Summary of master's Thesis Business administration: Effected factors of human resource development - Situation of small and medium trade - Service companies in Tra Vinh

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Researching on factors affecting human resource development: In case of the small and medium companies in the Trade and Service sector in Tra Vinh province, in order to analyse, evaluate and make new contributions to the theoretical base, on the basis of which proposes governance implications to perfect the admission factors to human resource development of SMCs, contributing to improving the performance of local businesses.

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Nội dung Text: Summary of master's Thesis Business administration: Effected factors of human resource development - Situation of small and medium trade - Service companies in Tra Vinh

f TRA VINH PROVINCIAL PEOPLE’S COMMITTEE TRA VINH UNIVERSITY TRAN HUNG CUONG EFFECTED FACTORS OF HUMAN RESOURCE DEVELOPMENT: SITUATION OF SMALL AND MEDIUM TRADE - SERVICE COMPANIES IN TRA VINH Major: Business Administration Number: 9340101 RECAPITULATING PH.D. THESIS BUSINESS ADMINISTRATION TRA VINH, 2021
Project is completed at: Tra Vinh University Guilde searchings: 1. Associate Professor PhD. Tu Van Binh 2. Associate Professor PhD. Huynh Quang Linh Reviewer 1: …………………………… Reviewer 2: …………………………… Reviewer 3: …………………………… The thesis will be protected at the Thesis evaluation board at : Tra Vinh University At ………………………….. 2021 Thesis will be available at the library: ………………………………………. ………………………………………. ………………………………………. ……………………………………….
CHAPTER 1 INTRODUCTION 1.1 REASON TO CHOOSE THE TOPIC Small and medium companies very important and indispensable for a developing country, in which provides jobs and partly ensure the social security. Moreover, Vietnam has a vastly human resource in population size, young population and are tranferring to the stage of “ the golden population structure” with over 96,2 million people in which 2/3 of the population is the youth and in the working age. Therefore, human resource development of small and medium enterprises is considered a central issue for the development of the country, according to Echdar's human capital theory (2013), this is one of the activities. The most important thing for a business to manage human capital well is to develop that capital or develop human resources to create a sustainable competitive advantage for the business.. Meanwhile, Yawson (2013) said that there is a difference between theory and practice of theory and systematic thinking in research and practice on human resource development; Uaron (2017) human capital theory is the capital that companies should invest in if they believe in the future human resource investment which is the recently practical importance for with companies. According to a research in 2019, Vietnam has around 508.770 small and medium companies (SMC) in the Trade - Service sector with nearly 36% labour compared to the other sectors. By the end of 2019, Tra Vinh province had 2.183 enterprises, with 88.046 employees, especially SMCs in the Trade and Service sector were 1.216 enterprises, with about 10.008 employees. Besides, it requires clarifying the achievements and limitations of SMC nowadays, from there as a basis to output the management function to develop human resources for SMEs in Tra Vinh province is a highly current issue and practical in the current period, so the study "Effected factors of human resource development: situation of small and medium Trade - service companies in Tra Vinh" is a practical issue. in theory and practice. The gaps of the research: Kunio (1989) proposed a conceptual model to analyse, support to the development of human resouce, Sredl and Rothwell (1997) developed the frame of neccesary definitions for researchers. Later, a 1
number of empirical studies on human resource development of small and medium companies continued to apply research in Europe and America. The emirical studies on the effects of the factors to human resource of small and medium companies of Frank and Mridula (2018), Katarzyna (2019), Zeqir and Ymer (2019), Nguyen Thanh Vu (2015), Ha Thi Duy Linh (2019),… are suitable for the state of business development in Vietnam, therefore, it is possible to apply and approach the research models of the above authors but must adjust and add some new factors to suit the field of SMC in Tra Vinh province. Most of the previous studies have not studied the factors affecting human resource development: The situations of Tra Vinh small and medium companies in the research periods. In Vietnam up to this point, the author has not seen any scientific researches on the factors affecting human resource development: The case of small and medium-sized enterprises in the Trade - Service industry. 