The study: Leadership competency of Vietnam CEOs (research in Hanoi)

Chia sẻ: Nguyễn Minh | Ngày: | Loại File: PDF | Số trang:0

Thêm vào BST

Báo xấu

67
lượt xem 6
download

Download Vui lòng tải xuống để xem tài liệu đầy đủ

Research object: Analyzing Vietnam CEO’s leadership competency and testing the impact level ofcomponents of their leadership competency on firm performance; proposing solutions and recommendations to improve Vietnam CEOs' leadership competency.

Chủ đề:

Bình luận(0) Đăng nhập để gửi bình luận!

Lưu

Nội dung Text: The study: Leadership competency of Vietnam CEOs (research in Hanoi)

1 2 INTRODUCTION 2. Objectives, Research object and scope 2.1. Objectives 1. The necessity of the research The thesis will focus on the following main objectives: CEO - Chief Executive Officer is the heart of enterprises. Since the appearance of Systemizing the basic theory of leadership and leadership competency to clarify what the first CEO approximately 150 years ago, the number of CEOs has risen dramatically. is leadership competency, what is the difference between leadership and Because of the perceived and actual influence of these CEOs and their importance to management. globalization, prosperity, and economic growth. Concern for CEO had been remaining Systemizing knowledge about CEO, clarifying characters of the CEO position and a topical issue . Although there are a lot of studies in CEO in Vietnam as well as in the that of Vietnam CEOs. world, research on CEO’s leadership traits and actions to increase the performance of Identifying components of leadership competency of Vietnam CEOs. the CEO is still very little. Over the past 2 decades , the studies in team of senior Analyzing Vietnam CEO’s leadership competency and testing the impact level of executives and their influence to firm performance had been raising ( Canella , 1997; components of their leadership competency on firm performance. Childs & Wolff , 1972 ; Finklestein & Hambrick , 1996 , Waldman , Javidan , & Proposing solutions and recommendations to improve Vietnam CEOs' leadership Varella , 2004) . These studies have shown that firm performance was closely related to competency. CEO’s actions and quality . Finkelstein (1992 ) pointed out the need to consider the 2.2 Research object leadership traits of senior management team influence subordinators and firm Vietnam CEOs’ leadership competency performance. Waldman, Javidan , Varella (2004 ) stated a growing trend that firm 2.3 Research scope performance depends on the actions of the senior management team . The thesis focuses on examining components of leadership competency of Vietnam In Vietnam, it had became popular that people focus deeply on management CEOs to firm performance in Hanoi, period 2009-2012 and proposing instead of leadership and lacking of people with ability of inspiring and building recommendations in the next period. visions in business. There have also existed three common mistakes in thinking about 3. The management question management and leadership in Vietnam which were management thought to be What should we do to improve Vietnam CEOs’ leadership competency? leadership and vice-versa, leader is the highest position in an organizational structure, 4. The research questions leader was born not made. In addition, the following statistics have shown alarming The thesis focuses on the following research questions: situation in quality as well as leadership competency of Vietnam CEOs. The survey of What are the components of Vietnam CEOs’ leadership competency? the Ministry of Planning and Investment in 63,000 enterprises in 36 provinces indicated Are there difference in perception and evaluation on components of leadership 43.3% of the CEO having educated under high school level, 3.7% of the business competency between CEOs and their superiors and subordinators ? owners were master's degree or higher .The survey of Research and Development How Vietnam CEOs’ leadership competency impacts on firm performance? Institute also showed 65% of 2,000 business owners in Hanoi served as leaders and How to improve Vietnam CEOs’ leadership competency? civil servants in the State sector was promoted and appointed positions rather than their (The superiors and subordinates are people who interact directly and most often with achievements in leadership, about 15% of the CEO is the entrepreneur family business the CEO such as: board members, heads and deputy heads of departments...) with a long tradition, the few remaining was CEO themselves . The issue of educating 5. New contributions CEO with high quality should be the urgent target especially when Vietnam has joined Theoretically the WTO[1]. So far, after nearly 30 years of innovation, Vietnam enterprises have First, by summarizing and analyzing documents, the author explain the difference never been faced with challenges and difficulties in the changing context of business among the terms ”competency”, “capability”, “capacity”. The author also explain the environment and the crisis involves nations and regions. CEO is the person responsible similar and difference between the terms “leadership” and “management” and emphasis for operating business and this places on the role of CEO. The big challenges of on the role of leadership competency to the management position, which form the basic VietNam CEOs in the flat world is knowledge about international laws, foreign for the following researches on leadership in Vietnam. languages, leadership and management….. In which, CEO’s leadership competency is Second, the author combine the theory of competency models, leadership the key role to business success. It is necessary to clarify the nature of CEO’s competency, leadership theory to build and to test the impact level of components of leadership competency and to improve it. Based on this review, the author selected the Vietnam CEOs leadership competency to firm performance. This is the premise to thesis named “Leadership competency of Vietnam CEOs (research in Hanoi)”. promote recommendations for the thesis.
