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Publication Date: February 25, 2022
DOI:10.14738/abr.102.11848. Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing
Enterprises in Vietnam. Archives of Business Research, 10(02). 252-269.
Services for Science and Education – United Kingdom
A Tudy of Impacts of the Use of Cost Information on Business
Performance of Fishery Processing Enterprises in Vietnam
Lan Anh DANG
Lecturer, Faculty of Economics and
Business Administration, Hong Duc University
Thi Minh Hue LE
Lecturer, Faculty of Economics and
Business Administration, Hong Duc University, Vietnam
ABSTRACT
This study aims to examine the relationship between the Use of Cost Information
(UCI) and the Business Performance (BP) of Fishery Processing Enterprises (FPEs)
in Vietnam. The authors approach the needs of managers to use cost information in
performing their functions of planning, business activities control, performance
evaluation, and business decision making. By quantitative research method, using
survey data from managers at FPEs, the authors examine the impact direction and
level of impact of UCI on the BP these enterprises. From there, the author proposes
solutions to improve the efficiency of using cost information for administrative
purposes, in order to improve BP of FPEs.
Keywords: Use of cost information, corporate governance, business performance, FPEs,
Vietnam.
"This article is the research result from the project code DT-2021-37 of Hong Duc University,
Vietnam"
INTRODUCTION
Vietnam is a strong exporter of fishery, and fishery products are present in 160 countries
around the world. Vietnam is currently the 1 st country in terms of pangasius market,
2 nd country for shrimp market; but for whole fishery products, this country is ranked 3rd, just
following China and Norway. The EU is also Vietnam's major fishery export market, with the
top import value. With the current development trend of Vietnam's fishery industry, the supply
of aquatic products can meet domestic demand and need to be exported to the world
market. The value of Vietnam's fishery export is increasing; by 2025 the total export value of
the whole fishery industry will reach about 13.473 million USD . In particular, shrimp product
is estimated for 63.0%; pangasius is estimated for 17.0%; tuna is estimated for 6.0%; and other
fishery is estimated for 5.0%. Table 1.1 shows the structure of Vietnam's exported fishery
products in the period of 2010-2015 and forecast until 2025.
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Table 1.1: Structure of Vietnam's exported fishery products in the period of 2010-2015 and
forecast until 2025
(In Million USD)
(Source: Institute of Fishery Economics and Planning, 2016)
Regarding the structure of Vietnam's fishery export market by 2025, the US is still the leading
fishery import market of Vietnam, accounted for 18.33%; the next market is the EU (accounts
for 11.44%); Japan (accounts for 11.24%); China (accounts for 9.57%); Korea (accounted for
7.67%); ASEAN (accounts for 6.36%); Australia (accounts for 2.27%); and other markets
(accounts for 33.13%). ( See table 1.2 )
Table 1.2: Structure of Vietnam's exported fishery market in the period of 2010-2016 and
forecast to 2025
In million USD
(Source: Institute of Fishery Economy and Planning, 2016)
The EU-Vietnam Free Trade Agreement (EVFTA) was signed in 2019 to help Vietnam's fishery
industry have a competitive advantage over rivals such as Thailand, China, Indonesia, and
India. Right after EVFTA came into effect, 90% of the Taxes on aquatic products exported to the
EU will be reduced to 0% in 3-4 years (the current import tax rate on the EU is about
14%). However, after the application of the "Yellow Card" to Vietnamese fishery products
exported to the EU in October 2017, the value of fishery exports to the EU market was strongly
influenced. The receipt of the EU “Yellow Card” causes many negative effects directly affecting
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the export of fishery to EU countries. Vietnam Fishery Association of Exporters and Producers
(VASEP) said có by the end of June 2018: the total export to the EU Fishery was only US $ 584
million, ranked 4 thAmong the major consumer Markets. Vietnam's fishery followed the US
which reached 626 million USD, Japan reached 599 million USD and China reached 586 million
USD. Meanwhile, the expected supply of aquatic products in 2025 is only 181.76 million tons
(aquaculture is estimated for 49.11%; and fishing production is estimated for 50.89%).
