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Readiness of SMEs for Adopt Big Data: An Empirical Study in Vietnam

Article in International Journal of Computing and Digital Systems · August 2022

DOI: 10.12785/ijcds/120141

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 International Journal of Computing and Digital Systems
ISSN (2210-142X)
Int. J. Com. Dig. Sys. 12, No.1 (Aug-2022)
[Link]

Readiness of SMEs for Adopt Big Data:

An Empirical Study in Vietnam
Giang Thi Nguyen1,2 , Shu-Yi Liaw 3
and Xuan-Lam Duong 1,2

1
Department of Tropical Agriculture and International Cooperation, National Pingtung University of Science and Technology, Taiwan
2
Faculty of Economics and Rural Development, Thai Nguyen University of Agriculture and Forestry, Vietnam
3
Department of Business Administration, Director of Computer Centre, National Pingtung University of Science and Technology,
Taiwan

Received 28 Sep.2021, Revised 10 Mar. 2022, Accepted 15 Jul. 2022, Published 6 Aug. 2022

Abstract: This study aims to characterize the readiness of big data adoption and identify important factors for assessing the readiness
of Vietnamese SMEs to adopt big data. Consequently, divide SMEs into specific groups based on readiness aspects in order to
establish individual group-related recommendations for adopting big data. Questionnaires were used to collect data from 274 SME
managers in the manufacturing and service sectors. The key factors defining the readiness of big data application in SMEs were
determined by Exploratory Factor Analysis. K-mean clustering analysis was used to group SMEs. The findings highlighted that SMEs
are well prepared to adopt big data in decision-making culture, customer interaction, data security, and business strategy factors but
not ready in human resources, technology resources, budget resources, government support, and vendor support factors. Big data
adoption readiness was defined into three dimensions, namely, Resources, Governance, and Environment readiness. The findings of
this study will be important for managers, providers, and policymakers to better understand the factors that assess readiness to adopt
big data in SMEs. Hence, they could build effective strategies to incorporate big data and increase their business value and competitiveness.

Keywords: Big data adoption, Manufacturing sector, Readiness, Service sector, SMEs, Vietnam

1. INTRODUCTION propriate policies. Hewlett Packard’ research has shown

Vietnam’s economy is characterized as vibrant and ex- that 60% of SMEs in the Asia Pacific (Australia, India,
ponential. The average annual export has increased by more Indonesia, Japan, Korea, Singapore, Thailand, and Viet-
than 14% in the past five years [1]. In ASEAN, Vietnam nam) consider adopting digital technology and analytical
ranks third in terms of import and export, just behind software as essential solutions for enterprises development
Singapore and Thailand. Small and medium enterprises in the present time when countries are still dealing with
(SMEs) are crucial players in Vietnam’s boosting economy. the complicated situation of COVID-19 pandemic [4]. To
In 2018, SMEs accounted for 97.2% of the total number incorporate and encourage the application of e-commerce
of Vietnamese enterprises. Annually, SMEs account for in enterprises, the Vietnamese government has implemented
about 40%, 30%, 33%, and 30-45% of GDP, State budget, many policies. For instance, the Prime Minister of Vietnam
Industrial output value, and Export value, respectively, and approved a master plan for the 2021-2025 national e-
attract more than 5 million employees [2, 3]. However, commerce development (Decision No. 645-QD /TTg). The
business efficiency has recently had a drastic decrease as Government’s e-commerce development strategies allowed
a result of COVID-19’s global economic impact. Out of the recognition of Vietnam as the third-largest e-commerce
the 1600 SMEs in the Asia Pacific investigated by Hewlett market in Southeast Asia in 2018 [1]. Moreover, Vietnam
Packard (HP), only 6% of respondents contemplated that is considered to have the advantage of big data sources [5].
labor productivity increased, while 43% of respondents
reported that labor productivity decreased [4]. According to Thanks to the rapid increase in data sources globally.
the result of the enterprises survey employed by the General The number of companies that apply big data to bring
Statistics Office (GSO) of Vietnam in April 2020, 85.7% of competitive advantage has also increased significantly [6].
enterprises were affected by the COVID-19 outbreak. Companies are making profound changes in managing their
businesses, customers, and business models [7]. Davenport
To maintain and grow businesses during and after [8] highlighted the enormous implications of big data ana-
the pandemic requires SMEs to develop and devise ap- lytics in reducing costs, improving products, and making

E-mail address: nguyenthigiang@[Link], syliaw@[Link], duongxuanlam@[Link]