3 4 Practically CHAPTER 1 First, the study results show that leadership traits and actions have not really met the LITERATURE REVIEW OF CEO’s LEADERSHIP COMPETENCY AND demands of subordinates. However, the results showed that all of them have “common CHANCE TO RESEARCH ground” when evaluating the importance of leadership traits and actions of Vietnam CEO to leadership competency and to firm performance. 1.1. Literature review of leadership competency Second, the results of testing show that the proposed research model fit the survey 1.1.1. The research of leadership competency in the world data and the basic argument and hypotheses are accepted. Accordingly, leadership At the trait side, trait theory point out characters combine with leader success. The actions have strongest influence on firm performance and following are leadership traits leader with these characters will be competent. We always hear that ” he was born, not and knowledge. made”. This means the individual with special traits should have leadership competency. Third, the thesis proposes oriented solutions and recommendations to improve Stogdill (1948,1974) recognized traits with leaders as followed: Intelligence, Vietnam CEOs’ leadership competency based on the above tested factors. responsibility, self-confidence, socialability, arletness insight, initiative, persistence. 6. Structure of the thesis: And there were ten traits positively affected leadership competency: responsibility, Beside introduction and conclusion, the thesis is divided into 5 chapters as persistence, risk taking, self-confidence, sensitive, cooperativeness following: Lord et al.(1986) found intelligent, influenced, manly were traits of leaders. Chapter 1: Literature review of CEOs’ leadership competency and chance to Marlove (1986) found emotional intelligence (EI) could help leaders understand other research behaviours and emotion so that they could act well. Kirpatrick and Locke (1991) pointed Chapter 2: Theoretical background and the conceptual model out leaders were different from others in confidence, understanding tasks, cognitive Chapter 3: Research methodology ability, integrity, inspire ability, enthusiasm. These traits may be born or made and they Chapter 4: Research findings of Vietnam CEOs’ leadership competency can help us realize leaders. Smith and Foti (1998) showed the leadership traits like Chapter 5: Oriented solutions and recommendations for improving Vietnam CEOs’ intelligence, self-confidence, exceptional. Mumford, et al (2000) showed 3 traits lead to leadership competency leadership competency which were challenging the difficult and using it as chances to develop, influence, social commitment [8]. In conclusion, there had been many traits which were studied such as: Intelligence, manly, responsibility, trust worthy, assertive, brave, creative, meticulous, openness, compassion ,.. At the side of leadership knowledge, Schein (1996) said that leadership competency included cognitive ability, the ability of understanding himself and the world around, the motivation to learn and to change, emotional ability to self manage and others, the ability of analyzing the effect of culture especially positive effect of culture in leadership, attract subordinators’ participation, empowered by competency and encouraging leadership based on the subordinators’ participation. House (1996) and Howard (1995) said that leadership competency is about the ability of recognizing limitation, analyzing and coordinating toward the goals. Bass (1999), Zaccaro, et al (1991) said that leadership competency related to social knowledge likes communication, persuasion, negotiation, training, conflict management. Researchers likes Connelly et al. (2000), Kanungo & Misra (1992), Katz Kahn (1978), Lau, Newman, & Broedling (1980), Mahoney Jerdee, & Carroll (1965), Mintzberg (1973), Mumford, Marks, Connelly, Zaccaro, & Reiter Palmon (2000), Zaccaro (2001) focused on leaders tasks with knowledge instead of traits. Back to the mentioned study of Bass (1981,1997), leadership knowledge as followed in table 1.4.
