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The impact of social capital on business performance - a case study of the Textile and Garment industry in the Southern region of Vietnam - 26



STT


ENCRYPTION


POSITION

BUSINESS NAME

KARMA


ADDRESS


7


CGTĐ7


Manager

Thoi Textile Garment Joint Stock Company

Da Phuoc Page

2nd Floor, 21 Hoang Dieu,

Ward 12, District 4, Ho Chi Minh City


8


CGTĐ8


Manager

PBT Garment Company

128/2A Bui Cong

School, District 12, Hoc Mon, HCMC


9


CGTĐ9


Manager

Garment Manufacturing Company Limited

Nhan Hoa

688/4 Huong Lo 2, Ward Binh Tri Dong A, District

Binh Tan, HCMC


10


CGTĐ10


Manager

Company Limited

Minh Khoi Production Trading Service

67/30 Street 100, Binh Thoi, Ward 14, District 11, City.

Ho Chi Minh

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The impact of social capital on business performance - a case study of the Textile and Garment industry in the Southern region of Vietnam - 26

4. SCALE CALIBRATION RESULTS


The method of selecting samples, arranging discussions as well as the method of collecting and processing data were conducted by the author in the same order as in the model discovery study. The summary of the results is as follows:

4.1. Business performance scale


Most experts agree on measuring business results as the scale of AlAnsari et al. (2013). All experts believe that to achieve business results, customers are the center, which shows that customers must be satisfied with the company's products (TTKD1). Furthermore, to measure business results, businesses must achieve growth rates in revenue (TTKD2), market share (TTKD3) and profit (TTKD4). In-depth discussion of business results, the author did not discover any new opinions. In summary, 10/10 opinions of experts confirmed that the business results scale has 4 observable variables that experts have adjusted in terms of wording and content as follows:

TTKD1: Customers are often satisfied with our company's products.


TTKD2: Our business often achieves the expected revenue growth rate.

TTKD3: Our business often achieves the expected market share growth rate.

TTKD4: Our business often achieves the expected profit growth rate.

4.2. Product innovation scale


Most experts agree on measuring product innovation as per Makani’s scale (2016). All 7/10 experts agree that in order to innovate products in the textile industry, businesses must quickly grasp the trends.

consumer fashion to

pioneer in bringing to market

new product market

(DMSP1), moreover, in the textile industry to conquer customers, businesses

The enterprise must have new, unique, eye-catching and different designs from existing products (DMSP2). Furthermore, the product must have superior quality compared to competitors in terms of fabric, buttons, and sewing thread quality (DMSP3) as well as the enterprise has an advantage over competitors in terms of products or services provided to customers (DMSP4). However, due to the characteristics of the textile industry, different from the study of Makani (2016) in the field of computer and electronics manufacturing, which requires very high technology factors and after-sales products, warranty and maintenance services are very important, therefore, most experts believe that statements DMSP5, DMSP6 and DMSP7 are unnecessary. In summary, the product innovation scale consists of 4 observed variables with suggestions for adjusting the wording used in the textile industry as follows:

DMSP1: Our company is often the first to launch new products to the market.


DMSP2: Our company designs new products that differentiate themselves from existing products on the market.

DMSP3: The quality of our company's new products is superior to that of our competitors.


DMSP4: In general, we have an advantage over our competitors by providing our customers with better products.

4.3. Scale of knowledge acquisition


Most experts agree on measuring knowledge acquisition as the scale of Hult et al. (2007). Experts all affirm that regularly conducting internal research to have new products that meet customer requirements (TTKT2) is extremely necessary for fashion products because the product life cycle is very short. Therefore, businesses need to quickly detect changes in customer product preferences (TTKT3), organize customer opinion surveys once a year to review product quality (TTKD4) and businesses quickly detect fundamental changes in the industry environment (TTKT5). These are statements that are very suitable for the textile industry in Vietnam. However, 8/10 experts believe that in the era of information technology explosion, applying technology to connect is very convenient such as Zalo group, Facebook to exchange work, so it is not necessary

must meet regularly (TTKT1) and speak to us periodically

consider

image

The possible effects of changes in the environment (TTKT6) have similar content to statement TTKT5. After discussion, the scale for knowledge acquisition including 4 observed variables was suggested to adjust the wording used in the textile industry as follows:

TTKT1: We regularly conduct a lot of internal research on new products that customers will need in the future.

TTKT2: We quickly detect changes in customer preferences for products

TTKT3: We survey our customers at least once a year to evaluate the quality of our products.

TTKT4: We quickly detected changes in the textile industry.

4.4. External social capital scale

version in environment


Most experts agree on measuring VXBN as the scale of Dai et al. (2015). All 7/10 experts' opinions affirm that maintaining reputation in business with business partners is shown by keeping promises is extremely important (VXBN1), in addition, relationship quality also shows that businesses are often introduced to new business opportunities by business partners (VXBN2), Business partners try to avoid harming our interests in the best way (VXBN4), Business partners maintain close relationships with us (VXBN5), Business partners maintain personal friendships with our business (VXBN7). However, experts believe that the statement VXBN3: Our business quickly contacts other new customers through existing customers studied by Dai et al. (2015) in the hotel industry and the content of this statement is not suitable for the textile industry, at the same time, the statement VXBN6: There is a trust between our business partners and us. Even if one party has the opportunity to take advantage of the other party, they will not do so has a similar content to statement VXBN4 and therefore does not need to be included in the measurement. After discussion, the external social capital scale consisting of 5 observed variables was suggested to adjust the wording used in the textile industry as follows:

VXBN1: Our business partners and businesses can keep their promises to each other.

