The study uses both qualitative and quantitative techniques, this is to approach the hybrid
method including 3 steps: Step 1, based on study objectives, the author conduct studying documents,
related previous studies to propose theoretical study models and figure out the properties for the
study, as the basis for setting up expert interviews and group discussions. The purpose of expert
interviews and group discussions is to improve research models, scales and preliminary
questionnaires. Step 2, preliminary studies, this step is to conduct a preliminary survey, test the
reliability of the scale with Cronbach's Alpha coefficient; EFA - exploratory factor analysis. The
main purpose of this step is to conduct a preliminary investigation for respondents to assess the
reliability of the scale. On this basis, the author identifies research models and official surveys. Step
3, official study, the content done in this step is CFA (Confirmatory factor analysis) and tests the
research model by analyzing structural equation modeling. The purpose of analyzing CFA is to
clarify: (1) Unidirectional feature; (2) The reliability of the scale; (3) The value of convergence; (4)
Discrimination value. Structural Equation Modeling (SEM) method is used to test models and
research hypotheses.
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on on
competitiveness of
tourism enterprises
Competitiveness of tourism enterprises is the ability of such businesses to
create and integrate value-added of products - services in order to maintain
resources, ensure financial efficiency, maintain its position in the market, and
8
Author Views on competitiveness
gain stable and sustainable development in the future. Competitiveness of
these businesses are affected by the following factors: ability to compete on
price; quality of products and services; marketing capabilities; organization
and management capacity; trademark; human resources; social responsibility
of business; local environmental conditions.
Source: Documents summarized by author
2.2 A number of study models on competitiveness of businesses
2.2.1 Foreign study
Table 2.3: Summary of studies on competitiveness
Author Factors affecting competitiveness
Foreign studies
Ambastha
and
Momaya
(2004)
Competitiveness of businesses is affected by factors (1) Resources (human resources,
structure, culture, technological level, assets of enterprises); (2) Process (strategy,
management process, technology process, marketing process); (3) Performance (cost,
price, market share, new product development).
Ho (2005) The author provides model measuring administration activities in corporate through five
aspects, (1) Structure of the board; (2) Stewardship; (3) Leadership strategy; (4)
Centralized ownership and relationship between capital and market; (5) Social
responsibility which has relations to businesses.
Craigwell
(2007)
Competitiveness of stores in Taiwan is affected by 7 factors, (1) Business strategy; (2)
Financial capability; (3) Facilities and amenities; (4) Products and goods; (5) Quality of
services; (6) Marketing; (7) Human resources.
Craigwell
(2007)
Competitiveness of small tourism island developing in the United States is affected by:
(1) Competition in price; (2) Human resources in tourism; (3) Infrastructure; (4)
Environment; (5) Technology; (6) Openness; (7) Social aspects
Lee and
King (2009)
Research has shown three groups of factors that affect competitiveness of thermal
springs based on Delphi techniques including: Group 1, resources of hot springs,
including 7 factors (natural resources, cultural assets, special features, accommodation,
food, transportation, safety and security) with 27 observed variables. Group 2, strategy of
hot springs consists of 7 factors (capability of hot springs, planning and development,
marketing management, human resource development, service quality management,
environmental management, price) with 33 observed variables. Group 3, environment of
hot springs includes 7 factors (economic development, cultural and social changes,
interaction in the industry, demand conditions, attitudes and community involvement)
with 16 observed variables.
Tsai, Song
and Wong
(2009)
Statistical analysis of factors affecting competitiveness of tourist destinations in relation
with competitiveness of hotels. First, factors affecting competitiveness of tourist
destinations include: (1) Engineering and infrastructure renewal; (2) Human resources;
(3) Price; (4) Environment; (5) Publicity; (6) Social development; (7) Tourism staff; (8)
Government; (9) History and culture; (10) Macro environment; (11) Micro environment;
9
Author Factors affecting competitiveness
(12) Destination management (marketing); (13) Circumstances / situations; (14)
Demand; (15) Customer satisfaction; (16) Psychology and society. Second, factors
affecting competitiveness of hotels include: (1) Human resources, Education and training
levels; (2) Engineering; (3) Strategy; (4) Yield; (5) Capital; (6) Customer satisfaction -
service quality; (7) Brand image; (8) Alliance strategy; (9) Operating costs
(environment); (10) Market conditions; (11) Demand; (12) Marketing; (13) Price; (14)
Physical characteristics; (15) Management process.
Bessant and
Tidd (2007)
Continuous innovation is very important for hotels to enhance competitiveness,
innovation starts from product; procedure; location and model.
Berkenveld
et al (2005)
To improve competitiveness for hotels, hoteliers need to be creative in many fields such
as: (1) Product development; (2) Marketing; (3) Technology; (4) Green environment of
hotels.
Mechinda et
al (2010)
Competitiveness of Koh Chang Resort in Thailand is affected by 12 factors: (1)
Destination environmental management; (2) Quality of services, (3) Cultural heritage and
hotels at locality; (4) Infrastructure; (5) Shopping and nightlife; (6) Natural resources; (7)
Activities; (8) Competitive price; (9) Food; (10) Cleanness; (11) Safety; (12) Location.
Ivanovic,
Mikinac and
Perman
(2011)
Research shows that doing business in field of hotel and tourism is not similar to other
business sectors; to enhance competitiveness, tourism businesses need especial customer
care regime and get feedback from tourists. Therefore, the application of CMR with
factors such as applying new technologies, developing technological infrastructure,
building strategic management, training human resources, collection and processing
information with customers, caring for customers, ... will create good relationships with
customers, improve brand and image.