5 6 Table 1.4: Leadership knowledge were concerned influence of each factor, leadership actions tend to affect leadership effectiveness much Adapt and more than leadership traits. In conclusion, the study indicated that research model Author/time Cognitive along with Occupation Strategic combining leadership traits and actions is meaningful. ability other ability ability ability 1.1.2. The research of leadership competency in Viet Nam Mahoney et Controlling Supervisor Cooperating Planning Despite the study of leadership competency extremely diverse in the world (based al. (1965) Negotiator Directing Assessing on leadership traits, gender, levels, behavior and in specific field such as health, Directing Leader Resource Speaker insurance …) there have been very little researches on leadership competency especially Mintzberg Communicating Negotiator contribution The CEO’s leadership competency in Vietnam. The author found the relative studies as (1973) Controller communicator followed: Katz & Kahn System Dissertation “Solutions to improve qualification of State CEO - research in Nam (1978) cognitive Dinh” , Tran Van Dau, 2001 focused on the role of State CEO without concerning to Lau & Pavett Relationship Decision CEO competency and the system of assessing CEO’s leadership competency. (1980) Collecting and Monitoring Professional making The study "Evaluation of CEO’s competency through the ASK model ", Le Quan, communicating knowledge Problem solving 4/2011, Journal of Economics and Business, National University Hanoi Science Kanungo & Human oriented magazine used ASK model to assess CEO’s competency in general and did not Misra (1992) metion leadership competency. The study also has certain conclusions on Vietnam Hooijberg, Diverse social CEO’s competency. Resource Merit The report " Survey of business leaders of Vietnam non state-owned ", Phung Xuan Hunt, & ability Dodge (1997) contribution Diverse Nha et al., 2012 gave an overview of the operating capability of Vietnam Non-state Connelly et Social awareness cognitive ability enterprise leaders with certain pros such as assertiveness, optimism about the future, al. (2000) General Problem solving having the ability to build relationships ... However, their operating capability still cognitive ability skills exist many " holes" such as bad human management skills and forecasting... The Mumford, High level report also showed that CEO's leadership competency had not been researched in Marks, et al. Social awareness cognitive ability detail. (2000) The article " Improving Vietnam CEOs’ leadership competency in fluctuated Zaccaro Basic cognitive Social ability Professional business environment", Nguyen Manh Hung, 2012, Proceedings of the Vietnam’s (2001) ability knowledge day found Vietnam CEOs has the most strength to be assertive, creative, having Source: Peter G. Northouse (2004), Leadership - theory and practice- 5thed. knowledge of manage and communication skills ... .Vietnam CEOs also reveal At the side of leadership actions, leadership traits and knowledge are considered weaknesses such as lack of solidarity, not high labor discipline, ... However, the as the ”Necessary condition” and the leadership actions are the “Sufficient”. The study did not show the separation between leadership competency and management leadership actions depend on the specific situation and context. There have been lots of competency. researches on leadership shifted from leadership traits to leadership actions like The dissertation titled ”Leadership competency – situation of leaders of Vietnam behavioral theory. Avolio et al. (2004 a ), Judge & Piccolo (2004) showed that there SMEs”, 2012, Dang Ngoc Su, CIEM focused on evaluating leadership competency have positive relation between transformational leadership and firm performance in any of the leaders using competence model with 7 components included: vision, contexts and at any levels of leadership. The person with transformational leadership motivation, decentralized authorization, influence, decision making, self building, style is focused by his actions in practice. The third component of leadership understand yourself and others, communication. The research object is Vietnam competency depends on the specific context of the organization as well as specific SMEs’ leaders included CEO. studies and situations. A ministerial-level project of the author Tran thi Van Hoa titled ”Improving CEO’s Overview of studies in leadership competency showed that there is little research leadership competency in process of international economic integration”, 2011 have combining leadership traits and actions and its influence to firm performance as well as contributed to recognize Vietnam CEO competency model and pointed out the leadership effectiveness (Avolio, 2007). Combining leadership traits and actions can leadership competency gaps of Vietnam CEOs. Based on the ASK model, the author explain at least 31% of the difference in leadership effectiveness. At the individual
7 8 pointed out leadership traits, knowledge and skills needed of Vietnam CEO but these CHAPTER 2 lead to over loaded in her study. And there is no separation between management and THEORETICAL BACKGROUND AND leadership competency in some cases. The research lacked of the literature reviews. THE CONCEPTUAL MODEL This lead to the lack of the research base, especially in Vietnam context. Reviewing the literatures showed that no studies explore the relationship between the 2.1. Definition of leadership competency of the CEO components of CEO’s leadership competency and firm performance has been done in 2.1.1. Competency definition Vietnam. Studies examining the relationship between the components of leadership Competency is a compound of traits, knowledge and actions of a person to complete his competency with firm performance has been done in the world but in a narrow range tasks. likes the relationship between leadership traits and firm performance, leadership 2.1.2. CEO’s Leadership competency skills and firm performance....So the author focused on the ”gap” to complete 2.1.2.1. CEO’s leadership competency definition leadership science. CEO’s leadership competency is a compound of leadership traits (BE), leadership In conclusion, there have been many studies in CEO and leadership competency knowledge (KNOW) and leadership actions (DO) of the CEO in managing and leading separately in Vietnam and in the world. Because CEO is also a manager and a leader so to gain the business goals. that the leadership theoretical background can also be used to have research on CEO’s 2.1.2.2. The roles of leadership competency of the CEO leadership competency. In the position of leading and managing business, CEO should have management 1.2. The chance of the research competency to ”do things right”. But CEO with management competency only could run After reviewing documents and analyzing consistency of the leadership the business in the stable environment. When the business environment changing, competency models, the author based on the BKD model to support the research. management competency may make the obstacles to CEO to reach long visions for the Therefore, CEO’s leadership competency here means the combination of leadership company. Leadership competency of the CEO is the key factor for the CEO’s success. traits(BE), leadership knowledge (KNOW) and leadership actions (DO) to have The bankruptcy and recession of large corporations named GM, Ford, JAL… and the influence, motivate and encourage the others toward the goals of business . dissolution of many Vietnam enterprises in 2012, 2013 is a testament for the weakness of leading. In the dynamic environment today, management competency is not enough and we need both management and leadership competency for the business success. A survey of World Economic Forum in 2002 have confirmed the necessary of CEO’s leadership competency in the globalizational context and pointed out the important components to leadership competency such as vision building, risk management… The roles of leadership competency of the CEO as follows: First, CEO with leadership competency will have long visions to reach the suitable fields for the company . Second, CEO with leadership competency will have an ability do right things (Bennis: leaders are people who do right things). In the CEO position, the “right things” are running the business adapted to factors of external and internal environment . Third, CEO with leadership competency will have ability to initiate changes, the ability to inspire and motivate followers to do their best for the intended targets. Fourth, CEO with leadership competency will have an ability to gather well followers to form an “all in one” to gain the intended targets.
