Building technological capability in Vietnamese SMEs

Transcription

1 CECEM Building technological capability in Vietnamese SMEs A case study in tea industry Presenter: Nguyen Thi Bich Tam Vietnam

2 Presentation structure Introduction about the research Purpose Objectives Focus group Theory in-used Research results Research application

3 Introduction about the research 1. Purpose Propose a feasible process for technological capability building for SMEs in Vietnam. 2. Objective define factors that technological capability of SMEs depends on; identify factors which influence entrepreneurs awareness about technology; identify people who is the motor of the enterprise s innovation; and describe management methods of development of technological capability. 3. Target group: SMEs in tea industry.

4 Reasons to choose tea industry Tea is a high volume commodity. Its fortunes can therefore affect both individual farmers and the national economy. Its performance representatively reflect the nature of Vietnamese SME development. The Vietnamese government put tea as one of the front runners for development opportunity for application of this research result. Viet Nam also has a competitive advantage in tea production, yet remains a small player in the world market

5 Theory: Innovation Schumpeter (1934, p. 66) defines innovation as one or more of the following events: new products or new product quality new source for raw material or semi manufactures new production method. new organizational structure in industry new market

6 Theory: Innovation Competitors - New technology - New product - New management mechanism Policies - Exporting policies - R&D policies INNOVATION Market - Foreign related product locally available - Client demands SMEs themselves - Enterprise Ambition - Enterprise strategy - Skillful staff mobility

7 Theory: Technological capability building Technology technique (machines and equipment), knowledge ( know how and skills), organization (systems, procedures, practices and support structures), and product (design, specification) Technological Capability: the skills and knowledge required to bring about an indigenous process of technological development

8 Theory: Technological capability building Technological Capability: Sanjaya Lall (1992) Investment capability Production capability Adaptive innovation capability Networking capability

9 Theory: Technological capability building process Improvement -Local effort in research development and engineering Assimilation -Technologies diffused (mobility of experienced technical personnel) -imitation of foreign technology 2 Implementation -Packaged techn. Imported -Assembly process -Product specification -Production know how -Technical personnel -Component part 1 1. Increasing market competition 2. Export promotion

10 Data processing Frequency Analysis. Descriptive Analysis Overall picture of each tested variable Hypotheses Theory Correlation Speareman s rho Point biserial

11 Research results Enterprises profile education level 60% 50% 76.9% 40% 30% 20% 10% 0% State own Join stock company Private Cooperative 100% foreign investment 15.4% 7.7%

12 The Technological Capability of Vietnamese SMEs depends on Investment capability (IC), Production Capability (PC), Adaptive innovation capability (AIC) and Networking capability (NC). The competitor and the demands from clients for new product are the determined factors which influenced entrepreneur s awareness about technology over other factors. The entrepreneur is the motor of the enterprise s innovation Lack of strategic learning management is a problem of Technological Capability development process in Vietnamese SMEs.

13 Synthesis model of building TC Market Competitor policy policy Innovative Entrepreneur Strategic learning management Improvement Assimilation Implementation NC AIC PC Competitiveness Productiveness IC SME external SME internal

14 Building technological capability for SMEs in the tea industry

15 Strengthen the external Strengthen the role of market Outsiders: providing information about new market that requires end-product; offer research services on international or new markets. Insiders: actively seek for feedback and information from customers, especially international customers in order to be up to date about the requirement as well as market trends. Market Competitor Innovative Entrepreneur policy policy SME external Strategic learning management Improvement Assimilation Implementation SME internal NC AIC PC IC Competitiveness Productiveness

16 Strengthen the external Role of competitor Outsiders: create a pilot model of good production; help to develop a monthly/quarterly specialist newspaper that provides information about good producers. Top manager/entrepreneur should selectively visit other competitor and it is worthy to run regularly competitor analysis or set up a product clinic. Market Competitor policy policy SME external Innovative Entrepreneur Strategic learning management Improvement Assimilation Implementation SME internal NC AIC PC IC Competitiveness Productiveness

17 Strengthen the external Role of policy Financial policy: long term loan R&D policy: focus on processing and output technology as well. Market Competitor Innovative Entrepreneur policy policy SME external Strategic learning management Improvement Assimilation Implementation SME internal NC AIC PC IC Competitiveness Productiveness

18 Strengthen the internal Entrepreneur/Top manager as motor of innovation process Outsiders provide training or consultancy on innovation management. Innovation methods such as TRIZ should be introduced. Provide policies that protect innovations Market Competitor Innovative Entrepreneur policy policy SME external Strategic learning management Improvement Assimilation Implementation SME internal NC AIC PC IC Competitiveness Productiveness Top manager/entrepreneur should apply policies that promote innovation within their enterprises.

19 Strengthen the internal Strategic learning management Outsiders can provide services on organizational development or strategic human resource development. Entrepreneur/top manager build their enterprise to become a learning organization. set up a procedure to document and share good experiences within the enterprise. Market Competitor policy policy Innovative Entrepreneur Strategic learning management Improvement Assimilation Implementation NC AIC PC IC Competitiveness Productiveness develop a staff development plan base on the enterprise s development strategy. invest in staff training and in near future R&D investment SME external SME internal

20 Building technological capability process for SMEs in Vietnam Building an enterprise to become a learning organization Building innovation capability for entrepreneur/top manager Generate the entrepreneur awareness about the importance of the technology Promote the I A I process

21 Application Sapa medicinal plants association. Produce cinnamon oil to export to New Zealand. Phase 1 medicinal plants technique. Phase 2 oil producing and exporting Business plan Production Export

22 Using the model of building TC Market Competitor policy policy Innovative Entrepreneur Strategic learning management Improvement Assimilation Implementation NC AIC PC Competitiveness Productiveness IC SME external SME internal

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