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510 Giang Thi Nguyen, et al.: Readiness of SMEs for Adopt Big Data:An Empirical Study in Vietnam

faster decisions. Moreover, applying big data analytics huge source of data coming from customers and sellers.
to a company’s value chain gives it a 5-6% increase in As a result, Amazon’s services business grew 81% in 2015
productivity hence increasing its competitive advantage [9]. [26]. However, the firms that succeed in applying big data
Therefore, big data adoption has been abundantly studied in analysis are known today mostly as large companies, with
countries such as France, Bangladesh, the US, China, India, branches in many countries around the world. For example,
Korea, the UK, Malaysia, and Thailand [10–19]. However, Google, Apple, Twitter, Uber, Walmart, Amazon, IBM
SMEs seem slow to adopt big data [20]. Moreover, there Watson, Rolls-Royce, Toyota, etc. [26]. Previous studies
is very little research covering big data adoption (BDA) in have also shown that the application of big data analysis
Vietnamese SMEs. The authors suggest that this study is has brought many benefits to SMEs [20, 27–30]. However,
the first to examine the readiness of BDA in Vietnamese BDA for SMEs in developing countries is still considered
SMEs. This study is very useful for the implementation of in an early stage. The slow BDA in SMEs are as a result
BDA in Vietnamese SMEs as well as SMEs in developing of many obstacles [19, 20].
and underdeveloped countries.
The manufacturing and service sectors are two indis-
Specifically, this study focuses on: pensable areas in the economy of a country [31]. Manu-
facturing refers to the activities of people using tools and
(1) Identification of the critical factors to assess Viet- machines to produce raw materials into finished products,
namese SMEs’ readiness to adopt big data in order to aid transport them to suppliers, and recycle products used
SMEs’ preparedness for BDA; [32, 33]. Services include areas such as finance, tourism,
health, accommodation services, restaurants, etc., whereby
(2) Classification of SMEs into specific groups and the service sector provides services to consumers. The
provision of suggestions and recommendations for each International Data Corporation reported that more than 1600
group to implement big data based on the readiness aspects Exabyte of data were created in the manufacturing and
of BDA service sectors in 2015 [33]. Several studies have been
Understanding the pillars of big data adoption readiness carried out to learn more about BDA in the manufacturing
(BDAR) helps SMEs gain comprehension in order to be and service sectors. Moktadir, Ali, Paul and Shukla [12]
better prepared to adopt big data. SMEs have a willingness conducted surveys on five manufacturing companies in
for BDA, the success of adopting it will increase. It helps Bangladesh to identify barriers to big data application. Bi
SMEs increase revenue as well as increase the contribution and Cochran [34] identified barriers and opportunities of
to the state budget. Therefore, these research objectives applying big data analytics through the collection, manage-
not only contribute theoretically but have practical and ment, and storage of data in modern production systems
applicable implications for SMEs. and gave suggestions to improve manufacturing efficiency.
Cohen [35] provided a synopsis of the BDA in the service
2. LITERATURE REVIEW sector to help companies improve their service quality.
A. Big Data Concept in Manufacturing Companies and Fisher and Raman [36] evaluated the adoption of big data by
Service Companies retailers, and proposed solutions to improve the efficiency
Big data is defined as a data source with a large of big data adoption for retailers. Scholarly articles have
volume and diverse data structures such as structured, semi- presented aspects related to the adoption of big data in the
structured, and unstructured data [21, 22]. Thanks to the manufacturing and service sectors such as benefits, barriers,
strong development of the digital world, big data sources and efficiency of BDA in two sectors. However, it seems
created through the use of modern technology devices that assessing the readiness to adopt big data in these sectors
such as smartphones, smart TVs, smartwatches, and social has not been found.
networks like Facebook, WhatsApp, Twitter, Zalo, etc. are
increasing rapidly [23, 24]. Big data plays an important In Vietnam, based on the production characteristics of
role in organizations. It can help businesses change their each sector, the Vietnamese government has established
decision-making mentality and exploit new opportunities standards for each type of enterprise. Accordingly, SMEs
[25]. The world’s largest retailer, Walmart, uses Polaris, an include three types, microenterprises, small enterprises, and
internal platform for text analysis and machine learning, to medium enterprises. Microenterprises have 1-10 employees
analyze big data. The results helped the company increase and an annual turnover of less than 10 VND billion. Small
the likelihood of successful online shoppers from 10% enterprises have 11-100 employees and an annual turnover
to 15%. Rolls-Royce uses a powerful and secure private of less than 100 VND billion. Medium enterprises have 51-
cloud to store corporate data, and they use state-of-the-art 200 employees and less than 300 VND billion in annual
data analysis to closely monitor incoming data. Thus, they revenue [37].
design multiple products, maintain production efficiency B. The Readiness to Adopt Big Data in Enterprises
and improve customer service. It is estimated that every
Previous studies on big data are extensive. Verma
month Amazon has about 187 million website visitors and
and Bhattacharyya [38] used the Technology-organization-
more than two million sellers. Amazon used a Hewlett-
environment (TOE) framework to explore the factors influ-
Packard server running Oracle on Linux, to analyze the