9 10 2.2 The research model CHAPTER 3 THE RESEARCH METHODOLOGY Leadership traits of CEO (BE) 3.1 .The research methodology Archival research and secondary research: this approach provides qualitative data, Leadership FIRM PERFORMANCE including published statistics, consolidated reports from organizations, relevant knowledge of CEO authorities and from other resources. (KNOW) In-depth interview: to understand more about components of leadership Leadership actions of competency of Vietnam CEOs, the author interviewed 2 experts in developing CEO (DO) enterprise, 2 CEO and 1 board member of 3 companies (includes construction, banking and transforming). This method provides qualitative data. Figure 2.1: The research model Survey: this methodology will help to test the hypothesized relationship. 3.2. The process of research 2.3. Hypotheses: Step 1: Qualitative study Based on the above analyses and the research model, the following After using archival research and secondary research, the author used the in- hypotheses are suggested: depth interview to understand more about the research issue. It helped to propose the research model and hypotheses. Also, this information was used to design Table 2.1: The research hypotheses structured questionnaire more suitable. This used as the base to build the research Content Hypothesis questions to collect the ideas of CEO and CEO’s subordinators. Step 2: Quantitative study Vietnam CEOs’ Leadership traits are positively related to firm H1 Survey was conducted by questionnaires and in-depth interviewing. The performance sample for this study was drawn from a population in Hanoi, including: Vietnam CEOs’ Leadership knowledge is positively related to H2 + Respondents from 419 CEOs from 419 companies (covered a range of size, firm performance type, majority of businesses). Vietnam CEOs; Leadership actions are positively related to firm H3 + Respondents from 600 people who are the CEOs’ superiors and performance subordinates of the mentioned companies. Source: The author’s results 3.3 Data collection To survey CEOs in the collected enterprises, the author use the structured questionnaire. The questionnaire in this study was originally designed based on secondary research, specifically previous theoretical basis and studies. Then the authors discussed in the qualitative research and edited the first time. Questionnaires are separated in 2 types, one is for CEO and the other is for those CEO’s superiors and subordinates. Before conducting formal research, the author conducted a pilot test on small samples (10 samples) including CEO and their superiors and subordinators to check the last editing and adjusted the second time. The last step was to conduct the official version and sent to the participants to answer questionnaires. 3.4 Scales Most of the measures for dependent and independent variables used in this study were drawn from the literature and adapted for the Vietnam context. Most of the scales used in the study are adopted or modified from the previous researches of Tran thi Van Hoa (2011) and Golden, Dornheim(1998)[3,7]. The items were developed based on the
11 12 findings from the previous qualitative study, these scales were scored on a 5-point CHAPTER 4 Likert-type format from never to very often ; Dang Ngoc Su (2012) with scales were scored on a 5-point Likert-type format from strongly agree to strongly disagree; Kouzes FINDINGS and Posner (1995) with scales were scored on a 5-point Likert-type format from never to 4.1. Overview of the Vietnam CEOs very often.[6].These scales are used to measure variables: (1) leadership traits of Recognition about the CEO position Vietnam CEOs); (2) leadership knowledge of Vietnam CEOs); (3) leadership actions of Opposite to other countries, CEO has been recognized at the side of position rather than Vietnam CEOs. And the author used the scale of Phan thi Thuc Anh et al (2012) to that of career in Vietnam. CEO is considered as a special job with many difficulties, mesure firm performance[2]. challenges, pressures, but also a very high - paying jobs in society. CEO also is 3.4 Data analysis considered as a job leading and managing other occupations in the same company. The survey was piloted and a number of questions were amended or withdrawn The role of operating after the pilot phase. This is the process of modifying structured questionnaires to make Due to Vietnam economy has been changing from subsidized to market, the role sure that collected information would be more exact. Data was coded and used under and function of CEO and chairman of the board of a company are sometimes not clearly SPSS. The use of factor analysis and Cronbach’s alpha to decipher the internal separated. Chairman of the board always concurrently hold the position of CEO, and the consistency of and relationships between questions within modules. Factor analysis was CEO is often highly dependent on the chairman of the board when making decisions. used to identify common components among sets of items within questionnaires. The This is clearly reflected in the public sector and private sector which went up from the statistical hypothesis test are applied significance level of 5%.(Nguyen Đinh Tho, small and medium from family business. Nguyen Thi Mai Trang, 2007)[5].To examine the relationship between the dependent Education level variable with the independent variables as well as between the independent variables The survey was conducted with 63,760 enterprises in 30 provinces by the together to identify the multicollinearity, Pearson correlation coefficients will be used. Ministry of Planning and Investment in collaboration with the Japan International If two variables have a linear relationship, the causal relationship of these two variables Cooperation Agency (JICA) showed that 54.5% CEO have university degree or higher can be modeling by linear regression. (30% of these have degree of master and doctoral), 45.5% remaining is under high school level. However, just 30% of the 54.5% trained in business management and the remaining are from other areas. With such a low level, this result is big hindrance for Vietnam CEOs to join the international business in the current trend of rapidly changing technology. Training and retraining The issue of training CEO is limited in Vietnam. There are 2 ways to train CEO: one is school training and the other is practical experience. CEOs from practical experience are very small proportion and becomes barely when Vietnam moving to the economy market while training through schools in Vietnam is inefficient. Vietnam CEOs are limited in using foreign language, having a poor ability of informatics, and these lead to the limitation for CEOs to communicate and negotiate.
