Factors Affecting Human Resource Development in Small and Medium Enterprises in Vietnam
Keywords:
Training and development policy, organisational culture, working environmentAbstract
Background: In the context of international economic integration and increasingly fierce competition, human resource development has become a crucial factor in determining the existence and sustainable growth of enterprises, particularly small and medium enterprises in the trade and service sectors in Vietnam.
Objective: This study aims to identify and measure the factors that affect human resource development in the SME trade and service sector. Based on the inheritance of theory and previous research works from both domestic and international contexts, the proposed research model encompasses the following factors: training and development policy, organisational culture, leadership style, work motivation, work environment, and human resource strategy.
Methodology: A quantitative research method was used, with a survey of local businesses. The linear regression model was used to test the impact of factors on human resource development, as measured by the adjusted R², which explains the percentage of variation in human resource development.
Result: The regression analysis revealed that the factors, including: (1) Training and development policy, (2) Organisational culture, (3) Leadership style, (4) Working environment, and (5) Work motivation had a positive and statistically significant impact on human resource development, with the aspects of training and development policy and leadership style having the most substantial impact.
Conclusion: The study proposes several managerial implications to help businesses orient and develop effective human resource policies, thereby enhancing the quality of local human resources.
Unique Contribution: This study develops a context-specific human resource development model tailored to Vietnamese small and medium enterprises in the trade and service sectors, incorporating five key internal elements. It empirically emphasises training and development policy as the most influential driver of human resource development by integrating qualitative insights with rigorous quantitative research.
Key Recommendation: Policymakers and SME managers must utilise these results to strategically prioritise resource allocation and development strategies within their workforce planning.
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