In Vietnam as well as many countries around the world, the Covid-19 pandemic has had a strong
impact on production and business activities in general and industrial production in
particular. Most industries have had production shrinkage due to reduced consumer demand,
some can maintain stable production but in the long run may also be affected by general
difficulties. It is necessary for enterprises to innovate corporate governance, improve
production and business efficiency. To innovate corporate governance, improve production
and business efficiency in difficult financial conditions, businesses need to be aware of the role
of information systems, especially cost information, understand the impact of UCI on
BP. Currently, the UCI in FPEs in Vietname is only for pure purposes such as determining
business results, recording costs, and managing costs, but has not been declared yet. Optimize
the UCI for the performance of the administrator's functions, thereby maximizing production
and business efficiency. Therefore, it is neecessary to conduct a study of the impact of UCI on
the BP of FPEs in Vietnam, in order to assess the impact of the UCI on the BP, thereby providing
policy implications to improve the production and BP of these units.
LITERATURE REVIEW
Research directions related to the topic include: Research on cost information and the benefits
of cost information for management purposes; and research on the impact of UCI on BP.
The research direction on cost information and the benefits of cost information for corporate
governance purposes starting in 2009, IFAC has shown that a cost information system is a
system for measuring and reporting cost information for different users according to their
needs. In general, cost information is provided to two audiences: Those who need cost
information on financial statements and managers who need cost information for management
such as planning, allocating resources, controlling, evaluating, and making management
decisions. Kaplan (1988) argues that a cost information system is mainly designed to provide
information for the preparation of financial statements and to provide managers with accurate
and timely cost information, improve operation efficiency. IMA (2014) also believes that a cost
information system is a system of collecting and measuring costs to provide inventory
assessment and resource management decisions.
Research on the UCI in the world mainly focus on the functions of managers. Horgnren et al
(2012) showed the relationship between cost information and management functions of
planning, pricing decision making, operational control, performance evaluation and business
decision making. A typical example is the study of the application of Target Costing in Japan in
the automobile manufacturing industry. Gagne & Discenza (1993) argued that car companies
in Japan have discovered that targeted cost reduction has resulted in relative cost reductions
through detailed product planning and design towards the target price that the market
accepts. The use of target cost information also helps businesses get higher profits, thereby
increasing the satisfaction of stakeholders such as customers, suppliers, and
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
employees. Mustafa (2018) confirms the role of cost information in cutting costs of Jordanian
companies for the food industry. This author uses the method of standard deviation, showing
the importance of UCI for cost control and profitability goals. Mahesh Gupta (2013) with his
research on Activity-Based Costing (ABC), proposes the conceptual framework “Operations
Hexagon” to discuss the implications of Activity-Based management for planning decisions,
product design, quality control, inventory management, capacity management and personnel
management. The results show that activity-based cost information allows managers to
improve their quality of decision-making. Shril (2012) also argues that activity-based cost
information could measures BP and improves BP. Tobi et al. (2010) state the need for cost
information in estimating, pricing decisions, customer profitability analysis, rewards, do-it or
buy-in decisions. Nguyen Viet (1997) believes that the cost accounting system helps businesses
calculate costs and determine selling prices more accurately, thereby helping managers make
more effective decisions. Nguyen Xuan Hung (2003) believes that providing cost information
helps managers assess the responsibilities of individuals and related departments, the
importance of cost information in management, especially in cost control. Dam Bich Ha (2018)
evaluates the advantages and disadvantages of cost information in decision making to improve
the competitiveness of enterprises in Vietnam and proposes some solutions. Nguyen Xuan
Hung (2003) believes that cost information should be provided according to the difference
between actual costs and normative costs to assess the responsibilities of related individuals
and departments for better cost control. Huynh Loi (2009) argues that the allocation of indirect
costs is for cost control and pricing products and services; cost information needs to be linked
to management functions such as planning, control, evaluation and decision making.
In general, those studies show that the awareness of the importance of cost information will
help managers build a good cost information system and allocate resources in the business
effectively. The authors have quite similar views on the statistical approach to the role and
benefits of cost information to the corporate governance function of the managers, through the
situational method. Quantitative studies based on questionnaire survey results are designed on
a 5-point or 7-point Likert scale, using a single regression model to test the impact of UCI on
production and business.
