Using IPA model to evaluate management criteria for State-owned enterprises

Abstract

In modern society, State management plays an important role. Therein, State-owned enterprises in Vietnam played a pivotal role in post-war economic development. Therefore, the main objective of the study is to analyze the evaluation criteria of State management for SOEs. The article identifies criteria and analyzes SOE management based on the Importance - Performance Analysis model to measure the gap between the level of importance and level of performance of the criteria. This research uses both qualitative and quantitative data obtained from interviewing experts and surveying 425 managers. The Cronbach’s Alpha test, Exploratory Factor Analysis, Paired Samples T-Test, and IPA model are employed to analyze the data collected. The research results pointed out that the indicators of the evaluation criteria are scattered in four quadrants of the IPA model. Especially, the first quadrant has up to ten indicators that are evaluated at a low level of performance, focusing on efficiency and effectiveness criteria. It means the efficiency and effectiveness of State management have not been appreciated. The second quadrant which keeps up the good work has six indicators. The third quadrant (lower priority) has six indicators. And the fourth quadrant (possible overkill) has eleven indicators. The results brought practical implications for the managers of the State management agencies to understand the actual situation of State management for SOEs in recent years. From the analysis of the Importance and Performance in the IPA model, two criteria that need to be focused on improving are efficiency and effectiveness. The article also presents discussions and recommends solutions to improve the management of the State. In addition, matrix IPA is also being analyzed to provide a basis for managerial implications to improve the State management for SOEs in the future.