Examining Relationships Between Compensation Components and Employee Perceptions of Pay Equity in a Transitional Economy: The Case of Vietnamese State-Owned Enterprises

<p dir="ltr">Transformation of state-owned enterprises (SOEs) has been a central point of Vietnam’s economic reform, namely Doi moi, starting in the late 1980s, which aimed to adapt them to market-oriented practices and to increase their efficiency. This reform has led to significant changes in compensation policy and practices in this sector. The perceptions of pay equity among SOEs’ employees have also shifted from a view of respecting harmony and collectivism toward individualism and the notion of performance-based pay. This thesis aims to investigate relationships between compensation and perception of pay equity in Vietnamese SOEs during their reform process. The study employs a triangulated mixed methods design combining quantitative and qualitative approaches, using a theoretical framework developed from two key theories, compensation theory and equity theory, to examine key research questions: How do compensation components relate to employee perceptions of pay equity in Vietnamese SOEs? And why? The study contributes to the existing theoretical understanding of relationships between compensation practices and perceptions of pay equity in the context of Vietnamese SOEs. It also provides suggestions for policy makers and practitioners to develop compensation policies and practices that improve employee perceptions of pay equity in SOEs during the economic reform process.</p>