Diversification of business and technical efficiency of companies in Vietnam

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 ef...

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Veröffentlicht in:Journal of Eastern European and Central Asian research 2021-01, Vol.8 (4), p.481-494
Hauptverfasser: Nguyen, Anh Phong, Nguyen, Anh Vu, Ho, Thi Hong Minh, To, Thi Thanh Truc
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container_end_page 494
container_issue 4
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container_title Journal of Eastern European and Central Asian research
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creator Nguyen, Anh Phong
Nguyen, Anh Vu
Ho, Thi Hong Minh
To, Thi Thanh Truc
description 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
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subjects Communications technology
Companies
Diversification
Efficiency
Information technology
Local government
Provinces
title Diversification of business and technical efficiency of companies in Vietnam
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