Williams
and Hare
(2012)
Competitiveness of small hotels in Jamaica are affected by factors: (1) Innovation; (2)
Brand; (3) Organization and management ability; (4) Environmental conditions; (5)
Service quality; (6) Knowledge of the sector; (7) Ability to adapt to competition.
Review,
Assistant,
and
Dubrovnik
(2013).
Study results have showed that competitiveness of tour operators in European tourism
market are affected by factors: (1) Quality of service; (2) Price; (3) Value obtained in
comparison with expenses; (4) Environmental issues; (5) Social issues; (6) Security.
Sauka
(2014)
Research results have identified 7 factors measuring competitiveness affecting
companies, including: (1) Capacity to access resources; (2) Staff working capacity; (3)
Financial resources; (4) Business strategy; (5) Environmental impact; (6) Doing business
capacity compared with competitors; (7) Use of communications network.
Domestic studies
Nguyen Cao
Tri (2011)
Competitiveness of tourism businesses in HCM City is affected by (1) Material facility;
(2) Organization and management; (3) Information system; (4) Human resources; (5)
Market; (6) Marketing; (7) Capital; (8) Internally competitive situation; (9) Undertakings
and policies.
10
Author Factors affecting competitiveness
Nguyen Duy
Mau (2011)
Research has analyzed, assessed the status of tourism activities in Tay Nguyen. The
author has evaluated the nature, culture, economy - society, tourism market, material
foundations, tourism investment and development, promotional activities, investment
attraction policies, ... From this analysis, the author has pointed out strengths and
weaknesses as a basis for building solutions for tourism development in Tay Nguyen
until 2020.
Mai Thi
Anh Tuyet
(2006)
Research has analyzed and assessed the situation of tourism development in An Giang.
The author has assessed expenditure and the number of visitors to An Giang, quality of
products - services, revenue from tourism, investment in tourism, assessed environmental
impact on tourism industry (micro and macro environment).
Tran Bao
An et al
(2012)
The study results have showed that, competitiveness of 4-star hotels in the province of
Thua Thien Hue includes elements: (1) Reputation and image; (2) Coordination of
marketing; (3) Technical facilities; (4) Level of organization and customer services.
Tran Van
Thi (2011)
The study results have showed that two groups affect competitiveness of Vietnamese
enterprises with investment in Cambodia: Group 1, a number of internal factors
constituting competitiveness of enterprises, including 7 factors; Group 2, a number of
environmental factors affecting competitiveness of enterprises, including 7 factors.
Tran Huu Ai
(2013)
The author has given 10 factors affecting competitiveness: (1) Capacity to develop
business relations; (2) Human resources; (3) Financial capacity; (4) Capacity of
marketing; (5) Competitiveness of prices; (6) Capacity to handle trade disputes; (7)
Capacity of research and development; (8) Management capacity; (9) Competitiveness fo
brand; (10) Capacity of production technology.
Source: Documents summarized by author
2.3 Proposed research model and hypotheses
2.3.1 Factors affecting the competitiveness of tourism enterprises
2.3.1.1 Competition on price
Competing on price in tourism depends on respective value of goods and services to serve the
needs of tourists (Dwyer, Forsyth and Rao, 2000). Prices should go hand in hand with the quality of
products and services. Therefore, value provided in products or services is one of the main
challenges any tourism businesses face. Price competition affects competitiveness of business
studied by the authors Dwyer, Forsyth and Rao (2000); Qu, Xu, and Tan (2002); Dwyer and Kim
(2003); Mattila and O'Neil (2003); Lockyer (2005); Craigwell (2007); Tsai, Song and Wong (2009);
Mechinda et al (2010); Tran Van Thi (2011); Review, Assistant, and Dubrovnik (2013); Tran Huu
Ai (2013). On that basis, the H1 hypothesis is proposed as follows: H1, the ability to compete on
price positively impacts competitiveness of tourism enterprises in Ben Tre.
2.3.1.2 Product and service quality
According to Central Economic Research Institute and the United Nations Development
Program (2002), competitiveness of products and services is measured by the market share of
products and services. But according to Barkema (1993); Levins (2000); Schweikhardt (2000) and
Babcock (2002), research and development of new products, product quality control combined with
11
the assurance of input quality, reliability, time to provide products and services, are important
factors affecting competitiveness. Quality of products and services affects competitiveness based on
studies by Lewis and Booms (1983); Berry, Zeithaml and Parasuraman (1990); Barkema (1993);
Levins (2000); Schweikhardt (2000); Babcock (2002); Dwyer and Kim (2003); Berkenveld et al
(2005); Akbaba (2006); Chang et al (2007); Lee and King (2009); Tsai, Song and Wong (2009);
Mechinda et al (2010); Williams and Hare (2012); Review, Assistant, and Dubrovnik (2013). On
that basis, the proposed hypothesis H2 is as follows: H2, quality of products and services positively
impacts competitiveness of tourism businesses in Ben Tre.
2.3.1.3 Marketing capability
According to Kotler et al (2006), marketing is an activity aiming at satisfying the needs of
customers to achieve business goals. According to Nguyen Dinh Tho and Nguyen Thi Mai Trang
(2011), marketing capacity is built based on four basic components, (1) Satisfy customers; (2)
Response to competitors; (3) Adaptation to the macro environment; (4) Quality of relationship with
partners. Marketing capabilities affect corporate competitiveness based on studies by Berkenveld et
al (2005); Kotler et al (2006); Chang et al (2007); Homburg et al (2007); Lee and King (2009);
Nguyen Cao Tri (2011); Tran The Hoang (2011); Tran Bao An et al (2012); Tran Huu Ai (2013). On
that basis, the proposed hypothesis H3 is as follows: H3, marketing capabilities, has a positive impact
on competitiveness of tourism businesses of Ben Tre.