For research on the relationship between the UCI and BP, many scientists have proposed that
UCI affects BP of organizations, the better the quality of cost information, the higher the
business efficiency. Typically, the research model of Laitinen (2014) analyzes the effect of
changes in cost information on the financial performance of 121 manufacturing enterprises in
Finland, showing the fluctuations of the selling price system and uncertainty has a strong
negative effect on changes in performance. Akpan (2019), Albalaki (2019) and Alawadi (2019)
also have a research results on the business environment that has a positive impact on business
performance in industries such as manufacturing, oil and gas, apparel; especially information
under operational costs, cost information obtained from the methods of modern management
accounting. Some studies mention the relationship between the UCI with BP as Ho My Hanh
(2013), Le Thi Hong (2016), Nguyen Phi Hung (2017), Dang Lan Anh (2019), costs information
have a strong impact on BP of enterprises in different sectors, they also emphasized the need
for cost information of in performing the managers’ function is high and it is a factor key. Hoang
Huy Cuong (2021) has a resreach on the factors that affect the UCI and the impact of cost
information to the operating results of businesses in Vietnam Southern Companies. The results
showed a positive relationship between the UCI and BP in the companies.
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In general, studies have discovered evidences that the UCI has a positive impact on BP on the
criteria of ROA, competitiveness, profitability, life cycle, and cost control. It was proven by the
previuous research results that the managers’ awareness of the importance
of cost information is extremely necessary. However, the studies mainly used case method and
descriptive statistics, not many quantitative studies. For FPEs in Vietnam, there has not been
any research on the UCI, as well as the impact of UCI on the operation results of the enterprises.
THEORETICAL BASIS
Cost and use of cost information for administrative purposes
IMA (2014) defines cost as a measure in money through the use of resources or outputs to
achieve a specific management purpose, or to produce a product to provide. IFAC (2009)
defines cost as the monetary value of resources used to produce a product, or perform an
activity or service to provide. The definitions all show that cost is the value of resources that a
business uses for a particular purpose; costs must be expressed in terms of money, when
performing a certain activity, project or job, how much money does it consume. In the process
of operating business activities, managers cannot lack cost information. The cost information
needs of managers are associated with management functions including planning functions,
control functions, performance evaluation functions, and decision making.
Use of cost information for planning
Planning is the first important stage of the business organization process of a enterprise,
including the following contents: Determining goals, making estimates, allocating resources in
the business, forecasting risks and analyze business opportunities. The need for cost
information of managers for planning has been covered by previous studies. Imoro Braimah et
al. (2010) assert that cost information plays an important role in cost estimation, profit
estimation, resource allocation, contributing to perfecting the planning process of service
enterprises, rural water supply and sanitation in Ghana. Radmila (2010) believes that
information helps managers predict risks and detect potentials. Andrijana Rogosic (2021) with
public sector practice in Croatia shows that cost information is most useful for resource
planning. Tani et al. (1994) argues that there is a clear market orientation for product
development using target cost information. Dekker & Smidt (2003) through descriptive
statistics have shown that the competitive environment and unpredictable events are affected
by the use of target cost information.
Use of cost information for control
To control business activities, cost information is the most necessary information for
managers. This is the main amount of information and accounts for a large proportion of the
costs incurred in order to promptly adjust and reorganize production and business activities to
suit newly arising conditions. The information to be provided includes information about costs,
prices, profitability of business plans, information about resource consumption in the unit in
cost centers. These cost information must clearly show the difference between the estimated
information and the performance information, the cause of the difference and to determine the
responsibilities of the people involved in the cost generation. Also from this information, the
administrator has a basis for the business plan in the next period. Radmila (2010) said that
managers need information about excess production capacity of operations, each workshop,
and each center in the company, from which to analyze cost fluctuations and causes to perform
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
control. effective control. Andrijana Rogosic (2021) shows that cost information positively
supports businesses when controlling for public services.