1.2 ENQUIRIES AND OBJECTIVES OF THIS STUDY 1.2.1 Research enquiries In order to solve the research problems, this research looks for the answers of the following questions: What components measure human resource development of SMEs in the trade and service industry? What is the difference in the scale of human resource development of SMCs with previous and actual studies at businesses in the trade and service industry? How to quantify the factors affecting human resource development of SMCs in the trade and service industry? What should be done to improve the human resource development of SMCs in the trade and service industry in the coming time? 1.2.2 General objectives Researching on factors affecting human resource development: In case of the small and medium companies in the Trade and Service sector in Tra Vinh province, in order to analyse, evaluate and make new contributions to the theoretical base, on the basis of which proposes governance implications to perfect the admission factors to human resource development of SMCs, contributing to improving the performance of local businesses. 2
1.2.3 Purpose in details The study aims to the following requirement and objectives: Identifying the components of human resource development of SMCs in the trade and service sector. Evaluating and developing the scale components of the factors affecting the development of human resources of SMCs in the trade and service sector. Test the scale and theoretical model of factors affecting the development of human resources of SMCs in the trade and service sector. Proposing the governance implications for the development of human resources of SMCs in the trade and service sector. 1.3 RESEARCH SUBJECTS AND SURVEY SUBJECTS 1.3.1 Research subjects Thesis researches on factors affecting human resources development of SMCs in the trade and service sector in Tra Vinh province 1.3.2 Survey Subjects Survey of SMCs in the trade and service sector operating in Tra Vinh province 1.4 RESEARCH SCOPE 1.4.1 Research Content limitation The thesis is only limited to research in the scope of human resource development and the evaluation of business owners, analyzing the relationship between factors affecting the development of human resources in SMCs in the trade and service sector of Tra Vinh province. 1.4.2 Space Limitation The time of the secondary data is used for research related to SMEs in the trade and service industry of Tra Vinh province from 2017 to 2019 operating under the Enterprise Law, specifically the types of businesses without home capital. the country belongs to the trade and service industry. The thesis does not study state-owned enterprises, foreign-owned enterprises, cooperatives, and households. 1.4.3 Time Limitation Primary data used for analysis in the thesis are collected directly from the surveyed subjects in 2019. 1.5 RESEARCH METHODS This research is mainly based on two main research methods: qualitative research and quantitative analysis. 3
1.6 RESEARCH MEANING 1.6.1 Accademical contribution This study systematizes the general theoretical issues of human resource development, additional construction, and scale adjustment that the previous studies are limited. Contributing to increase the generality compared to previous studies on the level of direct impact on the development of human resources of SMCs in the trade and service sector on the business owners' vision and indirectly the province's trained workforce. Identifying and testing 10 factors that directly affect the development of human resources of SMEs in the trade and service sector. 1.6.2 Practical contribution Helping policy researchers, business managers (business owners) to identify and understand more thoroughly; Help the owners of SMEs in the trade and service industry have a complete and comprehensive view of human resource development for SMEs in the trade and service industry, especially when recruiting employees for businesses. This research is an important basis to help SME owners in the trade and service sector determine the priority level in the strategy of finding talent to serve the business development. The governance implications of this study are also useful references for further research, as well as suggestions for policy makers to have an overall view of human resource development from the central government. Refer to local authorities to promulgate new policies on human resource development to suit small and medium enterprises in the trade and service sector to create conditions for business owners in this industry to have a vision and develop strategies. business in the near future. 1.7 THESIS STRUCTURE This thesis is devided into 5 parts: Part 1: Introduction; Part 2: Theoretical basis and research model; Part 3: Research Design; Part 4: Research Results and discussion; Part 5: Conclusion and administrative implications. 4
