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Preface
The book was published to mark the commemorative 30th anniversary of the International Federation of East Asian Management Association (IFEAMA), which was founded in 1993. Knowledge transformation and innovation, the main topic of the book, are pivotal in shaping its trajectory in an ever-changing world economy. As the global landscape faces new challenges and opportunities, applying knowledge and innovative practices becomes crucial for building a more resilient and interconnected economic system. In this discussion piece, we will explore how recent issues in the world economy necessitate transformation and innovation to pave the way for sustainable growth and prosperity. The rapid advancement of technology and digitalization has become a driving force in the world economy. Embracing this knowledge transformation allows businesses to streamline operations, enhance productivity, and reach new markets. Additionally, the integration of artificial intelligence, blockchain, and the Internet of Things can revolutionize industries, promoting efficiency and competitiveness on a global scale. Besides, amid growing environmental concerns, sustainability has emerged as a critical aspect of the worldwide economy. Embracing innovative, eco-friendly practices can save costs and reduce environmental impact. Companies prioritizing sustainability also gain a competitive advantage by appealing to environmentally conscious consumers and investors. Furthermore, addressing income inequality and fostering inclusive growth is essential for a stable and prosperous global economy. Knowledge transformation can inform policymakers about practical measures to promote the equitable distribution of wealth and opportunities. Investing in education, health care, and infrastructure in underprivileged communities can lead to a more skilled and productive workforce, stimulating economic growth from the grassroots level. The recent disruptions in global supply chains exposed vulnerabilities that hindered the flow of goods and services. Knowledge transformation and innovative solutions are needed to build more resilient supply chains. Diversifying sourcing locations, embracing local production, and employing technology-driven tracking systems can mitigate risks and enhance supply chain efficiency. In terms of financial inclusion and digital banking, knowledge transformation can empower individuals in underserved regions by expanding financial inclusion through digital banking and innovative fintech solutions. By bringing more people
into the formal financial system, economies can witness increased entrepreneurship and investment.
In the midst of a transformative era, Asia stands at the cusp of remarkable economic growth. Embracing knowledge transformation and innovation is pivotal in ensuring sustainable, inclusive, and resilient regional development. Asia can secure its position as an economic powerhouse by leading in technology, adopting sustainable practices, empowering human capital, and fostering regional collaboration. As Asian economies evolve, a united commitment to knowledge-driven progress will be vital to unlocking the region’s full potential and shaping a prosperous future for future generations.
This book consists of excellent papers prepared by cutting-edge scholars and professionals presented at the 2023 Hanoi Convention by members of the International Federation of East Asian Management Association: Vietnam, China, Mongolia, Japan, and Nepal (IFEAMA). Since the 1990s, these scholars and professionals have been conducting research activities.
In this thought-provoking scientific book, the remarkable efforts of esteemed scholars in researching, investigating, and analyzing current issues are presented, exploring the theme of “Knowledge Transformation and Innovation in Global Society: From the Perspectives in a Transforming Asia.” From the diverse perspectives of Asia’s dynamic and evolving landscape, this book delves into the transformative power of knowledge and innovation, providing invaluable insights into our global society’s challenges and opportunities. The scholars involved in the creation of this book have exhibited unwavering dedication to the pursuit of knowledge. Their meticulous research, comprehensive investigations, and insightful analyses form the bedrock of the compelling content presented within these pages. Each chapter exemplifies the highest standards of academic rigor, making this book a comprehensive and authoritative reference for scholars, researchers, and practitioners alike.
The multidisciplinary approach adopted by these scholars has allowed for a thorough examination of the multifaceted aspects of knowledge transformation and innovation globally. Through rigorous empirical studies, theoretical explorations, and case analyses, this book offers a deep understanding of how knowledge and innovation play a pivotal role in shaping the trajectory of global society. The transformational perspective adopted in this book takes center stage, with Asia providing a unique vantage point for examining the global dynamics at play. As a region renowned for its rich cultural heritage, rapid economic growth, and technological advancements, Asia offers valuable insights into the global trends reshaping our interconnected world. The scholars’ collective effort in contributing to this book has been instrumental in exploring diverse topics such as technology-driven disruptions, sustainable development, social inclusivity, global supply chain resilience, skills development for the future workforce, digital economies, and international collaboration in innovation. Through these chapters, readers gain comprehensive and actionable knowledge that can inform policies, drive progress, and address pressing challenges in the global society.
This book contains 31 chapters. The highlight of the key topic in each chapter is briefly presented hereunder.
The first chapter, “Asia Shift of Global Innovation and Ownership of Innovation Results” by Kondo Masayuki, points out that the gravity center of global innovation has shifted from Europe and North America to Asia. Regarding PCT patent application data, the Asia region accounted for the majority for the first time in 2018 and increased its share the following year. The paper also indicates the differences among Asian countries regarding the ownership of inventions created by local inventors. This difference is found to be associated with the levels of Research and Development (R&D) expenditure per Gross Domestic Product (GDP).
In the second chapter, “The Formality Status and Operation Efficiency of Vietnam Household Business in Post Covid-19 Pandemic”, Quoc Viet Nguyen, Tham Hong Thi Do, Ha Linh Bui, and Oanh Kieu Thi Le argue that the form of household business has an impact on household business performance. Informal business households earn less than those in the formal sector. More than 50% of surveyed household businesses believe that formal enterprises have more advantages than informal ones, while above 38% fear transforming into businesses due to the cost and registration procedures. Although the firm’s size positively impacts household revenue, overusing expansion based on a capital scale will result in a decline in efficiency. Therefore, sustainable growth of household business needs more innovation and technology change.
The third chapter, “Impact of Transformational Leadership on the Innovative Performance of Vietnamese SMEs—Moderating Role of Industry 4.0 Base Technology” authored by Hoa Van Thi Tran, Van Hoa Hoang, and Vu Hiep Hoang, concludes that four aspects of transformational leadership positively affect the innovative performance of Vietnamese small and medium enterprises (SMEs). In addition, the link between transformational leadership and innovative performance was controlled by industry 4.0-based technology, and there were differences in how industry 4.0-based technology was used by transaction and national organizations. The findings will help Vietnamese small and medium enterprise (SME) managers and supervisors to employ different leadership styles to improve their organization’s innovative performance in the era of industrialization 4.0.