13 14 Most CEOs only concentrate in improving their talents instead of the ethical. 4.2.2.1. Assessment of Vietnam CEO and their superiors and subordinators in Selection and appointment leadership traits Since CEOs have not been standardized especially the level of training so that The result show that CEOs seem to assess themselves higher than that of the selecting CEOs is not based on the CEO’s training , just on his relations. The selection subordinators. However, VietNam CEOs’ leadership competency had been strengthened of CEO is not really fair and democratic result in the poor quality of CEOs. Hiring CEOs as following: in Vietnam has not yet developed, primarily in foreign enterprises, private enterprises CEOs understand and more aware of their role especially their position and their with large-scale. And in the remaining, mostly business owners are CEOs. Hiring CEOs responsibility to relevant partners inside and outside enterprise. in state-owned enterprises is in the pilot with a little number of companies: Vinashin, Creativity is highly appreciated traits of Vietnam CEOs. Vietnam CEOs are very Vinamotor, VEC, glass and ceramics.[4] creative, innovative and hard working. Many CEOs work hard to build 4.2 Situation of leadership competency of Vietnam CEOs enthusiasm and business development as well as an example for subordinators. 4.2.1. Descriptive statistics For ethics, CEOs represented pretty good sense of building enterprise’s values and Age of Vietnam CEOs culture as well as respected for the value of individual. Vietnam CEOs are relatively young age: 39.4% are under the age of 35, 56.6% Vietnam CEOs also very cleared sense of getting objectives and identifying long- aged 35-54 and only 4% over the age of 54. term strategic direction for the business. In addition, sensitivity was also the trait Gender of Vietnam CEOs CEOs wanted to express to "win the heart" and run the business more efficiently. Agree with the previous studies of CEO in Vietnam, Vietnam CEOs have male There have a number of traits were shortaged in Vietnam CEOs such as limited sex ratio is higher than female. However, CEOs are female accounted for a significant visions…. In addition, CEOs were still not familiar with the habit of meeting proportion (35.9%) in this research. partners’ expectation or actively seeking business opportunities. These lead to the Level of Vietnam CEOs education limitation of the sensitivity to partners’ expectation and business opportunities. 97,5% of Vietnam CEOs have university degree or higher ( 17.1% of this have 4.2.2.2. Assessment of Vietnam CEO and their superiors and subordinators in degree of master and doctoral), 2.5% are under high school level or have never been in leadership knowledge training. Although this result is not high but it is encouraging compared with the For general knowledge of leadership, the authors just surveyed CEO's general previously published survey of CEO's education level (CIEM, 2000). leadership knowledge and used previous research results to obtain a complete picture of Specialized training of Vietnam CEOs Vietnam CEOs’ leadership competency. CEOs are trained in a variety majors: architecture, engineering, foreign languages, The assessment of general leadership knowledge was putted into the questionnaire communication, banking, law, computer science, business administration... There is very to ask Vietnam CEO self-assessing their leadership knowledge mainly aimed to know little CEOs have not been in training yet (about 3.1%). The result showed that education whether they understood clearly about leadership or not. The results of the survey in and specialized training of Vietnam CEOs have a positive change, in which the training Hanoi showed that Vietnam CEOs did not really understand about leadership and this of economic and business administration accounting for more than a half (54.9%). This can prevented CEOs to catch and train leadership knowledge. The question with the assessment may be a positive influence on the CEOs’ leadership competency (this result statement "leadership is management" got the highest percentage level of "normal” is encouraging compared to overall assessment of Vietnam CEOs with approximately showed that Vietnam CEOs were not clearly aware of the nature of leadership. 30% having business knowledge). The result also showed that 90% of CEO respondents According to Tran Thi Van Hoa ( 2011), although most Vietnam CEOs have good said that they have not been professional trained in the position of CEO and they mainly technical knowledge, but they were lacked of leadership knowledge such as forecasting, rely on the specialized training of the self and self-learning experience. business strategic directing, developing human resources as well as the way to work Operating and leading Experience of Vietnam CEOs effectively to harness human resources and risk management.This knowledge was CEOs with 3 years experience of managing and leading is the most percentage weakest one of Vietnam CEOs and must be completed and updated in rapid change of (40.4%), the next is 5 years, 4 years, 6 years and 10 years. In general level, 49.6% of business environment. Most of the CEOs’ leadership knowledge was assessed at less CEO experienced under 5 years, 43.5% experienced from 5 to 10 years and 6.9% than 3.5 points (scale of 5). Assessment of Vietnam CEOs’ leadership knowledge was experienced over 10 years. not the same between CEOs and their superiors and subordinators, especially knowledge 4.2.2. Assessment of Vietnam CEO and their superiors and subordinators in of business strategy, risk management and corporate culture. leadership competency According to Dang Ngoc Su (2012), general leadership knowledge of leaders in
