From Risk Management to Opportunity Management: An Institutional Approach
Dang, My (2015)
Lataukset:
Dang, My
Hämeen ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015110816061
https://urn.fi/URN:NBN:fi:amk-2015110816061
Tiivistelmä
As Institutions has become an important research topic, the motivation to understand the institutional environment in a particular economy and how firms adapt to this environment created a background for the thesis. Vietnam, as an emerging economy, is an ideal example of a weak institutional system. By reviewing relevant literature in the fields of institutions and risk management, the study developed a theoretical framework of effective management strategies for firms to exploit opportunities and gain competitive advantages. Furthermore, the framework was examined in the situation of the commissioner company in Vietnam in order to understand the current situation in the country. The thesis includes a deep structured interview with the CEO of a Vietnamese private company in the telecommunication industry, RADTECH. Recommendations were given to the commissioner company's manager when dealing with institutional issues in order to enhance the firm’s performance.
Theories on risk management show limitations in coping with risks caused by a weak institutional environment, while opportunity management may increase firm’s performance in this situation. In particular, theories on Institutions reveal that business ties and political ties play an important role in acquiring institutional support and thus, gaining competitive advantages. In addition, organizational learning and market orientation enhance positive relationships between managerial ties, institutional support and firm’s performance. These theoretical findings created a foundation for the development of the conceptual model in this study. The commissioner company, RADTECH is aware of its institutional environment and has been using managerial ties strategy to achieve growth and success. Table 3 showed that most of the hypotheses were supported. Nevertheless, the effects of some variables in the conceptual model, such as the relationship between market orientation and cost advantage, have not been realized by the CEO of the company. This thesis, therefore, provides a better understanding of the situation and a theoretical framework for managerial implications. With the conceptual model, future research can examine at a larger scale for SMEs in different areas in Vietnam and compare the effects of managerial ties on firm’s performance through institutional support and management strategies in order to gain a deeper knowledge concerning this issue.
Theories on risk management show limitations in coping with risks caused by a weak institutional environment, while opportunity management may increase firm’s performance in this situation. In particular, theories on Institutions reveal that business ties and political ties play an important role in acquiring institutional support and thus, gaining competitive advantages. In addition, organizational learning and market orientation enhance positive relationships between managerial ties, institutional support and firm’s performance. These theoretical findings created a foundation for the development of the conceptual model in this study. The commissioner company, RADTECH is aware of its institutional environment and has been using managerial ties strategy to achieve growth and success. Table 3 showed that most of the hypotheses were supported. Nevertheless, the effects of some variables in the conceptual model, such as the relationship between market orientation and cost advantage, have not been realized by the CEO of the company. This thesis, therefore, provides a better understanding of the situation and a theoretical framework for managerial implications. With the conceptual model, future research can examine at a larger scale for SMEs in different areas in Vietnam and compare the effects of managerial ties on firm’s performance through institutional support and management strategies in order to gain a deeper knowledge concerning this issue.