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 Int. J. Com. Dig. Sys. 12, No.1, 509-521 (Aug-2022) 511

encing BDA in companies in India. Sun, Cegielski, Jia, and the readiness of BDA.
Hall [39] investigated 26 factors that can affect BDA based
on Diffusion of Innovation (DOI) and TOE frameworks, Lai, Human resource: Applying big data requires enterprises
Sun, and Ren [40] used TOE to identify the determinants of to have human resources to meet the requirements of
BDA in companies. Yadegaridehkordi, Hourmand, Nilashi, statistical analysis, using algorithms in big data analysis,
Shuib, Ahani and Ibrahim [19] used DEMATEL-ANFIS and data visualization. Thus, this is also a difficult issue
approach to find out deteminants of BDA in Malaysian for companies implementing big data analysis [22, 48].
manufacturing firms. Baig, Shuib and Yadegaridehkordi In particular, Vietnam is assessed to be in the period of
[41] presented 42 factors within 4 dimensions (technology, golden population, with an abundant labour force. However,
organization, environment, and innovation) that are of sig- the quality of Vietnamese labour is still low [49]. Thus,
nificance to the adoption of big data. In Bangladesh, Mok- the quality of the labour force is a challenging issue for
tadir, Ali, Paul and Shukla [12] applied Delphi method to Vietnam when the 4.0 technology revolution is taking place
demonstrate that 4 factors (data, technology, investment and [49]. Moreover, human resources are the driving force of
organization were) influenced BDA in five manufacturing innovation and play an important role in improving the
companies. According to Tabesh, Mousavidin and Hasani production efficiency of enterprises [50]. Therefore, it is
[42] technology and culture are two main barriers, related vital to assess the IT knowledge and skills of the enterprise’s
to organizations that apply big data. Moreover, a study staff and experts before considering BDA.
using Kruskal-Wallis test and Chi-square test showcased the
ups and downs of big data technology in companies [14]. Business strategy: Refers to the fact that the enterprise
Coleman, Göb, Manco, Pievatolo, Tort-Martorell and Reis has set clear business goals and is prepared to achieve
[20] pointed out the benefits and barriers of SMEs when them. Business strategy is considered as the first factor that
applying big data. Furthermore, some previous theories leads to the success of businesses in applying big data [51].
also mentioned technology readiness such as the Diffu- Enterprises need to develop a clear, specific strategy before
sion of Innovation theory [43] or Technology Readiness adopting big data. The business strategy should specify the
Index [44]. However, these theories assessed the technology tools needed to build big data, tools’ supplier, resources to
readiness in general, but not specific to each technology invest, human resources applying big data analysis, benefits
area. Research assessing the readiness of manufacturing obtained, etc., The business strategy also forecasts the
and service firms to adopt big data, especially SMEs, risks encountered when applying big data. Kaisler, Armour,
is still rare. In South Africa, Motau and Kalema [45] Espinosa and Money [52] presented that a strategy that has
assessed the readiness of BDA in the public service sector high generalization, flexibility, and scalability is considered
based on technological infrastructure, security, reliability, fi- an effective strategy. Thence, building a detailed business
nances, competitors, customers, and vendor support factors. strategy is important to assess the readiness of enterprises
Klievink, Romijn, Cunningham and Bruijn [46] conducted to adopt big data.
a study to evaluate the readiness BDA of businesses in the Decision-making culture: According to Baig, Shuib and
Dutch service sector. Mneney and Van Belle. [47] evaluated Yadegaridehkordi [41], it refers to the belief that the adop-
four categories (technology, organization, environment, and tion of big data is vital for achieving better organizational
task technology fit) to permit retail organizations in South productivity. Data-driven decision-making culture has been
Africa to apply big data. described as decisions taken for the benefit of the com-
In summary, the studies have so far focused on the pany by members based on the results of data analysis
benefits, barriers, and factors influencing BDA without [53]. Results of big data analysis should be used to help
assessing the readiness of enterprises to adopt big data. businesses make beneficial decisions for their business such
Hence, this study assesses and identifies the readiness of as improving customer service, developing new product
BDA in SMEs following nine factors based on previous development strategies, and expanding markets for prod-
studies, as well as the recommendations of experts and ucts [54]. However, many businesses still rely on business
professors. The nine factors used in this study include tech- experience and the subjective opinions of leaders to make
nology resource, budget resource, human resource, business business decisions without relying on the results of data
strategy, decision-making culture, the interaction between analysis. Therefore, the lack of a culture of decision-making
customers and companies, data security, government sup- based on data analysis is a barrier to BDA projects [22].
port, and vendor support. Thus, a decision-making culture is a factor that needs to be
considered in assessing readiness for BDA.
Budget resource: Refers to the enterprise’s budget to
invest in IT infrastructure, train human resources to ensure Customer interaction: The rapid development of in-
the operation, maintenance, and development of the system formation technology, social networks, and e-commerce
when enterprises adopt big data. The issue of the investment devices leads to a rapidly increasing interaction between
cost of BDA is also an important factor and barrier for customers and businesses. The customer-business interac-
companies to implement big data [12, 20]. Hence, it is tion is the key factor that helps businesses get big data
necessary to consider this factor in the current concept of sources. Hence, companies can understand their customers