Use of cost information for operational assessment and decision making
The purpose of the business performance review is to ensure that the actual results realized
will be as planned. To perform inspection and control, the administrator conducts control at
the pre-operation, in-operation and post-operation stages. The cost information that needs to
be provided is the actual cost information incurred and the estimated cost. In addition, in order
to evaluate the performance of each business division, managers need to have cost information
and variable cost information of each business division, relative and absolute comparison with
other business segments as well as the whole enterprise.
Decision making is also a function of managers, is the selection of an option out of many offered
options, the most obvious decision-making function at the planning stage. The decision-making
process depends on the nature of each type of decision, the decision-making can take place
every minute, hourly, daily or monthly or yearly, depending on the management
requirements. Therefore, decision-making is carried out at all stages of the business process,
including product pricing and decision-making in some special cases. To do that, IFAC (2000)
indicates that managers need to have an understanding of the options being considered, and at
the same time, managers need to have qualifications, skills and methods of analyzing
information. Cost information is collected for decision making also. Gheorghe Lepadatu (2018)
confirms the importance of cost information in decision making. Mark Covaleski (2006)
provides empirical evidence on the value of cost information in product selling pricing, finding
the difference between full pricing and variable cost pricing; impact on resource allocation for
business activities. Peter Lane (2018) gives the same conclusion when testing at tourism
service businesses, concludes that cost information is useful for periodic price adjustments for
existing products. Mevellec & Bertrand (2005), based on ABC, activity management (ABM) was
focused on assessing which activities are effective or ineffective, and which activities need to
be cut off if unnecessary, improve product quality, increase response time to customer needs
and this management is the basis to help maintain the ABC system. Kaplan & Cooper (1998),
information about the profit and loss of each product, each customer can help managers in
adding or removing a certain product line.
Operational results
Neely et al. (1995) provides a measure of business performance, which can be a financial
measure expressed in profits, ROA, ROE, ROI, ... or a non-financial measure such as cost control
effectiveness, production efficiency, market share and customer satisfaction. Banker et al
(2000), Kaplan & Norton (1996) offer a more complex measure through the balanced
scorecard. Tippins and Sohi (2003) measure performance through: Return on investment,
Customer satisfaction, Customer retention, Development of new products, Firm growth,
Profitability, and Sales growth. In this study, the authors used the scale of Banker et al. (2008)
and Kaplan & Norton (1996). Through theoretical and experimental research, production
results are measured through the following aspects: new product development time, delivery
reliability, and customer responsiveness. Cost control results are measured through the
following aspects: direct material costs, direct labor costs, manufacturing overhead and non- manufacturing costs. Profit results are measured through the following aspects: market share,
profit margin on sales, asset turnover and return on assets.
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Impact of use of cost information on business performance
Laitinen (2014), Gagne & Discenza (1993) argue that the use of target information has reaped
great benefits, contributing to cost reduction for regions with high potential, thereby increasing
profit. Leahy (1998) concluded that using target cost information can cut costs, bring higher
profits, higher competitiveness, increase customer and employee satisfaction. Kekre &
Srinivasan (1990) have shown that expanding market share reduces direct and indirect costs,
with significant direct and indirect effects on ROI. Chongruksut (2002) believes that the cost
information from the ABC system helps enterprises increase competitiveness, increase profits,
and improve operations. Kennedy & Affleck-Graves (2001) have shown that using cost
information from ABC can increase firm value through better cost control and asset
utilization. Hoang Huy Cuong (2021) examines the relationship between the use of cost
information and the performance of enterprises in South of Vietnam. The results show a
positive relationship between the use of cost information and operational efficiency. Table 2.3
summarizes studies on how the use of cost information impacts business performance.
Table 2.3: Studies related to the use of cost information to improve operational efficiency
Research results Research
Methods The source
The UCI has the strongest impact on product pricing
systems, pricing decisions
Regression
analysis Laitinen (2014)
Full cost information helps to cut costs for segments and
departments with high potential, thereby increasing
profits
Situation Gagne & Discenza
(1993)
Full cost information supports cost cutting, resulting in
higher profits, higher competitiveness, increasing
customer and employee satisfaction, getting better
stakeholder relationships
Situation Leahy (1998)
The UCI improves decision making, analysis and control
of product profitability, better measures performance,
and improves those operations.