In the fourth chapter, “Does Innovation Enhance the Export Propensity of Vietnamese Firms?”, Minh Nguyet Nguyen, Huong Thu Thi Le, and Thu Van Le reveal a positive relationship between export propensity and all innovation measures, which is supported by instrumental variable estimations and simultaneous equation systems. Further analysis on such relationship is also conducted across firm’s types of ownership and technology level for more detailed and thorough understandings. The paper confirms the importance of innovation in improving Vietnam’s exports, carrying significant implications for policymakers in developing countries.
In the fifth chapter, “A Study on Provincial Government’s Policies for Encouraging Investment for Trade Development in the Vietnamese Context”, Nam Thanh Thi Luong, Oanh Kim Thi Thai, and Dung Manh Tran propose some lessons for government’s policies. First, policies to encourage investment in commercial development in the locality need to be suitable to local characteristics. Second, it is necessary to have a consensus of priority and incentive views in accordance with the trade development strategy of the country in general, thereby taking appropriate and noncontradictory preferential measures. Special attention should be paid to the training
of human resources for firms to develop plans for supporting human resource training in the long term. There should be a clear assignment and hierarchy, avoiding overlapping functions and tasks. Last, policies to encourage investment in commercial development of provincial governments must be based on the exploitation of local resources and at the same time must attract the resources of other localities throughout the country and abroad to develop local trade.
In the sixth chapter, “Sustainable Human Resource Management: The Nepalese Perspective”, Dev R. Adhikari, Dilip Parajuli, and Prakash Shresta provide a number of trailing dots to enterprises and researchers that need to be filled by drawing a line. Since the concept of sustainability is understood just in the form of corporate social responsibility in Nepalese enterprises, the responses of the respondents were difficult to comprehend in the form of sustainability to solve the SDGs-related challenges.
In the seventh chapter, “Vietnam Digital Transformation and the Way Forward”, Cuong Hoa Nguyen and Le Khanh Dinh show that in Vietnam, the digital transformation process is taking active steps at a rapid pace under three pillars: digital government, digital economy, and digital society. The Vietnamese government has set a target that by 2025, the digital economy will account for about 20% of GDP and over 30% of GDP by 2030. In 2045, Vietnam aims to become one of the leading Asia’s centers for smart manufacturing and service, start-ups, and innovation. This article focuses on digital transformation of government, enterprises, and the involvement of citizens. The countries’ benchmark and time series of data provide a snapshot of what Vietnam has achieved and imply what needs to be done in the coming time to digitalize the economy.
In the eighth chapter, “Innovation in Infrastructure Development in Asia: PPP Business Opportunity and Challenges in Postcrisis Recovery”, Susumu ITO first outlines an overview of PPP infrastructure business in Asia and reviews the theoretical framework for PPP. Then, the paper argues that the impact of COVID-19 on PPP infrastructure business in Asia including opportunities and challenges during postcrisis recovery using cases such as the Philippines.
In the ninth chapter, “The Impact of Electronic Tax System on Tax Compliance of Vietnamese Small and Medium Enterprises”, Ha Thi Hai Do and Yen Hai Thi Mac indicate that the electronic tax system has a significant positive impact on the tax compliance of these enterprises. On that basis, the study proposes recommendations to both improve the electronic tax system and reinforce the tax compliance of Vietnamese small and medium enterprises including: (1) continuing to promote the reform of tax administrative procedures and increasing the application of technology in tax administration; (2) develop an e-tax communication and advocacy program; (3) strengthening tax inspection and examination by electronic methods; (4) adjusting the sanction as well as the level of penalties for tax violations; (5) focusing on setting and improving the tax policy system.
In the tenth chapter, “The Effect of Innovation Cooperation on Innovation Performance of Start-Ups in Vietnam”, Ha Thi Hai Do, Huong Lan Tran, Hoa Van Thi Tran, and Nhan Tri Le provide valuable insights and implications for Vietnam startup founders considering adopting innovation cooperation strategies. In particular, this study focuses on product innovation as the dependent variable and examines the
effects of innovation cooperation and internal R&D intensity on the product innovation of Vietnam start-ups. The empirical results suggest that investing in internal R&D alone may not be enough to guarantee success in product innovation. However, the study finds a robust positive effect of innovation cooperation, measured by co-patent cooperation in R&D and manufacturing, on product innovation.
In the eleventh chapter, “A Study on Digital Currency in the Kingdom of Cambodia”, Tetsuro Saisho examines how Cambodia’s unique communication infrastructure contributed to the successful launch of Bakong. It then presents an overview of and the issues surrounding the digital currency.
In the twelfth chapter, “Integrating Fuzzy AHP and Fuzzy Logic in the Analysis of the Innovative Tourism Startup Model”, Quang Vinh Nguyen and Manh Hien Luc indicate that the following are the most important factors that contribute to the success of tourism start-ups: The first ranking belongs to the Businessmen characteristic. The second is market characteristics. The third position is occupied by organizational characteristics, and the fourth is by environment. In addition, the highest priority indicators include experience in the tourism industry, start-up locations, government support, and consumer demand. Eight conclusions regarding innovative tourism startup models were derived from analyzing eighteen fuzzy graphs and validated by 150 entrepreneurs.
In the thirteenth chapter, “Open Innovation in Hanoi-Based Enterprises”, Duc Anh Do, Chi Bich Thi Pham, Duong Thuy Le, and Uyen Dinh Trinh aim to give an overview of the adoption of open innovation models in Hanoi-based enterprises, and thus provides implications for fostering open innovation in Vietnamese enterprises, particularly Hanoi-based enterprises, in the coming time.
In the fourteenth chapter, “Vietnam’s Innovation Capability: An Analysis of Global Innovation Index”, Dong Thi Do, Hieu Thanh Nguyen, Huyen Thanh Nguyen, Anh Tam Ha Bui, Dat Tien Tran, Ha Thuy Thi Tran, and My Tra Nguyen examine innovation capability and the relationship between innovation capability and economic growth of Vietnam and other ASEAN countries including Cambodia, Indonesia, Malaysia, Philippines, Singapore, and Thailand by utilizing data from the Global Innovation Index (GII) and reveal that there is a positive relationship between the seven pillars and economic growth of these countries. Following that, implications are proposed to enhance Vietnam’s and other ASEAN countries’ economic growth through fostering innovation.
