PERFORMANCE MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY, VIET NAM: BASIS FOR PREPARATION OF MANUAL FOR PERFORMANCE MEASUREMENT

Abstract

Performance management is becoming an increasingly important tool of management and of improvement across the enterprise. This research was conducted to analyze the factors effect performance management of small and Medium enterprises (SMEs) in Ho Chi Minh city. This study developed the measurement scale of determinants of performance management based on literature review and related studies. This study is mainly implemented based on quantitative research methodology through survey with questionnaire to explore research objectives. The study analyzed the 8 factors (Financial capital; Human capital; Social capital; Technology; Operation; Entrepreneurs; Information; Government policy and regulation) effect performance management of SMEs. The results indicated that the relationships between 7 determinates of SMEs performance and Organizational performance are not only positive but also statistically significant at the 0.001 level. Finally, based on the key determinants and success factors discussed earlier and effective PMS framework, it is necessary for the sector to remain dynamic, given the leading role the sector played in Vietnam economic development and job creation.