The thesis studies the influence of leadership skills on business performance of companies in Vietnamese textile and garment industry, based on which the thesis proposes a number of solutions to improve and develop leadership skills, contribute to the improvement of the business performance of Vietnamese textile and garment enterprises.
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SUMMARY OF PHD THESIS
STUDYING THE RELATIONSHIP BETWEEN LEADERSHIP SKILLS AND BUSINESS PERFORMANCE OF VIETNAMESE TEXTILE AND
GARMENT COMPANIES
Field: Business AdministrationCode: 9340101
TR N TH BÍCH NHUNGẦ Ị
Trang 2Supervisor: ASSOC. PROF, DR NGUYEN XUAN MINH Reviewer 1:
Review 2:
Review 3:
This thesis will be defended at:
Trang 41. Tran Thi Bich Nhung, 2017, Criteria for evaluating business performance
of Vietnamese textile enterprises, Foreign Economic Review, No. 95/2017, ISSN 1859 4050
2. Tran Thi Bich Nhung, 2018, Leadership skills of enterprises in Ho Chi Minh City, Foreign Economic Review, No. 102/2018, ISSN 1859 4050
3. Tran Thi Bich Nhung, Tran Thi Phuong Thuy, 2018, Vietnam’s textile and garment industry: an overview, Business & IT, Vol. VIII(2), pp. 4553, DOI: https://doi.org/10.14311/bit.2018.02.05
4. Tran Thi Bich Nhung, Le Thai Phong, 2019, The effects of leadership skills
on firm performance: The case of textile and garment firms in Vietnam. Management Science Letters, 9(12), pp.21212130
5. Tran Thi Bich Nhung, 2019, Leadership skills: a study in Hochiminh City, Vietnam, Business & IT, Vol IX(2), pp 2940, DOI: https://doi.org/10.14311/bit.2019.02.03
6. Tran Thi Bich Nhung, Lê Thai Phong, 2020, Leadership skills at Vietnam Textile and Garment enterprises, Vietnam Journal for Indian and Asian Studies, No 3 (88) March/2020, ISSN 08667314.
Trang 58. LIST OF TABLE AND FIGURE
9. CHAPTER 1: INTRODUCTION 1
1.1 Reason for choosing the topic 1
1.2 Literature review 1
1.2.1 Researches related to leadership skills 1
1.2.2 Researches related to business performance of companies 2
1.2.3 Relationship between leadership skills and leadership effectiveness, business performance of the company 2
1.3 Overview of the research situation and identify research gaps 3
1.4 Purpose and research mission 3
1.5 Research questions 3
1.6 Subject and scope of the study 3
1.7 Research methodology 4
1.8 Thesis structure 4
10 Conclusion of chapter 1 .4
11.CHAPTER 2: THEORETICAL BACKGROUND AND RESEARCH MODEL 5
2.1 Theoretical foundations of leadership skills 5
2.1.1 Leadership and leader definition 5
2.1.2 Leadership skill definition 5
2.1.3 Levels of leaders 5
2.1.4 Elements of Leadership skills 5
2.2 Theoritical foundations of performance 6
2.2.1 Business performance definition 6
2.2.2 Performance measurement system 7
Trang 62.2.4 Some requirements of performance measurement system 7
2.3 The effect of leadership skills on leadership effective, business performance of companies 7
2.4 Research model and reseach hypotheses 8
2.4.1 General research model 8
2.4.2 Detailed research models and reseach hypotheses 8
12.Conclusion of chapter 2 9
13.CHAPTER 3: RESEARCH METHODOLOGY 10
3.1 Research process 10
3.2 Stage 1 – Defining and coding measurement 10
3.2.1 Leadership skills measurement and coding 10
3.2.2 Performance measurement and coding 10
3.3 Qualitative study 10
3.3.1 Interview 10
3.3.2 Evaluating the results, adjusting the measurement and design questionnaire 11
3.4 Quantitative study 11
3.4.1 Conducting an official survey 11
3.4.2 Checking and perfecting data, testing measurement, testing research models and research hypotheses 11
14.Conclusion of chapter 3 11
15.CHAPTER 4: RESEARCH RESULTS 12
4.1Vietnam’s textile and garment industry overview 12
4.1.1 Industrial production and export indicators 12
4.1.2 Main markets and product 12
4.1.3 Main modes of production 12
4.1.4 Labor in Vietnam textile and garment industry 12