2.3.1.4 Management and organization capability
According to Porter (1980), organization and management capacity in enterprises is considered
determinants for the survival and development of enterprises in general and competitiveness of
enterprises in particular. According to Ho (2005), administration in enterprises is defined as
arranging organization structure of enterprises (management board, board of directors and
departments) and functions related to managing, implementing strategies, objectives ensuring high
efficiency. According to Preble, Reichel and Hoffman (2000); Hwang and Chang (2003); Pine and
Phillips (2005), the ability to organize and link plays an important role in tourism and hotel
competitive strategies. Organization and management capacity affects competitiveness of businesses
based on studies by Porter (1980); Preble, Reichel and Hoffman (2000); Hwang and Chang (2003);
Ambastha and Momaya (2004); Ho (2005); Pine and Phillips (2005); Lee and King (2009); Tsai,
Song and Wong (2009); Mechinda et al (2010); Nguyen Cao Tri (2011); Tran Van Thi (2011); Tran
The Hoang (2011); Williams and Hare (2012); Tran Huu Ai (2013). On that basis, the proposed
hypothesis H4 is as follows: H4, organization and management capacity positively impact
competitiveness of tourism enterprises in Ben Tre.
2.3.1.5 Brand
According to Kotler, 1994, brand is a name, term, sign, symbol, design... or a combination of
all the above factors to distinguish goods or services of one seller from goods and services of
competitors. And Knapp (2000) said that brand is the sum of impression received from customers by
position to be distinguished in their minds based on functional benefits and emotional sense.
According to Kotler (2006), brand is emotional, it's personal and emotional, so it is easy to take over
the minds of customers. Brands affect competitiveness of businesses based on studies by Keller
(1993); Gundersen and colleagues (1996); Keller (1998); Prasad and Dev (2000); Nguyen and
12
Nguyen (2003); Kim and Kim (2005); Tsai, Song and Wong (2009); Tran The Hoang (2011);
Williams and Hare (2012); Tran Bao An et al (2012); Tran Huu Ai (2013). On that basis, the H5
hypothesis is proposed as follows: H5, brand positively impacts competitiveness of tourism
enterprises in Ben Tre.
2.3.1.6 Human resources
Human resources of an organization include all efforts, skills and abilities of the people who
work for the organization (Manmohan, 2013). The quality of human resources in the enterprise will
impact the productivity they provide (Porter 1980). Wayne (2010) argues that humans are a critical
component for any business, without people, the organization cannot exist. In the tourism sector,
Bueno (1999) argues that, since the competition among enterprises is determined by skills, human
resources are the central element in achieving competitiveness. According Fantanariu and Andra
(2011), tourism human resources play the leading importance in the development of competitiveness
of tourism businesses. Human resources affect competitiveness of businesses based on studies by
Porter (1980); Bueno (1999); Brian et al (2001); Ambastha and Momaya (2004); Chang et al (2007);
Craigwell (2007); Lee and King (2009); Tsai, Song and Wong (2009); Wayne (2010); Ivanovic,
Mikinac and Perman (2011); Nguyen Cao Tri (2011); Tran The Hoang (2011); Vesna et al (2011);
Fantanariu and Andra (2011); Tran Huu Ai (2013); Sauka (2014). On that basis, H6 hypothesis is
proposed as follows: H6, human resources has positive impact on competitiveness of tourism
enterprises in Ben Tre.
2.3.1.7 Social responsibility
According to Bowen (1953), social responsibility of business is defined the responsibility of all
businesses to not harm the rights and interests of others; business owners must have charity and
offset damage caused by their business when doing harm to society. And Sethi (1975) has said that
the social responsibility of businesses is to improve corporate behavior to a level consistent with
common social norms, values and expectations. According to Spenceley (2008), tourism is quite a
complicated sector as visitors come from different places and they have different behaviors and
attitudes. It would be good if traveler can participate in protecting the environment in their travel
itinerary. Social responsibility affects competitiveness of businesses based on studies by Ho (2005);
Craigwell (2007); Tsai, Song and Wong (2009); Review, Assistant, and Dubrovnik (2013). On that
basis, the proposed hypothesis H7 is as follows: H7, social responsibility, has positive impact on
competitiveness of tourism enterprises in Ben Tre.
2.3.1.8 Environment of destinations
There are many external factors affecting the competitiveness of enterprises. Applying the
diamond model of Porter (1980), there are 3 elements of the external environment affecting the
competitiveness of enterprises which are: market, legislation and policies, infrastructure and
supporting services. In the tourism sector, according to Kim and Lee (2005), the environment of a
tourist destination includes the environment and natural resources. According to Mihalic (2000),
environmental quality of tourist destinations is the quality of the natural features there, it might be
degraded through human activities. According to Mihalic, maintaining a high degree of beautiful
scenery, natural hydrological structure, clean water, fresh air and species diversity is important for
the competitiveness of businesses at tourist destination. The environment of destinations affects
13
competitiveness of businesses based on studies by the authors Berkenveld et al (2005); Craigwell
(2007); Lee and King (2009); Tsai, Song and Wong (2009); Mechinda et al (2010); Nguyen Cao Tri
(2011); Tran Van Thi (2011); Tran The Hoang (2011); Williams and Hare (2012); Review,
Assistant, and Dubrovnik (2013); Sauka (2014). On this basis, the proposed hypothesis H8 is as
follows: H8, environment conditions of destinations positively impacts competitiveness of tourism
enterprises in Ben Tre.
