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

AbstractCurrent studies, while focusing on productivity of manufacturing frms in Vietnam, havenot paid due attention to effciency of energy enterprises. Using the data on electricityindustry drawn from the Vietnamese Enterprise Census (2006-2010), this paper examinesfactors influencing the survival probability of frms in the industry in Vietnam. The obtainedresults reveal that among others, capital stock and expenditure on inputs such as materialsand 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 inversefashion when the frms reached a certain age. The result also suggests that incumbents andnew entrants in the industry might be in soaring demand of massive capital investments forthe fxed asset expenditures (capital stocks) and maintenance costs (material and servicesexpenditures) of large-scaled power projects, which calls for the fnancing not only fromlocal 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