MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY -o0o - SUMMARY OF PHD THESIS STUDYING THE RELATIONSHIP BETWEEN LEADERSHIP SKILLS AND BUSINESS PERFORMANCE OF VIETNAMESE TEXTILE AND GARMENT COMPANIES Field: Business Administration Code: 9340101 TRẦN THỊ BÍCH NHUNG THIS THESIS IS COMPLETED AT: Supervisor: ASSOC PROF, DR NGUYEN XUAN MINH Reviewer 1: Review 2: Review 3: This thesis will be defended at: LIST OF AUTHOR’S PAPERS Tran Thi Bich Nhung, 2017, Criteria for evaluating business performance of Vietnamese textile enterprises, Foreign Economic Review, No 95/2017, ISSN 1859 - 4050 Tran Thi Bich Nhung, 2018, Leadership skills of enterprises in Ho Chi Minh City, Foreign Economic Review, No 102/2018, ISSN 1859 - 4050 Tran Thi Bich Nhung, Tran Thi Phuong Thuy, 2018, Vietnam’s textile and garment industry: an overview, Business & IT, Vol VIII(2), pp 45-53, DOI: https://doi.org/10.14311/bit.2018.02.05 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.2121-2130 Tran Thi Bich Nhung, 2019, Leadership skills: a study in Hochiminh City, Vietnam, Business & IT, Vol IX(2), pp 29-40, DOI: https://doi.org/10.14311/bit.2019.02.03 Tran Thi Bich Nhung, Lê Thai Phong, 2020, Leadership skills at Vietnam Textile and Garment enterprises, Vietnam Journal for Indian and Asian Studies, No (88) March/2020, ISSN 0866-7314 TABLE OF CONTENTS LIST OF TABLE AND FIGURE CHAPTER 1: INTRODUCTION 1.1 Reason for choosing the topic 1.2 Literature review .1 1.2.1 Researches related to leadership skills 1.2.2 Researches related to business performance of companies .2 1.2.3 Relationship between leadership skills and leadership effectiveness, business 1.3 1.4 1.5 1.6 1.7 1.8 performance of the company .2 Overview of the research situation and identify research gaps .3 Purpose and research mission Research questions .3 Subject and scope of the study Research methodology .4 Thesis structure 10 Conclusion of chapter 11 CHAPTER 2: THEORETICAL BACKGROUND AND RESEARCH MODEL 2.1 Theoretical foundations of leadership skills 2.1.1 Leadership and leader definition 2.1.2 Leadership skill definition 2.1.3 Levels of leaders .5 2.1.4 Elements of Leadership skills 2.2 Theoritical foundations of performance 2.2.1 Business performance definition .6 2.2.2 Performance measurement system 2.2.3 Charateristics of performance measurement system 2.2.4 Some requirements of performance measurement system 2.3 The effect of leadership skills on leadership effective, business performance of companies 2.4 Research model and reseach hypotheses 2.4.1 General research model 2.4.2 Detailed research models and reseach hypotheses 12 Conclusion of chapter 13 CHAPTER 3: RESEARCH METHODOLOGY 10 3.1 Research process 10 3.2 Stage – 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 11 15 CHAPTER 4: RESEARCH RESULTS .12 4.1 Vietnam’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 4.2 Descriptive statistics 13 4.3 Measurement realability test 13 4.3.1 Cronbach’s Alpha test .14 4.3.2 EFA test 14 4.3.3 CFA test 14 4.4 Survey 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 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 23 28 CONCLUSION 24 29 REFERENCES .25 30 31 LIST OF TABLES 32 S 33 Tên bảng 34 Tr 35 38 41 44 47 50 53 36 Table 4.1: financial indicators of some typical textile and garment enterprises 39 Table 4.2: Desciptive statistics 37 13 40 13 43 15 46 16 49 17 52 18 42 Table 4.3: the leaders’ self – assessment about the importance and performance 45 Table 4.4: Detailed research model SEM test results 48 Table 4.5: Conclusion on research hypotheses 51 Table 4.6: The results of Bootstrap test 54 LIST OF FIGURES 55 N 56 Figure 57 Pa 58 61 64 67 70 73 76 79 59 Fig 2.1: Leadership skills model of Mumford, M.D and et al 60 63 66 69 10 72 14 75 16 78 17 81 18 82 62 Fig 2.2: General research model 65 Fig2.3:Detailed research model 68 Fig 3.1: Research process 71 Fig 4.1: CFA test results 74 Fig 4.2: Detailed research model SEM test 77 Fig 4.3: General research model SEM test 80 Fig 4.4: The results of extensive testing of research models 83 CHAPTER 1: INTRODUCTION 1.9 Reason for choosing the topic 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 85 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 86 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 socio-economic development of Vietnam 87 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 88 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 89 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 approaches: (1) leadership characteristics, (2) behavioral leadership, (3) approach in terms of influence/power, (4) situational leadership, and (5) integrated research 90 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) 84 In terms of research content, research on leadership skills can be divided into two main research groups, namely: 92 - 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 