The effects of cooperation relation between colleges and businesses on autonomous financial management at colleges under the ministry of agriculture and rural development

Nội dung text: The effects of cooperation relation between colleges and businesses on autonomous financial management at colleges under the ministry of agriculture and rural development

1. THE EFFECTS OF COOPERATION RELATION BETWEEN COLLEGES AND BUSINESSES ON AUTONOMOUS FINANCIAL MANAGEMENT AT COLLEGES UNDER THE MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Hoang Thi Thu Hien1, Do Minh Thuy2 Abstract: The establishment and development of the relationship between colleges, businesses and organizations is the core factor in building a vocational education system that is closely linked to the requirements of the labor market and meets the need of the society in a better way. Research results show that the relationship between colleges, businesses and organizations has a positive impact on autonomous financial management at colleges under the Ministry of Agriculture and Rural Development. However, the level of this relationship is rated as a low level. This shows that the cooperation of colleges and businesses is still limited and not cohesive. State policy is a factor that affects the impact of the cooperation of colleges and businesses of colleges and businessesat colleges under the Ministry of Agriculture and Rural Development in the condition of autonomous financial management. Keywords: autonomous financial management; businesses, colleges. 1. INTRODUCTION The businessbusiness is one of the places using the college’s training products. The evaluation of the business on the training quality of colleges is considered as the most objective assessment. In order to meet the need of businesses, colleges need to capture the career needs of businesses to serve as a basis for building training programs that suit actual needs. Therefore, the cooperation of colleges and businesses of colleges and businesses is a necessary condition for colleges to perform well in their training activities, especially in the process of gradually implementing autonomous financial management. Through cooperation, the colleges can also expand their income from consulting and technology transferring with businesses; the college staffs can also improve their professional qualifications and practical knowledge; students will improve their learning motivation and knowledge, professional and practical life skills, and increase their chances of employment. On the other hand, the more colleges create links between businesses, the more they will increase their brands. 2. THEORETICAL BACKGROUND AND PROPOSED RESEARCH MODEL Currently, the cooperation of colleges and businesses in training activities is understood in many different ways depending on the purpose and nature of the relationship. The purpose of a business is to make a profit. Businesses need conditions of the ability to design production processes, technology and human resources to achieve this goal. For the college, the goal 1 Vocational Technology, Economy and Fishery College; Email: hoanghienkhcb@gmail.com 2 Hai Phong University 1001
2. 1002 KỶ YẾU HỘI THẢO KHOA HỌC QUỐC TẾ FDI TOÀN CẦU VÀ ỨNG BIẾN CỦA DOANH NGHIỆP FDI TẠI VIỆT NAM TRONG BỐI CẢNH MỚI of training activities is to provide human resources, consulting and technology transferring activities. However, the college also needs conditions such as teaching staffs, facilities for teaching and research, and appropriate training programs. Businesses have the advantage of financial resources while colleges benefit from facilities and teaching staffs. Therefore, the cooperation of colleges and businesses will help the parties to have the conditions to achieve the goals. According to Wheelen and Hunger (2004), the cooperation of colleges and businesses is taking advantages of the conditions of the parties involved: the college needs the capital contribution from the businesses to solve the financial difficulties. When implementing training activities, businesses can apply the results from training activities of the college to solve actual problems in the businesses. Businesses have many reasons when they decide to cooperate in training with colleges such as improving production capacity, reducing production costs and recruitment activities, creating competitive advantages (Emanuele Todeva, David Knoke, 2005). For the college, the benefit from the cooperation relationship is having the opportunity to approach the experts of the business, understanding the actual problems of the business to help the college conduct research and teaching activities that are more suitable with the needs of businesses, creating job opportunities for students after graduation, have the opportunity