Issues and Challenges in the Establishment of Continuous Improvement in Vietnam
DOI:
https://doi.org/10.18533/ijbsr.v5i10.854Keywords:
Lean production, quality management’ suggestion systems, Vietnamese management.Abstract
A better understanding of Vietnamese management is important for both practitioners and academics because of the huge and continuing growth of business activity in Vietnam. In particular, information about the Vietnamese use of continuous improvement (CI) practices is valuable because these have underpinned the success of both western and Asian companies in recent decades. Using the case-study method based on over 60 in-depth interviews with executives, managers, supervisors, and employees of nine leading companies in Vietnam and information gathered from discussions with 440 business and non-business leaders, practitioners, and academics, this paper shows that Vietnamese organizations face numerous challenges when implementing and sustaining CI practices. The findings highlight the tendency of Vietnamese organizations to pursue “shortcut” strategies that prevent them from competing higher up the value-added chain. Maintaining “face” is vital to the Vietnamese and this is a major cultural challenge for organizations in their CI efforts. The paper recommends that Vietnamese organizations address these challenges by pursuing CI more aggressively and investing in human resource development to build capabilities for the future. The Vietnamese government, which is the main engine of change in the country, should promote the use of CI by funding education and training in its methods.
References
Ahern, T. L. (2009). Vietnam Declassified: The CIA and counterinsurgency. Lexington, Kentucky: The University Press of Kentucky.
Ashwill, M. (2005). Vietnam today. Yarmouth: Intercultural Press.
Bessant, J., & Caffyn, S. (1997). High-involvement innovation through continuous improvement. International Journal of Technology Management, 14(1), 7-28.
Bessant, J., Caffyn, S., Gilbert, J., Harding, R., & Webb, S. (1994). Rediscovering continuous improvement. Technovation, 14(1), 17-29.
Bich Ngoc. (2014). Coats celebrates 25 years in Vietnam and launches new services business. Vietnam Investment Review. http://www.coats.com/index.asp?pageid=214&newsid=61
Borton, L. (2000). Working in a Vietnamese voice. The Academy of Management Executive, 14(4), 20-31.
Boyer, K. K., & McDermott, C. (1999). Strategic consensus in operations strategy. Journal of Operations Management, 17, 289-305.
Business Monitor International. (2011). Vietnam pharmaceuticals and healthcare report BMI Industry Survey & Forecasts.
Caulkin, S. (2002). Waste not, want not. The Guardian. http://www.theguardian.com/business/2002/sep/08/manufacturing.observerbusiness
Chong, C., & Lee-Patridge, J. (1997). Total quality management in Singapore: Ideological strategy for strategic ideology. Singapore Management Review, 19(2), 45-66.
Dieleman, M., Pham, C. V., Le, A. V., & Martineau, T. (2003). Identifying factors for job motivation of rural health workers in North Viet Nam. Human Resources for Health 1(1), 10-10.
Dinh, H. T., Igel, B., & Laosirihongthong, T. (2006). The impact of total quality management on innovation: Findings from a developing country. International Journal of Quality & Reliability Management, 23(9), 1092-1117.
Dinh, H. T., Igel, B., & Laosirihongthong, T. (2010). Total quality management (TQM) strategy and organisational characteristics: Evidence from a recent WTO member. Total Quality Management & Business Excellence, 21(9), 931-951.
Donnell, J. C. (1970). Expanding political participation - The long haul from villagism to nationalism. Asian Survey, 10(8), 688-704.
Gainsborough, M. (2007). Globalisation and the state revisited: A view from provincial Vietnam. Journal of Contemporary Asia, 37(1), 1-18.
George, A., & McKeown, T. (1985). Case studies and theories of organizational decision Making Advances in Information Processing in Organizations 2, 21-58.
Hartman, L. P., & Wokutch, R. E. (2003). Nike, Inc.: Corporate social responsibility and workplace standard initiatives in Vietnam. In L. P. Hartman, D. G. Arnold & R. E. Wokutch (Eds.), Rising above sweatshops: Innovative approaches to global labor challenges (pp. 145-190). London: Praeger.