2.3.2 Proposed research model and hypotheses
According to Tashakkori and Teddlie (2010), model is a combination of trust formed from
theories of researchers with research methods to understand and explain ideas. Based on theoretical
approach from the researches above, the author orients to research factors affecting competitiveness
of Ben Tre tourism enterprises on the basis of inheriting studies by Craigwell (2007) ; Chang et al
(2007); Williams and Hare (2012); Review, Assistant, and Dubrovnik (2013); Nguyen Cao Tri
(2011). Based on that, the author proposes a model for the study as follows:
CHAPTER 3: RESEARCH DESIGN
3.1 Research process
3.1.1 Research steps
3.1.2 Research diagram
The whole process of research is described in the diagram:
Competitiveness
of tourism
enterprises in Ben
Tre Trademark
Product and service quality
Environmental conditions of destinations
Marketing capacity
Human resources
Social responsibility
Organization and management capacity
Price competition
Figure 2.9: Proposed research model
14
3.2 Research methodology
3.2.1 Qualitative research
3.2.1.1 Qualitative research methods
In this thesis, the author uses expert interviews and group discussions to finalize the research
model and verify theoretical bases of the model if they fit the minds of business managers at
locality. The purpose of qualitative research is in order to improve research models and finish the
scale in accordance with local characteristics. Ways applied are through direct meeting, documents
Step 1
1st expert
interview
1st group discussions, adjust proposed
research model
2nd expert
interview
2nd group discussions,
complete scale, observed
variables
Complete preliminary
scale and observed
variables
Draft questionnaire, complete
scale
Overview of theory,
propose research model
Consolidate comments Preliminary questionnaires
Step 2
Preliminary investigation
N= 244
Evaluate reliability with
Cronbach's Alpha
Remove observed
variables
EFA analysis Remove variables, group
variables
Redefine formal research
model
Official questionnaires
Step 3
Formal investigation
N=359
Analyze CFA confirmed
factors
Inspect the suitability of
the scale; synthetic
reliability; extracted
variance; unidirectional
properties; convergence
and discrimination
Linear structural
model SEM
Analyze the situation and causes of
influencing factors
Test the theoretical model and
hypotheses
Conclusion and
proposed solutions
Figure 3.1: Research process
15
and questions are sent in advance to respondents via email and mail tools. Respondents are experts
at universities, professional management agencies, tourism businesses in the province of Ben Tre.
3.2.1.2 Qualitative data analysis method
According to Mayring (2000), qualitative data analysis is an experimental approach. In this
thesis, research data obtained through expert interviews are grouped according to research objectives
and are analyzed in the following order: (1) raw data; (2) group data; (3) Synthesize important
comments.
3.2.1.3 Qualitative research and complete research model
Results of qualitative research to establish model
Synthesis of expert opinions and opinions in group discussions show that the majority of
comments agrees with factors affecting competitiveness of Ben Tre tourism enterprises proposed in
the interview outline including (1) Competitiveness in price; (2) Quality of products and services;
(3) Capacity of marketing; (4) Organization and management capacity; (5) Brand; (6) Human
resources; (7) Social responsibility; (8) Environmental conditions at destinations (policy mechanism,
natural environment). However, in terms of the environmental conditions at destinations, experts
propose adding human elements in Ben Tre such as friendly, hospitable, hometown of heroic
patriots "Dong Khoi - Ben Tre".
Preliminary quantitative research model
Based on the proposed research model and qualitative research results from expert interviews,
group discussions, research model for preliminary study of factors affecting competitiveness of
tourism businesses in Ben Tre is as follows:
Competitive
ness of
tourism
enterprises
in Ben Tre
Trademark
Product and service quality
Environmental conditions of
destinations
Marketing capacity
Human resources
Social responsibility
Organization and management
capacity
Price competition
Policy mechanisms
Local people
Natural environment
Figure 3. 2: Preliminary research model
16
3.2.1.4 Qualitative research result and complete scale
Scale of price competition
Aggregate results show that most experts agree with the components of this group, including:
(1) Price commensurates with the quality of products and services provided (Dwyer and Kim, 2003;
Mattila and O'Neil, 2003; Parasuraman, Berry and Zeithaml, 1999); (2) Prices of products and
services are competitive with rivals (Dwyer and Kim, 2003); (3) Prices of products and services
always offer discount based on number number of tourists (Synthesis of expert opinions); (4) Prices
of products and services of businesses are flexible and suitable with the needs of each customer’s
income (Qu, Xu, and Tan, 2002; Tsai, Kang, Yeh and Suh, 2005; Lockyer, 2005).
Scale for tourism product - service quality
Aggregate results of expert opinion show that this factor should be added with components
such as products - services must tie with coconut trees and coconut products, products - services
must introduce unique features of Ben Tre. The components of this scale include: (1) The products
and services provided by enterprises must always associate with products from coconuts (Synthesis
of expert opinions); (2) Products and services provided are very rich, diverse (Choi and Chu, 1999;
Mittal, Kumar, and Tsiros, 1999; Ratchford, 1975; Ladd and Zober, 1977); (3) The products and
services provided ensure quality and credibility (Lewis and Booms, 1983; Berry, Zeithaml, and
Parasuraman, 1990); (4) The products and services provided by businesses are innovative (Barkema,
1993; Levins, 2000; Schweikhardt, 2000; Babcock, 2002); (5) The products and services provided
offer unique features of ecotourism of Ben Tre (Synthesis of expert opinions); (6) The products and
services provided are friendly with the green environment of Ben Tre (Oh, 1999; Dube, Enz,
Renaghan, and Siguaw, 1999, and synthesize expert opinion).