15 16 Vietnam small and medium enterprises including CEO was not very well. The lack of 4.3.4. ANOVA test these knowledge was also expressed in the inaccurate understanding of the nature of The ANOVA test shows that the hypothesis at the 0.00 significant level (< 0.05). leading as well as effective leadership. The regression model fit the collected data and the variables are included in the Overall, general leadership knowledge of Vietnam CEO was still limited and statistical significance of 5% significance level. these will affect Vietnam CEOs’ leadership actions and leadership competency. Table 4.33 ANOVAb 4.2.2.3. Assessment of Vietnam CEO and their superiors and subordinators in Model Sum of Squares df Mean Square F Sig. leadership actions 1 Regression 25.693 3 8.564 38.648 .000a Vietnam CEOs understood and were aware of their role especially their position Residual 91.962 415 .222 and responsibility with relevant partners inside and outside enterprise clearly. Vietnam CEOs had the ability to develop relationships well. Most CEOs were Total 117.655 418 aware of the business culture of Vietnam as "Commercial with you, sell with a. Predictors: (Constant), KNOW, BE, DO wards" so they were very interested in developing relationships. They also b. Dependent Variable: KQHĐ especially success in building relationships with investors and external partners. Vietnam CEOs must concern to encourage employees’ heart. The fact that many Source: The author’s results CEOs assigned work emotionally and did not assess employees’ ability leaded to 4.3.5. Hypothesis tests decreased their motivation. As the leader, CEO also need to be able to target reaching at least 4.5 points. However this ability was still not highly rated. The Table 4.32: Model Summary biggest drawback of Vietnam CEOs’ goal-oriented was communicating goal and Model Std. Change Statistics announcing business vision to all employees and making them understand Error of R business goals in the same way and the same direction. R Adjusted the Square Sig. F Vietnam CEOs must concern to developing staff for the achievement did not meet R Square R Square Estimate Change F Change df1 df2 Change requirements, particularly their ability to decentralize, staff training and mentoring dimens1 .467a .218 .213 .47074 .218 38.648 3 415 .000 support staff. ion0 4.3. Analysing the effect of components of Vietnam CEO’ leadership competency to a. Predictors: (Constant), KNOW, DO, BE firm performance Source: The author’s results 4.3.1. Testing the variable value Factor analysis (EFA) is used when the KMO (Kaiser – Mayer – Olkin) value is Table 4.34: Coefficientsa more than 0.5 (Marija J, 1993). The results show that KMO & Berlett value of testing is Model Unstandardized Standardized more than 0.5) and this lead to the conclusion that the scales have high value when used Coefficients Coefficients to measure the corresponding variables. B Std. Error Beta t Sig. 4.3.2. Evaluating the reliability of the scale 1 (Constant) 1.607 .365 4.404 .000 Reliability evaluation is testing whether the scales are consistent with the corresponding variables. The statistical method used to test the reliability is coefficient DO .490 .050 .426 9.728 .000 Cronbach's Alpha. The testing results show that all Cronbach's alpha values are greater BE .370 .046 .321 7.481 .000 the required value of 0.6. In addition, most of Cronbach's Alpha of Item Deleted values KNOW .121 .036 .146 3.314 .001 are lower than Cronbach's Alpha and Corrected Item-Total Correlation values are greater a. Dependent Variable: KQHD than 0.3. Therefore, the scales in this study are highly reliable. Source: The author’s results 4.3.3. Correlation coefficient The result of the regression coefficient in the model shows that the meaning of all The Pearson correlation coefficient values between KQHDD and BE, KNOW, DO Sig.are less than 0.05. Therefore, the independent variables affect firm performance. All are in the range of 0 to 1. It means the relationship between the variables is meaningful components of leadership competency are significant and affect firm performance at the and has no abnormal signs, may continue to use other statistics to test this relationship. same side because the regression coefficients are positive. The beta coefficients are
17 18 statistically significant which are followed: actions (0.258); knowledge (0.231); traits The key traits of Vietnam CEOs were identified including innovative, flexible, (0.155). sensitive, responsible, ethical, trust worthy. In particular, creativity is appreciated The model for these data is the following: trait of Vietnam CEOs. They are very creative, innovative and hard working. Many CEOs work hard to build enthusiasm and developing business as well as Y = 1.607 + 0.370 BE + 0.121 KNOW+ 0.490 DO doing an example for subordinates. With moral, Vietnam CEOs were good at 4.3.6. Hypothesis test result building a sense of corporate culture values and respecting for individual’s value. The hypothesis test result shows that the beta coefficients are statistically significant. The traits were not highly evaluated which were sensitivity and flexibility. The hypothesis test summary as followed: Vietnam CEOs were not also familiared with meeting partners’ expectation and Table 4.4: Hypothesis test summary actively seeking business opportunities. Therefore, their sensitive to partners’ expectations and business opportunities is very limited . However, sensitivity is Hypothesis Result the trait that CEOs expressed desire to "win