FACTORS INFLUENCING THE FIRM’S SELF-SELECTION BEHAVOR IN THE ELECTRICITY INDUSTRY IN VIETNAM (2006 - 2010)

Nguyen Quynh Huong

Abstract

Abstract
Current studies, while focusing on productivity of manufacturing frms in Vietnam, have
not paid due attention to effciency of energy enterprises. Using the data on electricity
industry drawn from the Vietnamese Enterprise Census (2006-2010), this paper examines
factors influencing the survival probability of frms in the industry in Vietnam. The obtained
results reveal that among others, capital stock and expenditure on inputs such as materials
and services were the signifcant determinants of frms’ surviving likelihood in the market.
This likelihood was also positively correlated with the age of frms, however, in an inverse
fashion when the frms reached a certain age. The result also suggests that incumbents and
new entrants in the industry might be in soaring demand of massive capital investments for
the fxed asset expenditures (capital stocks) and maintenance costs (material and services
expenditures) of large-scaled power projects, which calls for the fnancing not only from
local but also from foreign investors.
Key words: leadership, social enterprises, leadership style, qualitative research.
Date of submission: 2nd December 2014 - Date of approval: 30th April 2015