to increase income, increase financial resources to upgrade conditions to help the college operate well. According to Carayon (2003), Gibb and Hannon (2006), this partnership is a transaction between the colleges and businesses for the benefit of both parties. From the above points of view, the cooperation relationship between colleges under the Ministry of Agriculture and Rural Development and businesses in the condition of autonomous financial management can be understood as a close and long-term attachment in training activities for the benefit of the parties involved: cooperation in research and development, development of training programs, information exchange, financial support, provision of high-quality human resources for businesses and the labor market However, in the condition of autonomous financial management, this cooperation relationship is influenced by tools and policies of the State. For colleges under the Ministry of Agriculture and Rural Development, when they implement autonomous financial management, State policies that reflect the cooperation of colleges and businesses in the condition of autonomous financial management are demonstrated through documents and regulations of the Ministry of Agriculture and Rural Development, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Education and Training, and the Ministry of Finance These policies can encourage and create conditions for colleges to be active in financial management, training activities, recruitment activities, etc. However, many colleges also face many difficulties and embarrassment when implementing autonomous financial management due to a number of documents and policies of the Ministry of Agriculture and Rural Development and other agencies and departments that have inconsistency and overlap. This limits the college’s ability of adopting autonomous financial management. Therefore, the State policy can be considered as a factor affecting the impact of the relationship between colleges and businesses and organizations on autonomous financial management in colleges under the Ministry of Agriculture and Rural Development. From the above reasons, the research model reflecting the cooperation relationship between colleges under the Ministry of Agriculture and Rural Development and businesses in the condition of autonomous financial management is shown as follows:
3. INTERNATIONAL CONFERENCE PROCEEDINGS: GLOBAL FDI AND RESPONSES OF FDI ENTERPRISES IN VIETNAM IN THE NEW CONTEXT 1003 State policy Relationships Autonomous between financial colleges, management businesses and organizations Figure 1: Research model Source: Researcher’s recommendation In this study, State policies are considered as a moderating variable affecting the influence of the relationship between colleges and businesses and organizations on the autonomous financial management of colleges under the Ministry of Agriculture and Rural Development. From the above research model, the hypothesis reflects the influence of the “relationship between colleges,businesses and organizations” on the autonomous financial management of colleges under the Ministry of Agriculture and Rural Development as follows: H1: The relationship between the colleges, businesses and organizations has a positive impact on autonomous financial management in colleges under the Ministry of Agriculture and Rural Development. H2: State policies affect the impact of the relationship between colleges and businesses and organizations at colleges under the Ministry of Agriculture and Rural Development in the condition of autonomous financial management. 3. RESEARCH METHODS Qualitative research was carried out by in-depth interviews with 12 subjects at 6 colleges. Subjects selected for the interview are leaders of colleges (Principals or Vice Principals); Chief (or Deputy Chief) of Department of Financial Accounting, Training affairs, Dean (associate dean) of specialized faculties. The results of in-depth interviews are the basis for the researcher to adjust the model, scale and new researches, then revise the questions in the questionnaire before implementing the quantitative research. Official quantitative research is the researcher’s next step to assess the influence of the cooperation of colleges and businesses on autonomous financial management in colleges under the Ministry of Agriculture and Rural Development. Currently, there are 28 affiliated colleges under the Ministry of Agriculture and Rural Development in 3 regions of North, Central and South. The author conducted a survey of 14 colleges under the Ministry of Agriculture and Rural Development. In each College, the author selects 10-13 people to conduct the survey. Those selected for the survey are administrators, deans, vice-deans and lecturers of colleges.