4.1.5 Number and size of companys in Vietnam textile and garment industry 12
4.1.6 Some financial indicators of some typical textile and garment enterprises 13
Trang 74.3 Measurement realability test 13
4.3.1 Cronbach’s Alpha test 14
4.3.2 EFA test 14
4.3.3 CFA test 14
4.4Survey results of current status of leadership skills in Vietnamese textile enterprises 15
4.5 Research model and research hypotheses test 15
4.5.1 SEM test 16
4.5.2 Bootstrap test 18
4.5.3 Extensive testing of research models 18
4.5.4 Manova test 19
16.Conclusion of chapter 4 19
17.CHAPTER 5: DISCUSSIONS AND RECOMMENDATIONS 20
18.5.1 Discussion about the main research results of the thesis 20
19.5.1.1 Status of important and level of implementation of skills 20
20.5.1.2 The influence of leadership skills on business performance of Vietnamese textile and garment companies 20
21.5.2 Some recommendations related to the research topic for Vietnamese textile and garment companies 21
22.5.2.1 Developing leadership skills through training programs 21
23.5.2.2 Developing leadership skills through learning from real experience 22
24.5.2.3 Developing leadership skills through self – improvement from leaders 22
25.5.3 Contributions 22
26.5.4Further research 23
27.Conclusion of chapter 5 23
28.CONCLUSION 24
29.REFERENCES 25
Trang 1184.CHAPTER 1: INTRODUCTION1.9 Reason for choosing the topic
85. Business performance is always the most concern of all companies. All companies are constantly improving and improving it There are many factors affecting business performance of the enterprise, in which factors related to leaders are considered as those that significantly affect the business performance of the business, because leaders are indispensable in any business
86. Among leadership elements, leadership skill is considered as one of the most important factors. Skill is the ability to perform an intellectual activity that contributes to the effective performance of a job task. Skill is the ability that can be developed through learning and practice, not necessarily innate, and proven by doing the job, not merely the potential
87. Meanwhile, Vietnam's textile and garment industry is strong and growing, playing an increasingly important role in the growth of the national economy, the existence and development of textile enterprises. Vietnam's garment has been contributing greatly to the socioeconomic development of Vietnam
88. That is the reason why the author has chosen the topic “Studying the relationship between leadership skills and business performance of Vietnamese textile and garment companies” The thesis studies the influence of leadership skills on
business performance of companies in Vietnamese textile and garment industry, based
on which the thesis proposes a number of solutions to improve and develop leadership skills, contribute to the imrpovement of the business performance of Vietnamese textile and garment enterprises
1.10 Literature review
89. The issue related to the research topic of the thesis has been received a lot of attention from scholars around the world for a long time
1.10.1 Researches related to leadership and leadership skills
90. Until now, there have been thousands of different leadership studies and these studies have approached in many different directions. According to Gary Yulk (2013), theories and empirical research on leadership can be divided into the following
5 approaches: (1) leadership characteristics, (2) behavioral leadership, (3) approach in terms of influence/power, (4) situational leadership, and (5) integrated research
Trang 1291. The study of leadership skills is considered the center of quality leadership theory and situational leadership. There have been many scholars studying directly and indirectly about leadership skills (Bass, 1990).