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512 Giang Thi Nguyen, et al.: Readiness of SMEs for Adopt Big Data:An Empirical Study in Vietnam

through the results of big data analysis [52]. In addition,

increased interaction between customers and businesses
helps businesses gain benefits such as product exposure.
Thus, the number of customers buying their products will
increase significantly [36]. Several companies such as Wal-
mart, Amazon, eBay, Netflix, and Monster have been very
successful in building a recommendation system through
customer interaction [26]. Hence, this is also an essential
factor in assessing the BDAR.
Data security: Refers to the data security of customers
and businesses when data sources increase rapidly. Large
data capacity increases rapidly every day. Analysis of Figure 1. Flow diagram of the research
this data source can be of benefit to several stakeholders.
Therefore, third parties can illegally access and use the data
source if the enterprises do not have measures to ensure data Thus, this study investigated SMEs that have big data
security [55, 56]. Moreover, SMEs were considered to have understanding and have interest in adopting big data. SMEs
lower data security measures than large companies [57]. were selected from six areas of Vietnam’s main industries
Therefore, data security is an issue that directly impacts within the business information website of Vietnam: food
the readiness of Vietnamese SMEs when adopt big data. and beverages, construction, garment, wholesale, retail, and
accommodation services. To ensure validity and reliability
Government support: The policy mechanisms of each of the data collected, it was requested that the survey be
country have a direct influence on the adoption of big data filled out by the Chief Executive Officer, or Executive
by businesses [58]. Government support through incentive manager, or Information technology manager in the SMEs
policies, financial support, and human resource training since they should have better understanding, knowledge,
support is crucial to promoting the adoption of big data by and experience in the current and future IT trends of their
companies. Therefore, the clear legal governmental policies firms [61]. A letter page briefly describing the purpose of
supporting BDA significantly encourage businesses to adopt the study and questionnaire was sent to email of SMEs’
big data [59]. Most governments have policies in place to managers in six areas. The data were collected between
ensure the privacy of individuals and organizations to limit September and December 2020. Overall, 274 questionnaires
the unauthorized exploitation of data from unrelated parties were used for analysis. To confirm the viability of the
[41]. This also helps encourage businesses to adopt big data. data collected in this study, a non-response bias analysis
In Vietnam, enterprises are established and developed based was conducted. Moreover, the Kolmogorov-Smirnov (K-S)
on government mechanisms and policies. Thus, government test was conducted to compare the sample arrangement of
policy also plays an important role in encouraging SMEs early and late respondents [62]. According to the results,
to adopt big data. no statistical difference was evident among both sample
groups. Hence, non-response bias did not create any conflict
Vendor support: Supplier support activities are crucial
in this study.
to helping SMEs’ solve problems when adopting new
technology such as big data analytics [60]. SMEs still Based on the analysis of the demographics of the
face many challenges in terms of technology factors and 274 respondents, 85.04% of respondents held a Bachelor’s
technical staff resources when applying big data [42]. The degree and/or above, while 35.04% and 55.84% were Chief
support of vendors should not be limited to consulting, Executive Officers and Executive managers, respectively.
providing tools and software, but also to assist businesses Manufacturing enterprises, consisting of food and bever-
in solving technical issues during the business’s big data ages, construction, and garment, account for 54.74%. The
application process. Therefore, to assess Vietnamese SMEs’ service sector, including wholesale, retail, and accommoda-
readiness to adopt big data, the aspect of supplier support tion service, account for 45.26%.
is an important factor to consider.
The nine factors used to evaluate the readiness to adopt
3. RESEARCH METHODOLOGY big data in SMEs in this study (Table I) include technology
In this study, a complete flow diagram of the study is resource, budget resource, human resource, business strat-
clarified in Figure 1. egy, decision-making culture, customers interaction, data
security, government support, and vendor support.
A. Sampling and Data Collection
Questionnaires were assigned and given out to small B. Data Analysis
and medium Vietnamese enterprises to evaluate their BDAR Data were analyzed using STATISTICA 13 to present
using a 7-Point Likert scale ranging from 1 for ”strongly the descriptive statistics, correlation analysis and test the
disagree” to 7 for ”strongly agree”. Big data adoption reliability of measurement factors. Specifically,
in SMEs is a relatively new phenomenon in Vietnam.

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 Int. J. Com. Dig. Sys. 12, No.1, 509-521 (Aug-2022) 513

TABLE I. FACTORS USED TO DETERMINE BDAR IN VIETNAMESE SMEs

Factors Brief description References

Technology resource Technology infrastructures (e.g., software, hardware, storage system, network) are [39,41]
ready for adopting big data application
Budget resource Financial support invested in technology infrastructure, human resource, and [12,13]
system maintenance for big data applications are ready
Human resource There are enough experts and staff who have acquired sufficient information [51,63]
technology knowledge and skills used for big data application [63]
Business strategy Top managers build a business strategy that can incorporate big data soon [29,46]
Decision-making culture The company builds a data-driven culture that allows making decisions in relation [39]
to data analysis results
Customer interaction The interaction between customers and firms is increasing dramatically through [45]
various ways like social media, mobile, e-commerce sites, and stores
Data security The firm has the availability of solutions (e.g., intrusion detection, access control, [64]
encryption...) to ensure security for the organization and customer’s information
and data
Government support Policy mechanisms that are supported by the government are sufficient for orga- [39,65]
nization’s big data adoption (e.g., policies which support business organizations [65]
to approach preferential loans, ensure network security)
Vendor support The firm finds it easy to expose to the vendors who provide big data analytics [11]
technology (e.g., software, hardware, storage system, network, analytical tools)