In the fifteenth chapter, “The Moderating Effect of COVID-19-Related Psychological Distress on Digital Banking Adoption Behaviour of Customers: The Case of Vietnamese Banking Sector”, Vu Hiep Hoang and Huy Nhuong Bui investigate the moderating effect of COVID-19-related psychological distress on the digital banking adoption behavior of customers in the Vietnamese banking sector and suggest that COVID-19-related psychological distress negatively moderates the relationship between digital banking adoption behavior and its determinants, such as perceived usefulness, perceived ease of use, and trust. This implies that the psychological impact of the pandemic should be considered by banks and policymakers when promoting digital banking services. The study provides important insights for
Vietnamese banks on how to increase digital banking adoption among customers during and after the pandemic.
In the sixteenth chapter, “Tax Reform Its Impact on Economy”, Suvdaa Damiran points out that Mongolia has an “average” or “below average” tax environment. The tax environment in rural area is more challenging than in the capital city. Thus, it is necessary to pay more attention to encouraging regional development and creating a just and equitable tax environment. Businesses prefer an appealing business environment by minimizing taxes and tax rates; lowering tax burdens; and taking advantage of tax credits, exemptions, and subsidies via suitable regulations, as well as developing an equitable environment to pay fair taxes.
In the seventeenth chapter, “Impact of Customer Perception on FMCG Products Purchase Intention Through E-Commerce Platforms: The Case in Vietnam”, Dang Hien Le, Sy Long Pham, and Thi Minh Cham Phan conclude that three independent factors positively impact attitudes toward online purchases of FMCG. One out of five independent factors—perceived risk—negatively impacts attitude, indirectly affecting purchase intention.
In the eighteenth chapter, “Green Consumption: The Case Study of Purchase Intention Towards Recycled Fashion Accessories Among Vietnamese Students”, Huyen Thi Pham, Anh Ha Thai Pham, Ha Thi Nguyen, Minh-Hien Nguyen, and Quynh-Trang Nguyen indicate four factors that impact directly the intention of buying recycled fashion accessories including attitude, personal identity, perceived financial risk, and perceived quality risk. In particular, attitude is affected by four elements: environmental concern, uniqueness value, perceived hygiene risk, and perceived aesthetic risk. From there, the authors made strategic recommendations for both entrepreneurs in the field of recycled fashion accessories and environmental organizations in terms of promoting recycled accessories, increasing purchase intention of these items, and encouraging care for the environment through recycling.
In the nineteenth chapter, “A Theoretical Model of Supply Chain Resilience Improvement: From an Improvisational Learning Perspective”, Yu Siyuan and Yu Jin construct a theoretical model from an improvisational learning perspective by reviewing and analyzing papers. The paper first gives a definition of crossorganizational improvisational learning in supply chain companies. Then, the paper follows the analytical logic of “condition-interactive strategy-outcome” to construct a mechanism model of how firms can improve supply chain resilience in total through cross-organizational improvisational learning.
In the twentieth chapter, “Transformation of the Knowledge Creation System of US IT MNEs”, Takabumi Hayashi and Fumio Komoda undertake comparative patent analysis of two US-based IT MNEs, Google LLC, which holds outstanding R&D capabilities in the IT field, and IBM Corporation, which has maintained an excellent position in the US patent ranking for almost thirty years. Thereby, the study reveals the global knowledge creation system from the perspective of nationalities of R&D human resources and elucidates the difference in main targeted R&D areas, based on the bibliometric analysis of both companies, mainly focusing on Google LLC. Findings indicate that R&D capabilities of these two US IT multinationals have been strengthened by globalized R&D activities, showing the differences and
similarities in terms of the globalization of R&D human resources and their Asian positions.
The twenty-first chapter, “University and Industry Collaboration in Knowledge Sharing, Research–Technology Transfer, and Innovation” conducted by Bich Ngoc Luu and Thanh Ha Nguyen, reviews the forms and models of collaboration between universities and industries, analyzes the current situation of UIC in Vietnam, and then recommends policy implications to promote this collaboration, increase the operational efficiency of higher education institutions in Vietnam, and contribute to general socio-economic development.
In the twenty-second chapter, “Construction of International Rules for Corporate Sustainable Water Management: History, Status Quo and Trends”, Yuntao Feng and Haiwei Zhou sort out and list existing international organizations participating in corporate sustainable water management rules. It also discusses the situation of organizations participating in constructing water management rules. Finally, it summarizes and considers establishing international rules for corporate sustainable water management and the relationship and trend of international organizations.
In the twenty-third chapter, “A Review and Critique of Research on Organizational Intelligence and Organizational Effectiveness”, Thao Phuong Le, Thang Ngoc Nguyen, and Thanh Minh Bui study aim to describe facilitative relationship between organizational intelligence and an organization’s effectiveness as well as generalize the definitions of organizational intelligence. In other words, this study will highlight some of the elements that support the notion that organizational intelligence contributes to increase organizational effectiveness. Additionally, this article also offers managerial recommendations for improving an organization’s capacity for learning and adapting, hence increasing organizational intelligence. The paper concludes with a critique of previous studies and directions for future research.
The twenty-fourth chapter, “Smart City Construction and Knowledge Co-creation Among Companies in Different Industries—Based on the Example of Panasonic’s Fujisawa SST Project” carried out by Nobuyuki Toroko, focuses on a smart city project being promoted by Panasonic, a major Japanese electronics manufacturer, analyzes the actual situation of co-creation by participating companies from various industries, and presents an original model of the knowledge creation process through co-creation. This model represents the knowledge crenhanation process in seven stages: exploration, fluctuation, synchronization, concentration and distribution, fusion, trajectory, and convergence. Furthermore, this paper shows that for such a knowledge creation process to function, it is important that the institutional design of the co-creation between companies in different industries entails it implicit relationships.
