Abstract
In the context of international integration, managers’ knowledge plays an important role as a valuable organizational resource from a strategic perspective and a foundation for competitive advantage in business environment. The aim of this paper was to build assessment model and attest it in the case of Vietnam’s Small Medium Enterprises (SMEs) regarding manager’s knowledge in preparing the information on financial statements. By analyzing current relative standards (including international and national systems) and two basic assessment models (ASK by Bloom et al. (1956) and BKD by Shinseki (1999)), the study developed to identify the assessment criteria of the manager’s knowledge as one main research objective. The research data of 71 SMEs in the sample showed that: (i)The relationship between managers’ background and their understanding about information on their financial statements was a negative linkage; (ii) The number of managers using their financial statements to make a business decision was very low; and (iii) The most important criteria on the financial statement in their views were profits and revenues.
Highlights
According to the World Bank (2013), the “skilled workforce is central to the success of Vietnam’s economic and social transitions” (World Bank, 2013)
The report of VCCI (2016) shows that Vietnam is a country with a low ranking among ASEAN countries in corporate governance, the lack of management capacity and scale limitation are the major barriers to contribute to this status
This paper focuses on identifying criteria to serve as a basis for identifying and assessing the status of the management's knowledge about the presentation of financial statements, thereby proposing recommendation to improve the quality of financial statements and access to information from businesses
Summary
According to the World Bank (2013), the “skilled workforce is central to the success of Vietnam’s economic and social transitions” (World Bank, 2013). The improvement of the management capacity in corporate governance is a strong current important content to develop the SMEs in Vietnam. The major tendency of international economic integration occurs in one and most countries. In such a context, international integration strategy becomes increasingly important to SMEs (Phi Thi Diem Hong, 2017). The SMEs manager’s knowledge in using financial information is still limited, their information performing on financial statements (supplying for internal and external users) has been continuously inefficient and short of necessary institutions to assist the improvement process (ibid)
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