Submitted:
28 May 2024
Posted:
29 May 2024
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Abstract
Keywords:
1. Introduction
2. Literature Review
2.1. Literature Review on Organizational Culture
2.2. Elements Constituing Organizational Culture
2.3. Employee Performance
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- Work quality or service quality: This is an important factor to measure employee performace. Some empirical studies on this factor, [32] define work quality or service quality are the differences between expectations versus actual results. Similarly, service quality is the customers’ assessment about the outstanding features of a product/service based on actual experiences [33]
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- Ability in retaining customers: the ability to uphold customers is key factor in evaluating employee performance since customers play important role in generating business’s revenue, profits and maintaining business performace. Great employees achievement refer to the one who is skillful in persuading, retaining loyal customers and increasing potential customers at the same time. [34]
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- Employee commitment to the business: Employee commitment is an emotional attachment and involvement with a business. They demonstrate responsibilities and desire to contribute to the overall development of the business. Commitment provides employees a sense of responsibility, obligation and attachment to the business [35]
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- Employee attitude towards colleagues and customers: apart from the abovementioned factors, employees attitude towards colleagues and customers play a crucial atribute in evaluating employee performace [36]. It is one of the prior factor affecting customer engagement with a business’s services; the professionalism and dedication of employees aid in developing customer satisfaction in term of service quality. In addition, employee’s attitude toward colleagues equal to gentle, friendly and respectful relationships with working partners would create positive working environment, hence enhancing work quality which improve business reputation as a consequence.
2.4. Fundamental for Research Hypothesis
- The relationship between elements of artefacts and labor efficiency:
- The relationship between assumption and labor efficiency:

3. Materials and Methods:
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- Determing data required for the investigation. The authors select information that are necessary for the research, avoiding extraneous and inappropriate ones.
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- Collecting secondary data from logistics businesses’ internal sources such as company’s history, brochures, revenue reports, etc which are reliable and useful source of data.
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- Identifying secondary data collected from external sources in large archives, including newspapers, Internet, books, dissertations. Copied information are hand-copied or taken as photos then compiled and rearranged into a notebook to keep on track.
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- Detailed value analysis of secondary data: after collecting all information from secondary sources, the authors review data accuracy by compare and contrast similar information from various sources. In case discrepancy occurs, further research is conducted for verification.
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- Determining the objective of designing questionnaires is to collect employees’ evaluation in various companies on specific factors of organizational culture and their self-assessment on work sustainability; thereby drawing conclusions about the influences of organizational culture on labor efficiency in a sustainable way.
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- The authors determine the question types used for the survey which is ticking or circling. Survey layout and question arrangement are developed in a logical and concise way.
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- Defining method for forming questions effectively. Questions are easy to address without any hidden meaning. Answer types are mostly multiple answer options.
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- Investigating list: request for a list of employees from the Vietnam General Statistics Office, Vietnam Logistics Service Business Association, Vietnam Logistics Human Resources Association. Questionnaires are then sent to employees via emails. Responses are sent back via email automatically once done.