PART 2 THEORETICAL BASIS AND RESEARCH MODEL 2.1 THEORETICAL BASIS OF HUMAN RESOURCE 2.1.1 Definition of Human resource 2.1.2 Characteristics of Human resource 2.2 THEORETICAL BASIS OF QUALITY OF HUMAN RESOURCE 2.2.1 Definition of Quality of Human resource 2.2.2 Characteristics of Quality of Human resource 2.3 THEORETICAL OF HUMAN RESOURCE DEVELOPMENT 2.3.1 Definition of Human resouce Development According to Mclagan và Suhadolnik (1989), human development isthe combined use of training and development, aimed at fostering work-related and long-term learning capabilities of individuals, groups and business levels to improve individual productivity or that organization. Meanwhile, Garavan (1991), Stewart và McGoldrick (1996), Considering that human resources development is a strategic component of training, development and learning in organizations and individuals in the context of forming business strategies and organizational competitiveness in order to improve working efficiency. of individuals, groups and organizations through the specific knowledge and skills of each individual employee. In Vietnam, according to Tran Xuan Cau and Mai Quoc Chanh (2009), said that human resources development is the process of developing physical strength, mental ability, cognitive ability and absorbing knowledge, skills, social dynamism and creativity of human; culture; historical tradition,... 2.3.2 Human resource development characteristics of small and medium companies 2.3.3 Definition of small and medium companies 2.3.3.1 Definition of small and medium companies in some countries 2.3.3.3 Definition of small and medium companies in Vietnam 2.3.3.3 The differencee between small and medium companies in the trade and service industry with other fields 2.4 OVERVIEW OF THIS STUDY 2.4.1 Researches in other countries 5
2.4.2 Reasearches in Vietnam 2.4.3 Key elements of human resource development Morrison (1996), thought that human resource development is measured by 06 components: philosophy, recruitment, job description, socialization, training, evaluation and reward; Guest (1997) claims that human resource development is measured by seven components: recruitment, training, employee evaluation, salary and bonus management, job description, employee engagement, status and ensure stability at work,... According to Lake (2008), Research results show 12 factors affecting human resources: Labor legislation, labor market conditions, characteristics of labor supply, policies, recruitment, training, effective management. job, timely information management, workplace, job characteristics, factory location and source of raw materials,… According to Nguyen Thanh Vu, there are 09 factors related to human resource development including: socio-economic - cultural environment, individual labor quality, education and training and labor law, state support policies on labor labor, labor recruitment, training and career development, analysis and evaluation of work results, working environment and labor relations, salary and benefits; Vo Thi Kim Loan (2015), asserted that there are 04 factors affecting the development of human resources, including education and training, science and technology, culture and society, and state policies,… 2.5 THEORY AND RESEARCH MODEL 2.5.1 Development of research hypotheses 2.5.1.1 Socio-economic environment According to research by Rosemary and Jim (2000), Rajshekar (2008), Vo Thi Kim Loan (2015), Nguyen Thanh Vu (2015), the socio- cultural environment is considered as a source of resources for enterprises. development, it means that if the economic - cultural - social environment is stable, the labor force there is very abundant, from which the ability to attract businesses to invest will increase. Hypothesis proposal H1: Socio-economic environment positively affects the human resource development of small and medium-sized enterprises in the trade and service sector of Tra Vinh province. 2.5.1.2 Quality of human resource Research by Lake (2008), shows that the individual labor quality of each employee is one of the factors showing the individual capacity 6