VXBN2: Our company is often introduced to new business opportunities by business partners.

VXBN3: Business partners try to avoid harming our interests as much as possible.

VXBN4: Business partners maintain close relationships with us VXBN5: Business partners maintain personal friendships with our business

4.5. Internal social capital scale


Most experts agree on measuring VXBT as the scale of Dai et al. (2015). All 8/10 experts' opinions affirm the quality


Internal relationships are expressed in all colleagues having common goals and visions (VXBT1), keeping promises (VXBN2), maintaining close relationships (VXBT3), having ambitions to achieve common goals (VXBT4), colleagues in different departments/divisions regularly exchanging knowledge or information through informal conversations (VXBT7), moreover, for departments within the enterprise, they all try their best to avoid harming the interests of other departments (VXBT5). However, experts all have opinions about VXBT6: There is trust between different departments in our hotel. Even if one department has the opportunity to take advantage of another department, it will not do so. The content is similar to VXBT5, so it is not necessary to include it in the scale. After discussion, the internal social capital scale including 6 observed variables was suggested to adjust the wording used in the textile industry as follows:

VXBT1: In our company, all colleagues have common goals and vision.

VXBT2:In our company, all departments/divisions usually keep their promises to each other.

VXBT3: In our company, colleagues in different departments/divisions maintain close relationships.

VXBT4:In our company, colleagues all have ambitions to achieve common goals.

VXBT5: In our company, each department tries its best to avoid harming the interests of other departments/divisions.

VXBT6:In our company, colleagues in different departments/divisions regularly exchange knowledge or information through informal conversations.

4.6. Leadership social capital scale


Most experts agree on measuring leadership social capital like the scale of Nguyen and Huynh (2012), which is a multidimensional scale including the network of


The relationship of family, friends, business partners, authorities at all levels and colleagues. However, because Nguyen and Huynh (2012) studied in the real estate sector, these components are not suitable for the textile industry. After discussion, 8/8 experts agreed that the VXLD scale in the textile industry has 3 components including industry associations, business partners and colleagues. In which, most experts affirmed that the industry association component is extremely necessary in the textile industry to replace the government component at all levels, the reason is that in the real estate industry, the government at all levels is very important because if a business wants to be assigned land to carry out a project, it needs to have relationships with the government at all levels and this is also a new discovery of the author in qualitative research. Moreover, the family and friends component is not important in the fashion sector because dressing is based on personal characteristics and preferences of each person. Thus, the leadership social capital scale is a multidimensional scale consisting of three components: Industry associations, business partners, and colleagues.

4.6.1. Industry association scale


Most experts agree on measuring the industry association factor by inheriting the scale of government at all levels in the study of Nguyen and Huynh (2012), 8/10 experts' opinions agree on the quality of the relationship.

between business leaders and industry associations

manifest in

establish relationship

Good

(HHNN1), gain trust (HHNN2), gain information sharing (HHNN3)

and received help (HHNN4) from industry associations.

So,

after discussion

The peer scale consists of 4 observed variables with suggestions for adjusting the terminology used in the textile industry as follows:

HHNN1: I have established good relationships with industry associations HHNN2: I often receive trust from industry associations HHNN3: I often receive information sharing from industry associations HHNN4: I often receive help from industry associations

4.6.2. Business partner scale


Most experts agree on measuring business partners as the scale of Nguyen and Huynh (2012), however, 8/10 experts suggest that the content of the statement DTKD2: I always receive trust from business partners is difficult to measure and the content of the statement DTKD1: I have established good relationships with business partners also shows that business partners trust the business leaders. As

So, after discussing the business partner scale consisting of 3 observed variables denoted from

DTKD1 to DTKD3 are as follows:


DTKD1: I have established and maintained good relationships with business partners DTKD2: I often receive information sharing from business partners DTKD3: I often receive help from business partners

4.6.3. Colleague scale


Most experts agree on measuring the colleague factor as measured by Nguyen and Huynh (2012), 9/10 experts agree on the quality of the relationship between business leaders and colleagues, which is reflected in establishing good relationships (DGNG1), gaining trust (DGNG2), sharing information (DGNG3) and

received help (DGNG4) from colleagues.

So,

after discussing the ladder

The peer measure includes four observed variables that were suggested to adjust the vocabulary used in the textile industry as follows:

DGNG1: I have established good relationships with colleagues in the company DGNG2: I often receive trust from colleagues in the company

DGNG3: I often receive knowledge sharing from colleagues in the business.

DGNG4: I often receive help from colleagues in the business.


4.7. Discussion results


The summary of expert comments is as follows:


STATED

OPINION

BUSINESS RESULTS LADDER


1

Customers are often satisfied with the company's products.

we


10/10


2

Our business often achieves growth rates

on revenue as expected


8/10


3

Our business often achieves growth rates

market share as expected.


6/10


4

Our business often achieves growth rates

profit as expected


8/10

PRODUCT INNOVATION SCALE


1

Our company is often the first to launch to the market.

new products


7/10


2

Our company designs new products that create

different from existing products on the market


9/10


3

The quality of our company's new products exceeds

outperform competitors


7/10


4

In general, we have an advantage over our competitors because of

on providing our customers with better products.


6/10

KNOWLEDGE ACQUISITION SCALE


1

We regularly conduct a lot of internal research.

about new products that customers will need in the future.


10/10


2

We quickly detect changes in user preferences.

customer about product


9/10

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