The Cultural Dimensions of the Vietnamese Private Entrepreneurship Vuong Quan Hoang* and Tran Tri Dung**
This paper examines the influence of cultural and socioeconomic factors on the growth of enterpreneurship in Vietnam. Traditional cultural values continue to have a strong impact on the Vietnamese society, and to a large extent adversely affect the entrepreneurial spirit of the community. Typical constraints private entrepreneurs face may have roots in the cultural facet as legacy of the Confucian society like relationship-based bank credit. Low quality business education is both a victim and culprit of the long-standing tradition that looks down on the role of private entrepreneurship in the country.
This paper explores the cultural impacts on the private entrepreneurship in the post-Doi Moi Vietnam.1 Some important aspects of the traditional cultural values of the Vietnamese society are explored along with the socioeconomic changes over the past two decades. In the academic circle across the world, entrepreneurship has enjoyed a voluminous literature contributed by many scholars in economics, sociology, anthropology, business management and political sciences, since the mid-20th century. The research line of entrepreneurship has received huge attention from the economists’ community across the world, especially after the seminal work in 1934, by Joseph Schumpeter’s The Theory of Economic Development. In his study, Schumpeter placed entrepreneurship in a major theoretical framework to track the progress of human society and economic growth. Since the study of Schumpeter, there has been a major shift in the perception of economists. Entrepreneurs could now be considered a crucial factor in contributing to the economic * Professor of Financial Economics, Department of Finance, Center Emile Bernheim, Solvay Brussels School of Economics and Management (SBS-EM), ULB CP 145/01 50, Avenue F.D. Roosevelt, 1050 Brussels, Belgium; and is the corresponding author. E-mail: email@example.com * * Director, Dan Houtte, Vuong & Partners – Economics & Management, 6/80 Le Trong Tan, Thanh Xuan District, Hanoi, Vietnam. E-mail: firstname.lastname@example.org 1
In 1986, Vietnam Communist Party and Government started economic reform programs, which were called Doi Moi. Major contents of these programs were replacement of central planning economic mechanism by market-oriented mechanism, acknowledgement of private property, and international/regional economic integration.
© 54 2009 IUP. All Rights Reserved. The IUP Journal of Entrepreneurship Development, Vol. VI, Nos. 3 & 4, 2009
growth by taking up opportunities, creating business and fostering innovation. By doing all these, entrepreneurship processes shift the economy out of an equilibrium state, while creating new states (Greenfield and Strickson, 1981). Stevenson and Jarillo (1990) provided a decent review on a plethora of entrepreneurship studies across the world. Three main streams of research are presented. The first area of literature is concerned with the consideration of what happens when entrepreneurs act; or in other words, they study the net effect on the general economic system of the actions performed by entrepreneurs. Major scholars who contributed significantly to this area are, inter alia, Richard Cantillo (who first coined the term ‘entrepreneur’), Jean Baptiste Say, Adam Smith and Joseph Schumpeter. The second area of literature on entrepreneurship is concerned with why entrepreneurs act; or what the causes of entrepreneurship are. Naturally, entrepreneurs themselves have now become the subject of interest to economists. If the first area of literature draws attention mainly from economists, this attracts the attention of a large number of sociologists, psychologists and anthropologists as well. The first level of inquiry into the causes of entrepreneurial behavior, according to Stenvenson and Jarillo (1990), conceptualizes entrepreneurship as a...