(1) EFA was used to reduce the set of measurement tomers and their enterprises has had a dramatic increase
variables that yielded biased factors [66]. The analysis (Mean=6.007). This could be explained by the rapid rise
aimed to identify critical factors that define the readiness of in the proportion of Vietnamese people using the inter-
BDA in SMEs in Vietnam; then confirmatory factor analysis net, mobile phones, computers, social networks, and e-
(CFA) was used to measure the reliability and validity of commerce in the past five years. According to statistics,
factors, and in 2017, the number of social network users in Vietnam
was 43.8 million, and this figure increased to 50.9 million
(2) K-mean, in cluster analysis, is a group of algorithms in the first quarter of 2021 [68]. The other factors (human
that divide observations according to a user-specified num- resources, technology resources, budget resources, govern-
ber of clusters [66, 67]. This algorithm was used to classify ment support, and vendor support) have a mean value of less
enterprises into different groups based on the dimensions of than 6.0, with the lowest for vendor support (Mean=5.347).
readiness for BDA. Therefore, making separate policies to This provided evidence that SMEs are not yet well pre-
promote the adoption of big data in each cluster of SMEs. pared for these aspects. To be more specific, there are
4. RESULTS AND DISCUSSION not enough experts and staffs who have acquired sufficient
IT knowledge and skills used for BDA. Another reason
A. The Readiness of Big Data Adoption in SMEs
is that firms don’t have enough financial funds to invest
The descriptive statistics of the nine factors used to in infrastructure that can match the demands of big data
evaluate the BDAR in Vietnamese SMEs are presented in analysis. The lack of policies on the regulatory environment
Table II. Four factors with a mean value higher than 6.0 of the government can also be the reason why businesses
include business strategy, data security, decision-making are not ready to adopt big data. Furthermore, companies
culture, and customer interaction. This is an indication that are still having difficulty in finding reliable suppliers of
SMEs are well prepared for these factors. Specifically, busi- software, hardware, and technical support. These results
ness strategy (Mean=6.270) is the factor with the highest are in agreement with past research challenges for big data
mean value, and it proves that top managers in SMEs have implementations [12, 20, 22, 42, 64]. Therefore, Vietnamese
a well-established business strategy to implement big data. SMEs need to improve on human, technology, and bud-
The results also indicate that SMEs already have solu- get resources, as well as government and vendor support
tions (i.e., intrusion detection, access control, encryption) factors before considering to adopt big data. Correlation
to ensure the security of the organization’s information is used to evaluate the interdependence of the factors and
and that of customers with a 6.215 mean value. Decision- indicates the strong or weak relationship between them [69].
making culture (Mean = 6.193) shows that SMEs have The preliminary correlation analysis results of the original
built a culture that allows staff and experts from different data indicated a reasonably strong relationship among the
departments to share, access, and analyze information and nine factors except for vendor support, which showed no
make final decisions based on the result of data analysis. significant correlation with decision-making culture, cus-
Furthermore, SMEs agreed that interaction between cus- tomer interaction, and data security factors. The technology

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514 Giang Thi Nguyen, et al.: Readiness of SMEs for Adopt Big Data:An Empirical Study in Vietnam

TABLE II. BASIC DESCRIPTIVE STATISTICS AND CORRELATIONS AMONG FACTORS

Factors Mean Std HR TR BR DC CI DS BS GS VS

HR 5.865 0.839 1
TR 5.734 0.769 0.694** 1
BR 5.639 0.815 0.432** 0.576** 1
DC 6.193 0.697 0.176** 0.274** 0.246** 1
CI 6.007 0.721 0.153* 0.274** 0.204** 0.434** 1
DS 6.215 0.658 0.132* 0.215** 0.200** 0.380** 0.382** 1
BS 6.270 0.706 0.415** 0.423** 0.215** 0.400** 0.334** 0.347** 1
GS 5.500 0.752 0.142* 0.212** 0.254** 0.122* 0.135* 0.137* 0.200** 1
VS 5.347 0.751 0.237** 0.256** 0.271** 0.109 0.043 0.093 0.168** 0.554** 1
Note: *p¡0.05, **p¡0.01, ***p¡0.001; HR: Human resource, TR: Technology resource, BR: Budget resource, DC:
Decision-making culture, CI: Customers interaction, DS: Data security, BS: Business strategy, GS: Government support,
VS: Vendor support.