the heart" and run the business more efficiently. In addition to these traits, the research also found some leadership H1:Vietnam CEOs’ leadership traits are positively related to firm Accepted traits are considered important for Vietnam CEOs as followed: assertive, performance inquisitive, sociable , vision, acumen, humility, sharing, patience, intelligence… H2:Vietnam CEOs’ leadership knowledge are positively related to Accepted Vietnam CEOs’ traits and actions are incommensurated with the requirements and firm performance expectations of superiors and subordinators. Vietnam CEOs tend to appreciate H3: Vietnam CEOs’ leadership actions are positively related to firm Accepted themselves higher than them. performance According to the factor analysis result, the factors "honesty" and its observed Source: The author’s results variables are eliminated. This can be explained that CEOs tend to concentrate the 4.4. Discussion and conclusion traits flexibility, innovative and responsible. Specific business environment in The summary from the research in Ha Noi are followed: Vietnam sometimes causing CEOs to improvise flexibility in operating and this The age of Vietnam CEOs are increasingly younger and CEOs at the age of 30 can lead to the fact that honesty sometimes becomes excessive drag. Meanwhile, accounted for the largest proportion. the mentioned analysis shows that the board and the investors are very interested Education level of Vietnam CEOs increasingly improved. There are more and in CEOs’ honesty (this reflects the relationship among the CEO, board more CEOs have undergraduate and graduate degree and fewer CEOs are not in management and investors). In fact, honesty is the trait that is difficult to measure training school. Vietnam CEOs were trained in diverse fields and very little had so that it should be overshadowed in feeling about CEOs’ leadership competency. not trained in fields. CEOs which trained in economics and business accounting Vietnam CEOs’ leadership general knowledge was still limited, especially they for more than half (54.9%). This was evaluated with a positive impact on Vietnam did not really understand the nature of leadership as well as the difference CEOs’ leadership competency. This result is also encouraging compared with the between leadership and management. This can affect CEOs’ leadership actions previous overall assessment of the situation of Vietnam CEOs stated with CEOs’ and leadership competency. As mentioned in theoretical chapter, firm knowledge of business administration approximately 30%). However, the performance expressed through CEOs’ leadership competency is the combination alarming fact that 90% of CEOs respondents said that they had not been trained of leadership traits, knowledge and actions. To have leadership competency, CEO on the CEO job professionally and they mostly relied on their specialized training, must have not only the basic but also the expert knowledge such as leadership, their experience and self - study. management, the way to encourage, knowledge of politic, culture and society, ... Vietnam CEOs with 5 years operating experience is the biggest proportion So that the general knowledge like a statement " leadership is management “ may (17.7%), followed was the number of CEOs had 3 years, 2 years, 4 years , 6 years not contain much meaning when considering components of CEOs’ leadership and 10 years experience. In general level , 49.6% CEOs had operating experience competency. under 5 years , 43.5% was from 5 to 10 years and 6.9 % was over 10 years . The observed variables such as "I facilitate individuals mature in their work Vietnam CEOs understand their role in the business, clearly awared of who they through training, learning " and " I let people decide proactive in their work" in are and how they responsible for relevant partners inside and outside the the scale of leadership actions "enabling others to act" were extracted into enterprise. leadership action "modeling the way". This shows that the action "modeling the
19 20 way" of Vietnam CEOs needs to be shown not only verbally but also through CHAPTER 5 practical learning and specific action. CEOs want to develop others then they ORIENTED SOLUTIONS AND RECOMMENDATIONS FOR IMPROVING must model the way and through modeling the way to develop others. VIETNAM CEO’ LEADERSHIP COMPETENCY Among the components of Vietnam CEOs’ leadership competency, all three 5.1. Discuss of the research factors positively impacted on firm performance. CEOs’ leadership actions had This research model is based on model leadership competency Be-Know-Do the greatest impact, following were leadership traits and knowledge. (BKD) of the U.S. Army and is identical to the leadership competency model Attitude- 4.5. Recommendations Skills - Knowledge (ASK) (Bass, 1990). In addition, inheritance of previous researches Although the subject of leadership and leadership competency had been studied a is a necessity in order to build the model. The author has inherited the results of previous lot in the world but it is still very little in Vietnam. With the differences in culture, studies, such as leadership theories, especially transformational theory, the traits theory. customs, traditions as well as the frequent change of business environment, there have For the first component of the model is BE - traits: the trait theory as well as been much “space” to study in Vietnam with this topic. Specifically, researchers can researches on leadership traits has shown that there are certain personal qualities that focused on the context of private enterprises, small and medium enterprises