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Service oriented human resource practices: A comparative study between local and foreign firms in Vietnam

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The presence and operations of foreign service firms have also raised growing concerns regarding the competitive position of local service firms. However, after more than 30 years of the Doi Moi, little is known about whether there are differences in the service-oriented human resource practices within local and foreign service firms in Vietnam. | Hue University Journal of Science ISSN 2588–1205 Vol. 128, No. 5C, 2019, pp. 141–154; DOI: 10.26459/hueuni-jed.v128i5C.5149 SERVICE-ORIENTED HUMAN RESOURCE PRACTICES: A COMPARATIVE STUDY BETWEEN LOCAL AND FOREIGN FIRMS IN VIETNAM Hoang Trong Hung* University of Economics – Hue University, 99 Ho Dac Di St., Hue, Vietnam Abstract: As a result of its economic reform policies, Vietnam has emerged as an attractive country for foreign direct investment, especially in numerous service sectors such as banking and financial services, hospitality and retailing. The presence and operations of foreign service firms have also raised growing concerns regarding the competitive position of local service firms. However, after more than 30 years of the Doi Moi, little is known about whether there are differences in the service-oriented human resource practices within local and foreign service firms in Vietnam. Using a mixed method approach (surveys with 549 service employees and 20 in-depth interviews with managers and service employees in both local and foreign service firms), this study finds that foreign firms perform better than their local counterparts in several dimensions of service-oriented human resource practices (e.g. service-oriented recruitment, training, rewards and employee autonomy). Conclusions and implications for service managers have been provided. Keywords: service-oriented human resource practices, service firms, Vietnam 1 Introduction Service industries make significant contributions to global economic growth. The service sector contributes more than 70% of GDP in most advanced markets and about 40% of GDP in emerging markets [29]. As a result of its economic reform policies, Vietnam has been an attractive country for foreign direct investment in the region, especially in numerous service sectors such as banking and financial services, hospitality and retailing. Since Vietnam and several emerging markets are in the process of moving from state ownership .