Open AccessDiversification of business and technical efficiency of companies in Vietnam
Author(s) -
Anh Phong Nguyen,
Anh V. Nguyen,
Thi Hong Minh Ho,
Thi Thanh Truc To
Publication year - 2021
Publication title -
journal of eastern european and central asian research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.223
H-Index - 5
eISSN - 2328-8280
pISSN - 2328-8272
DOI - 10.15549/jeecar.v8i4.772
Subject(s) - diversification (marketing strategy) , business , index (typography) , industrial organization , information and communications technology , data envelopment analysis , government (linguistics) , marketing , mathematical optimization , linguistics , philosophy , mathematics , world wide web , computer science , political science , law
This study focuses on assessing the technical efficiency of enterprises across 63 provinces of Vietnam from 2015 to 2018 and the factors affecting their technical efficiency, in which we focus on two factors: business diversification and ICT index. In this research, we use the DEA method to group effective and ineffective enterprises, then use the GMM method to estimate the factors affecting to the firm’s performance. The research results show that the technical efficiency of enterprises in the provinces is quite small (about 10%), most of the enterprises have not achieved the technical efficiency due to the wasteful use of input factors. Research shows that business diversification and ICT both have a positive impact on efficiency, from which to increase technical efficiency, enterprises in provinces need to pay attention to business diversification and improve ICT index. in terms of the local government