

4.1.2. Characteristics of sample ............................................................. 39

4.1.3. Descriptive statistics .................................................................... 41

4.2. The construct measurement scale ................................................. 42

4.2.1. Reliability analysis........................................................................ 42

4.2.2. Exploratory factor analysis............................................................ 47

4.3. The hypotheses assessment ............................................................ 52

4.3.1. Correlation analysis ....................................................................... 53

4.3.2. Overall model fit............................................................................ 54

4.3.3 Multi linear regression analysis...................................................... 56

4.4. Finding disscussion ...................................................................... 61

CHAPTER 5: Conclusion and implications............................................ 65

5.1. Concluding remarks ...................................................................... 65

5.2. Implications of the research ........................................................... 66

5.3. Recommendation from the research result ..................................... 67

5.4. Limitations and further research ................................................... 68

References.................................................................................................. 70

Appendix 1

Appendix 2

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LIST OF FIGURES

Figure 2.1 : Process of literature review.......................................................14

Figure 2.2: Research model ....................................................................... 29

Figure 3.1 : Process of research .................................................................. 31

Figure 4.1. : Process of hypothesis assessment ........................................... 53

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