Abstract
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
Highlights
As we all know, the 4th industrial revolution has ushered in changes in all areas of social life, from production, trade, investment, and consumption
Our study addresses the gaps of previous studies in combining the two methods of data envelope analysis (DEA) and GMM in both classifying effective enterprises and assessing factors affecting firm performance
The above results indicate that the Information and Communication Technology (ICT) index and the degree of diversification both have a positive effect on efficiency, proving hypothesis H1, consistent with the research results of Concetta Castiglione
Summary
The 4th industrial revolution has ushered in changes in all areas of social life, from production, trade, investment, and consumption. Are terms no longer strange to us They come from digitalization in all fields, combining computer science and data science, especially the great innovation in Information and Communication Technology (ICT) (David Mhlanga, 2021). One way that ICT helps is to create competitive advantages and enhance the performance of enterprises (Apulu et al, 2011; Yunis et al, 2018; and Brynjolfsson and Hitt,1993) Other studies such as Roach (1991), Loveman (1998), Samwel Macharia Chege et al (2020) suggest that investment in ICT does not increase productivity and efficiency in business, Research on other aspects, typically Brooke (1991), argue that the initial impact and goal of ICT is to increase product diversification.
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