92. In terms of research content, research on leadership skills can be divided into two main research groups, namely:
93. The first group is the research that explores the skills that a person will pursue
a leadership career or excel as an unofficial leader in a group
94. The second research group is the study on the relationship between a leader's skills and leadership effectiveness in the current managerial position
95. Based on the research model, researches on leadership skills in the world often use one of three research models: Katz's three leadership skills model (1955),
Mumford's et al. (2000), or a model of the four leadership skills of Mumford, Campion
and Morgeson (2007)
96. Considering the scope of the research space, the study of leadership skills in the world is conducted in many different fields of industry and business size
97. Research on leadership skills in Vietnam includes a PhD research thesis
on developing leadership skills in Vietnam's nonstate enterprises by Nguyen Thi Thu Trang (2016) and an article on leadership skills of deans in a regional university in Vietnam are posted at the 7th International Conference on Educational Reform (ICER 2014) of Hung, NM, Tesaputa, K., & Sriampai, A (2014)
1.10.2 Researches related to business performance of companies
98. Until now, researches on business performance are very diverse and often approach in three main directions:
99. Firstly, the aim is to evaluate business efficiency and propose solutions
to improve business efficiency of the business
100. Secondly, reseaches help to study the system of indicators to assess business performance of enterprises and research on business performance evaluation activities of enterprises
Thirdly, researches foster researching in business performance in interaction with other factors, foreign studies often focus on this approach
1.10.3 Relationship between leadership skills and leadership effectiveness,
business performance of the company
101. Researching the relationship between leadership skills and leadership performance, business performance of enterprises is one of the main research branches
Trang 13102. In Vietnam, through researches on leadership competencies, Do Anh Duc (2014) and Le Thi Phuong Thao (2016) also assessed the influence of leadership skills to the effectiveness of the business
1.11 Overview of the research situation andidentify research gaps
103. Over the world, research on leadership skills is very diverse, is done in many different research models, and is conducted in many different fields of industry.
In Vietnam, there are many relevant studies on business performance of companies, but the research on leadership and leadership skills is quite limited. Research on leadership is mainly focused on leadership competencies and leadership styles, with a few studies on the role and personal charateristics of leadership in companies
104. The above analysis shows that, “studying the relationship between leadership skills and business performance of Vietnamese textile and garment companises” is a new study, not duplicated with existing, valuable researches,
scientific and practical treatment
1.12 Purpose and research mission
105. This thesis focuses on researching the influence of leadership skills on business performance of Vietnamese textile and garment companies in general
1.13 Research questions
106. Based on the above purposes and tasks, the thesis must answer the
research question which is "What is the impact of leadership skills on business performance of Vietnamese textile and garment companies?"
1.14 Subject and scope of the study
107. Subject of the study: The dissertation studies the influence of leadership skills on business performance of Vietnamese textile and garment companies in general
108. Scope of the study:
Trang 14 Scope of content: The thesis studies the influence of leadership skills on the business performance of Vietnamese textile and garment companies.
Scope of space: thesis researching Vietnamese textile and garment companies
Scope of time: the thesis was implemented in the period from the beginning of
2016 to 2019. The interview, investigation, survey of leaders at Vietnamese textile and garment companies were conducted in the period from October 07, 2018 to April 2019. Suggestions of the thesis are towards 2025
Scope of the research object: the research object of the thesis is a leader at all levels currently working in Vietnamese textile and garment enterprises
1.16 Thesis structure
109. Besides the introduction, conclusions, references, necessary papers and related appendices, the thesis consists of 5 chapters as follows:
Trang 15117. CHAPTER 2: THEORETICAL BACKGROUNDANDRESEARCH
MODEL2.1Theoretical foundations of leadership skills
2.1.1 Leadership and leader definition
118. Leadership has received a lot of attentions from many scholars around the world for a long time.Researchers usually define leadership according to their indivudual perspectives and the aspects of the phenomenon of most interest to them(Yukl, 1989),so, up to now there are hundreds of different definitions of leadership The above definitions are neither entirely true nor completely wrong, because according to Campell (1977) depending on the object and objectives of the research, scholars come up with different definitions of leadership.This thesis uses the
definition of Yulk (2013), “Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it, and the process
of facilitating induvidual and collective efforts to accomplish shared objectives”.