| No. | Variable | Symbol | Cronbach’s Alpha | Kaiser-Meyer-Olkin | Sig. | Value of first pillar (%) |
|---|---|---|---|---|---|---|
| 1 | Language and slogan | NNKH | ,965 | ,808 | ,000 | 90,695 |
| 2 | Construction architecture | KTXD | ,842 | ,716 | ,000 | 76,313 |
| 3 | Equipment, products, machinery | TTBS | ,956 | ,783 | ,000 | 88,979 |
| 4 | Knowledge of business | TTDN | ,821 | ,720 | ,000 | 73,718 |
| 5 | Leadership style and division of power | PCLD | ,846 | ,801 | ,000 | 68,476 |
| 6 | Business philosophy and bmission | TLKD | ,792 | ,731 | ,000 | 61,694 |
| 7 | Company ideal | LTDN | ,933 | ,725 | ,000 | 83,458 |
| 8 | Employee trust and belief | NTNV | ,913 | ,804 | ,000 | 79,576 |
| 9 | People’s relationship with natural environment | TCDN | ,924 | ,730 | ,000 | 87,439 |
| 10 | Ethical standards | CMDD | ,760 | ,703 | ,000 | 58,833 |
4. Results and Discussion
| Model Summaryb | |||||||||||
| Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | Durbin-Watson | ||||||
| 1 | .861a | ,741 | ,724 | ,52582073 | 2,011 | ||||||
| a. Predictors: (Constant), CMDD, LTDN, NNKH, KTXD, TLKD, TCDN, TTBS, TTDN, NTNV, PCLD | |||||||||||
| b. Dependent Variable: KQLD | |||||||||||
| ANOVAa | |||||||||||
| Model | Sum of Squares | df | Mean Square | F | Sig. | ||||||
| 1 | Regression | 119,250 | 10 | 11,925 | 43,130 | .000b | |||||
| Residual | 41,750 | 151 | ,276 | ||||||||
| Total | 161,000 | 161 | |||||||||
| Unstandardized coefficient | t | Sig. | Multicollinearity statistics | |||
| B | Standard error | Tolerance | VIF | |||
| (Constant) | -6,452E-17 | ,041 | ,000 | 1,000 | ||
| NNKH | -,003 | ,042 | -,072 | ,942 | ,953 | 1,049 |
| KTXD | ,047 | ,043 | 1,084 | ,280 | ,920 | 1,087 |
| TTBS | ,002 | ,048 | ,041 | ,967 | ,736 | 1,358 |
| TTDN | ,012 | ,048 | ,240 | ,810 | ,745 | 1,342 |
| PCLD | ,214 | ,058 | 3,670 | ,000*** | ,504 | 1,983 |
| TLKD | ,119 | ,044 | 2,715 | ,007** | ,888 | 1,126 |
| LTDN | ,373 | ,055 | 6,739 | ,000*** | ,559 | 1,788 |
| NTNV | ,399 | ,057 | 7,026 | ,000*** | ,531 | 1,882 |
| TCDN | ,085 | ,043 | 1,977 | ,050* | ,938 | 1,066 |
| CMDD | -,055 | ,044 | -1,255 | ,211 | ,907 | 1,103 |
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- Regression results demonstrate independent variable PCLD (leadership styles and division of power) have an impact on labor efficiency within foreign-invested logistics enterprises in Vietnam at 95% (B=0,214; Sig. = 0 ,000). This result is consistent with literature economic theory and other privious reseaches. Therefore, factors from Leadership style and division of power generate positive influence on labor efficiency in Vietnamese foreign – invested logistics service enterprises. A standard leadership style and appropriate division of power within a business promote labor productivity in an effective way.
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- In reality, leadership style is one of the element of organizational culture that plays a particularly critical role in coordinating the entire activitíe within a business. Leadership style inspires work, transmits energy to employees and acts as a prerequisite for creating organizational culture. Leadership style posses profound effect on labor performance and business success (Mind Tools, 2000). Several empirical studies show that inappropriate leadership styles decrease 48% working effort and 38% working quality, which negatively impact on the labor efficiency of the business. Besides, a set of appropriate and specific division of power enables logistics service businesses to make decisions at ease. Decision making is made in the host country based on the hierarchy of power division, instead of spending time consulting parent company. This enables employees to solve problems sufficiently, time saving and productivity achievement effectively in the logistics process.
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- Regression results indicate the independent variable of TLKD (Business philosophy and mission) has positive impact on labor efficiency at Vietnamese foreign-invested logistics businesses at 95% (B = 0,119; Sig. = 0,007). The result is consistent with previously mentioned researches in the Literature review. Therefore, factors from Business philosophy and mission have significant positive effect on labor efficiency in foreign-invested logistics enterprises. This implies that business philosophy and mission are profound thoughts that orient employees and all activities throughout the business; they are guidelines for all actions, aiming for high productivity and optimal efficiency in sustainable production. Business philosophy and mission are crucial elements constituting organizational culture, they act as the keys in enhancing labor efficiency and business success[38]. Business philosophy and mission are common ideology that all employees aim for, which are rigid and intransigent despite internal fluctuations, thus create sustainable development for the business.