93 - The second research group is the study on the relationship between a leader's skills and leadership effectiveness in the current managerial position 94 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) 95 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 96 Research on leadership skills in Vietnam includes a PhD research thesis on developing leadership skills in Vietnam's non-state 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., & Sri-ampai, A (2014) 1.10.2 Researches related to business performance of companies 97 Until now, researches on business performance are very diverse and often approach in three main directions: 98 - Firstly, the aim is to evaluate business efficiency and propose solutions to improve business efficiency of the business 99 - 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 100 Researching the relationship between leadership skills and leadership performance, business performance of enterprises is one of the main research branches related to leadership skills and business performance of enterprises These studies often identify a leader’s skills through testing, problem solving, self-assessment or evaluation by others, and then determine the influence of a leader's skills on leadership efficiency Leadership effectiveness is measured by the performance of the work of individuals, groups and the whole enterprise (Yukl, G, 2013) These include: sales, 91 - 10 profits, market share, Return on Investment (ROI), Return on Assets (ROA), employee satisfaction, employee motivation, and develop employee skills, solution quality 101 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 102 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 103 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 104 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 105 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 106 Subject of the study: The dissertation studies the influence of leadership skills on business performance of Vietnamese textile and garment companies in general 107 Scope of the study: - 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 32 - Vietnamese textile and garment companiesshould link with the Association and training institutions to analyze the limitations of leaders in their enterprises in order to propose the implementation of leadership skills training programs It is necessary to arrange appropriate work arrangements, creating conditions for time and funding so that leaders at all levels and adjacent leaders can effectively participate in training programs 645 - Existing and adjacent leaders should regularly assess their own skills, find, propose and participate in appropriate leadership skills training programs 646 5.2.2 Developing leadership skills through learning from real experience 647 This method is essential in the development of strategic skills, skills related to visioning, system perception and system evaluation, identification of downstream consequences, problem identification and solution appraisal 648 Skills development through experiential learning is often affected by three factors, which are job challenges, task diversity and feedback 649 - Higher-level leaders should trust and boldly delegate more complex tasks to subordinates with limitation on leadership skills, encourage lower-level leaders to be confident and brave in performing the tasks, rotation so that lowerlevel leaders have the opportunity to perfect their limited skills 650 - Existing or nearby leaders should dare to take on challenging tasks so that they can perfect and develop leadership skills 651 5.2.3Developing leadership skills through self-improvement from the leaders 652 Leaders themselves need to listen to the opinions of senior leaders, colleagues, subordinates and others to know exactly the status of their skills, choose the training method appropriate to their own resources 653 5.3 Contributions - Theoretically: + The dissertation's research results also reinforce the theory of the relationship between leadership skills and business performance of companies + The thesis has systematized the theoretical basis of leadership, leadership skills, summarized the leadership skills models often used to assess the leadership skills of businesses + The thesis has systematized the theoretical basis of business performance of companies, and different approaches to measure business performance of companies - Practically 644 33 The thesis proposes a set of criteria to evaluate leadership skills and the thesis assesses the status of leadership skills in textile and garment enterprises in Vietnam + The thesis also points out that leadership skills affect positively on the business performance of Vietnamese textile and garment companies, and with each different perspectives of business performance, the influence of leadership skills will vary