SEM analysis Kekre & Srinivasan
(1990)
If cost information is provided well, the business is more
likely to improve its financial and non-financial results. SEM analysis Chongruksut (2002)
The UCI contributes to increase competitive advantage
and get better financial results.
Regression
analysis
Kennedy & Affleck- Graves (2001)
The UCI improves production processes, customer
satisfaction, market share, and enhances financial
performance.
SEM analysis Hoang Huy Cuong
(2021)
(Source: Compiled by the authors)
RESEARCH MODEL AND HYPOTHESIS
In this study, the author evaluates the impact of the UCI on the BP of FPEs in Vietnam. Based on
the concepts and conceptual scales from previous studies and the actual conditions of FPEs in
Vietnam, the author selects 29 observed variables constituting 3 independent factors and 12
observed variables constituting 3 factors which measure 1 dependent factor.
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Definition Variable
name
The scale The source
The UCI for
planning
UCI.PLAN1
Cost information is used to make
cost estimates, target costs
according to the given plan.
Imoro Braimah et al (2010),
Andrijana Rogosic (2021),
IFAC, 2000; Tani et
al. (1994)
UCI.PLAN2 Cost information is used to allocate
resources within the company.
Imoro Braimah et al (2010),
Andrijana Rogosic (2021),
IFAC, 2000;
UCI.PLAN3
Cost information used for
product/product
line/department/center profit
forecasting
Imoro Braimah et al (2010),
Andrijana Rogosic (2021),
IFAC, 2000; Tani et
al. (1994)
UCI.PLAN4
Cost information used for
forecasting: risks, opportunities,
threats, potentials.
Radmila (2010), Andrijana
Rogosic (2021), IFAC,
2000; Dekker & Smidt
(2003)
The UCI for
control
UCI.CON1
Using information about the
difference between actual costs and
norms/estimates for administrative
work.
Radmila (2010), Andrijana
Rogosic (2021), IFAC, 2000;
UCI.CON2
Using actual cost information of
objects: activities, products/product
lines, distribution channels,
customers, responsibility centers
Radmila (2010), Andrijana
Rogosic (2021), IFAC,
2000; Tani et al. (1994)
UCI.CON3
Using information of cost
fluctuations and causes for managers
to control.
Radmila (2010), IFAC, 2000;
UCI.CON4
Using cost information to improve
operations more efficiently in using
resources
Radmila (2010), IFAC, 2000;
UCI.CON5
Using information of excess
production capacity of the
company's
operations/facilities/centers
Radmila (2010), IFAC, 2000;
UCI.CON6
Using cost information to control
and cut costs of operations,
products/product
lines/departments/centers
Radmila (2010), IFAC, 2000;
The UCI for
assessment
and decision
making
UCI.DEC1
Using cost information to evaluate
product/product
line/department/center/employee
performance.
Radmila (2010), Mevellec &
Bertrand, 2005, Kaplan &
Cooper, 1998
UCI.DEC2 Using cost information to analyze
and evaluate customer profitability.
Radmila (2010), Mevellec &
Bertrand, 2005
UCI.DEC3
Using cost information to make
decisions on adding or removing
products, product lines, or divisions
within a company.
Gheorghe Lepadatu (2018),
Andrijana Rogosic (2021),
Kaplan & Cooper, 1998
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UCI.DEC4
Using cost information for managers
to make decision on CVP, resource
allocation, reward, self-produce or
buy, new technology investment.
Gheorghe Lepădatu (2018),
Mevellec & Bertrand, 2005
UCI.DEC5 Using cost information to determine
the selling price for a new product.
Gheorghe Lepadatu (2018),
Mark Covaleski (2006),
Peter Lane (2018)
UCI.DEC6
Using cost information for periodic
price adjustments for existing
products.