In the twenty-fifth chapter, “Research on the Export of Vietnamese Agricultural Products in the Context of the Effective EVFTA Agreement”, Dang Nui Nguyen and Viet Hoang Dinh conclude that the EVFTA has a significant impact on the export of cashew nuts, pepper, and rice while having a negligible effect on that of vegetables, fruits, coffee, and tea. In addition, the authors also found empirical evidence that the export to EU market is negatively affected by GDP, tax rates, and COVID-19 and positively affected by population, exchange rate, and geographical distance. These
findings suggest policy implications to exploit the agreement’s incentives, thereby boosting the export of Vietnamese agricultural products to the EU market.
The twenty-sixth chapter, “The Impact of Knowledge Creation Process on Employee Creativity: Evidence from Vietnamese Commercial Banks” conducted by Trang Thu Pham, explores the influence of the knowledge creation process (SECI) on employee creativity in Vietnamese commercial banks. This study surveyed 412 employees working in 17 Vietnamese commercial banks. The results revealed that socialization, combination, and internalization modes affected employee creativity. Moreover, internalization had the most substantial influence on employee creativity. Unexpectedly, externalization did not impact employee creativity.
The twenty-seventh chapter, “Study on Ethics and Etiquettes of Business Relationships in Mongolia” carried out by Davaasuren Batsukh, Tsolmon Mashlai, Sharbandi Ryenchin, and Ugtakhjargal Baldangombo, uses the same methodology in a previous study conducted a comprehensive review of research studies on business ethics and etiquette in the context of China, identifying sixteen characteristics of business ethics and one hundred sixty-one characteristics of business etiquette. The authors highlight the influence of cultural nuances on business practices in each country. Moreover, the study underscores the significance of understanding and adapting to the specific ethical and etiquette expectations within each cultural context for successful business engagements. These insights contribute to cross-cultural business understanding and offer valuable guidance to organizations operating in both Mongolia and China.
In the twenty-eighth chapter, “Research on Knowledge Management Model at Universities Using Systematic Literature Review Method”, Huong Lan Thi Le, Dieu Linh Ha, and Duc Minh Truong classify three groups of factors with the order of occurrence from high to low. The first group of factors includes five components: Knowledge sharing, knowledge acquisition, knowledge evaluation, knowledge use, and knowledge storage. The second group belongs to knowledge management leadership and knowledge creation, and the third group includes methods of knowledge management, big data, and motivation for scientific research. This study focuses on discussion, conclusions, limitations, and suggestions for further clarification of the problem for further studies.
In the twenty-ninth chapter, “Job Performance and the Mediating Effects of Job Engagement and Job Satisfaction: The Case of SMEs in Vietnam in the Post Covid-19 Era”, Huong Lan Thi Le and Vu Hiep Hoang find evidence to conclude the mediating effects of job engagement and job satisfaction on the overall performance of staffs in Vietnamese SMEs. Taking industry as a control variable, the results strongly confirm exploratory empirical findings on the indirect impact of payment, opportunities for promotion, nature of job, colleagues, and supervisors on job performance of employees in Vietnamese SMEs. Even though job engagement presented a weakmediating effect, the job satisfaction shows a consistent and solid mediating effect in this case.
The thirtieth chapter, “The Impact of the ASEAN Trade in Goods Agreement (ATIGA) on Vietnam’s Pangasius Export to ASEAN Markets—A Study of Thailand, Singapore, and Philippines Markets” conducted by Hoa Quynh Nguyen, Dung Quoc Ngo, and Cuong Vu, uses a gravity model to estimate the impact of the ASEAN
Trade in Goods Agreement (ATIGA) on Vietnam’s pangasius export to ASEAN markets. The result shows that ATIGA positively impacts on pangasius exports to major ASEAN markets such as Thailand, the Philippines, and Singapore. Based on the quantitative and qualitative results, the paper gives out some policy implications for enhancing Vietnam’s pangasius export to the ASEAN market in the future.
The thirty-first chapter, “Government Support of Foreign Entrepreneurs Entering Japan’s Startup Ecosystem” conducted by Ainash Idrissova and Shizuko Kato, reveals Japan’s position in the global ecosystem, diverse support strategies by locallevel organizations under a universal policy, and the advantages and adaptability of immigrant entrepreneurs within this context.
Throughout the pages of this book, the readers have embarked on a voyage of discovery, exploring diverse facets of knowledge transformation and innovation from the unique perspectives of Asia. From technology-driven disruptions to sustainable practices, social inclusivity, supply chain resilience, future skills development, digital economies, and international collaboration in innovation, each chapter represents a beacon of knowledge, offering profound insights that have the potential to reshape policies and drive progress in addressing the pressing challenges of our time.
The significance of Asia’s vantage point in this exploration cannot be overstated. The region’s rich cultural heritage, rapid economic growth, and technological advancements have made it a crucible of innovation, and the collective wisdom gleaned from these perspectives is an invaluable asset for the global community.
Lastly, in the process of editing this book, we are grateful for the invaluable support of Vietnam National Research Project KX04.19/21-25 and IFEAMA scientific committee members:
Vu Hiep Hoang (National Economics University, Vietnam), Ha Thi Hai Do (National Economics University, Vietnam), Zhang Yang (Hohai University, China), Chen Zhicheng (University of Science and Technology), Yu Jin (Hohai University, China), Tang Zhen (Hohai University), Dev Raj Adhikari (Tribhuvan University, Nepal), Dhruba Kumar Gautam (Tribhuvan University, Nepal), Isao Yanagimachi (Keio University, Japan), Fumio Yoshino (Takushoku University, Japan), Yoshiaki Ueda (University of Marketing and Distribution Sciences, Japan), Gennady Azoev (State University of Moscow, Russia), Ekaterina Sumarokova (State University of Moscow, Russia), Davaasuren Batsukh (National University of Mongolia), Sarantuya Jigjiddorj, (National University of Mongolia).
We highly appreciate anonymous referees for their concrete advice and timeconsuming reviewing work.
We are also thankful to the editing staff members of Springer Publishing: Yutaka Hirachi, Suganya Kothandaraman, and Vidyalakshmi Velmurugan for their valuable comments and kind cooperation.
Hanoi, Vietnam
Osaka, Japan
Hanoi, Vietnam
Tokyo, Japan
Hoa Van Thi Tran
Hiromi Shioji
Huong Lan Thi Le Takabumi Hayashi
Innovation and Digitalisation
Asia Shift of Global Innovation and Ownership of Innovation
Masayuki Kondo
The Formality Status and Operation Efficiency of Vietnam Household Business in Post Covid-19 Pandemic ......................