Hartman, L. P., Wokutch, R. E., & French, J. L. (2003). Adidas-Salomon: Child labor and health and safety initiatives in Vietnam and Brazil. In L. P. Hartman, D. G. Arnold & R. E. Wokutch (Eds.), Rising above sweatshops: Innovative approaches to global labor challenges (pp. 191-248). London Praeger.
Hoang, L. (2004, May 27). Co the tang nang suat ma khong can dau tu (Improving productivity without capital investment). Thoi Bao Kinh Te Saigon.
Hua, H., Chin, K., Sun, H., & Xu, Y. (2000). An empirical study on quality management practices in Shanghai manufacturing industries. Total Quality Management, 11(8), 1111-1122.
Iguchi, H., Arimura, T. H., & Michida, E. (2015). Adoption of ISO9001 through supply chain in Vietnam: Impacts of FDI and product-related environmental regulation. Chiba, Japan: Institute of Developing Economies.
International Labour Organization. (2006). Factory Improvement Programme: Final evaluation: Powers and Associates (Australia) Pty Ltd.
Italian Trade Agency. (2014). Brief sector note on pharmaceutical industry in Vietnam. http://www.ice.gov.it/paesi/asia/vietnam/upload/198/Brief%20sector%20note%20on%20pharmaceuticals%20in%20Vietnam%20-%20Oct%202014.pdf
Jamieson, N. L. (1995). Understanding Vietnam. Berkeley, CA: University of California Press.
Jorgensen, F., Boer, H., & Laugen, B. T. (2006). CI implementation: an empirical test of the CI maturity model. Creativity and Innovation Management, 15(4), 328-337.
Kleindorfer, P. R., Singhal, K., & Van Wassenhove, L. N. (2005). Sustainable operations management. Production and Operations Management, 14(4), 482-492.
Lau, C. M. (2002). Asian management research: Frontiers and challenges. Asia Pacific journal of management, 19(2), 171-178.
Le, T. C., & Truong, Q. (2005). Human resource management practices in a transitional economy: A comparative study of enterprise ownership forms in Vietnam. Asia Pacific Business Review, 11(1), 25-47.
Liker, J. K. (2004). The Toyota Way. New York: McGraw-Hill.
Mellahi, K., & Eyuboglu, F. (2001). Critical factors for successful total quality management implementation in Turkey: Evidence from the banking sector. Total Quality Management, 12(6), 745-756.
Metters, R., Zhao, X., Bendoly, E., Jiang, B., & Young, S. (2010). "The way that can be told of is not an unvarying way”: Cultural impacts on operations management in Asia. Journal of Operations Management, 28(3), 177-185.
Meyer, K. E. (2006). Asian management research needs more self-confidence. Asia Pacific journal of management, 23(2), 119-137.
Miles, M. B., & Huberman, A. M. (1984). Drawing valid meaning from qualitative data: Toward a shared craft. Educational Researcher, 13(5), 20-30.
Miyagawa, M., & Yoshida, K. (2005). An empirical study of TQM practices in Japanese-owned manufacturers in China. The International Journal of Quality & Reliability Management, 22(6), 526-553.
Nguyen, D. K. (2005). Doing business in Vietnam. Hanoi, Vietnam: Vietnam Chamber of Commerce and Industry.
Nguyen, P. A., & Robinson, A. G. (2015). Continuous improvement in Vietnam: unique approaches for a unique culture. Journal of Asia Business Studies, 9(2), 196-211.
Nguyen, Q. H. (2006). 'Đi tắt, đón đầu' đang bị lạm dụng. VN Express, (January 17). http://vnexpress.net/gl/khoa-hoc/cho-cong-nghe/2006/01/3b9e61aa/
Nike. (2014). Nike, Inc. FY12/13 Sustainable business performance summary.
Norton, L. P. (2014). The new China. Barron's. http://www.barrons.com/articles/the-new-china-1416029988
Pun, K. F., Chin, K. S., & Gill, R. (2001). Determinants of employee involvement practices in manufacturing enterprises. Total Quality Management, 12, 95-109.