Marketing capacity
Aggregate results show that most experts agree with the components of this group, including:
(1) The ability to meet the needs and tastes of customers is always guaranteed (Kotler et al , 2006;
Homburg et al, 2007; Nguyen Dinh Tho and Nguyen Thi Mai Trang, 2011; Nguyen and Barrett,
2007; Nguyen et al, 2006; Nguyen, 2007); (2) Enterprise always successfully responds to
competitors (Kotler et al, 2006; Homburg et al, 2007; Nguyen Dinh Tho and Nguyen Thi Mai Trang,
2011; Nguyen and Barrett, 2007; Nguyen et al , 2006; Nguyen, 2007); (3) Enterprise has the ability
to adapt to changes of environment (Kotler et al, 2006; Homburg et al, 2007; Nguyen Dinh Tho and
Nguyen Thi Mai Trang, 2011); (4) Development strategies of tourism marketing activities of
enterprises are always effective (Keh et al, 2007; Benedetto et al 2008); (5) Relationship quality of
enterprises with customers is always guaranteed (Nguyen Dinh Tho and Nguyen Thi Mai Trang,
2011).
Organization and management capacity
Aggregate results show that most experts agree with the components of this group, including:
(1) The enterprise has effective and flexible organization structure, taking advantages of Ben Tre
(Porter, 1980; Ho, 2005; Synthesis of expert opinions); (2) The enterprise can plan strategies,
business development plans (Porter, 1980; Ho, 2005); (3) The arrangement and replacement of
personnel always guarantees service activities (Porter, 1980; Ho, 2005); (4) The enterprise can
organize alliances, can cooperate with partners inside and outside the province (Shaw and Williams,
17
1990; Preble, Reichel and Hoffman, 2000; Heath, 2000; Hwang and Chang, 2003; Pine and Phillips,
2005); (5) The organization structure of the enterprise expresses the cultural, people and homeland
characteristics of Ben Tre (Synthesis of expert opinions); (6) Alliance, linking always brings
benefits to consumers and business and supplement lacking resources (Bernini, 2009; Erkus, 2009).
Brands
Synthesizing opinions shows that, apart from components of this group, experts also suggest
adding elements to build and develop specific brand of their business. The components of this scale
include: (1) The corporate brand is well known (Crompton, 1979; Rossiter and Percy, 1987; Keller,
1998; Lassar et al, 1995; Aaker, 2000; Knapp , 2000; Lim and O'Cass, 2001; Konecnik, 2006); (2)
The corporate brand is built and managed methodically (Kim and Kim, 2005; Boo et al, 2009); (3)
The corporate brand ensures confidence and feelings with customers (Hosany et al, 2006; Konecnik,
2006; Knapp, 2000; Rossiter and Percy, 1987); (4) The main components in corporate brand (name,
logo, symbol, character, slogan, music) is attractive and easy to understand (Crompton, 1979;
Clifton and Simons, 2003); (5) The corporate brand is environmentally friendly (Baloglu and
McCleary, 1999).
Workforce
Aggregate results show that most experts agree with the components of this group, including:
(1) Human resources have been trained (Porter, 1980; Narasimbha, 2000; Vesna et al, 2011); (2)
Human resources ensure skills for tourist activities (Porter, 1980; Narasimbha, 2000; Vesna, 2011)
(3) Effective strategies to use and manage staff (Bueno, 1999; David, 2001; Manmohan, 2013); (4)
Human resources are always trained, upgraded with skill and knowledge (Narasimbha, 2000;
Fantanariu and Andra, 2011).
Social responsibility
Aggregate results show that most experts agree with the components of this group, including:
(1) Enterprise pays full taxes (Michel and Fr. Quairel, 2009; Archie and Kareem, 2010); (2)
Enterprise guarantees employees’ legal rights, benefits (and Fr. Quairel Michel, 2009; Archie and
Kareem, 2010); (3) Enterprise ensures hygiene, food safety (Fr. Michel and Quairel, 2009; Archie
and Kareem, 2010); (4) Enterprise ensures customers’ interests (Michel and Fr. Quairel, 2009;
Archie and Kareem, 2010); (5) Enterprise is conscious of environmental and natural resource
protection (Dangerfield, 1999; Grgona, 2005; Michel and Fr. Quairel, 2009; Archie and Kareem,
2010).
Environmental conditions of destinations
Policies
Aggregate results show that most experts agree with the components of this group, including:
(1) Tourism development policies (strategy, vision, planning) of locality encourage development
(Porter, 1980; Ritchie and Crouch, 2003; Kim and Lee, 2005); (2) Investment funds for tourism
development (infrastructure, personnel training, environmental protection) of locality are abundant
(Porter, 1980; Ritchie and Crouch, 2003; Kim and Lee, 2005); (3) Tourism management mechanism
(tax, administrative management, service prices) is transparent, clear (Porter, 1980; Ritchie and
Crouch, 2003; Kim and Lee, 2005).
Locals
18
Aggregate results show that most experts agree with the components of this group, including:
(1) The hospitality of local people (Mihalic, 2000; Camelis and Maunier, 2013); (2) The traditional
cultural characteristics of locals (Mihalic, 2000; Camelis and Maunier, 2013); (3) The characteristics
of the locals (heroic in war and ingenuous, creative in life) (Synthesis of expert opinions).
Natural environment
Aggregate results show that most experts agree with the component of this group, including:
(1) Beautiful natural scenery thanks to coconut trees, dunes and rivers (Mihalic, 2000; Go and
Govers, 2000; Ritchie and Crouch, 2003; synthesis of expert opinion); (2) Clean water and fresh air
thanks to coconut trees (Mihalic, 2000; Go and Govers, 2000; Ritchie and Crouch, 2003; synthesis
of expert opinion); (3) Cultural and historic monuments express the history, local culture (Mihalic,
2000; Go and Govers, 2000; Ritchie and Crouch, 2003; synthesis of expert opinion).
