IDEAS home Printed from https://ideas.repec.org/a/bjw/econen/v6y2016i1p14-31.html
   My bibliography  Save this article

The influence of govermental management, customers and suppliers relationship to foreign direct investment companies’ performance in Binh Duong province: A qualitative study

Author

Listed:
  • Nguyen Van Phuong

    (International University, Vietnam National University HCMC, Vietnam)

  • Nguyen Dinh Khoi

    (International University, Vietnam National University HCMC, Vietnam)

  • Nguyen Thi Hong An

    (International University, Vietnam National University HCMC, Vietnam)

Abstract

Binh Duong province is becoming one of the most attractive locations for Foreign Direct Investment (FDI) firms of different origins, yet few studies have been conducted to investigate the several aspects related to FDI firms in Binh Duong. This research aims to evaluate the performance of FDI companies and understand the potential determinants of the performances by utilizing the exploratory approach. The research methodology is carefully designed to ensure the trustworthiness in data collection, coding and analysis. The study finds out four dimensions of Governmental Management: Managerial Political Ties, Institutional Support, Governmental Training Activities and Administrative Procedure that relate to FDI firm performance and competitive advantages. Furthermore, relationship with customers and suppliers manifest correlations with the performance and competitive advantage of FDI enterprises. Finally, this paper suggests some managerial implications for the governmental agencies to improve the current policies to attract more foreign investors. Specifically, FDI companies also get some valuable information when investing in the emerging market like Vietnam in general and Binh Duong province in particular.

Suggested Citation

  • Nguyen Van Phuong & Nguyen Dinh Khoi & Nguyen Thi Hong An, 2016. "The influence of govermental management, customers and suppliers relationship to foreign direct investment companies’ performance in Binh Duong province: A qualitative study," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 6(1), pages 14-31.
    • Handle: RePEc:bjw:econen:v:6:y:2016:i:1:p:14-31
    DOI: 10.46223/HCMCOUJS.econ.en.6.1.108.2016
    as

    Download full text from publisher

    File URL: https://journalofscience.ou.edu.vn/index.php/econ-en/article/view/108/97
    Download Restriction: no
    File URL: https://libkey.io/10.46223/HCMCOUJS.econ.en.6.1.108.2016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Li, Hongbin & Meng, Lingsheng & Wang, Qian & Zhou, Li-An, 2008. "Political connections, financing and firm performance: Evidence from Chinese private firms," Journal of Development Economics, Elsevier, vol. 87(2), pages 283-299, October.
    2. Guo, Hai & Xu, Erming & Jacobs, Mark, 2014. "Managerial political ties and firm performance during institutional transitions: An analysis of mediating mechanisms," Journal of Business Research, Elsevier, vol. 67(2), pages 116-127.
    3. Haiyang Li & Yan Zhang, 2007. "The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy," Strategic Management Journal, Wiley Blackwell, vol. 28(8), pages 791-804, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Su, Zhong-qin & Fung, Hung-Gay & Huang, Deng-shi & Shen, Chung-Hua, 2014. "Cash dividends, expropriation, and political connections: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 29(C), pages 260-272.
    2. Jianghua Zhou & Rui Wu & Jizhen Li, 2019. "More ties the merrier? Different social ties and firm innovation performance," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 445-471, June.
    3. Zhong-qin Su & Hung-Gay Fung, 2013. "Political Connections and Firm Performance in Chinese Companies," Pacific Economic Review, Wiley Blackwell, vol. 18(3), pages 283-317, August.
    4. Päivi Karhunen & Svetlana Ledyaeva, 2021. "Is Chain Affiliation a Strategic Asset or Constraint in Emerging Economies? Competitive Strategies and Performance in the Russian Hotel Industry," Management International Review, Springer, vol. 61(3), pages 403-427, June.
    5. Yuxuan Li & Xin Miao & Dequan Zheng & Yanhong Tang, 2019. "Corporate Public Transparency on Financial Performance: The Moderating Role of Political Embeddedness," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    6. Christopher Marquis & Cuili Qian, 2014. "Corporate Social Responsibility Reporting in China: Symbol or Substance?," Organization Science, INFORMS, vol. 25(1), pages 127-148, February.
    7. Liu, Beibei & Tan, Keqi & Wong, Sonia M.L. & Yip, Rita W.Y., 2022. "Intra-industry information transfer in emerging markets: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 140(C).
    8. Tu LYU & Xiangfeng JI, 2020. "A Meta-Analysis on the Impact of Social Capital on Firm Performance in China’s Transition Economy," Sustainability, MDPI, vol. 12(7), pages 1-19, March.
    9. Zhang Wei & Li Ji, 2017. "Weak Law v. Strong Ties: An Empirical Study of Business Investment, Law and Political Connections in China," Review of Law & Economics, De Gruyter, vol. 13(1), pages 1-45, March.
    10. Xie, Sujuan & Lin, Bingxuan & Li, Jingjing, 2022. "Political Control, Corporate Governance and Firm Value: The Case of China," Journal of Corporate Finance, Elsevier, vol. 72(C).
    11. Kong, Dongmin & Cheng, Xu & Jiang, Xiandeng, 2021. "Effects of political promotion on local firms’ social responsibility in China," Economic Modelling, Elsevier, vol. 95(C), pages 418-429.
    12. Guangyuan Guo & Jing Li & Dan Wang & Lina Zhang, 2022. "Political connection, contract intensity, and OFDI: Evidence from China," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 534-557, July.
    13. Jing Zhang & Justin Tan & Poh Wong, 2015. "When does investment in political ties improve firm performance? The contingent effect of innovation activities," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 363-387, June.
    14. Russell Fralich & Hong Fan, 2018. "Legislative political connections and CEO compensation in China," Asian Business & Management, Palgrave Macmillan, vol. 17(2), pages 112-139, April.
    15. Lu, Jiangyong & Liu, Xiaohui & Filatotchev, Igor & Wright, Mike, 2014. "The impact of domestic diversification and top management teams on the international diversification of Chinese firms," International Business Review, Elsevier, vol. 23(2), pages 455-467.
    16. Chun Yang & Bart Bossink & Peter Peverelli, 2018. "The Value of Business–Government Ties for Manufacturing Firms’ Product Innovation during Institutional Transition in China," Sustainability, MDPI, vol. 11(1), pages 1-27, December.
    17. Khaw, Karren Lee-Hwei & Zainudin, Rozaimah & Rashid, Rasidah Mohd, 2019. "Cost of debt financing: Does political connection matter?," Emerging Markets Review, Elsevier, vol. 41(C).
    18. Li, Can, 2020. "Enhancing or inhibiting: The impact of investment in political ties on the link between firm innovation and productivity," International Business Review, Elsevier, vol. 29(2).
    19. Saibal Ghosh, 2023. "Political connections and bank behaviour," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 52(1), February.
    20. Tahiru Azaaviele Liedong, 2021. "Responsible Firm Behaviour in Political Markets: Judging the Ethicality of Corporate Political Activity in Weak Institutional Environments," Journal of Business Ethics, Springer, vol. 172(2), pages 325-345, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjw:econen:v:6:y:2016:i:1:p:14-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vu Tuan Truong (email available below). General contact details of provider: https://journalofscience.ou.edu.vn/index.php/econ-en .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.