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- Regression results show the independent variable LTDN ( Business ideals) has positive impact on the performance of employees at Vietnamese foreign-invested logistics businesses at the statistical 95% (B=0.373; Sig. = 0.000). The impact of this variable on labor efficiency is remarable with the regression coefficient (B = 0 ,373). The result is consistent with previous researches which means a proper company’s ideal will boost up individual’s working spirir and enhance employee committment with the organization, thereby promoting labor productivity.
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- Regression results show that independent variable NTNV (Employees trust) does have an impact on employee efficiency at Vietnamese foreign-invested logistics businesses at 95% (B=0,399; Sig. =0,000). The regression coefficient expressed that employee trust is one of the strongest factor affecting labor efficiency. The result is consistent with various researches. Employee trust is a key element that constitutes organizational culture which has direct propotion with labor efficiency, creating business success, especially at foreign-invested logistics services which is diverse in personnel, culture and global strategic thoughts.
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- Regression result illustrates the independent variable TCDN (People relationship with natural environment) has an positive impact on labor efficiency at Vietnamese foreign-invested logistics businesses at the statistical threshold of 95% (B=0.085; Sig. = 0.000). The higher the people relationship with natural environment is, the better the labor effciency as a result. Connectivity methods between business and environment such as mastery, harmoney, obedience [29] creates strong influence on labor efficiency. In physical existence, people relationship with natural environment and corporate social responsibility have positive effect on human capital and employee behaviors, thereby promote labor efficiency and business development in a sustainable way. FDI enterprises in general and Vietnam foreign-invested logistics enterprises in particular are raising awareness and aiming at environmental responsibility via green FDI flows of capital, which result in promoting labor efficiency and ensuring sustainable development.
5. Recommendations:
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- Develop a culture of employee trust: Foreign-invested logistics service enterprises are often diverse in terms of personnel, nationality and employee culture, thus special attention needs to be paid into creating and developing a culture of trust. First of, businesses are required to define clear logistics service business goals that each employee is clear about. This helps effectively in guiding the whole team to be consistent and coordinate smoothly towards a common connective spirit throughout the business. Secondly, it is vital for logistics service businesses to create appropriate remuneration policies, ensuring stable and sustainbale income for every workers in the host country as well as in the foreign country. Employees contributions at work should be recognized and appraised for strengthening trust and improve motivation. Moreoever, organization can foster open discussion and communication to improve collaboration and engagement between people within the same organization. Training and fostering professional expertise, soft skilled as well as behavioral culture among employees should be held regularly.
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- Build leadership and management style: A standard leadership and management style should be create to coordinate all activities within an enterprise. Business leaders and managers must identify and set appropriate ethical standards. A suggested motto set for employees can be improving work quality and efficiency, communicating friendly and supportive with customers in the host country associated with cultural characteristics, help and encourage other collegues. Besides, leaders must be equipped with professional qualifications and ethical qualities with thorough perceive on the importance of organizational culture, especially in multinational logistics service company. Leaders’ responsibility must be highlighted; decisions must be clear, powerful and appropriate based on hierachy within various stages of the logistics process. Leadership methods should be developed properly to be flexible with differences in multicutural and cross-border coorperation.
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- Demonstrate business’s ideal: Foreign-invested logistics enterprises design their images through visual symbols and facilitíe, impresive office architecture, logos and slogans,etc. to be outstanding and remarkable once they are approached by customers or employees.
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- Building inspring business philosophy and corporate mission. Foreign-invested logistics service enterprises should take into account human and uniqueness factors when creating business philosophy to mark positive impression on customers and partners. Business philosophy must evoke the cohesion of all employees, small strength of employees can assemble greate power for the business as a whole; each employee acts as an important key in each stage of the logistics activities, creating great quality of the entire ordering process. Furthermore, variety in leadership styles, development orientation, business strategy and organizational culture should be emphasized and analyzed to best suit the customers’ tastes at the host country.
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- Establish organizational culture associated with environmental and social responsibility, aiming for sustainable development. Foreign-invested logistics enterprises should focus on building strategies and solutions towards the trends of “greening” or “ greening logistis”, putting effort into implementing environmnr responsibility.