Competitiveness scale of tourism enterprises in Ben Tre
Aggregate results show that most experts agree with the components of this group, including:
(1) The competitiveness efficiency of business increases scalability and market share (D'Hartserre ,
2000; Hassan, 2000; Ramasamy, 1995; Li, 2011); (2) The competitiveness efficiency of business
increases positions, image on the market (D'Hartserre, 2000; Hassan, 2000; Ramasamy, 1995; Li,
2011); (3) The competitiveness efficiency of business increases financial efficiency (Porter, 1980;
Buhalis, 2000, Ramasamy, 1995; Li, 2011); (4) The competitiveness efficiency of business increases
stability and sustainable development in the future (D'Hartserre, 2000, Hassan, 2000; Dwyer,
Forsyth and Rao, 2002, Ramasamy, 1995; Li, 2011) .
3.2.1.5 Design preliminary questionnaire
3.2.2 Preliminary quantitative research
3.2.2.1 Methods assessing preliminary scale
Preliminary survey results will be encrypted and SPSS software will be used to evaluate the
Cronbach's Alpha reliability and exploring factor analysis (EFA).
3.2.2.2 Test preliminary scale by analyzing Cronbach's Alpha reliability factor
Reliability testing results show that Cronbach's Alpha coefficients of the scales have value
greater than 0.7 (lowest is scale of price competition with α = 0.784). Total variable Correlation
coefficient is greater than 0.3. However, SP4 variable has total variable correlation coefficient of
0.181 <0.3 and the coefficient of SP4 = 0.873 larger than overall coefficient α, so SP4 is eliminated.
3.2.2.3 Test preliminary scale by exploring factor analysis EFA
Part 1, the analysis of 7 factors affecting competitiveness (excluding environmental conditions
of destination as it is dependent intermediate variable) consists of 34 observed variables. First results
of factor analysis is unsatisfactory because observed variable has TCQL2 = 0.481 < 0.5 and appears
in two factors (factors 1 and 5), so this variable will be disqualified. Second analysis results show
that variables are extracted into 7 groups, with a total variance extracted = 63.337%> 50%, the scale
is accepted. KMO coefficient = 0.831 in the range of 0.5 ≤ KMO ≤ 1, factor analysis is appropriate.
Bartlett testing with Sig.=.000, showing a high level of significance. All values of Factor loading of
observed variables are greater than 0.5; λiA- λiB weight difference is greater than 0.3, so they are
accepted.
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Part 2, analysis for environmental conditions of destinations includes affecting 3 factors and 9
observed variables. Results of factor analysis show that variables are extracted into 3 groups, with a
total variance extracted = 63.796%> 50%, the scale is accepted. KMO coefficient = 0742 in the
range of 0.5 ≤ KMO ≤ 1 , factor analysis is appropriate. Bartlett testing with Sig. = .000,
demonstrating the high level of significance. Factor loading value of all observed variables is greater
than 0.5 and is accepted.
Part 3, analysis of competitiveness of tourism enterprises in Ben Tre includes 4 observed
variables. Factor analysis results show that total variance extracted = 65.771%> 50%, the scale is
accepted. KMO coefficient = 0794 in the range of 0.5 ≤ KMO ≤ 1, factor analysis is appropriate.
Bartlett testing with Sig. = .000, demonstrating the high level of significance. Factor loading value
of all observed variables in this group is greater than 0.5 and is accepted.
3.2.2.4 Official research model and research hypotheses
Official research model includes 8 factors affecting competitiveness of tourism businesses of
Ben Tre. The model has no change from the original proposed model. However, observed variables
in formal study change compared to the preliminary survey model as 2 variables SP4 and TCQL2
are excluded.
Hypotheses:
Qualitative research results show that there are new elements, new scale and location
disturbance between factors affecting competitiveness when analyzing exploring factors. Therefore,
research hypotheses will be redesigned to suit new situations, as follows: H1: Marketing capacity;
H2: Brand; H3: Organization and management capacity; H4: Social responsibility; H5: Quality of
products and services; H6: Human resources; H7: Competition on price; H8: Environmental
conditions of destinations cause positive impact on competitiveness of tourism businesses in Ben
Tre.
3.2.2.5 Design official survey questionnaires
3.2.3 Official quantitative research
3.2.3.1 Official research program
Sample size
Research model of the thesis has 10 independent variables, two dependent variables with a total
of 46 observed variables, minimum sample size is 130 samples (according to Tabachnick and Fidell,
2007); 230 samples (according to Hair et al, 1998). However, the more sample size, the more
reliable the study is. From the above arguments, the research uses 400 samples.
Methods of investigation
To increase the rate of inquiry, the chosen investigation method of the dissertation is interviews
in person. Survey forms are sent in advance directly or through emails, letters and appointments for
interview are made. Time for preliminary investigation is from October to the end of November
2014. The number of forms sent is 400, the number of forms collected is 378, and valid forms are
359.
Subjects of investigation
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Respondents in the thesis are individuals holding positions from chief or deputy chief of
department upwards. Scope for sample taking is enterprises, establishments in travel services with
headquartered in the province of Ben Tre.
3.2.3.2 Methods to test the official scale for the research model of Confirmatory Factor Analysis
and Structural Equation Modeling.
