SERVICE-ORIENTED HUMAN RESOURCE PRACTICES: A COMPARATIVE STUDY BETWEEN LOCAL AND FOREIGN FIRMS IN VIETNAM
Vol. 128 No. 5C (2019), Original Article
Vol. 128 No. 5C (2019)

SERVICE-ORIENTED HUMAN RESOURCE PRACTICES: A COMPARATIVE STUDY BETWEEN LOCAL AND FOREIGN FIRMS IN VIETNAM

Original Article
https://doi.org/10.26459/hueuni-jed.v128i5C.5149
Published 2019-04-05
Hoang Trong Hung
Hue University, University of Economics
PDF

Keywords

service-oriented human resource practices
service firms
Vietnam

Abstract

Abstract: As a result of its economic reform policies, Vietnam has emerged as an attractive country for foreign direct investment, especially in numerous service sectors such as banking and financial services, hospitality and retailing. The presence and operations of foreign service firms have also raised growing concerns regarding the competitive position of local service firms. However, after more than 30 years of the Doi Moi, little is known about whether there are differences in the service-oriented human resource practices within local and foreign service firms in Vietnam. Using a mixed method approach (surveys with 549 service employees and 20 in-depth interviews with managers and service employees in both local and foreign service firms), this study finds that foreign firms perform better than their local counterparts in several dimensions of service-oriented human resource practices (e.g. service-oriented recruitment, training, rewards and employee autonomy). Conclusions and implications for service managers have been provided.