of the employee, it is also the determinant of success or success. unsuccessful in developing corporate human resources. The quality of the workforce is related to physical development, knowledge, skills, and confidence in the current job and the needs of the organization. Hypothesis proposal H2: The quality of the labor force affects the human resource development of small and medium enterprises in the trade and service sector of Tra Vinh province. 2.5.1.3 Education - training and labour policies Lake (2008), Nguyen Thi Hong Cam (2011), Vo Thi Kim Loan (2015) all have the same viewpoint that education and training contribute to perfecting human personality. Learning by conscious influences from outside, contributing to meeting the existence and development needs of people in society, step by step for learners to acquire and master knowledge, skills and careers. a systematic way to prepare the person to adapt to life and the ability to take on a certain job in a business. Hypothesis proposal H3: Education, training and labor law positively impact the development of human resources of small and medium-sized enterprises in the trade and service sector of Tra Vinh province 2.5.1.4 Science and technology development policy Rosemary and Jim (2000), Vo Thi Kim Loan (2015), the results suggest that the State's supporting policies on science and technology are suitable for general socio-economic development conditions and each type of business. In particular, it will facilitate the development of human resources associated with the current development of science and technology in the enterprise and vice versa, it will inhibit the development of human resources if the enterprise does not improve the faculty. learn technology by economy. However, when the process of international integration is more and more deep and wide, it requires more and more complete state policies to adapt to the integration process. Therefore, in order to have good human resources, the state must have policies to support businesses. Proposed hypothesis H4: Science and technology development policy positively affects the development of human resources of small and medium-sized enterprises in the trade and service sector of Tra Vinh province. 7
2.5.1.5 Labour market David (1995) affirmed that the labor market is always associated with the future human resource development for a country in general and that this resource serves the business in particular. When the labor market develops, the owner of the enterprise can easily recruit qualified and skilled workers to meet the needs of the business production and business, workers also easily find suitable jobs. with his ability and forte. The relationship between labor supply and demand will affect the level of wages paid to employees. Hypothesis proposal H5: The labor market positively affects the human resource development of small and medium-sized enterprises in the trade and service sector in Tra Vinh province. 2.5.1.6 Recruitment Rosemary and Jim (2000), Singh (2004), Lake (2008) said that labor recruitment expresses the view on purpose, requirement, object and form of labor selection of enterprises to ensure business enterprises have enough quantity and quality of human resources with the appropriate structure to implement their goals and tasks in the present or future period. However, Nguyen Thi Hong Cam (2011), Nguyen Quang Hau (2012), Bui Thi Thanh et al (2014), Nguyen Thanh Vu (2015) confirmed that an enterprise has a recruitment policy, appropriate and attractive labor, using human resources in enterprises is one of the important factors affecting the development of human resources in enterprises associated with production and business. Proposed hypothesis H6: Labor recruitment positively affects the development of human resources of small and medium-sized enterprises in the trade and service sector of Tra Vinh province. 2.5.1.7 Training and developing labour resource According to the theory of Knoke and Kalleberg (1994) that continuous training and development helps to improve proficiency in production as well as in return of investment in human resources, according to Holton and Baldwin (2000) asserted that in order to improve labor productivity, skills training must be transferred to the workplace, maintained over time and generalized across different contexts. Proposed hypothesis H7: Training and development of labor positively affects the development of human resources of small and 8
medium-sized enterprises in the trade and service sector of Tra Vinh province. 2.5.1.8 Evaluation of work performance Also according to research by Morrison (1996), Rosemary and Jim (2000), Gilley et al. (2002) suggest that the performance evaluation can give employees the opportunity to review their work performance. His essential job-related qualities. Most employees want to know the comments and assessments of the business owner on the performance of their jobs, so that the employees know the level of completing the tasks, promptly correct mistakes, click like to motivate employees to have new creativity and good job completion. Hypothesis proposal H8: Performance evaluation has positive impact on the human resource development of small and medium-sized enterprises in the trade and service sector of Tra Vinh province. 