CHAPTER 4: RESEARCH RESULTS
4.1 Reasearch results
4.1.1 Analysis of samples
4.1.2 Confirmatory Factor Analysis CFA
4.1.2.1 CFA results of marketing capacity scale
4.1.2.2 CFA results of brand scale
4.1.2.3 CFA results of organization and management capacity scale
4.1.2.4 CFA results of social responsibility scale
4.1.2.5 CFA results of product and service quality scale
4.1.2.6 CFA results of human resources scale
4.1.2.7 CFA results of price completion scale
4.1.2.8 CFA results of scale for environmental conditions of destinations
4.1.2.9 CFA results of competitiveness scale of tourism enterprises in Ben Tre
CFA testing results for each concept in the scale show that all chi-square has P-value> 5%; All
CMIN/df ≤ 3, all values GFI, TLI, CFI ≥ 0.8. In particular, TCQL5 is eliminated due to not
satisfying the conditions for the compatibility of the model. Thus, CFA results of each concept in the
scale are unidirectional, ensure convergence value, ensure reliability, and differentiated value
4.1.2.10 CFA results of critical model
CFA results of final measurement model show that the model is consistent with the data, chi-
square = 1361.918, degrees of freedom = 906, P = 0.000; CMIN/df = 1.503 <3. Other measures are
satisfactory (GFI = .860; TLI = .951; CFI = .956 are greater than 0.8; RMSEA = 0.037 <0.8).
4.1.3 Test research model and hypotheses
4.1.3.1 Test research model by Structural Equation Modeling SEM
The estimation results (standardized) of research model show that the model is consistent with
the data (detail in Figure 4.1), chi-square = 1436,524, degrees of freedom = 909, P = 0.000;
CMIN/df = 1.580 <3. Other measures are satisfactory (GFI = .855; TLI = .944; CFI = .949 are
greater than 0.8; RMSEA = 0.040 <0.8).
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Figure 4.1: SEM results (standardized) of research model
4.1.3.2 Estimated testing for research model by bootstrap
Estimated results by bootstrap with N = 500 are averaged and show that bias appears but it is
very small. Thus, we can conclude that, estimation in the research model can be trusted.
4.1.3.3 Test research hypothesis using structural equation modeling SEM
The estimation results of research model show that the relationship suggested in the official
research model has statistical significance as p has highest value of 0.028 less than 0.05, gaining the
necessary level of significance ( at reliability of 95%). In other words, the assumption in the official
research model is accepted (Detail in Table 4.1).
Table 4.1: Regression coefficient of official research model
Relationship Coefficient
Coefficient
(standardized)
S.E. C.R. P
NLCT <--- TH 0.088 0.113 0.031 2.875 0.004
NLCT <--- TN 0.088 0.104 0.040 2.201 0.028
NLCT <--- SP 0.236 0.247 0.045 5.243 ***
NLCT <--- GC 0.182 0.214 0.040 4.553 ***
NLCT <--- TCQL 0.175 0.191 0.042 4.163 ***
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NLCT <--- NNL 0.282 0.266 0.041 6.899 ***
NLCT <--- MT 0.185 0.202 0.048 3.824 ***
NLCT <--- MAR 0.093 0.108 0.040 2.311 0.021
From SEM analysis results, standardized regression coefficients of other variables are not zero
but positive (+), showing favorable relationship between elements and competitiveness with
significance level P 0; meaning that all theories are accepted by experimental
data. This proves that, competitiveness of Ben Tre tourism businesses are affected by 8 elements in
the model. However, the degree of influence of each factor on competitiveness of enterprises is
different.
4.1.3.4 Test the difference of factors affecting competitiveness of Ben Tre tourism enterprises by
size and type
Testing results show no differences in factors affecting competitiveness by scale and type of
enterprises.
4.2 Analyze situation and causes of factors affecting competitiveness of tourism enterprises in
Ben Tre
4.2.1 Reality of tourism resources affecting competitiveness of tourism enterprises in Ben Tre
4.2.1.1 Natural tourism resources
4.2.1.2 Humanity tourism resources
4.2.2 Business situation of tourism enterprises in Ben Tre
4.2.3 Analyze situation and causes of factors affecting competitiveness of tourism enterprises in
Ben Tre
4.2.3.1 Situation of human resources
4.2.3.2 Situation of quality of tourism products and services
4.2.3.3 Situation of environmental conditions of destinations
4.2.3.4 Situation of marketing capability
4.2.3.5 Situation of socially responsible of tourism businesses
4.2.3.6 Overall assessment of operations of tourism enterprises
CHAPTER 5: CONCLUSIONS AND SOLUTIONS
5.1 Conclusion
The study results show that there are 8 factors affecting competitiveness of tourism businesses
in Ben Tre. The degree of influence of each factor on competitiveness of businesses is different.
Firstly, human resources have coefficient of 0.282. Secondly, the quality of products and services
has coefficient of 0236. Thirdly, environmental conditions of destinations has coefficient of 0.185.
Fourthly, competition on price has coefficient of 0.82. Fifthly, organization and management
capacity has coefficient of 0.175. Sixthly, marketing capacity has coefficient of 0.093. Seventhly,
brand has coefficients of 0.088. Eighthly, social responsibility has coefficient of 0.088.
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5.2 Proposed Solutions
5.2.1 Basis for proposed solutions
5.2.1.1 Objective of tourism development until 2020 in Ben Tre
5.2.1.2 Perspective for solutions proposed
5.2.2 Specific proposed solutions
5.2.2.1 Group of solutions to improve factors with large affecting competitiveness of Ben Tre
tourism businesses with γ >0,150
Solution 1: Professionalize tourism human resources
Solution 2: Diversify tourism services, products
Solution 3: Introduce Ben Tre characteristics to destinations
Solution 4: Bond tourism businesses - Compete fair price
Solution 5: Improve organization – management capacity, implement business strategies -
competition strategies
5.2.2.2 Group of solutions to improve factors with not very large influence extent on
competitiveness of tourism enterprises in Ben Tre with γ <0,150
Solution 6: Improve marketing capacity of tourism businesses in Ben Tre
Solution 7: Popularize Ben Tre tourism business brand
Solution 8: Enhance social responsibility to contribute to business socialization of tourism
enterprises In Ben Tre
5.3 Recommendations
5.3.1 For the State
5.3.2 For Ben Tre Province
5.4 Main contributions of the thesis
5.4.1 Theoretical contributions
This study conducted contributes to systematize the theoretical basis of competitiveness of
businesses and systemize some research models of competitiveness in the field of tourism. With the
aim of research and research questions, the thesis has made scientific contributions:
Firstly, the study has systematized the theoretical basis of competitiveness of tourism
businesses and a number of study models on competitiveness of enterprises in tourism sector.