Nguyen Quoc Viet, Do Thi Hong Tham, Bui Ha Linh, and Le Thi Kieu Oanh
Impact of Transformational Leadership on the Innovative Performance of Vietnamese SMEs—Moderating Role of Industry
4.0 Base Technology
Thi Van Hoa Tran, Van Hoa Hoang, and Vu Hiep Hoang Does Innovation Enhance the Export Propensity of Vietnamese Firms?
Minh Nguyet Nguyen, Thu Van Le, and Huong Thu Thi Le
A Study on Provincial Government’s Policies for Encouraging Investment for Trade Development in the Vietnamese Context .........
Thi Thanh Nam Luong, Thi Kim Oanh Thai, and Manh Dung Tran
Sustainable Human Resource Management: The Nepalese
Dev Raj Adhikari, Dilip Parajuli, and Prakash Shrestha Vietnam Digital
Nguyen Hoa Cuong and Dinh Khanh Le
Innovation in Infrastructure Development in Asia: PPP Business Opportunity and Challenges in Postcrisis Recovery
Susumu Ito
The Impact of Electronic Tax System on Tax Compliance of Vietnamese Small and Medium Enterprises ........................
179 Nui Dang Nguyen, Yen Thi Hai Mac, and Ha Thi Hai Do
The Effect of Innovation Cooperation on Innovation Performance of Start-Ups in Vietnam 199
Tran Lan Huong, Do Thi Hai Ha, Tran Thi Van Hoa, and Le Tri Nhan
A Study on Digital Currency in the Kingdom of Cambodia 221 Tetsuro Saisho
Integrating Fuzzy AHP and Fuzzy Logic in the Analysis of the Innovative Tourism Startup Model ............................
Nguyen Quang Vinh and Luc Manh Hien
235
Open Innovation in Hanoi-Based Enterprises ........................ 263
Anh Duc Do, Thi Bich Chi Pham, Thuy Duong Le, and Dinh Uyen Trinh
Vietnam’s Innovation Capability: An Analysis of Global Innovation Index ..................................................
Do Thi Dong, Nguyen Thanh Hieu, Nguyen Thanh Huyen, Bui Ha Tam Anh, Tran Tien Dat, Tran Thi Thuy Ha, and Nguyen Tra My
The Moderating Effect of COVID-19-Related Psychological Distress on Digital Banking Adoption Behaviour of Customers: The Case of Vietnamese Banking Sector
Vu Hiep Hoang and Huy Nhuong Bui
275
289
Tax Reform Its Impact on Economy 315
Suvdaa Damiran
Impact of Customer Perception on FMCG Products Purchase Intention Through E-Commerce Platforms: The Case in Vietnam 331 Hien Dang Le, Long Pham Sy, and Cham Phan Thi Minh
Green Consumption: The Case Study of Purchase Intention Towards Recycled Fashion Accessories Among Vietnamese Students .......................................................... 353
Huyen Pham Thi, Ha-Anh Pham Thai, Ha Nguyen Thi, Minh-Hien Nguyen, and Quynh-Trang Nguyen
A Theoretical Model of Supply Chain Resilience Improvement: From an Improvisational Learning Perspective ....................... 367
Siyuan Yu and Jin Yu
Knowledge Sharing and Internationalisation
Transformation of the Knowledge Creation System of US IT MNEs 383
Takabumi Hayashi and Fumio Komoda
University and Industry Collaboration in Knowledge Sharing, Research–Technology Transfer, and Innovation ...................... 407 Bich Ngoc Luu and Thanh Ha Nguyen
Construction of International Rules for Corporate Sustainable Water Management: History, Status Quo and Trends 427 Yuntao Feng, Haiwei Zhou, and Yang Zhang
A Review and Critique of Research on Organizational Intelligence and Organizational Effectiveness 459 Thao Phuong Le, Thang Ngoc Nguyen, and Thanh Minh Bui
Smart City Construction and Knowledge Co-creation Among Companies in Different Industries—Based on the Example of Panasonic’s Fujisawa SST Project ................................ 479
Nobuyuki Tokoro
Research on the Export of Vietnamese Agricultural Products in the Context of the Effective EVFTA Agreement .................... 489 Nguyen Dang Nui and Dinh Viet Hoang
The Impact of Knowledge Creation Process on Employee Creativity: Evidence from Vietnamese Commercial Banks ............. 513 Pham Thu Trang
Study on Ethics and Etiquettes of Business Relationships in Mongolia 537
Davaasuren Batsukh, Tsolmon Mashlai, Sharbandi Ryenchin, and Ugtakhjargal Baldangombo
Research on Knowledge Management Model at Universities Using Systematic Literature Review Method 553
Thi Lan Huong Le, Dieu Linh Ha, and Minh Duc Truong
Job Performance and the Mediating Effects of Job Engagement and Job Satisfaction: The Case of SMEs in Vietnam in the Post Covid-19 Era ...................................................... 575
Thi Lan Huong Le and Vu Hiep Hoang
The Impact of the ASEAN Trade in Goods Agreement (ATIGA) on Vietnam’s Pangasius Export to ASEAN Markets—A Study of Thailand, Singapore, and Philippines Markets ..................... 597 Quynh Hoa Nguyen, Quoc Dung Ngo, and Cuong Vu
Government Support of Foreign Entrepreneurs Entering Japan’s Startup Ecosystem ................................................. 617
Ainash Idrissova and Shizuko Kato
Editors and Contributors
About the Editors
Hoa Van Thi Tran (Editor) (Ph.D. in Economics, National Economics University Vietnam) is one of Vietnam’s most prestigious economics professors. She successfully filled the position of Vice-President of the National Economics University in Vietnam from January 2015 to November 2022. She is now the elected President of the International Federation of East Asian Management Association (IFEAMA). She was acknowledged for her significant contributions in the field of development economic research focusing on sustainable growth of emerging countries like Vietnam. Besides, she is also a professional in the field of entrepreneur development with a concentration on innovation and leadership. She has conducted many national and international research projects as a team leader. Her recent research is related to industrialization based on new technology and innovation. Her works have been widely published in books and journals in Vietnamese and English. She has been sitting on the editorial board of several academic journals in Vietnam.