2.5.1.9 Working environment Lake (2008), Nguyen Quang Thu et al (2005), Nguyen Thanh Vu (2015), the working environment is an important factor for businesses to have more favorable conditions in attracting human resources for themselves, especially especially quality human resources. Working environment as possible will create conditions for employees to stick with the business for a long time and perform well at the enterprise. Proposed hypothesis H9: Working environment positively affects human resource development of small and medium-sized enterprises in trade and service of Tra Vinh province. 2.5.1.10 Salary, bonus and benefits Research Singh (2004), Nguyen Quang Thu et al (2005), Bui Thi Thanh et al (2014), Nguyen Thanh Vu (2015) suggest that salary, bonus and mechanical benefits The village is to attract and maintain good employees, stimulate and motivate employees to work to achieve the set goals. Hypothesis proposal H10: Salary, bonus and benefits positively impact the human resource development of small and medium-sized enterprises in the trade and service sector of Tra Vinh province.. 2.5.2 Expected research model From the above theories, the expected research model is proposed by the author in Figure 2.1. 9
PART 3 RESEARCH DESIGN 3.1 RESEARCH METHODS 3.1.1 Qualitative research Carrying out the above study, the author conducted the interview by discussion method with 13 experts, the Director/Deputy Director with many years of experience in the field of SMEs in the trade and service sector of the province, the results of the discussion. This helps the author adjust, type and add variables suitable to the development of human resources of SMEs in the trade and service sector so that it is suitable for the field and research object to conduct preliminary quantitative research. 3.1.2 Preliminary quantitativeresearch Building scale: According to Nguyen Dinh Tho and Nguyen Thi Mai Trang (2011), building scale is the process of designing and 10
evaluating a set of observed variables used to measure research concepts that need to be measured; Scale assessment: Based on the experts' opinions, completing the preliminary scale, the author conducted a survey of directors / deputy directors at the small and medium-sized enterprises in the trade and service sector of Tra Vinh province. , reliability test (Cronbach's alpha). 3.2 DATA PROCESSING METHODS 3.2.1 Evaluate confidence coefficients Cronbach's alpha 3.2.2 Exploratory Factor Analysis (EFA) 3.2.3 Confirmation Factor Analysis (CFA) 3.2.4 Structural Equation Modeling (SEM) 3.2.5 Acreditation Bootstrap 3.3 PRIMARY RESEARCH DESIGN 3.3.1 Primary research steps 3.3.2 Results of building draft scales From the interviewing results of experts, the author has helped the author get a scale to measure specific factors (1) scale of socio- economic environment including 06 observed variables; (2) the labor force quality scale includes 05 observed variables; (3) the scale of education and training and labor law includes 05 observed variables; (4) science and technology development policy scale includes 05 observed variables; (5) the labor market scale includes 05 observed variables; (6) labor recruitment scale includes 05 observed variables; (7) training and labor development scale includes 05 observed variables; (8) scale of performance evaluation includes 05 observed variables; (9) scale of working environment includes 05 observed variables; (10) scale of salary, bonus and benefits includes 06 observed variables; (11) conceptual scale of human resource development includes 04 observed variables. 3.3.3 Preliminary quantitative research results 3.3.3.1 Sample size statistics This preliminary quantitative study used simple random sampling to collect survey data, and conducted a preliminary survey with 112 SMEs in the trade and service sector of Tra Vinh province, the subject of the survey director/deputy director, the results of data collected, and the screening of data remained 105 questionnaires to ensure enough basis to include in preliminary quantitative research. 11
3.3.3.2 The results of assessing the reliability of the scale with Cronbach's alpha coefficients The results of assessing the scale of the factors affecting the human resource development of SMEs in the trade and service industry have the reliability of Cronbach's alpha of 52 initial observed variables, eliminating one variable of the scale of the economic environment factors. economy - culture - society because there is a total variable correlation coefficient SCEE1 = 0.230 0.30, Cronbach's alpha coefficients of factors> 0.8 (lowest 0.833 and highest 0.896) achieve reliability for EFA research. The evaluation results measuring the concept of human resources development include 04 observed variables, all scales have Cronbach's alpha coefficients> 0.7 (minimum 0.783, maximum 0.837), the correlation coefficient of the total variable> 0.30 shows high reliability scales for analysis, used for EFA analysis.. 