Secondly, the study has identified eight factors affecting competitiveness of Ben Tre tourism
businesses and tying to specific economic - social and natural conditions of the locality. Such factors
include: (1) Marketing capacity; (2) Brand; (3) Organization and management capacity; (4) Social
responsibility; (5) Product and service quality; (6) Human resources; (7) Competitive price; (8)
Environmental conditions of destinations (policy mechanisms, local people, natural environment).
Thirdly, the study has adjusted and supplemented in order to develop scales of factors affecting
competitiveness of Ben Tre tourism businesses.
Fourthly, the study has tested models as well as scales for factors affecting competitiveness and
the results are satisfactory and ensure reliability. The study also identifies the degree of influence of
each factor on competitiveness of Ben Tre tourism enterprises as the basis for solution building.
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5.4.2 Practical contributions
The study has built a model of factors affecting competitiveness and has determined the degree
of influence of each factor on competitiveness of Ben Tre tourism business. The results of this study
are important practical resources for the province's tourism businesses to build development
strategies when taking into account 8 factors affecting competitiveness.
The study has analyzed situation and causes of factors affecting competitiveness of Ben Tre
tourism businesses. Analysis results have portrayed the panorama of Ben Tre tourism, have helped
businesses, authorities see the strengths, weaknesses, and reasons to do better.
The study has proposed solutions based on study results and situation analysis as a basis for
tourism businesses in Ben Tre to develop strategies to enhance competitiveness and sustainable
development.
The study also gives some recommendations to the State management agencies in term of
mechanisms and policies, infrastructure investments serving local tourism development.
5.5 Limitations of the study and subsequent studies
5.5.1 Limitations of the study
Besides positive scientific and practical contribution, the thesis also certains limitations,
requires further study, additional content so that it is more comprehensive, in particular:
Currently, previous studies related to competitiveness of tourism enterprises are very limited,
most are studies on competitiveness of destinations. Therefore, the search, analysis of previous
studies to find space for the thesis is also limited.
Studying factors affecting competitiveness is developed when research hypotheses are tested
for the case of Ben Tre Province. However, Ben Tre tourism businesses are limited in number and
scope. Therefore, the findings are only peculiar to Ben Tre and are not representative for other
regions in the country.
The study just stops at identifying factors affecting competitiveness Ben Tre tourism
businesses. It has not gone into analyzing relationships among enterprises in locality to see their role
in the system and then launch joint solutions to develop into a common brand for local tourism
enterprise system.
5.5.2 Further study
From the limitations of the study, further studies need to be supplemented based on suggestion,
namely:
- Firstly, the study of factors affecting competitiveness of tourism businesses will expand to
Mekong Delta provinces and other localities in the country.
- Secondly, subsequent studies should not just stop at factors affecting competitiveness of
tourism businesses but should consider the relationship between the enterprise and other local
tourism businesses to see his role in the system.
- Thirdly, follow-up studies should expand studying factors affecting competitiveness of
businesses in other business sectors and localities.
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CONCLUSION
The objective of this study is to identify factors affecting competitiveness of Ben Tre tourism
businesses in association with local characteristics. The study starts with codifying the theoretical
basis of competitiveness of business and codifying some model studies of competitiveness in the
field of tourism.
The study uses both qualitative and quantitative techniques, this is to approach the hybrid
method including 3 steps: Step 1, based on study objectives, the author conduct studying documents,
related previous studies to propose theoretical study models and figure out the properties for the
study, as the basis for setting up expert interviews and group discussions. The purpose of expert
interviews and group discussions is to improve research models, scales and preliminary
questionnaires. Step 2, preliminary studies, this step is to conduct a preliminary survey, test the
reliability of the scale with Cronbach's Alpha coefficient; EFA - exploratory factor analysis. The
main purpose of this step is to conduct a preliminary investigation for respondents to assess the
reliability of the scale. On this basis, the author identifies research models and official surveys. Step
3, official study, the content done in this step is CFA (Confirmatory factor analysis) and tests the
research model by analyzing structural equation modeling. The purpose of analyzing CFA is to
clarify: (1) Unidirectional feature; (2) The reliability of the scale; (3) The value of convergence; (4)
Discrimination value. Structural Equation Modeling (SEM) method is used to test models and
research hypotheses.
Model testing results show that all scales are unidirectional, ensure convergence value, ensure
reliability, and differentiated value. Research models are consistent with market data, assumptions in
model studied are accepted. Study results show that there are 8 factors affecting competitiveness of
Ben Tre tourism business, namely: (1) Human resources; (2) Quality of products and services; (3)
Environmental conditions of destinations; (4) Competitive price; (5) Organization and management
capacity; (6) Marketing capacity; Trademark; (8) Social responsibility associated with specific
characteristics of Ben Tre thanks to distinctive products - services, which are tourism products and
services tied to coconut trees, coconut products, coconut natural environment.
In addition, the study has analyzed situation – causes of factors affecting competitiveness of
Ben Tre tourism businesses to see strengths, weaknesses and causes. Based on results of research
and situation analysis, the study has suggested a number of specific measures to enhance
competitiveness and sustainable development for tourism enterprises in Ben Tre in the near future.
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