4. 1004 KỶ YẾU HỘI THẢO KHOA HỌC QUỐC TẾ FDI TOÀN CẦU VÀ ỨNG BIẾN CỦA DOANH NGHIỆP FDI TẠI VIỆT NAM TRONG BỐI CẢNH MỚI Survey information was collected through quantitative interview form. In addition to the questions reflecting personal information, the author uses a 5-point Likert scale for questions that reflect the relationship between business-school cooperation to autonomous financial management in high schools. under the Ministry of Agriculture and Rural Development. In which, 1- Completely disagree; 2- Disagree; 3- Normal; 4 – Agree; 5- Totally agree. Analytical method: the researcher uses Cronbach’s Alpha, EFA factor analysis method to evaluate the reliability of the scales and check the suitability of the proposed research model; using multiple regression model to evaluate the influence of the relationship of colleges and businesses on autonomous financial management in colleges under the Ministry of Agriculture and Rural Development. In this study, “State policy” is a moderating variable, so the researcher uses the single-variable Mean Centering technique to reduce the multicollinearity phenomenon between the variable “relationships between colleges, businesses and organizations” with the variable “State policy”. 4. RESEARCH RESULTS 4.1. Research sample characteristics Education levels: among the survey participants, there are 24 people with bachelor’s education background, accounting for 14.5%; 137 masters, accounting for 83.1% and 4 doctors and higher education levels, accounting for 2.4%. Current job: The number of surveyors whose current job is a lecturer accounted for 56.4% (93 people); part-time lecturers accounted for 26.1% (43 people); managers accounted for 17.5% (29 people). Form of financial autonomy: 100% of the colleges are partially self-sufficient or be able to guarantee a part of their operating costs. 4.2. Evaluation of the reliability of the scale and measurement of convergence Evaluating the reliability of the scale The survey results show that the Cronbach’s Alpha of the variables “relationships between colleges and businesses and organizations”, “State policy” and “autonomous financial management” are all greater than 0.6. The correlation coefficient of the component variables - the sum of the observed variables are all 0.3. Therefore, these variables ensure the reliability of the scales. Table 2: Cronbach’s Alpha of research variables Correlation coefficient Variable Cronbach’s Alpha if Variables of component variable code item deleted – total variable 1. The relationship between the college, businesses and organizations Cronbach’s Alpha: 0.867 QH1 The college introduces the internship place to students .735 .827 The college introduces the recruitment needs of businesses and QH2 .772 .788 organizations to students
5. INTERNATIONAL CONFERENCE PROCEEDINGS: GLOBAL FDI AND RESPONSES OF FDI ENTERPRISES IN VIETNAM IN THE NEW CONTEXT 1005 The college cooperates with businesses and organizes in QH3 .740 .819 signing scientific research activities 2. State policy Cronbach’s Alpha: 0.682 CS1 State’s undertakings, lines and policies .525 - CS1 State’s law system .525 - 3. Autonomous financial management Cronbach’s Alpha: 0.895 TC1 Be proactive in mobilizing income sources .816 .845 TC2 Be proactive in the allocation and use of financial resources .709 .885 Be proactive in planning and organizing the plan TC3 .800 .851 implementation Measurement of convergence The analysis results show that 2 factors are created from 5 component variables. The coefficient of the KMO test is 0.694 and the significance level of the test is less than 0.05, which reflects that there is a linear correlation between the component variables and the convergence of the factors. The total variance explained is 78,270, reflecting 2 factors created to explain 78.27% in this study. Factor loading coefficients of the component variables are all greater than 0.5, so the component variables are all reliable. Table 3: Factor loading Factor loading Variables 1 2 The college introduces the recruitment needs of businesses and organizations to students .890 The college cooperates with businesses and organizes in signing scientific research activities .838 The college introduces the internship place to students .832 State’s undertakings, lines and policies .792 State’s law system .740 Source: Researcher’s survey result) 4.3. Evaluation on the relationship between businesses and colleges in conditions of autonomous financial management Building relationships between colleges and businesses and organizations is also one issue to improve the quality of training activities of the college. To measure these relationships, the author uses the mean after disaggregation for observed variables and factors. The distance of each nest is determined by the formula: Maximum value – minimum value 5-1 h = = = 0.8 5 5 Based on the nest distance, the author determines: Totally disagree: 1- 0.8 Disagree: 1.8 - 2.6