3.3.3.3 Exploratory Factor Analysis (EFA) results The results of analysis of factors affecting the human resource development of small and medium enterprises include 51 observed variables. The results have 10 factors extracted with Eigenvalues 1.615 > 1 and the total variance extracted 69.022% > 50%, showing that the scales are accepted. KMO coefficient = 0.685 in the range of 0.5 ≤ KMO ≤ 1 factor analysis is appropriate, test Bartlett with Sig. = 0.000 represents a high level of significance, the load factor of the observed variables is > 0.5, so the values are accepted for inclusion in the official study. The results of analyzing the human resource development conceptual scale show that the scale has the variance extracted to reach 70.360% > 50%, with Eigenvalues 2.814> 1, the coefficient KMO = 0.781 is also in the range of 0.5 ≤ KMO ≤ 1, Bartlett test with Sig. = 0.000 shows a high significance level, the load factor of the observed variables are > 0.5, this result shows that the observed variables are convergent and meet the conditions for official study. 12
PART 4 RESULTS OF RESEARCH AND DISCUSSION 4.1 OVERVIEW OF HUMAN RESOURCE DEVELOPMENT OF SMALL AND MEDIUM COMPANIES IN TRADE - SERVICE SECTOR IN TRA VINH PROVINCE 4.1.1 Overview of social economic states in Tra Vinh province 4.1.2 The current situation of the operation of small and medium-sized enterprises in the Trade - Service industry in Tra Vinh province in recent years 4.1.2.1 The general situation of small and medium-sized enterprises in the Trade and Service industry in Tra Vinh province 4.1.2.2 Structure of small and medium-sized enterprises in the Trade - Service sector of Tra Vinh province by labor size 4.1.2.3 Human resources of small and medium-sized enterprises in the trade and service sector of Tra Vinh province by qualifications 4.1.2.4 The contribution of small and medium enterprises in the Trade - Service sector of Tra Vinh province to the socio-economic development 4.2 OFFICIAL RESEARCH ON FACTORS AFFECTING HUMAN RESOURCE: THE CASE OF SMALL AND MEDIUM COMPANIES IN TRADE – SERVICE SECTOR 4.2.1 Official research steps The official study consists of 08 steps: Step 1: Survey directors/ deputy directors who are working in small and medium enterprises in the Commerce - Service sector in Tra Vinh province. Step 2: Synthesize the answer sheets, clean, encrypt data and use SPSS and AMOS software to study the next steps. Step 3: Descriptive statistics of the data collected. Step 4: Assess reliability and EFA. Step 5: Factor analysis confirms CFA. Step 6: Analysis of the SEM linear structure model. Step 7 : Test the competition model. Step 8: Analyze Bootstrap. 4.2.2 Official research model After building a scale of components and scales for human resource development of small and medium-sized enterprises in the trade and service sector in Tra Vinh province; on the basis of the results of preliminary testing of the scale components, the official research model proposed by the author in Figure 4.1. 13
4.3 OFFICIAL QUANTITY MEASUREMENT AND RESEARCH SAMPLE Through the preliminary study transformed there are 55 observed variables, so the minimum number of research observations in this study must ensure from 55 * 5 = 275 observations. The survey sample in the official study used probabilistic sampling (Sudman, 1976) and the stratified sampling method, the survey was conducted from October 2019 to December. in 2019. Based on the research area and scale of the number of SMCs in the trade and service sector of Tra Vinh province, with the number of survey questions 387 votes, but through the data cleaning process, the survey questionnaires still to do the official study is 339 votes. The descriptive statistical results also showed that the respondents in the survey had the participation of groups with different qualifications, in which intermediate / college level accounted for the largest proportion of 51.6%. The interviewed managers and business owners with university degrees account for 35.7%. Respondents are general directors /directors accounting for 44.2% and Deputy General directors/deputy directors 55.8%, in addition, the survey also provides information of interviewed respondents. come from different economic 14