6. Conclusions
| Collinearity Diagnosticsa | ||||||||||||||
| Model | Eigenvalue | Condition Index | Variance Proportions | |||||||||||
| (Constant) | NNKH | KTXD | TTBS | TTDN | PCLD | TLKD | LTDN | NTNV | TCDN | CMDD | ||||
| 1 | 1 | 2,473 | 1,000 | ,00 | ,00 | ,02 | ,04 | ,03 | ,05 | ,00 | ,05 | ,06 | ,00 | ,00 |
| 2 | 1,412 | 1,323 | ,00 | ,07 | ,09 | ,07 | ,08 | ,03 | ,00 | ,02 | ,00 | ,08 | ,12 | |
| 3 | 1,266 | 1,398 | ,00 | ,08 | ,00 | ,03 | ,11 | ,01 | ,24 | ,01 | ,01 | ,04 | ,13 | |
| 4 | 1,124 | 1,483 | ,00 | ,17 | ,00 | ,03 | ,02 | ,02 | ,23 | ,02 | ,00 | ,25 | ,05 | |
| 5 | 1,000 | 1,573 | 1,00 | ,00 | ,00 | ,00 | ,00 | ,00 | ,00 | ,00 | ,00 | ,00 | ,00 | |
| 6 | ,923 | 1,636 | ,00 | ,20 | ,40 | ,00 | ,02 | ,00 | ,02 | ,00 | ,01 | ,15 | ,18 | |
| 7 | ,808 | 1,749 | ,00 | ,45 | ,43 | ,03 | ,03 | ,00 | ,00 | ,00 | ,00 | ,19 | ,00 | |
| 8 | ,718 | 1,856 | ,00 | ,00 | ,05 | ,22 | ,00 | ,01 | ,25 | ,00 | ,00 | ,23 | ,42 | |
| 9 | ,515 | 2,191 | ,00 | ,01 | ,00 | ,50 | ,70 | ,00 | ,17 | ,00 | ,00 | ,04 | ,07 | |
| 10 | ,426 | 2,409 | ,00 | ,02 | ,00 | ,01 | ,01 | ,02 | ,04 | ,70 | ,51 | ,00 | ,01 | |
| 11 | ,334 | 2,719 | ,00 | ,00 | ,02 | ,07 | ,02 | ,85 | ,04 | ,20 | ,39 | ,00 | ,02 | |
| Residuals Statisticsa | |||||
| Minimum | Maximum | Mean | Std. Deviation | N | |
| Predicted Value | -1,6668369 | 1,5750592 | ,0000000 | ,86063098 | 162 |
| Residual | -1,31977975 | 1,20669103 | ,00000000 | ,50922913 | 162 |
| Std. Predicted Value | -1,937 | 1,830 | ,000 | 1,000 | 162 |
| Std. Residual | -2,510 | 2,295 | ,000 | ,968 | 162 |
| a. Dependent Variable: KQLD (Sources: Results of the survey). | |||||
| Total Variance Explained | |||||||||
| Component | Initial Eigenvalues | Extraction Sums of Squared Loadings | Rotation Sums of Squared Loadings | ||||||
| Total | % of Variance | Cumulative % | Total | % of Variance | Cumulative % | Total | % of Variance | Cumulative % | |
| 1 | 7,663 | 20,712 | 20,712 | 7,663 | 20,712 | 20,712 | 3,774 | 10,199 | 10,199 |
| 2 | 4,162 | 11,248 | 31,960 | 4,162 | 11,248 | 31,960 | 3,704 | 10,011 | 20,210 |
| 3 | 3,775 | 10,203 | 42,164 | 3,775 | 10,203 | 42,164 | 3,443 | 9,306 | 29,516 |
| 4 | 2,982 | 8,060 | 50,224 | 2,982 | 8,060 | 50,224 | 3,380 | 9,134 | 38,650 |
| 5 | 2,611 | 7,058 | 57,282 | 2,611 | 7,058 | 57,282 | 2,746 | 7,423 | 46,073 |
| 6 | 2,079 | 5,618 | 62,899 | 2,079 | 5,618 | 62,899 | 2,699 | 7,293 | 53,366 |