6. 1006 KỶ YẾU HỘI THẢO KHOA HỌC QUỐC TẾ FDI TOÀN CẦU VÀ ỨNG BIẾN CỦA DOANH NGHIỆP FDI TẠI VIỆT NAM TRONG BỐI CẢNH MỚI Normal: 2.8 - 3.4 Agree: 3.4 - 4.2 Totally agree: 4.2 - 5 The survey results show that all opinions believe that there is a relationship between schools and businesses and organizations in autonomous financial management of colleges under the Ministry of Agriculture and Rural Development. However, this relationship has a low rating. The average rating of this relationship is 3.86. Meanwhile, the activity “the college cooperates with businesses and organizations in signing scientific research activities” is rated the highest with an average score of 3.93. The reason is that this activity brings revenue to the college. However, there are not many activities in public colleges. The factors “the college introduces internships to students” and “the college introduces the recruitment needs of businesses and organizations to students” are assessed at a lower level on the implementation of autonomous financial management due to average rates of 3.79 and 3.87. Thus, the level of relationship between colleges, businesses and organizations in colleges under the Ministry of Agriculture and Rural Development has not yet been closely linked, which will greatly affect the training quality of colleges when implementing autonomous financial management. Table 4: Average measurement of the relationship between colleges, businesses and organizations in autonomous financial management Number of people answering Average Standard Variables questions value Deviation The college introduces the internship place to students 165 3.79 .815 The college introduces the recruitment needs of businesses 165 3.87 .934 and organizations to students The college cooperates with businesses and organizes in 165 3.93 .931 signing of scientific research activities Relationships between colleges, businesses and organizations 165 3.8646 .79539 Source: Researcher’s survey results 4.4. Assessing the influence of the relationship between businesses, colleges in the condition of autonomous financial management According to the proposed research model, the State’s legal policy is considered as a moderating variable - affecting the influence of the relationship between businesses and colleges in conditions of autonomous financial management. Therefore, the researcher adds a new variable to show this effect. This new variable is a combination of the variable “relationship between the colleges, businesses and organizations” with the variable “State policy”. This variable will reflect “State policy” that affects the relationship between colleges and businesses in conditions of autonomous financial management when the significance level of the regression coefficient of this variable is less than 0.05.
7. INTERNATIONAL CONFERENCE PROCEEDINGS: GLOBAL FDI AND RESPONSES OF FDI ENTERPRISES IN VIETNAM IN THE NEW CONTEXT 1007 Table 5: Regression coefficient reflects the level of influence of “relationship between colleges, businesses and organiza- tions” on autonomous financial management Unstandardized Standardized Test Significance coefficients coefficients VIF value t level t B Standard Error Beta Intercept 2.691 .044 60.952 .000 Relationships between colleges, businesses .543 .054 .530 9.959 .000 1.006 and organizations State policy .563 .073 .409 7.682 .000 1.007 Relationship between colleges, businesses and .473 .099 .253 4.771 .000 1.000 organizations *State policy Adjusted explanatory coefficient: 0.539; F-test value: 64,852 F-test significance level: 0.000 Dependent variable: Autonomous financial management Source: Researcher’s survey results The results of table 4 show that the intercept and regression coefficients of independent variables are significant at less than 0.05, which reflects that these coefficients are statistically significant. The adjusted explanatory coefficient of the regression model is 0.539, reflecting those independent variables explain 53.9% for dependent variables. The regression coefficient of the variable “relationship between colleges, businesses and organizations” has a positive sign (+), reflecting that this variable has a positive impact on autonomous financial management of colleges under the Ministry of Agriculture and Rural Development. The analysis results also show that the regulatory variable “State policy” has a positive impact on the relationship between businesses and colleges in conditions of autonomous financial management due to the positive sign of the regression coefficient (+). This shows that state policies will encourage colleges to strengthen cooperation with businesses in conditions of autonomous financial management. Thus, hypothesis H1 and H2 are accepted in this study. 