Gheorghe Lepadatu (2018),
Peter Lane (2018)
UCI.DEC7
Use cost information for pricing
decisions in special situations: bulk
orders, product mixes, excess
production capacity
Gheorghe Lepadatu (2018),
Kaplan & Cooper, 1998
Production
cycle
PC1 Fater new product development
time
Banker et al. (2008)
PC2 Faster product production time
PC3 Higher reliability in delivery
PC4 Higher satisfying customer needs of
product’s feature
Cost control
CC1 Savings in direct material costs is
increasing
CC2 Savings in direct labor costs is
increasing
CC3 Savings in the overall production
cost is increasing
CC4 Savings in out-of-production costs is
increasing.
Profit
PR1 Increased market share
PR2 Increased return on sales (ROS)
PR3 Increased asset turnover (TOA)
PR4 Increased return on assets (ROA)
Figure 4.1: Research model
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Hypothesis:
Hypothesis H1: The use of cost information has a positive impact on the performance of
Vietnamese seafood processing enterprises.
RESEARCH METHODOLOGY
Research methodology was conducted through 2 steps: Qualitative research and quantitative
research.
Qualitative research was conducted with a sample of 20 managers at the FPEs to explore
Factors perceiving the UCI and examining the BP of FPEs in Vietnam. Qualitative research
results help the authors establish quantitative measurement tools.
Quantitative research was conducted through 2 phases.
In phase 1, the authors experimented on a small group to detect errors in the questionnaire.
In phase 2, the authors conducted a revised questionnaire.
The survey was conducted in December. According to the study of Hair et al. (1998), if the
sample size is around 100, the loading factor standard must be greater than 0.5. Bollen (1986)
proposed the ratio of 5 observations per estimated parameter in the multivariate analysis. In
the research, there are 34 variable observations, so the minimum sample size should be equal
to 34 * 5 = 170 samples. The study has a sample size of 450 managers of FPEs in Vietnam, which
can meet the requirements and be generalizable, representative of the total study; The total
number of valid questionnaires collected and processed was 380 questionnaires.
Hair et al. (1998) also recommends that study subjects were asked to answer questions on a 5-
level Likert scale (from 1 totally disagree to 5 totally agree). Questionnaires answered by
respondents were the main tool for collecting data. The author performs Exploratory Factor
Analysis (EFA), Confirmatory Factor Analysis (CFA), and Linear Structural Modeling (SEM)
using SPSS.20 software in combination with AMOS.20. Accreditation was done through the
following steps:
- Preliminary evaluation on the measurement scale and reliability of variables by Cronbach's
Alpha and Factor Loading by the Exploratory Factor Analysis (EFA).
- The CFA method was used to test critical models by examining univariate, multivariate,
convergent and discriminated values of concepts.
- From the CFA results, to construct and validate the fit of the research model through the SEM
model, to assess the impact of independent variables on the dependent variable.
- Measurement scale of research concepts: Including 29 observed variables (Corresponding
to 3 independent factor groups and 1 group of dependent factors)
- Sample survey statistics: The number of questionnaires sent was 450; 380 valid votes were
used for this analysis. The survey subjects were managers of all levels of the FPEs in Vietnam
RESEARCH RESULT
Descriptive Statistics
The study has a sample size of 450 managers, resulting in a total of 380 valid survey
questionnaires collected and processed. Demographic information of the observed sample is
presented in Table 6.1.
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Table 6.1: Description of demographic characteristics of the surveyed sample
Content Frequency Percent
Gender
Male 234 61,6
Female 146 38,4
Total 380 100
Age
25-35 years 184 48,5
35-50 years 120 31,5
Above 50 years 76 20
Total 380 100
Department
General management 103 27,1
Accounting - Finance 200 52,6
Other 77 20,2
Total 380 100
Education
Bachelor degree 93 24,5
Post graduate degree and other 287 75,5
Total 380 100
Company region
The North of Vietnam 74 14,2
The South of Vietnam 305 58,7
The Central of Vietnam 141 27,1
Total 520 100.0
Ownership
State-owned enterprises 91 17,5
Joint stock companies 159 30,64
Private enterprise 248 47,7
Joint venture enterprises 9 1,73
Enterprises with 100% foreign investment 13 2,5
Total 520 100.0
Types of fishery products
Frozen 381 73,3
Dry products 108 20,7
Canned food 17 3,26
Fish sauce 12 2,3
Shrimp chips 2 3,8
Total 520 100.0
(Source: The author's data analysis)
Scale reliability test results and exploratory factor analysis
The total number of valid questionnaires collected was 300 samples. The author used SPSS.20
software to process 29 variables, all variables have Corrected Item – Total Correlations bigger
than 0.3. The 29 variables were retained (17 independent variables and 12 dependent
variables).