Keywords: service-oriented human resource practices, service firms, Vietnam 

https://doi.org/10.26459/hueuni-jed.v128i5C.5149
PDF

References

  1. Amba-Rao, S., Petrick, J., Gupta, J. & Von Der Embse, T. (2000), Comparative performance appraisal practices and management values among foreign and domestic firms in India, The International Journal of Human Resource Management, 11(1), 60–89.
  2. Babakus, E., Yavas, U., Karatepe, O. & Avci, T. (2003), The effect of management commitment to service quality on employees’ affective and performance outcomes. Journal of the Academy of Marketing Science, 31(3), 272–286.
  3. Barbosa, N. & Louri, H. (2005), Corporate performance: does ownership matter? A comparison of foreign-and domestic-owned firms in Greece and Portugal, Review of Industrial Organization, 27(1), 73–102.
  4. Barney, J. (1991), Firm resources and sustained competitive advantage. Journal of management, 17(1), 99–120.
  5. Barney, J. B. (2001), Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view, Journal of management, 27(6), 643–650.
  6. Bellak, C. (2004), How domestic and foreign firms differ and why does it matter? Journal of Economic Surveys, 18(4), 483–514.
  7. Buglear, J. (2005), Quantitative methods for business: The A-Z of QM, Amsterdam: Elsevier Butterworth-Heinemann.
  8. Chan, K. W. & Lam, W. (2011), The trade-off of servicing empowerment on employees’ service performance: examining the underlying motivation and workload mechanisms, Journal of the Academy of Marketing Science, 39(4), 609–628.
  9. Chang, S.-J., Chung, J. & Jungbien Moon, J. (2013), When do foreign subsidiaries outperform local firms?, Journal of international business studies, 44(8), 853–860.
  10. Christen, M., Iyer, G. & Soberman, D. (2006), Job satisfaction, job performance, and effort: A reexamination using agency theory, Journal of Marketing, 70(1), 137–150.
  11. Chuang, C. & Liao, H. (2010), Strategic human resource management in service context: Taking care of business by taking care of employees and customers Personnel Psychology, 63(1), 153–196.
  12. Dunning, J. H. (1988), The eclectic paradigm of international production: a restatement and some possible extensions, Journal of international business studies, 19(1), 1–31.
  13. Dunning, J. H. (1989), Multinational enterprises and the growth of services: some conceptual and theoretical issues, The Service Industries Journal, 9(1), 5–39.
  14. Dunning, J. H. (2001), The eclectic (OLI) paradigm of international production: past, present and future, International Journal of the economics of business, 8(2), 173–190.
  15. Gamble, J. (2003), Transferring human resource practices from the United Kingdom to China: the limits and potential for convergence, The International Journal of Human Resource Management, 14(3), 369–387.
  16. Gebauer, H. & Zedtwitz, M. (2007), Differences in orientations between Western European and Chinese service organizations, Asia Pacific Journal of Marketing and Logistics, 19(4), 363–379.
  17. Ghauri, P. & Gronhaug, K. (2005), Research Methods in Business Studies: a Practical Guide (3rd ed.), Harlow: Prentice Hall.
  18. Hair, J. F., Black, W., Babin, B. & Anderson, R. (2010), Multivariate Data Analysis: A Global Perspective (7th ed.), Upper Saddle River: Pearson Prentice Hall.
  19. Hau, L. N., Evangelista, F. & Thuy, P. N. (2013), Does it pay for firms in Asia's emerging markets to be market-oriented? Evidence from Vietnam, Journal of Business Research, 66(12), 2412–2417.
  20. Jaussaud, J. & Liu, X. (2011), When in China… The HRM practices of Chinese and foreign-owned enterprises during a global crisis. Asia Pacific Business Review, 17(4), 473–491.
  21. Lau, C.-M. & Ngo, H.-Y. (2001), Organization Development and Firm Performance: A Comparison of Multinational and Local Firms, Journal of international business studies, 32(1), 95–114.
  22. Le, T. & Quang, T. (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.
  23. Luk, S. T., Lu, K. & Liu, B. (2013), SERV* OR in China: testing the effect of service orientation on service skills performance, Journal of Services Marketing, 27(1), 25–39.
  24. Miah, M. & Bird, A. (2007), The impact of culture on HRM styles and firm performance: evidence from Japanese parents, Japanese subsidiaries/joint ventures and South Asian local companies, The International Journal of Human Resource Management, 18(5), 908–923.
  25. Min, J., Zheng Zhou, K., Yong Gao, G. & Jiangyong, L. (2013), Technological Capability Growth and Performance Outcome: Foreign Versus Local Firms in China, Journal of International Marketing, 21(2), 1–16.
  26. Mohamed, A. F., Singh, S., Irani, Z. & Darwish, T. K. (2013), An analysis of recruitment, training and retention practices in domestic and multinational enterprises in the country of Brunei Darussalam, The International Journal of Human Resource Management, 24(10), 2054–2081.
  27. Muller, A. & Kolk, A. (2010), Extrinsic and intrinsic drivers of corporate social performance: Evidence from foreign and domestic firms in Mexico, Journal of Management Studies, 47(1), 1–26.
  28. Ngo, H. Y., Lau, C. M. & Foley, S. (2008), Strategic human resource management, firm performance, and employee relations climate in China, Human Resource Management, 47(1), 73–90.
  29. Ostrom, A. L., Bitner, M. J., Brown, S. W., Burkhard, K. A., Goul, M., Smith-Daniels, V., . . . Rabinovich, E. (2010), Moving forward and making a difference: Research priorities for the science of service, Journal of Service Research, 13(1), 4–36.
  30. Pham, N. T., Tuckova, Z., Jabbor, C. (2019), Greening the hospitality: How do green human resource practices influence organizational citizenship behaviour in hotels? A mixed-method study. Tourism Management, 72, 386–399.
  31. Rosenzweig, P. M. & Nohria, N. (1994), Influences on Human Resource Management Practices in Multinational Corporations, Journal of International Business Studies, 25(2), 229–251.
  32. Teagarden, M. B. & Von Glinow, M. A. (1997), Human resource management in cross-cultural contexts: Emic practices versus etic philosophies, Management International Review, 37(1), 7–20.
  33. Wang, Y. (2004), Observations on the organizational commitment of Chinese employees: comparative studies of state-owned enterprises and foreign-invested enterprises, The International Journal of Human Resource Management, 15(4), 649–669.
  34. Wei, Y. S., Samiee, S. & Lee, R. P. (2014), The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market, Journal of the Academy of Marketing Science, 42(1), 49–70.
  35. Wilson, R. T. & Baack, D. W. (2012), Attracting Foreign Direct Investment: Applying Dunning's Location Advantages Framework to FDI Advertising, Journal of International Marketing, 20(2), 96–115.
  36. Wright, P., Dunford, B. & Snell, S. (2001), Human resources and the resource-based view of the firm, Journal of Management, 27(6), 701–722.
  37. Yang, Y.-F. (2008), The roles of human resources, information technology, and marketing knowledge capabilities in performance: An extension of the resource-based theory perspective, Social Behavior and Personality: an International Journal, 36(9), 1269–1282.
  38. Yavas, U., Babakus, E. & Ashill, N. (2010), Testing a branch performance model in a New Zealand bank, Journal of Services Marketing, 24(5), 369–377.
  39. Zeithaml, V. A., Bitner, M. J. & Gremler, D. D. (2009), Services marketing: integrating customer focus across the firm (5th ed.), Boston: McGraw-Hill Irwin.
  40. Zhang, Y., Li, H., Li, Y. & Zhou, L. (2010), FDI spillovers in an emerging market: the role of foreign firms' country origin diversity and domestic firms' absorptive capacity, Strategic Management Journal, 31(9), 969–989.