Hiromi Shioji (Co-editor) is President of Kagoshima Prefectural College and Professor Emeritus of Kyoto University. Currently, he is President of the International Federation of East Asian Management Association (IFEAMA). He was President of the Society for Industrial Studies, Japan, and President of Japan Scholarly Association for Asian Management. His major is comparison study of automobile industry of each country, and he has researched seventy-nine countries. He published the book titled The Structure of Automobile Distribution: An International Comparison (in Japanese, Yuhikaku, Tokyo, 2002) and won the award from Japan Society of Marketing and Distribution.
Huong Lan Thi Le (Co-editor) (Ph.D. in Business, National Economics University) is Associate Professor acknowledged by the State Council for Professorship since 2014. She is now working as Dean of the Business School at National Economics University. Previously, she was also responsible for the Centre for
Vietnam Entrepreneur Development with a huge experience in business consultation over the last 15 years. Her research of interest covers all areas of business and management. She is also an active researcher, joining and completing many ministerial research projects funded by the Ministry of Science and Technology, National Economics University, and Hanoi Department of Science and Technology.
Takabumi Hayashi (Co-editor) (Ph.D. in Economics, Rikkyo University) is Professor Emeritus of Rikkyo University, Tokyo. He successfully filled the professor of International Business at Rikkyo University and Professor at Kokushikan University, Tokyo. His recent research areas are innovation systems and the social business model, focusing on knowledge creation and diversity management. His research works had been widely published in books and journals. His book Multinational Enterprises and Intellectual Property Rights (in Japanese; Moriyama Shoten, Tokyo, 1989.) is widely cited, and Characteristics of Markets in Emerging Countries and New BOP Strategies (in Japanese; Bunshindo, Tokyo, 2016) received the award from the Japan Scholarly Association of Asian Management (JSAAM) in 2018.
Contributors
Dev Raj Adhikari School of Management, Tribhuvan University, Kirtipur, Kathmandu, Nepal
Bui Ha Tam Anh National Economics University, Hanoi, Vietnam
Ugtakhjargal Baldangombo Business School, National University of Mongolia, Ulan Bator, Mongolia
Davaasuren Batsukh Business School, National University of Mongolia, Ulan Bator, Mongolia
Huy Nhuong Bui National Economics University, Hanoi, Vietnam
Thanh Minh Bui Institute of Nontraditional Security, Hanoi School of Business and Management, Vietnam National University, Hanoi, Vietnam
Nguyen Hoa Cuong The Central Institute for Economic Management, Hanoi, Vietnam
Suvdaa Damiran Department of Finance, National University of Mongolia, Ulaanbaatar, Mongolia
Tran Tien Dat National Economics University, Hanoi, Vietnam
Anh Duc Do National Economics University, Hanoi, Vietnam
Ha Thi Hai Do
National Economics University, Hanoi, Vietnam
Do Thi Dong National Economics University, Hanoi, Vietnam
Yuntao Feng Hohai University, Nanjing, China
Dieu Linh Ha Faculty of Human resource economics and management, National Economics Univeristy, Hanoi, Vietnam
Do Thi Hai Ha Lecturer, Management Science Falcuty, National Economics University, Hanoi, Vietnam
Tran Thi Thuy Ha National Economics University, Hanoi, Vietnam
Takabumi Hayashi Rikkyo University, Tokyo, Japan
Luc Manh Hien University of Labour and Social Affairs, Hanoi, Vietnam
Nguyen Thanh Hieu National Economics University, Hanoi, Vietnam
Dinh Viet Hoang National Economics University, Hanoi, Vietnam
Van Hoa Hoang National Economics University, Hanoi, Vietnam
Vu Hiep Hoang National Economics University, Hanoi, Vietnam
Tran Lan Huong Head of Faculty, Management Science Falcuty, National Economics University, Hanoi, Vietnam
Nguyen Thanh Huyen National Economics University, Hanoi, Vietnam
Ainash Idrissova Meiji University, Tokyo, Japan
Susumu Ito University of Niigata Prefecture, Niigata, Japan
Shizuko Kato Meiji University, Tokyo, Japan
Fumio Komoda Saitama University, Saitama, Japan
Masayuki Kondo Kaishi Professional University, Niigata, Japan
Dinh Khanh Le The Central Institute for Economic Management, Hanoi, Vietnam
Hien Dang Le Northeastern University, Boston, USA
Huong Thu Thi Le National Economics University, Hanoi, Vietnam
Thao Phuong Le Vietnam National University, Hanoi, Vietnam
Thi Lan Huong Le National Economics University, Hanoi, Vietnam
Thu Van Le National Economics University, Hanoi, Vietnam
Thuy Duong Le National Economics University, Hanoi, Vietnam
Bui Ha Linh Vietnam Institute for Economics and Policy Research (VEPR-VNU UEB), Hanoi, Vietnam
Thi Thanh Nam Luong Department of Finance of Nghe An Province, Nghe An, Vietnam
Bich Ngoc Luu Ministry of Education and Training, Hanoi, Vietnam
Yen Thi Hai Mac National Economics University, Hanoi, Vietnam
Tsolmon Mashlai Business School, National University of Mongolia, Ulan Bator, Mongolia
Cham Phan Thi Minh National Economics University, Hanoi, Vietnam
Nguyen Tra My National Economics University, Hanoi, Vietnam
Quoc Dung Ngo National Economics University, Hanoi, Vietnam
Minh-Hien Nguyen National Economics University, Hanoi, Vietnam
Minh Nguyet Nguyen National Economics University, Hanoi, Vietnam
Nui Dang Nguyen National Economics University, Hanoi, Vietnam
Quynh Hoa Nguyen National Economics University, Hanoi, Vietnam
Quynh-Trang Nguyen National Economics University, Hanoi, Vietnam
Thang Ngoc Nguyen School of Business and Management, Vietnam National University, Hanoi, Vietnam
Thanh Ha Nguyen National Economics University, Hanoi, Vietnam
Le Tri Nhan Chairperson, Vietnam Union of Students, National Economics University, Hanoi, Vietnam
Nguyen Dang Nui National Economics University, Hanoi, Vietnam
Le Thi Kieu Oanh Vietnam Institute for Economics and Policy Research (VEPR-VNU UEB), Hanoi, Vietnam
Dilip Parajuli Faculty of Management, Tribhuvan University, Kirtipur, Kathmandu, Nepal
Thi Bich Chi Pham National Economics University, Hanoi, Vietnam
Sharbandi Ryenchin Business School, National University of Mongolia, Ulan Bator, Mongolia
Tetsuro Saisho Kokushikan University, Tokyo, Japan
Long Pham Sy National Economics University, Hanoi, Vietnam
Ha-Anh Pham Thai National Economics University, Hanoi, Vietnam