resources factor exhibited a high correlation with human was responsible for 36.14% of the variance (less than
(0.694**) and budget (0.576**) resources. Therefore, the 50.00%). Hence, the variance method was not an issue
proposed factors are a good premise for assessing BDAR in this research. CFA was used to measure the reliability,
in Vietnamese SMEs. validity of three dimensions. The composite reliability of
the three dimensions higher than 0.7 indicated good internal
The value of Kaiser-Meyer-Olkin (KMO=0.750) and consistency [71]. The average variance extracted (AVE)
the Bartlett test of sphericity (χ2= 692.795, df = 36, p was greater than 0.5 for all dimensions, demonstrating
< 0.001) indicated the appropriateness for factor analysis convergent validity. Literature mentions that the obtained
EFA was conducted with varimax rotation on the nine ratio of the chi-square value to the degree of freedom should
factors. The results in Table III show that all factor load be lower than 5.000; the comparative fit index (CFI), the
values ranged from 0.564 to 0.875 and were greater than incremental fit index (IFI), and the Tucker–Lewis index
the 0.4 lower limit value [66]. Cronbach alpha values were (TLI) should be over 0.900; and the root means square
greater than 0.7 for all factors. According to Hair, Black, error of approximation (RMSEA) should be below 0.080
Babin and Anderson [66] Cronbach’s alpha value higher [72]. In this study, the results of measurement model (χ2
than 0.7 indicate good internal consistency of questionnaire = 45.350, d.f. = 21, χ2/d.f. = 2.160, CFI = 0.963, IFI =
items in the data collection process. The analysis results 0.964, TLI = 0.937, RMSEA=0.065) were in accordance to
in Table III showed that the nine factors were scattered the proposed values good fit measurement model. Hence,
within three readiness dimensions that (eigenvalues > than three dimensions to assess Vietnamese SMEs’ readiness to
1) account for 65.83% of the total variance. Data in this adopt big data ensured reliability and validity.
study were collected based on pre-built items, so Common
Method Variance was assessed by a Harman’ single-factor The next step was to identify and provide an appropriate
test [70]. The results presented that the first dimension name for each dimension. The first dimension with an

TABLE III. ANALYSIS OF THE PILLARS FOR BIG DATA ADOPTION IN VIETNAMESE SMEs

Variables Dimension 1 Dimension 2 Dimension 3

( Resources readiness) (Governance readiness) (Environment readiness)
Human resources .875
Technology resources .873
Budget resources .684
Decision-making culture .757
Customers interaction .754
Data security .739
Business strategy .564
Government support .875
Vendors support .853
Eigenvalue 3.253 1.468 1.204
Cumulative % 36.143 52.454 65.829
Cronbach’s Alpha 0.795 0.710 0.713
Notes: Extraction method: Principal components analysis, Rotation Method: Varimax with Kaiser Normalization, Factor loading less than 0.50 is not
presented

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 Int. J. Com. Dig. Sys. 12, No.1, 509-521 (Aug-2022) 515

eigenvalue of 3.253 and explained variance of 36.143% cluster, and then offer suitable solutions for each cluster
included human, technology, and budget resources factors. [73]. In this study, based on Akaike’s Information Criterion
These factors are related to the resources aspect in the (AIC) value, a total of 15 clusters were automatically
SMEs, so it was named ”Resources readiness”. The second created [74]. The AIC and AIC change values showed
factor with an eigenvalue of 1.468 and explained variance no significant variation from cluster number 6 to cluster
of 16.311% consists of decision-making culture, customer number 15. Therefore, this study conducted the test root
interaction, data security, and business strategy factors means square standard deviation (RMSSTD) and R2 with
which are involved in the mechanism for the readiness clusters 3, 4, 5, and 6. Test results showed that clustering
of SMEs to apply big data, so this factor was named SMEs into 4 clusters is considered to be the best because
”Governance readiness”. The third dimension represented the RMSSTD value is the smallest (0.35) and the R2 value
government and vendor support factors with an eigenvalue is the highest (0.56) [75].
of 1.204 and explained variance of 13.375%. Government
and vendor support factors influence an SME’s readiness Table IV described the characteristics of each cluster by
to adopt big data, so the name given was ”Environment the coordinates of the center. Based on the characteristics
readiness”. Table III showed that Resources, Governance, of SMEs in each cluster, four clusters were established:
and Environment readiness were the three pillars used to Starting from scratch, Governance focus, Environment en-
identify BDA readiness in SMEs in Vietnam. hancement, and Resource improvement, respectively.

The study results showed that the three pillars for Cluster 1-Starting from scratch
developing definitions of BDAR for SMEs in Vietnam are
relevant and reliable and essential for establishing enter- Cluster 1 is composed of 8 microenterprises, including
prises’ readiness to adopt big data. The Resources readiness seven construction companies (87.5%) and one accommo-
dimension was the most important identifying readiness to dation services company (12.5%). The number of SMEs in
apply big data in SMEs. It could be due to Vietnamese each cluster by firm size and by type of industry is shown
SMEs recurrent lack of investment capital, facilities, and in Table V and Table VI respectively.
human resources [49]. Therefore, Resources readiness is the In cluster 1, enterprises’ readiness to adopt big data is
dimension that all businesses were most concerned with. the lowest among the four clusters as shown in Table VI by
The second dimension, ”Governance readiness” describes the negative coordinates of the center in each dimension:
building business strategies, having a decision-making cul- Resources readiness-D1 (-3.437), Governance readiness-
ture based on data, having solutions to ensure data security, D2 (-1.509), and Environment readiness-D3 (-1.147). This
and increasing customer interaction. The third dimension, shows that the seven construction microenterprises are not
”Environmental readiness,” defines the support from exter- ready for BDA within a short time. Therefore, cluster 1 was
nal factors. Policy mechanism support from the government named ”Starting from scratch”. However, this cluster only
and support from vendors who provide software and big comprised of 8 cases, therefore in-depth analysis not carried
data analysis tools are factors that SMEs need to adopt big out [76].
data. To be more detail-specfic and to be able to establish
meaningful recommendations for the implementation of big For microenterprises in this cluster to adopt big data,
data in enterprises within a specific type of industry and they have to prepare everything from the beginning, in-
firm size, the current study subsequently divided SMEs into cluding all factors in the Resources, Governance, and En-
particular clusters. vironment readiness dimensions. Therefore, it is strongly
recommended that enterprises in this cluster should follow
B. Grouping Vietnamese SMEs all suggestions provided to SMEs in the second, third, and
The cluster analysis was conducted via the k-means fourth clusters since they are more prepared to adopt big
clustering method based on the three aforementioned readi- data (Figure 2 and Figure 3). Moreover, it is recommended
ness dimensions to adopt big data. The purpose of clustering that microenterprises in cluster 1 should follow the ”8-step
was to classify SMEs into small groups with detailed big data analysis model” by Storey and Song [77]. This data
information. A common problem in the clustering method is analysis model has been proven beneficial for enterprises
how to determine the number of clusters, how to name each