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Analysis of Exploratory Factor
According to Anderson and Gerbing (1988), Principal Axis Factoring was used with Promax
rotation and factor loading coefficients ≥ 0.5 to incorporate remaining variables into
Exploratory Factor Analysis (EFA) model for the purposes of scale validation. We have the
resultant KMO coefficient = 0,823> 0,5; Bartlett's Test statistics are 2896.008 with significance
level of 0,000 <0,05; Cumulative of Variance is 72.072% (>50%). This proves that the analytical
data is perfectly relevant. Thus, all factor loading coefficients are greater than 0,5; explained
variance is greater than 50%, the remaining 29 observed variables are grouped exactly as the
original scale.
Table 4.2: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .823
Bartlett's Test of Sphericity
Approx. Chi-Square 2896.008
df 406
Sig. .000
(Source: The author's data analysis)
It is shown in the EFA results the following factors:
Factor 1: includes the observed variables UCI.DEC 1- UCI.DEC3 7 and is named “The UCI for
assessment and decision making” (UCI.DEC).
Factor 2: includes observed variables UCI.PLAN1-UCI.PLAN4 and is named “The UCI for
planning” (UCIPLAN).
Factor 3: includes observed variables UCI.CON1-UCI.CON6 and is named “The UCI for control”
(UCI.CON).
Factor 4: includes observed variables CC1-CC4 and is named “Cost control” (CC).
Factor 5: includes observed variables PC1-PC4 and is named “Production cycle” (PC).
Factor 6: includes observed variables PR1-PR4 and is named “Profit” (PR).
After EFA exploratory analysis, it can be seen that the model have no difference from the
research model, no observed variable is excluded from the study variables. There is no new
factor group as Table 4.3:
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Table 4.3: Exploratory Factor Analysis Matrix
Variables Factor
1 2 3 4 5 6
UCI.DEC7 0.693
UCI.DEC1 0.617
UCI.DEC5 0.606
UCI.DEC6 0.580
UCI.DEC4 0.572
UCI.DEC2 0.560
UCI.DEC3 0.445
UCI.PLAN2 0.839
UCI.PLAN1 0.813
UCI.PLAN3 0.601
UCI.PLAN4 0.471
UCI.CON4 0.697
UCI.CON2 0.564
UCI.CON5 0.524
UCI.CON1 0.496
UCI.CON3 0.426
UCI.CON6 0.371
CC3 0.844
CC4 0.686
CC2 0.568
CC1 0.355
PC2 0.797
PC1 0.625
PC4 0.452
PC3 0.325
PR3 0.647
PR2 0.579
PR1 0.531
PR4 0.321
(Source: The author's data analysis)
Analysis of Confirmatory Factor
The critical model of research concepts is shown in Figure 4.1. The critical model is a model of
established factors that are freely interrelated. CFI = 0.901, TLI = 0.978 are all greater than 0.9
(Bentler & Bonelt, 1980) and RMSEA = 0,045<0.8 (Steiger, 1990). The factor weights of each
observed variable are greater than 0.5, so the model can be considered convergent (Figure 4.1).