References: 1. Baker Ted, Gedajlovic Eric and Lubatkin Michael (2005), “A Framework for Comparing Entrepreneurship Processes Across Nations”, Journal of International Business Studies, Vol. 36, No. 5, pp. 492-504. 2. Farber André, Nguyen Van Nam and Quan Hoang Vuong (2006), “Policy Impacts on Vietnam Stock Market: A Case of Anomalies and Disequilibria 2000-2006”, Working Papers CEB, No. 06-005.RS, SBS-EM, Université Libre de Bruxelles, Belgium. 3. Farber André, Tran Tri Dung, Nguyen Huu Tu and Quan Hoang Vuong (2008), “The Financial Storms in Vietnam’s Transition Economy: A Reasoning on the 1991-2008 Period”, Working Papers CEB, No. 08-023.RS, SBS-EM, Université Libre de Bruxelles, Belgium. 4. Friedman Milton and Friedman Rose (1980), Free to Choose: A Personal Statement, Harcourt Brace Jovanovich, New York. 5. Greenfield Sidney M and Strickon Arnold (1981), “A New Paradigm for the Study of Entrepreneurship and Social Changes”, Economic Development and Cultural Changes, Vol. 29, No. 3, pp. 467-499. 6. Lumpkin G T and Dess Gregory G (1996), “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance”, Academy of Management Review, Vol. 21, No. 1, pp. 135-172. 7. Napier Nancy K (2005), “Knowledge Flows in Vietnam: Starts, Stops, and Loops”, Journal of Managerial Psychology, Vol. 23, No. 1, pp. 621-625. 8. Napier Nancy K and Thomas David C (2004), Managing Relationships in Transition Economies, Praeger Publishers, Westport, Connecticut. 9. Nguyen Dong-Chi (1982), “Kho Tang Truyen Co Tich Viet Nam” (in Vietnamese; English Title: The Vietnamese Legendary Stories), Nha Xuat Ban Van Hoc, Hanoi Vietnam.. 10. Pham Minh Chinh and Vuong Quan Hoang (2008), “An Ninh Tai Chinh Quoc Gia: 7 Dau Hieu Canh Bao” (in Vietnamese; English Title: National Financial Securities: Seven Warning Signs), Communist Review, Vol. 78, No. 786, pp. 71-78. 11. Pham Minh Chinh and Vuong Quan Hoang (2009), “Kinh te Viet Nam: Thang Tram va Dot Pha” (in Vietnamese; English Title: Vietnam’s Economy: The Rise and Fall, and the Shifts), National Political Publisher, Hanoi, Vietnam. 12. Ronnås Per (1992), Employment Generation Through Private Entrepreneurship in Vietnam, ILO Publications, Stockholm. 13. Ronnås Per and Ramamurthy (2001), “International Labour Migration and Globalisation”, NIASnytt, No. 3, pp. 3-6. 14. Rozman Gilbert (2002), “Can Confucianism Survive in an Age of Universalism and Globalization?”, Pacific Affairs, Vol. 75, No. 1, pp. 11-37.
The Cultural Dimensions of the Vietnamese Private Entrepreneurship 77
15. Stevenson Howard H and Jarillo Carlo J (1990), “A Paradigm of Entrepreneurship: Entrepreneurial Management”, Strategic Management Journal (Special Issue: Corporate Entrepreneurship), Vol. 11, No. 5, pp. 17-27. 16. Stopford John M and Baden-Fuller Charles W F (1994), “Creating Corporate Entrepreneurship”, Strategic Management Journal, Vol. 15, No. 7, pp. 521-536. 17. Trong Kim Tran (1919), “Viet Nam Su Luoc ” (in Vietnamese; English Title: A Brief History of Vietnam), Nha Xuat Ban Van Hoa Thong Tin, Hanoi, Vietnam. 18. Ts’ao Ignasius J H (1975), “Confucius in the Middle of the New Cultural Revolution Today”, Studies in Soviet Thoughts, Vol. 15, No. 1, pp. 1-33. 19. Vuong Quan Hoang (1997a), “A Question of Leverage”, Vietnam Investment Review, p. 13, March 24-30. 20. Vuong Quan Hoang (1997b), “The Leasing Alternative”, Vietnam Business Journal, Vol. 5, No. 3, p. 26. 21. Vuong Quan Hoang (2004), “The Vietnam’s Transition Economy and Its Fledgling Financial Markets: 1986-2003”, Working Papers CEB, No. WP-CEB 04-032, Solvay Business School, Université Libre de Bruxelles, Brussels, January. 22. Vuong Quan Hoang (2007), “Van Minh Lam Giau & Nguon Goc Cua Cai” (in Vietnamese; English Title: Enrichment Civilization and the Origin of Wealth), National Politics Publisher, Hanoi, Vietnam.
Reference # 26J-2009-09/12-04-01
The IUP Journal of Entrepreneurship Development, Vol. VI, Nos. 3 & 4, 2009
Please join StudyMode to read the full document