5. CONCLUSIONS AND RECOMMENDATIONS The combination model of colleges, businesses and human resource training organizations is an inevitable trend when colleges gradually shift to autonomous financial management. The cooperation between the colleges, businesses and organizations will contribute to improving the quality of human resources for society, reducing the cost of retraining for businesses, and improving the quality of training of colleges. However, research results show that the relationship between colleges, businesses and organizations is still limited and not closely linked. There are many reasons leading to these limitations such as colleges do not have a specialized department on business relations; businesses have not paid much attention to training links with colleges; the ability of accessing information between businesses and colleges is low Therefore, in order to develop the relationship between colleges, businesses and organizations in autonomous financial management, colleges under the Ministry of Agriculture and Rural Development needs to implement the following solutions: Focusing on developing teachers and manager to connect colleges and businesses. Teachers have a direct influence on the quality of the college’s training because of their knowledge, training and scientific research experience and new technology update. Therefore, it is essential to create more conditions for teachers to have experience in the production environment
8. 1008 KỶ YẾU HỘI THẢO KHOA HỌC QUỐC TẾ FDI TOÀN CẦU VÀ ỨNG BIẾN CỦA DOANH NGHIỆP FDI TẠI VIỆT NAM TRONG BỐI CẢNH MỚI of businesses and organizations so that they can update and apply practical knowledge in teaching. Besides, managers have the vision and ability to build long-term relationships with the businesses; help businesses and organizations approach the colleges and bring the output of the college to businesses and organizations. Therefore, focusing on training lecturers and managers at colleges is necessary in implementing autonomous financial management. Building application-oriented and open-oriented training programs. In developing training programs, colleges need the participation of businesses and organizations for having training programs that are practical and consistent with the program framework of the Ministry of Labor, War Invalids and Social Affairs. The training program should focus on applicability – a new trend for increasing the learning time, learners’ experience and practical exposure. In addition, the training program should be open so that the college can easily add or replace the modules that are not suitable for the actual needs of the businesses or organizations. Training programs of colleges also need to focus on teaching staffs who are experts from businesses and organizations. They will help training learners at the production sites of businesss and organizations. One difficult problem of developing training programs is that some businesss do not accept colleges to send teachers and students to businesses. Therefore, colleges can coordinate with businesses to organize training and production at the college. The colleges have facilities, the businesses have equipment and machines. Colleges under the Ministry of Agriculture and Rural Development need to coordinate with businesses in organizing training, assessing vocational skills through activities such as visit, practice; training towards serving businesses; organizing paid training for some courses In addition, building and developing relationships with alumni is also a solution to develop relationships between colleges, businesses and organizations at colleges under the Ministry of Agriculture and Rural Development in conditions of autonomous financial management because alumni are an important focal point in establishing the relationship between the colleges and the businesses. In particular, successful alumni can help new graduates access job opportunities easily. REFERENCES 1. Carayol, N. (2003), ‘Objectives, Agreements and Matching in Science–Industry Collaborations: Reassembling the Pieces of the Puzzle. ’ Research Policy, 32(6) pp. 887-908. 2. Emanuela Todeva, David Knoke (2005), “Strategic alliances and models of collaboration”, Journal Management Decision, 43, pp. 123-148. 3. Gibb, A. A. and Hannon P. (2006), ‘Towards the Entrepreneurial University’, International Journal of Entrepreneurship Education (4), pp. 73-110. 4. Le H.B.H (2019), Strengthening cooperation between schools and businesses, improving the efficiency of science and technology activities, Journal of Finance, Volume 2 of August 2, 2019, pp. 53-55. 5. Pham N.T (2016), “Problems that need to be solved for effective financial autonomy in public higher education”, Journal of Finance (8), p. 5-7. 6. Pham X.T (2017), Financial autonomy at public colleges in response to the requirements of vocational education reform, Journal of Finance (11). 7. Wheelen, T. L., & Hunger, J. D. (2004). Strategic Management and Business Policy: Concepts (9th ed.). Pearson Education, Inc., Upper Saddle River.