Description of the purpose, tasks and main results The purpose of the research: is to understand the relationship between the presence of foreign direct investment (FDI) in the capital of Vietnamese companies and management characteristics. The object of the study is a sample of Vietnamese companies with and without foreign ownership. To analyze the impact of FDI on firms in recipient countries based on a review of contemporary scientific research;
To analyze the impact of foreign ownership on the management of the recipient companies through RBV and 5M concepts;.
THEORETICAL BACKGROUND ON FDI AND RESOURCE-BASED
The impact of foreign capital on firms in recipient countries
Regarding horizontal spillovers, there is a large body of literature that examines intra-industry productivity spillovers from direct investment in domestic firms. Meanwhile (Hale, Long, 2011) showed no evidence of any impact of FDI on domestic firms in downstream industries. Domestic firms may also fail to capture productivity spillovers or be adversely affected by the presence of FDI.
Liu et al., 2009) argue that horizontal spillovers from multinationals to domestic firms rarely work effectively.
Resource-Based View
From the RBV perspective, resources are heterogeneous and poorly transportable - so heterogeneity can be long-term. The resource approach was widely adopted in 1980-1990, as a result of the development of ideas in the book E. Penrose pointed out the dependence of a company's competitive advantage on its organizational skills in using a set of resources.
At the same time, there is much less research, taking into account the totality of the resources, capabilities and core competencies of the firm.
METHODOLOGY OF EMPIRICAL ANALYSIS: SAMPLING AND
Characteristics of the sample
The public utilities, government services, healthcare and financial services sectors are not included in the sample. These data sets show that companies whose top managers and business owners did not know or did not answer whether the company owns a stake in the company. The BEEPS concept does not impose specific requirements on the ownership structure; joint ventures are selected at random.
The largest share of companies with foreign capital in both rounds of the survey was located in the southeast region.
Research Hypothesis
Both the management organization (business processes) and the quality of the technologies used can be examined. Based on the above arguments, in this study we will investigate the impact of the presence of foreign co-owners in Vietnamese companies on the characteristics of the company's management system and propose the following hypothesis. However, a different assumption was made for one of the indicators of the expansion of the company's resources: expenditure on R&D.
The development of infrastructure, resources and commodity markets will be partly reflected by the control of.
Comparison of firms on the characteristics of management
However, the decline in the share of active enterprises in terms of management features, such as educational programs and participation in export operations, can also be linked to the consequences of the global crisis, which has helped to focus on current issues such as operational management to lay down. It is interesting that in all areas, except the use of foreign licensed technologies and the presence of an international quality certificate, the dynamics turned out to be negative for companies with foreign capital. Such results can be seen in part as evidence that the economy is in the second phase of the impact of foreign direct investment on enterprises.
Note: the table shows the % of respondents who answered yes to the questions that characterize the management/behavior of the company.
RESEARCH FINDINGS
Models and their specifications
The dummy variable takes the value "1" in the case of a company investing in R&D within the last three years. EX The company's participation in export activities. The natural logarithm of the number of permanent employees in the company at the end of the previous year. EXP The top manager's professional experience in this sector, the number of years.
Each of the models was calculated in two specifications: Model 1 controls the relationship between a certain management characteristic and the presence of a foreign owner, Model 2 – with the size (shares) of foreign capital.
Results of analysis
Note: "+" - the presence of a significant positive correlation; "0" is the absence of significant correlation at least at the 5% level. Among the control variables, expected firm size was significant for all management characteristics investigated: in large firms, management tends to receive much more attention than in small ones. But in 2015, there were significant differences compared to 2009, namely, the manufacturing industry began to lag behind in investments in educational programs, research and development, and foreign licensed technologies, which is not surprising given the recovered manufacturing industry after the crisis.
The presence of state ownership was not consistently correlated with any management aspect, except for a strong positive correlation in 2009 with international quality certificates and a weak negative correlation with exports. In 2015 respectively, there was no consistent correlation with any management aspect, except for a strong positive correlation between the presence of state assets and international quality certificates and with the introduction of new products. Earlier, in 2009, this was negatively associated with the presence of international certificates and exports.