Therefore, depending on the business goals of the enterprise in each period, Vietnamese textile and garmentcompaniesshould improve and develop appropriate leadership skills, contributing to improve the business performance on every perspective + The thesis also proposes some recommendations to improve the skills of leaders in Vietnamese textile and garment companies to enhance the business performance in particular and develop of Vietnam's textile and garment industry in general 654 5.4Further research 655 Besides some achievements, the thesis still has certain limitations: 656 Firstly, considering the research space, the thesis studies Vietnamese textile and garment enterprises However, the research results of the thesis are based on the results of a survey of 476 leaders in Vietnamese textile and garment companies, in which, the majority of the collected observations are concentrated in the southern region, the main Therefore, research results may be biased 657 Secondly, although the thesis has clearly indicated the influence of each leadership skill on each perspective in the business performance of Vietnamese textile and garment companies, the thesis has not clarified this influence for different types of businesses The thesis has not clarified this influence on leaders in different regions 658 Thirdly, the research has pointed out the influence of leadership skills on business performance of Vietnamese textile and garment companies, howeverit has not mentioned the impact of environmental factors on this relation 659 Vietnam's textile and apparel industry includes enterprises which only perform sewing and enterprises which perform spinning, weaving and sewing Moreover, Vietnamese textile enterprises are now following different production methods and different levels of production specialization, so the requirements for leadership skills may vary and there are can affect the business performance of enterprises differently This thesis does not go into depth to analyze, evaluate and make recommendations for each specific case mentioned above 660 These issues are also the future research directions of the author + 34 661 Conclusion of chapter 662 663 35 664 CONCLUSION Performance is always the most important issue of all businesses The performance is affected by many factors, of which the leader is considered as one of the most important factors Among the leadership elements, leadership skills is considered as one of the most important factors, because the skill demonstrates the ability to perform the work of the leader, therefore, studying leadership skills is very important and extremely meaningful in improving the business performance 666 Vietnam's textile and garment industry has been developing strongly and plays an important role in the growth process of the national economy Therefore "Studying the relationship between leadership skills and the performance of Vietnamese textile and garment companies" is very important, necessary and meaningful 667 Based on the theoretical background related to the research topic, and through the use of qualitative and quantitative research methods, many data collection methods, scientific and rigorous testing tools, at the same time combining the methods of analysis, synthesis and critical thinking, the thesis has given some research results as follows: 668 Firstly, leadership skills in Vietnamese textile enterprises can be measured through cognitive skills, business skills, interpersonal skills, and strategic skills Research results show that there is a significant gap between the importance and the level of performance in interpersonal skills, business skills and strategic skills Therefore, leaders of Vietnamese textile and garment companies should focus on improving these skills 669 Secondly, the research results show that leadership skills positively affect on the business performance of Vietnamese textile and garment companies Strategic skills are the most influential, followed by interpersonal skills, business skills, and cognitive skills 670 Although some research achievements have been achieved, the thesis still has some limitations to be studied in the future 671 The author would like to thank the supervisor, Associate Professor, Dr Nguyen Xuan Minh who interested, wholeheartedly guided, and edited detailed corrections for the author to complete this thesis At the same time, the author would like to thank the leaders of Vietnamese textile and garment companies for taking the time to support and provide relevant information for the author to complete the thesis In addition, the author would like to thank teachers, colleagues, siblings and friends for supporting and facilitating the author to complete this thesis 665 36 672 37 673 REFERENCES 674 Vietnamese Nguyễn Tấn Bình (2010), Phân tích hoạt động doanh 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