sectors: limited liability companies (49%), private enterprises (44.5%), joint stock companies (6.5%). Regarding the business field of each different industry: petroleum trading 26.8%, transportation business 7.1%, travel and accommodation 3.8% and other business 62.3%. 4.4 CRONBACH RELIABILITY TESTING WITH ALPHA AND EFA 4.4.1 Scale test relying on the of coefficients Cronbach's alpha Research continues to re-test the scale of human resources development components extracted by the reliability of Cronbach's alpha. Analysis results of reliability Cronbach's alpha all achieve the requirements that are > 0.8 (the lowest is 0.872, the highest is 0.919) and the correlation coefficient of the total variable > 0.3. Therefore, the scales ensure reliability throughout the analysis. The results of testing the reliability of the human resources development conceptual scale by Cronbach's alpha coefficients show that all scales have Cronbach's alpha weight> 0.8 (the lowest is 0.827, the highest is 0.848), the variables in each all scales have total variable correlation > 0.3. Therefore, the scales ensure reliability throughout the analysis. 4.4.2 Scale test using EFA analysis The results of the EFA analysis on the scale of human resources development components of SMEs in the trade and service industry with the coefficient KMO = 0.824 > 0.5 and the Barlett test statistically significant at < 5%, so the conditions for EFA analysis, the total variance extracted is 71.888% > 50%, the eigenvalues value is 2.296 > 1. Factor load weights are all very high (the maximum is 0.903 of the observed variable LM4, the lowest is 0.728 of the observed variable RL5) and this scale has 51 observed variables that all satisfy the conditions for inclusion in the CFA study. With the results, the coefficient KMO = 0.799 > 0.5 and the Barlett test is statistically significant at < 5%, should meet the conditions for EFA analysis. The results of EFA analysis show that the scale of the concept of human resource development satisfies the conditions for the number of extracted factors, with the total extracted variance equal to 69.541% > 50%, the value of eigenvalues = 2.782 > 1, the factor load factors are very high, the maximum is 0.848 of HRD2, and the lowest is 0.820 of HRD1. 15
4.5 SCALE TEST USING CFA 4.5.1 CFA analysis scale of human resource development components The results of the final analysis of the scale of the impact on human resources development show that Chi-square = 1174.732, df = 900, Pvalue = 0.000, Chi-square/df = 1.305 < 2, TLI = 0.965 > 0.9, CFI = 0.968 > 0.9, RMSEA = 0.030 < 0.08, so the measurement model of the component scale is compatible and consistent with the research data. 4.5.2 CFA analysis scale of human resource definition CFA analysis results for each human resource development concept scale, showing the indexes Chi-square = 2.474, df = 2, Chi- square/df = 1.237 < 2, TLI = 0.998 > 0.9, CFI = 0.999 > 0.9, RMSEA = 0.026 < 0.08, so this measurement model is compatible and warrants further study data. 4.5.3 Analyze CFA critical model The results of the critical model analysis (Figure 4.4) show that the indexes Chi-square = 1305.530, df = 1025, Pvalue = 0.000, Chi- square/df = 1.274 < 2, TLI = 0.966 > 0.9, CFI = 0.969 > 0.9, RMSEA = 0.028
4.6 TESTING THE THEORY MODEL 4.6.1 Hypothesis testing with structural equation model (SEM) This research model with 10 main research hypotheses and 01 research concept, SEM results of standardized theoretical model (Figure 4.5) shows Chi-square = 1418.892, df = 1071, Pvalue = 0.000, Chi-square/df = 1.325 < 2, TLI = 0.960 > 0.9, CFI = 0.962 > 0.9, RMSEA = 0.031 < 0.08. Therefore, the SEM measurement model is compatible and consistent with the research data. Figure 4.5. Theoretical (standardized) SEM model results 4.6.2 Testing and estimating competive model The results of the structural equation model of the competition model (Figure 4.6) show that this model has Chi-square = 1416.600, df = 1070, Pvalue = 0.000, Chi-square/df = 1.324 < 2, TLI = 0.960 > 0.9, CFI = 0.962 > 0.9, RMSEA = 0.031 and have not seen a big difference with the SEM model, only measurement criteria Chi-square = 1418.892 - 1416.600 = 2.292, the competition model removes one degree of freedom but other indices such as TLI, CFI, RMSEA have not changed. 17
Figure 4.6. The results of the SEM of the competition model 4.6.3 Estimating test of reearch model by Bootstrap This study used Bootstrap method with number of repeating samples N = 500 (Tho and Trang, 2008). The test results show that the estimates are statistically significant for the factors that are estimated to satisfy the conditions and it can be confirmed that this model is reliable in a larger number of samples. 4.6.4 Hypothesis testing The proposed theoretical model has ten research hypotheses. After testing the theoretical mode H7 và H9 are rejected, the remaining eight hypothesis H1, H2, H3, H4, H5, H6, H8, H10 are accepted. 4.7 DISCUSSION ABOUT THE RESULTS OF THE RESEARCH For hypothesis H1: The research results show that the relationship between the socio-economic environment has a positive relationship with the human resource development of SMEs in the trade and service industry with a standardized weight of 0.215 and is statistical 18

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