Thi Kim Oanh Thai Vinh University, Nghe An, Vietnam
Do Thi Hong Tham Vietnam Institute for Economics and Policy Research (VEPR-VNU UEB), Hanoi, Vietnam
Ha Nguyen Thi Academy of Policy and Development, Business Administration, Hà nô . i, Vietnam
Huyen Pham Thi National Economics University, Hanoi, Vietnam
Nobuyuki Tokoro Department of Commerce, Nihon University, Tokyo, Japan
Manh Dung Tran National Economics University, Hanoi, Vietnam
Thi Van Hoa Tran National Economics University, Hanoi, Vietnam
Pham Thu Trang Banking Academy of Vietnam, Hanoi, Vietnam
Dinh Uyen Trinh Trade Union University, Hanoi, Vietnam
Minh Duc Truong Hanoi School of Business and Management, VNU, Hanoi, Vietnam
Tran Thi Van Hoa National Economics University, Hanoi, Vietnam
Nguyen Quoc Viet Vietnam Institute for Economics and Policy Research (VEPR-VNU UEB), Hanoi, Vietnam
Nguyen Quang Vinh University of Labour and Social Affairs, Hanoi, Vietnam
Cuong Vu National Economics University, Hanoi, Vietnam
Jin Yu Business School, Hohai University, Nanjing, China
Siyuan Yu Institute for Innovation and Entrepreneurship, Nanjing Vocational University of Industry Technology, Nanjing, China
Yang Zhang Hohai University, Nanjing, China
Haiwei Zhou Hohai University, Nanjing, China
Innovation and Digitalisation
Asia Shift of Global Innovation and Ownership of Innovation Results
Masayuki Kondo
Abstract As business globalizes, so does innovation. This paper first shows that the gravity center of global innovation has shifted from Europe and North America to Asia. In this paper, innovation is measured by the number of patents generated. The data used are mainly Patent Cooperation Treaty (PCT) patent application data stored by World Intellectual Property Organization (WIPO). In terms of PCT patent application data, Asia Region accounted for the majority for the first time in 2018 and increased its share in the following year. Second, the paper points out the differences among Asian countries regarding the ownership of inventions created by local inventors. In some countries, PCT patents created by local inventors are mainly filed by domestic companies. In other countries, PCT patents created by local inventors are mainly filed by foreign companies. This difference is found to be associated with the levels of Research and Development (R&D) expenditure per Gross Domestic Product (GDP). Third, the paper highlights that Japanese companies do not perform well enough in using Asian inventors to create their PCT patents compared to the United States (US) companies and German companies.
Keywords
1 Introduction-Globalization of Innovation Outside Home Countries
As business globalizes, so does innovation. For research and development (R&D) funds, the survey of World 1000 companies revealed that they spent 55% of R&D budget overseas, and the companies that spent more than 60% of R&D budget overseas showed better corporate performance (Jaruzelski and Dehof 2008). In the case of IBM, its overseas group companies increased patent creation activities independently or in collaboration with the United States (US) headquarters (Hayashi 2018).
M. Kondo (B)
Kaishi Professional University, Niigata, Japan e-mail: kondo.masayuki@kaishi-pu.ac.jp
Japanese companies are also conducting R&D overseas. The 1990s was the decade of “Overseas Expansion of R&D Sites” for Japanese companies (Asakawa 2011). For the large Japanese companies that have gone overseas, 72.8% of them conduct R&D on developing new products or modifying existing products for local market (Yoshida 2020). In the case of Honda, Wave α for the Vietnamese market was developed by Honda group companies in Vietnam, Thailand, Singapore, and Japan (Mishima 2010). In the case of Panasonic, CUBE (an air conditioner) for the Indian market was developed by Panasonic group companies in Malaysia, India, and Japan (Kondo 2014). Even a global central laboratory was established by a Japanese company in Thailand (Kondo 2021), illustrating the extent of overseas R&D endeavors.
In terms of researchers, Japanese companies began to mobilize overseas inventors to create patents. They sharply increased the ratio of Patent Cooperation Treaty (PCT) patents using only overseas inventors to their total PCT patents from the mid2000s (Fig. 1). By 2020, the ratio was higher than 15% (Kondo 2022). The same phenomenon has been observed for German companies since the mid-1980s, and even earlier for US companies.
Thus, multinational companies (MNCs) are innovating globally, using brains outside their home countries.
After stating the purpose and methodology of this paper, the paper first highlights the shift of the global innovation gravity center toward Asia. Subsequently, it examines the ownership of innovation outcomes, particularly patent rights, in Asia, analyzing the dominance of domestic or foreign companies. Lastly, the study delves into how Japanese companies drive innovation in Asia, specifically exploring their utilization of Asian inventors in the creation of international patents, in comparison to companies from other developed nations.
Fig. 1 Ratios of Japanese applicant PCT patents with no inventors in Japan over all Japanese applicant PCT patents. Source Kondo (2022)
This research builds upon the author’s previous work presented in Japanese (Kondo 2020).
2 Research Purposes and Methodology
2.1 Research Purposes
There are three purposes. They are:
(1) Fact finding on the shift of global innovation to Asia, (2) Fact finding on the owners of the fruits of innovation (patent rights) in Asia, and (3) Fact finding on the innovation of Japanese companies in Asia mobilizing local inventors compared to the MNCs of other countries.
2.2 Methodology
To accomplish the research purposes, the paper uses PCT patent application data stored by World Intellectual Property Organization (WIPO). For research purpose 1 above, only the number of PCT patent application by region/country of applicants is used. This data is internationally reliable and is free from the home country bias that is often observed in the patent data of one country, such as US patent data. For research purposes 2 and 3, the WIPO PATENTSCOPE database of PCT patent applications is used. The retrieval conditions are:
. At least one applicant address in a specific country and
. At least one inventor address in a specific country.