Rao, S., Raghunathan, T., & Solis, L. (1997). A comparative study of quality practices and results in India, China and Mexico. Journal of Quality Management, 2(2), 235-250.
Robinson, A. G., & Schroeder, D. M. (2014). The idea-driven organization. San Francisco, CA: Berrett-Koehler Publishers, Inc.
Samat, N., Ramayah, R., & Norizan, M. (2006). TQM practices, service quality, and market orientation. Management Research News, 29(11), 713-728.
Schroeder, D. M., & Robinson, A. G. (2010). Green is free: Creating sustainable competitive advantage through green excellence. Organizational Dynamics, 39, 345-352.
Scott, S., Miller, F., & Lloyd, K. (2006). Doing Fieldwork in Development Geography: Research Culture and Research Spaces in Vietnam. Geographical Research, 44(1), 28-40.
Sinha, M. N. (2000). The best on quality. Milwaukee, Wisconsin: ASQ Quality Press.
Sohail, M. S., Sohal, A. S., & Millen, R. (2004). The state of quality in logistics: Evidence from an emerging Southeast Asian nation. International Journal of Quality & Reliability Management, 21(4/5), 397-411.
Sohal, A., Tay, G., & Wirth, A. (1989). Total quality control in an Asian division of a multinational corporation. International Journal of Quality & Reliability Management, 6(6), 60-74.
Stuart, I., McCutcheon, D., Handfield, R., McLachlin, R., & Samson, D. (2002). Effective case research in operations management: a process perspective. Journal of Operations Management, 20(5), 419-433.
Swanson, R. A., & Holton, E. R. (Eds.). (2005). Research in organizations. San Francisco: Berrett-Koehler Publishers, Inc.
Toyota Motor Vietnam. (2015a). 2015, from www.toyotavn.com.vn
Toyota Motor Vietnam. (2015b). New records of Toyota Vietnam in 2014 [Press release]. Retrieved from http://www.toyotavn.com.vn/en/news/hot-news/189/new-records-of-toyota-vietnam-in-2014
Tsoulfas, G. T., & Pappis, C. P. (2006). Environmental principles applicable to supply chains design and operation. Journal of Cleaner Production, 14(18), 1593-1602.
U.S. Commercial Service and U.S. Embassy in Vietnam. (2015). Doing business in Vietnam: Country commercial guide for U.S. companies Country Commercial Guide.
U.S. Department of State. (2015). Vietnam: Investment climate statement 2015. Retrieved from http://www.state.gov/documents/organization/242005.pdf.
Viet Nam News. (2015). Vietnamese tea needs to have world certification. Viet Nam News. http://vietnamnews.vn/economy/272305/vietnamese-tea-needs-to-have-world-certification.html
VietNamNet Bridge. (2004). ISO 9000 firms may fail to uphold quality. (December 31). <http://www.vietnam-ustrade.org/index.php?f=news&do=detail&id=35&lang=english>
Voss, C., Roth, A. V., Rosenzweig, E. D., Blackmon, K., & Chase, R. B. (2004). A tail of two countries' conservatism, service quality, and feedback on customer satisfaction. Journal of Service Research, 6(3), 212-230.
Voss, C., Tsikriktsis, N., & Frohlich, M. (2002). Case research in operations management. International journal of operations & production management, 22(2), 195-219.
W. Denny and Bros. Ltd. (1932). Denny Dumbarton. London: E.J. Burrow and Company.
Ward, M., & Bui, H. (2013). Food safety law and guiding decree released GAIN Report. Hanoi, Vietnam: Global Agricultural Information Network.
Womack, J., Jones, D., & Roos, D. (1990). The machine that changed the world: The story of lean production. New York: Rawson Associates.
Yeung, A. C. L., Cheng, T. C. E., & Lai, K.-H. (2005). An empirical model for managing quality in the electronics industry. Production & Operations Management, 14(2), 189-204.
Yin, R. (2009). Case study research. Thousand Oaks, CA: Sage Publications.
Zhang, Y., & Hed, C. J. (2009). Exploring the benefits of implementing CSR practices: From a supplier perspective: University of Gothenburg.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