So far, the experience of top managers has not shown a significant correlation with leadership qualities. There is a significant correlation between the company's age and the presence of international quality certificates in 2009. In 2015, there was no significant correlation between the company's age and management characteristics, except for a weak correlation with the presence of international quality certificates and the use of foreign licensed technologies.
For the convenience of the reader, lines characterizing the direction and significance of links in terms of foreign participation variables are highlighted in gray. For the convenience of the reader, lines characterizing the direction and significance of links in terms of foreign participation variables are highlighted in gray.
Research limitations
Technically, analysis using binary models is hampered by the fact that the presence of certain management characteristics in companies in 2015 is inherent in the so-called "rare events data"4 problem. The share of positive answers to questions was much less than the share of negative answers. Using the approach proposed in the article (King, Zeng, 2001) based on the random removal of some of the negative responses, calculations were made on "truncated".
Also, we cannot completely exclude the endogeneity caused by the self-selection problem: it is not always clear whether the good management and higher efficiency of the enterprise come from the participation of foreign owners in its management or if they simply invested in the enterprises more good ones. . For some of the firms with foreign capital that were created with foreign owners from scratch (14.2% in 2009 and 8.9% in 2015), the results of activities are not related to the selection problem, but this cannot be asserted for other firms.
Managerial implications
Therefore, the management recommendations developed conceptually in Chapter 2 were then empirically verified in Chapter 3. By identifying the correct management characteristics for their investment, the conceptual framework emphasizes the objectives of the managers in terms of maintaining, utilizing, exploiting and augmenting their firm's resources. What has been observed from the empirical evidence in a number of cases where firms combine different management characteristics has been effective, when a firm invests abroad, it can use its different aspects of corporate governance in a mixed way.
It could use the same resources and competencies to enable itself to use specific locational characteristics (Teece et al., 2009). This is something that companies need to consider so that their dominant management characteristics can complement other management characteristics to strategically leverage all of their resources and capabilities. Coordinating resources and matching the characteristics of a company's resource management system is important for the success of a company's strategy and can contribute to strengthening its market position in a complex and rapidly changing business environment and eventually improve its performance.
Scientific contributions
The regression analysis revealed the existence of positive associations between the presence of foreign owners in the capital (and the proportion of their participation) and some features of the management and behavior of the receiving companies, which we tried to measure from a resource-based perspective. . Overall, the research results show a moderate level of positive effects of horizontal spillovers. By identifying the precise characteristics of management for their investment, the conceptual framework highlights managers' objectives in terms of making the best use of the firm's resources.
It also explains that Vietnamese companies are at the second stage of the influence of foreign direct investment. Of course, deepening the quantitative analysis requires a detailed study of the differences in the efficiency (productivity) of resources and the competitiveness of domestic and foreign (including joint) companies. Ideally, the application of the 5M concept in a study should be based on a specifically focused review.
This is the direction of further research to develop a series of cases to reveal the "average" positive assessment of the role of foreign participation in the management of Vietnamese companies. The determinants of host country foreign direct investment spillovers: a review and synthesis of the literature. On the speed of economic reform – a tale of the tortoise and the hare: Evidence from transition countries.
Empirical research on the resource-based view of the firm: an assessment and suggestions for future research. Evaluation of the relationship between foreign participation and the peculiarities of the management of firms using binary logistic regression, 2015 (Model 1). ACTIVITY = F (lnL, AGE, EXP, EDUs, FDI or FDIs, SOE, IND, REG), where ACTIVITY is one of the characteristics of business management that we have identified.
Evaluating the association between foreign participation and specifics of corporate governance using binary logistic regression, 2015 (Model 2). Evaluating the association between foreign participation and corporate governance characteristics using binary logistic regression, 2009 (Model 1). Evaluating the association between foreign participation and corporate governance characteristics using binary logistic regression, 2009 (Model 2).