A similar method was employed in previous studies, such as Tsukada and Nagaoka (2015) for PCT patents and Kondo (2016) for US patents.
If the inventor address of a patent is in country A, then the patent was created in country A. If the applicant address of a patent is in country B, then the nationality of that patent owner is country B.
3 Asia Shift of Global Innovation
Asian Scientist Newsroom (2021) notes that both the world’s economic and scientific centers of gravity are shifting toward Asia. In fact, the gravity center of global innovation has shifted from Europe and North America to Asia, as measured by the number of patent applications. In terms of PCT patent application, Asia region
Source Kondo (2020)
occupied the majority for the first time in 2018 and further expanded its share in 2019 (Table 1).
At the country level, Asian countries were active in PCT patent application. Five countries among the top 15 countries in terms of the number of PCT patent applications in 2019 were Asian countries: China, Japan, Korea, Turkey, and India. Likewise, at the individual applicant level, Asian companies were also active in PCT patent application. Among the top 20 applicants, 14 applicants were Asian companies: 6 Japanese companies, 5 Chinese companies, and 3 Korean companies. As for universities, 14 of the top 20 university applicants were Asian universities. In terms of the number of receiving patent applications, the Asian region accounted for more than two-thirds in 2018. Three of the top 5 countries receiving patent applications were Asian countries, namely, China, Japan, and Korea. Japanese companies have also shifted their innovation sites to Asia (Ueno et al. 2008). Among the top ten countries hosting Japanese company overseas R&D sites, eight were Asian countries: China, Thailand, Vietnam, Korea, Singapore, Indonesia, India, and Taiwan in that order (JETRO 2020). The remaining top ten were the United States and Western Europe (excluding the United Kingdom).
4
Ownership of the Fruits of Innovation in Asia
To determine the ownership of the fruits of innovation in Asia, the number of PCT patents with at least one inventor in a given Asian country and the number of PCT patents with at least one applicant in a given Asian country were counted. Then, local ownership ratios were calculated. The local ownership ratio is the ratio of the number of home country company patents with at least one local inventor to the number of all patents with at least one local inventor.
The local ownership ratio varied from country to country. The countries where domestic companies were the main owners (the local ownership ratio exceeding 80%) were China, Japan, Korea, Turkey, Iran, and Azerbaijan (Table 2). The countries where foreign companies held a significant share of ownership (the local ownership ratio below 60%) were India, Malaysia, Vietnam, the Philippines, Sri Lanka, and Indonesia. In these countries, domestic companies are encouraged to use local talents. The countries in between were Singapore, Thailand, and Kazakhstan.
This paper introduces a classification framework that categorizes countries into three distinct types based on the local ownership ratios of patents created by
Table 2 Top 100 PCT patent application countries in Asia (in 2019) 2019 ranking
PCT
Source Compiled by the author based on data from Kondo (2020)
domestic inventors: “domestic-ownership countries,” “mixed-ownership countries,” and “foreign-ownership countries.” The categorization of the aforementioned Asian countries is presented in Table 3.
By employing a local ownership ratio as a key criterion, this classification system provides valuable insights into the diverse ownership landscapes of innovation across different countries. It offers a comprehensive perspective on how domestic companies, foreign companies, and a mix of both play significant roles in patent ownership within each country. The findings contribute to a deeper understanding of the dynamics of innovation and the distribution of intellectual property rights in the context of Asian economies and will lead to national strategies for leveraging local inventors for economic development through innovation.
Table 3 Country categorization by the local ownership ratios of patents created by domestic inventors
Categories
Countries
Domestic-ownership countries China, Japan, Korea, Turkey, Iran, and Azerbaijan
Mixed-ownership countries Singapore, Thailand, and Kazakhstan
Foreign-ownership countries India, Malaysia, Vietnam, the Philippines, Sri Lanka, and Indonesia
To investigate the causes of the differences in local ownership ratios among Asian countries, R&D resources, that is, R&D expenditures and researchers, were examined.
In these countries, R&D expenditure per GDP and the number of researchers per one million people differed from country to country (Table 4). Their correlation coefficients were calculated to examine the relationships between these variables. The correlation coefficient between the local ownership ratio and R&D expenditure per GDP was 0.5794, while the coefficient between the local ownership ratio and the number of researchers per one million people was 0.4502. Thus, the local ownership ratio and R&D expenditure per GDP were correlated to some extent. However, the correlation between the local ownership ratio and the number of researchers per one million people was weak. Even if researchers are abundant in a country, if they contribute a lot to the patent creation of foreign companies and contribute a little to the patent creation of local companies, the local ownership ratio is low.
Table 4 R&D expenditure per GDP and researcher density (in 2020) 2019 ranking of PCT patent application GERD per GDP (%) Number of researchers per million people
Note GERD stands for general expenditure on R&D
Source Compiled by the author based on UNESCO data
5 Innovation of Japanese Companies in Asia
In recent years, the innovation activities of Japanese companies have gained momentum. However, when compared to German and US companies, their activities were not very active even in Asia. The top five patenting countries in the world, namely China, the United States, Japan, Germany, and Korea, were active in creating patents in top five Asian countries: China, Japan, Korea, Turkey, and India (Table 5). The time series data of the world’s top five countries in the top five Asian countries shows that the patent creation in the top five Asian countries by the world’s top five countries started to be visible in the 1990s and increased rapidly (Tables 6, 7, 8 and 9).
In comparison to US companies, Japanese companies created only one-fifth of PCT patents with at least one inventor in China, one-quarter in Korea, seven percent in Turkey, and four percent in India (Table 5). The difference between Japanese and US companies was substantial.
Table 5 PCT patent creation of world top 5 countries in top 5 Asian countries
Applicant country Top 5 Asian countries (inventor countries)
Note. The number of patents shows the accumulated number of patents applied for WIPO. PATENTSCOPE Data was retrieved on June 1, 2020
Source Kondo (2020)
Table 6 PCT patents with at least one inventor in China
Note Data collection started on October 19, 1978 The numbers in italics show the number of patents invented and applied for by the same country. For example, an inventor country is China; and an applicant country is also China
Source Kondo (2020)
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