| 7 | 1,939 | 5,242 | 68,141 | 1,939 | 5,242 | 68,141 | 2,551 | 6,893 | 60,260 |
| 8 | 1,541 | 4,165 | 72,306 | 1,541 | 4,165 | 72,306 | 2,419 | 6,539 | 66,798 |
| 9 | 1,419 | 3,834 | 76,140 | 1,419 | 3,834 | 76,140 | 2,325 | 6,284 | 73,082 |
| 10 | 1,073 | 2,900 | 79,040 | 1,073 | 2,900 | 79,040 | 2,204 | 5,958 | 79,040 |
| 11 | ,771 | 2,084 | 81,124 | ||||||
| 12 | ,693 | 1,872 | 82,997 | ||||||
| 13 | ,595 | 1,608 | 84,605 | ||||||
| 14 | ,553 | 1,495 | 86,100 | ||||||
| 15 | ,526 | 1,421 | 87,521 | ||||||
| 16 | ,450 | 1,217 | 88,738 | ||||||
| 17 | ,425 | 1,148 | 89,886 | ||||||
| 18 | ,403 | 1,090 | 90,975 | ||||||
| 19 | ,360 | ,972 | 91,948 | ||||||
| 20 | ,321 | ,868 | 92,816 | ||||||
| 21 | ,306 | ,827 | 93,643 | ||||||
| 22 | ,283 | ,765 | 94,407 | ||||||
| 23 | ,277 | ,749 | 95,156 | ||||||
| 24 | ,249 | ,673 | 95,829 | ||||||
| 25 | ,237 | ,641 | 96,470 | ||||||
| 26 | ,217 | ,587 | 97,058 | ||||||
| 27 | ,193 | ,523 | 97,581 | ||||||
| 28 | ,182 | ,493 | 98,074 | ||||||
| 29 | ,146 | ,394 | 98,468 | ||||||
| 30 | ,137 | ,371 | 98,840 | ||||||
| 31 | ,105 | ,285 | 99,124 | ||||||
| 32 | ,098 | ,264 | 99,389 | ||||||
| 33 | ,077 | ,207 | 99,596 | ||||||
| 34 | ,057 | ,154 | 99,750 | ||||||
| 35 | ,045 | ,122 | 99,872 | ||||||
| 36 | ,035 | ,094 | 99,966 | ||||||
| 37 | ,013 | ,034 | 100,000 | ||||||
| Extraction Method: Principal Component Analysis. | |||||||||
| Component Transformation Matrix | ||||||||||
| Component | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| 1 | -,413 | ,030 | ,518 | ,546 | ,438 | ,047 | ,015 | -,011 | ,153 | ,212 |
| 2 | ,347 | -,721 | ,139 | ,114 | ,203 | ,344 | -,017 | ,294 | -,230 | -,170 |
| 3 | ,593 | ,504 | ,307 | ,104 | ,283 | -,159 | -,145 | ,011 | -,126 | -,383 |
| 4 | ,021 | ,164 | ,114 | -,220 | ,101 | -,086 | ,780 | ,516 | -,058 | ,128 |
| 5 | -,112 | ,411 | -,105 | -,076 | -,006 | ,812 | -,197 | ,312 | ,080 | -,022 |
| 6 | ,256 | -,131 | -,082 | -,068 | ,131 | -,072 | -,037 | ,147 | ,928 | -,021 |
| 7 | ,380 | ,030 | -,025 | ,061 | ,066 | ,392 | ,416 | -,644 | ,048 | ,319 |
| 8 | ,158 | ,101 | -,684 | ,580 | ,183 | -,129 | ,008 | ,224 | -,114 | ,217 |
| 9 | ,300 | ,026 | ,250 | -,160 | -,129 | -,099 | -,368 | ,219 | -,090 | ,777 |
| 10 | ,140 | ,031 | ,237 | ,504 | -,777 | ,049 | ,147 | ,125 | ,121 | -,102 |
| Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. | ||||||||||
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