Leaders indicate people who occupy positions in which they are expected to perform the leadership role, implement objectives of company through influencing others. 2.1.2 Leadership skill definition
119. Skills are the ability to perform tasks, the ability to turn knowledge into actions to effectively perform tasks to achieve goals and skills can be developed through learning Leadership skills are leaders’ ability to perform tasks, turn knowledge into actions, demonstrate leaders’ proficiency when applying the knowledge gained in practice to perform leadership functions to achieve the goals.2.1.3 Levels of leaders
120. In company, leaders are usually divided into 3 levels: senior leaders, middle leaders, and junior leaders
Trang 16technical skills are the most familiar because they are specific and obvious to most people, technical skills are essential for junior level leadership. Meanwhile, human skills are indispensable skills for all levels of leadership, and conceptual skills are essential for senior leaders in the business. At the same time, Katz (1955) emphasized that leadership skills are not inherent born as mentioned in previous studies, they can
Trang 17và Platts, 1995; Corvellec, 1994).Effectiveness is about accomplishing a task or producing a desired result, refers to do the right things. Efficiency is about performing
a task in a best possible manner. It focuses on achieving the objective and maximun result with least time and effort
2.2.1.2Business performance definition
142. The business performance of a company is a reflection of its ability to combine inputs, allowing to minimize costs in its business operations in order to achieve its profitability goals. This concept is quite similar to existing concepts of business performance in Vietnam and the concept of performance of Neely, Gregory and Platts (1995) and Corvellec (1994)
2.2.2 Performance measurement system
143. So far, many scholars have researched and offered different interpretations of business performance measurement systems.This thesis uses the Balance Score Card of Kaplan and Norton (1993) to measure the business performance
of companies in Vietnamese textile and garment industry
2.2.3 Characteristics of performance measurement system
144. According toNeely, A., and et al.(2007),the performance measurement frameworks should display some key characteristics that help an organization to identify an appropriate set of measures to assess their performance
Trang 18a direct impact on business performance. of the business. At the same time, this result
is similar to the research results of Abosede et al (2011) emphasizing that leadership skills (including: technical skills, people, and cognitive skills) are factors of extreme of business efficiency of the business
147. Sarker, M.A.R., và c ng s (2019)ộ ự studied soft skills, the results showed that leaders in Bangladeshi textile enterprises need the following soft skills: leadership skills, communication skills, teamwork skills, critical thinking skills, and results also show that these soft skills have a direct and positive effect on the performance of workers. On the other hand, Islam, S., và c ng s (2018ộ ự )show that the soft skills that local leaders in textile enterprises in Bangladesh are still limited compared to leaders from abroad have. These include communication skills, presentation skills, decisionmaking skills, motivation, negotiation, communication, marketing skills and a few other soft skills
148. Research by Rosaline, Z., (2013) shows that leadership skills will affect the Indian knitting industry in improving productivity, increasing market share in the global market, increasing sales and contributing to Indian economic development
149. In addition, in Sri Lanka, the findings of Gunawardena, M.K., Cooray, C.N and Fonseka, A.T., (2014) on leadership in the textile industry show that leadership behavior influences innovation in textile enterprises in Sri Lanka
Trang 19 Hypotheses H2: Interpersonal skills affect posivitely on performance of Vietnam textile and garment companies
HypothesesH3: Business skills affect posivitely on performance of Vietnam textile and garment companies
HypothesesH4: Strategic skills affect posivitely on performance of Vietnam textile and garment companies
169. Conclusion of chapter 2
170
Trang 21 Preparation:Based on the proposed measurement, author prepares appropriate content.