TABLE IV. CLUSTER COORDINATES AND NUMBER OF MEMBERS

Dimensions Coordinates of center

Cluster 1 Cluster 2 Cluster 3 Cluster 4
*(n1=8) (n2=128) (n3=82) (n4=56)
Resources readiness - D1 -3.437 0.386 0.554 -0.646
Governance readiness - D2 -1.509 -0.470 0.236 0.720
Environment readiness - D3 -1.147 0.448 -1.242 0.260
Note: *(Number of members in a cluster)

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516 Giang Thi Nguyen, et al.: Readiness of SMEs for Adopt Big Data:An Empirical Study in Vietnam

TABLE V. NUMBER OF CASES IN EACH CLUSTER BY FIRM SIZE

Cluster Microenterprises Small enterprises Medium-size enterprises Total cases in cluster

Cluster 1 8 0 0 8
(2.92%)
Cluster 2 12 91 25 128
(46.72%)
Cluster 3 5 46 5 56
(20.44%)
Cluster 4 9 61 12 82
(29.92%)
Total cases by 34 198 42 274
type of enter- (12.41%) (72.26%) (15.33%) (100.00%)
prise

TABLE VI. NUMBER OF CASES IN EACH CLUSTER BY TYPE OF INDUSTRY

Manufacturing Service Total

Cluster
Food & Construction Garment Wholesale Retail Accommodation cases in
Beverages services cluster
Cluster 1 0 7 0 0 0 1 8
(2.92%)
Cluster 2 56 3 14 6 14 35 128
(46.72%)
Cluster 3 3 20 4 4 23 2 56
(20.44%)
Cluster 4 9 5 29 23 15 1 82
(29.92%)
Total cases by 68 35 47 33 52 39 274
type of industry (24.82%) (12.77%) (12.88%) (12.04%) (18.98%) (14.23%) (100.00%)

starting to prepare for BDA big data adoption [29, 40]. In addition, some SMEs still
use outdated IT and internet systems, so the interaction
Cluster 2: Governance focus between customers and businesses is limited [18]. Some
company’s top decision-making is based on the practical
The second cluster is composed of 12 microenterprises, experience of managers in preference to data analysis
91 small enterprises, and 25 medium enterprises (Table V), outcomes. Besides, big data includes personal information
which were categorized as 73 manufacturing companies and considerable valuable data source than can be easily
(57.03%) and 55 (42.97%) service companies. This is abused by unassociated minor parties or by hackers if not
the cluster with the largest number of SMEs. Table VI well secured. These results are consistent with previous
also shows that this cluster is dominated by food and studies [18, 45, 56]. Therefore, to improve the Governance
beverage companies (43.75%) and accommodation and food readiness dimension in this cluster, it is necessary to im-
services companies (27.34%). Table IV shows that the prove the authority’s mind-set in decision-making based on
overall readiness to apply big data was fair for Resources data analysis results. Top management needs to understand
readiness-D1 (0.36) and Environment readiness-D3 (0.448), that big data can be applied to SMEs and it will bring
but below average for Governance readiness-D2 (-0.470). benefits for their enterprise if they are well prepared for big
This indicates that SMEs in this cluster are relatively ready data implementation. According to Janssen, van der Voort
to apply big data regarding Resources and Environment and Wahyudi [25] improved decisions for businesses are
readiness factors but should put more effort into improving made when formulated on the results of big data analysis.
factors in the Governance readiness dimension. Therefore, Suppliers should therefore enlighten SMEs with information
this cluster was named ”Governance focus”. about the benefits of BDA and provide evidence that firms
The unpreparedness of cluster 2 in Governance readi- have successfully applied big data analytics in the past.
ness’s factors is probably due to the limited top man- This will contribute to motivating them to apply big data
agements’ thinking tank of some SMEs, which leads to analysis [29]. Moreover, the government should enhance
absence of a precise determination in the application of training programs for SMEs’ managers on BDA knowledge
big data. Similarly, previous studies have demonstrated that and guide them to prepare the necessary factors of BDA.
top management support has a significant influence on Besides, top management needs to build a plan to invest

