Impact of managerial human resource quality on growth of firms in the Mekong Delta, Vietnam

Abstract

This paper empirically examines the impact of managerial human resource quality on firm growth, using a primary data set of 450 firms randomly selected out of the Mekong River Delta (MRD), in addition to secondary data retrieved from relevant governmental organizations. The results found using OLS estimation method reveal those components of managerial human resource quality that do have effects on the growth of firms. Firstly, better professional knowledge enables managers to manage firms and make use of good market opportunities. Secondly, participation in short trainings will enrich knowledge for managers so as to create chances for firms to grow. Thirdly, experience is also a precious source to help managers avoid mistakes, which spurs faster firm growth. Fourthly, age has impact on firm growth. Both too young and too old managers have intrinsic weaknesses that hold back the possibility to grow of firms. Finally, overseas Chinese managers do better Vietnamese counterparts in terms of boosting the growth of firms thanks to certain specific attributes. Solutions are then proposed to upgrade managerial human resource quality so as to promote growth of firms in the MRD.