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Figure 4.1: CFA analysis results for the critical model
(Source: The author's data analysis)
Results of the analysis showed that: Correlation coefficients were less than 1, covariance testing
and correlation between pairs of variables were statistically significant (p < 0.05 value, Table
4.4). This implies that the factors in the model can be distinguished
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Table 4.4: Computable Rreliability Coefficients and Variance of Factors in the Model
Factors Estimate S.E. C.R. P
BP <--- UCI 0,550 0,119 4,628 ***
UCI.DEC <--- UCI 1,000
UCI.PLAN <--- UCI 1,172 0,198 5,932 ***
UCI.CON <--- UCI 0,881 0,158 5,570 ***
UCI.CC <--- BP 1,000
UCI.PC <--- BP 1,323 0,244 5,419 ***
UCI.PR <--- BP 0,725 0,154 4,696 ***
UCI.DEC7 <--- UCI.DEC 1,000
UCI.DEC1 <--- UCI.DEC 1,126 0,134 8,421 ***
UCI.DEC5 <--- UCI.DEC 1,208 0,146 8,251 ***
UCI.DEC6 <--- UCI.DEC 1,269 0,146 8,664 ***
UCI.DEC4 <--- UCI.DEC 1,072 0,137 7,843 ***
UCI.DEC2 <--- UCI.DEC 1,028 0,129 7,959 ***
UCI.DEC3 <--- UCI.DEC 1,012 0,126 8,023 ***
UCI.PLAN2 <--- UCI.PLAN 1,000
UCI.PLAN1 <--- UCI.PLAN 0,993 0,077 12,874 ***
UCI.PLAN3 <--- UCI.PLAN 0,740 0,063 11,780 ***
UCI.PLAN4 <--- UCI.PLAN 0,734 0,066 11,049 ***
UCI.CON4 <--- UCI.CON 1,000
UCI.CON2 <--- UCI.CON 0,705 0,090 7,852 ***
UCI.CON5 <--- UCI.CON 0,734 0,101 7,269 ***
UCI.CON1 <--- UCI.CON 0,713 0,096 7,451 ***
UCI.CON3 <--- UCI.CON 0,679 0,092 7,409 ***
UCI.CON6 <--- UCI.CON 0,535 0,094 5,677 ***
CC3 <--- UCI.CC 1,000
CC4 <--- UCI.CC 0,939 0,085 11,074 ***
CC2 <--- UCI.CC 0,817 0,078 10,413 ***
CC1 <--- UCI.CC 0,556 0,083 6,720 ***
PC2 <--- UCI.PC 1,000
PC1 <--- UCI.PC 0,873 0,094 9,312 ***
PC4 <--- UCI.PC 0,766 0,095 8,069 ***
PC3 <--- UCI.PC 0,633 0,091 6,965 ***
PR3 <--- UCI.PR 1,000
PR2 <--- UCI.PR 1,003 0,137 7,303 ***
PR1 <--- UCI.PR 1,023 0,144 7,080 ***
PR4 <--- UCI.PR 0,784 0,130 6,053 ***
(Source: The author's data analysis)
Structural Equation Modeling (SEM)
The study uses the SEM to assess the relevance of the research model and test the relationships
in the initial model. The results of the SEM analysis of the model with df = 370, Chi-square =
675.228 with p-value = 0.000 <0.05, Chi-square/df = 1.825 <3, CFI = 0.985, TLI=0,970; RMSEA
= 0.47<0.8 should confirm that the pattern consistent with market data (Figure 4.2).
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Dang, L. A., & Le, T. M. H. (2022). A Tudy of Impacts of the Use of Cost Information on Business Performance of Fishery Processing Enterprises in
Vietnam. Archives of Business Research, 10(02). 252-269.
URL: http://dx.doi.org/10.14738/abr.102.11848
Figure 4.2: Standardized Structural Equation Modeling (SEM)
(Source: The author's data analysis)
The SEM result shows that the relationship between the Use of Cost Information (UCI) and
Business Performance (BP) is acceptable (p < 0.05).
Hypothesis H1 is accepted (value of p < 0.05), in which the Government and Stakeholders’
Pressure (PRESS) strongly affects the Environmental Management Accounting
Implementation (EMAI) of the FPEs in Vietnam. This result is also consistent with the actual
conditions of the companies.
Table 4.5: Coefficients of regression model SEM and test results of the model’s hypotheses
Factors Standard
Estimate S.E. C.R. P Note
EMAI <--- PRESS 0.656 0,119 4,628 *** Accepted
CONCLUSION
Results of the causal relationship between the components in the research model in Table 4.5
with p < 0.05 confirmed that the factor The use of cost information (UCI) have a causal
relationship with Business Performance (BP) of the FPEs in Vietnam.
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