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 Int. J. Com. Dig. Sys. 12, No.1, 509-521 (Aug-2022) 517

in information technology systems to enhance interaction

between customers and enterprises, and have solutions to
ensure data security (e.g., using threat detection and data
encryption software).
Cluster 3: Environment enhancement
As evident in Table VI the third cluster includes 27
manufacturing companies (48.21%) mostly construction
ones, and 29 service companies (51.78%), mostly retail
businesses. Among them, 5 are micro-enterprises, 46 are
small enterprises, and 5 are medium enterprises (Table V).
According to the coordinates of the center, the SMEs in this
group are well prepared to apply big data with regards to
Resources (0.554) and Governance (0.236)readiness. The
negative results on the Environment readiness dimension Figure 2. Distribution of Resource and Governance readiness of each
(-1.242) indicates that SMEs in this cluster should focus cluster
on enhancing their government and vendor support factors.
This group was therefore named ”Environment enhance-
ment ”.
It has been shown that even though government and
vendor support are external factors to the enterprises, they
have an critical impact on the BDAR in SMEs, which is
consistent with prior investigations [11, 13, 78]. Therefore,
helping SMEs improve this factor requires the support
of the government and suppliers. First, the governments
should have clear regulations on the use of data sources
to ensure data security and the rights of SMEs when
adopting big data. Second, vendors should not only provide
tools, and software, but also incorporate strategies that
offer problem solving consulting to SMEs during the BDA
process. Thus, finding the suitable suppliers is very useful
for SMEs to implement big data. In Vietnam, many firms Figure 3. Distribution of Resource and Environment readiness of
offer to consult, and provide tools and software for big data each cluster
analysis. However, it is difficult to find a reputable and
suitable supplier for SMEs. Therefore, the Vietnam Small
and Medium Business Association should provide a list of The finding of this study is also consistent with some pre-
reputable companies providing services, software, and tools vious studies [22, 42]. SMEs are facing financial problems.
for big data analysis on the association’s website to help They are also deprived of financial support for investment
SMEs easily access vendors’ information. in technology infrastructure and system maintenance [20].
Similarly, Noonpakdee, Phothichai and Khunkornsiri [18]
Cluster 4: Resources improvement presented that some SMEs do not have the tool to man-
age database systems, data stored on books or computer
As shown in Table V, cluster 4 consists of 9 micro- hard drives. Furthermore, the limited investment budget
enterprises, 61 small enterprises, and 12 medium enter- also leads to the challenge of recruiting well qualified
prises. Simultaneously, it comprises 43 manufacturing com- employees or to train their staff with skills in big data
panies and 39 service companies (Table VI). Most are man- analysis. Therefore, SMEs in this group should place more
ufacturing garment companies (35.37%), wholesale compa- effort to improve their human, technology, and budget
nies (28.05%), and retail companies (18.29%). BDAR of resource factors. Nowadays, many tools and software exist
Vietnamese SMEs in this cluster is good in Governance di- for resource-constrained enterprises to analyze big data by
mension (0.720) and fair in Environment dimension (0.260), choosing tools with low investment sources. For instance,
suggesting an overall readiness to adopt big data. However, Pendleton & Son is a small business in northwest London
they have limited resources (-0.646). They need to improve that provides Big-data-as-a-service with lots of expertise
their Resources readiness dimension. Therefore, this cluster working with small companies that only charge for the job
was named ”Resources improvement”. they are hired to do and also look for inexpensive sensor
The results presented that SMEs lack of experts and staff tools to apply [26]. This could be an alternative for SMEs
who have sufficient IT knowledge and skills used for BDA. instead of spending much money hiring experts and buying

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518 Giang Thi Nguyen, et al.: Readiness of SMEs for Adopt Big Data:An Empirical Study in Vietnam

expensive big data analytics software. Moreover, applying of selected SMEs in six sub-industries, leaving out many
cloud computing technology in big data analysis can help other business areas such as banking, agriculture, healthcare
SMEs reduce IT resource costs [79]. Besides, SMEs could service, machinery and equipment, etc. Literature shows
train staff in big data analysis through cooperation with that many studies on the application of big data in areas such
universities, and science and technology research centers. as banking [11], agriculture [80], healthcare [81], machinery
and equipment [29] have been carried out. Therefore, it is
5. CONCLUSIONS AND IMPLICATIONS necessary to expand these fields in future studies.
Big data adoption in this era of technological devel-
opment is the best and rewarding decision for companies, Acknowledgment
especially SMEs. Given the complicated situation due to the The authors gratefully acknowledge all participants for
COVID-19 pandemic, the adoption of big data is considered their help with data collection
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Xuan-Lam Duong Xuan-Lam Duong is

Giang Thi Nguyen Giang Thi Nguyen currently a Ph. D. candidate in the Depart-
is a Ph.D. candidate in the Department of ment of Tropical Agriculture and Interna-
Tropical Agriculture and International Co- tional Cooperation, National Pingtung Uni-
operation, National Pingtung University of versity of Science and Technology, Taiwan.
Science and Technology, Taiwan. She re- He obtained a Master of Science degree
ceived a Master of Science degree from Thai from Goettingen University, Germany. His
Nguyen University Agriculture and Forestry, research interest focuses on consumer be-
Thai Nguyen, Vietnam. Her research inter- havior, internet marketing, consumer psy-
ests are on topics related to big data and chology, and computer-human interaction.
cloud computing.

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