Interview subject:Leaders at all levels working in Vietnam textile and garment compamies
Sample zise:30 leaders
Interview methods: directly and by phone
202. 3.3.2 Evaluating the results, adjusting the measurement and design questionnaire
203. Results of discussions with 30 leaders showed that:
In terms of leadership skills, most of the interviewed subjects said that the skills mentioned in the measurement are very necessary skills for leaders, and these skills affect business performance
Regarding the business performance of enterprises, the leaders all believe that the above indicators are necessary, and supplement the indicator "Lead time" to evaluate the performance in internal processes perspective of performance
204. 3.4Quantitative study
205. 3.4.1 Conducting an official survey
Sample size: 476 respondents
Data collection:Data is collected through online survey, direct survey and indirect survey via questionaire
Data analyse software: IBM SPSS Statistics 20and AMOS 20
206. 3.4.2 Checking and perfecting data, testing measurement, testing research models and research hypotheses
211. 3.4.2.3 Testing research models and research hypotheses
hypotheses
213. Conclusion of chapter 3
Trang 22214. CHAPTER 4: RESEARCH RESULTS4.1Vietnam’s Textile and Garment Industry overview
215. 4.1.1 Industrial production and export indicators
216. Industrial production index shows that the industrial production of Vietnam textile and garment industry has increased over the years. The ratio of textile and apparel export turnover shows that the textile and garment industry accounts for a large proportion of Vietnam's total export turnover
4.1.2 Main markets and product
217. The products of Vietnam’s textile and garment industry are sold in both domestic and foreign markets. In the domestic market, they are sold in markets, retail store, supermarkets, trade centers and accounts for about 14% The products of Vietnam’s textile and garment industry arer exported to more than 180 countries and territories worldwide (Le Hong Thuan, 2017). In particular, the main markets are he United States, the EU, Japan, Korea, and some other markets such as ASEAN, Canada, China and Taiwan…. These markets are notorious for being extremely strict
in terms of product quality, price and design. In addition, these markets are also high demanding in product control and standard of the product
4.1.3 Main modes of production
218. Although Vietnam textile and garment industry has a high proportion of export turnover and high growth rate, it is mainly manufactured under the CMT method (the mode of production produces the lowest added value), about65% of total export value.About30% of export value is produced by FOB mode and only 5% of total export value is by other mode of production
4.1.4 Labor in Vietnam textile and garment industry
219. Labor is one of the main factors of production and business in the textile and garment industry and is reflected in both the quantity and quality of labor. The number of labors in textile and garment industry is about 1.6 million labors, accounting for more than 12% of the labor force in the industrial sector and nearly 5%
of the total labor force in Vietnam. The average labor productivity in this indutry is lower than other countries in the region, such as Hong Kong, China, Korea, Thailan…4.1.5 Number and size of companies in Vietnam textile and garment industry
220. According to statistics by Bui Van Tot (2014), there are about 6.000 companies operating in the textile and garment sector in Vietnam, of which small and medium companies account for a large proportion. In terms of ownership, about 84%
Trang 23of textile and garment enterprises are prive; 15% are foreign invested enterprises and about 1% is SOEs. By sector, about 70% of companies are in of the garment sector, 17% of enterprises are in the textile/ knit sector, 6% of enterprises are in the yarn sector, 4% are in the dyeing sector and about 3% of companies are in the supporting industries In terms of grography, companies in the north occupy about 30%, companies in the central and highlands occupy 8% and companies in the south is about 62%.
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hong Phu Corporation
225 Nha Be Corporation
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20
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20
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20
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233 2016
234 2017
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Revenue
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244 4
245
Trang 2415 17 19 3.2 3.0 3.4
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2,0
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9,5
250
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253 4,6
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254 0,1
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Profit 7.25
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263 53
264 58
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ROA
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284 1,81
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293 12,59
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294 13,35
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295.14,
Trang 26386. Cronbach’s Alpha test show that the leadership skills scale is satisfactory after removing Cog3 item, and the business performance scale is satisfactory.
387. 4.3.2 EFA Test
388. The results of leadership skills EFA testand performance EFA test show that the leadership skills scale and performance scale are satisfactory
389. The general EFA analysis results show that the leadership skills and business performance scales meet the requirements of reliability, convergence and discriminatory values, thus can move to the next step (CFA test)
390. 4.3.3CFA Test
391. The results of CFA test show that the scale is consistent with market data
392. Fig 4.1: CFA test results