or affect leadership competency - called leadership traits. That is, if individuals have strong businesses in a certain industry. Objects of the research can be leadership competency of leadership traits will have leadership competency. In particular, Mann, 1959 emphasized senior leadership (not just the CEO) or the middle level... It can also be the issue of the qualities smart, manly, temperate, careful and openness; Marlove, 1986 emphasized gender, age, education level, experience of the leader or manager …The object also can emotional intelligence; Mc Crae & Costa, 1987 emphasized creative, assertiveness, trust be factors affecting leadership traits, the relationship between leadership trait and action, and nurture subordinates; Kirpatrick and Locke, 1991 emphasized the confidence, leadership knowledge and action... understanding tasks, integrity. Bass, 1997 showed courage, assertive, have compassion and sensitive, ethics. Tran thi Van Hoa, 2011 also showed the leadership traits such as creativity, flexibility, ethics...The result of this study also agree with the mentioned studies with the traits of creativity, flexibility, trust worthy, responsibility, courage and sensitive. The second component of the model is KNOW- knowledge: Leadership knowledge is the common understanding of the leadership field. The studies of leadership competency had the following authors are more interested in aspects of leadership knowledge such as Schein (1996, p.67) interested in understanding emotion to manage themselves and others; Bass (1981.1997) showed that basic knowledge (cognitive ability), social knowledge (capacity and sociable adaptive), and occupational knowledge (professional competence) were mentioned in the study of Mahoney et al. (1965), Mintzberg (1973), Katz & Kahn (1978), Lau & Pavett (1980), Connelly et al. (2000), Mumford, Marks, et al. (2000); Zaccaro (2001) ... These authors also enhanced common leadership knowledge for the leadership competency in individuals. In this study, the authors just used basic leadership knowledge to provide a basic understanding of concepts such as what is leadership and distinguished leadership with management ... The results of the study also agreed with these view that leadership knowledge can affect ones’ leadership competency. The third component of the model is DO – action: The fact that leaders have personal traits consistent with leadership position as well as knowing and applying leadership is considered as "necessary condition". More over, the "sufficient condition" is how can the leaders act with those leadership traits and knowledge. For this reason, the DO component in the model was stressed. In general, the results of the study basically agree with the mentioned quantitative
21 22 researches. The result showed that firm performance influenced by three factors: identified in the open - ended questions in this research, that are humility, decisiveness, leadership traits, leadership knowledge and leadership actions. The effect level of these determination, generosity in order to improve and refresh their own in order to have the factors to firm performance are different (shown by the magnitude of the beta). ability to influent others. Compared with Tran thi Van Hoa’s research (the closed approach subject), the author 5.2.2. . Improving VietNam CEOs’ leadership competency based on the leadership pointed out the impact of VietNam CEOs’ leadership traits, knowledge and actions to knowledge firm performance. Besides, the author has used the 3rd component "DO" of leadership To be able to improve leadership competency, in addition to certain leadership competency instead of "Skills" - "DO" contains more practices than "SKILLS" (The traits, CEOs should have basic knowledge of leadership such as the nature of vision and question with "DO" includes CEOs’ attitude in managing and leading - see the survey the method of determining the vision, understanding of communication, the art of table in appendix). building a personal image, skills of listening, culture of encouraging ... To do these, In study, the author also concluded positively for the author Tran thi Van Hoa CEOs should: when comparing and evaluating Vietnam CEOs’ leadership competency between Visiting, surveying and studying successful businesses in Vietnam and around the themselves and their superiors and subordinators. Thus, CEO is a specific position world. Note that not only the same but also the different industry can be visited so which related to many others so that it should be need multi-dimensional assessment of that new ideas may be appeared. the components of leadership competency to improve CEOs’ leadership competency. Joining in clubs and workshops of experience sharing of leadership and This could be the opened direction for further researches. This research also has limited management to gather information and improve vision such as CEO Club, not to narrow the scope of the study to a particular industry in Vietnam. According to the seminars on personnel, industrial conferences... situational theory, the context has an influence on one’s leadership competency. And the Finding information on the mass media, reputation books on leadership and industry is characterized the context so that this also opens up a new direction for further executive management such as CEO forums. researches in Vietnam. Although there exist certain limitations but this research has Participating in training courses of professional CEO with topics such as strategic helped improve the understanding of leadership and leadership competency of thinking, creative thinking ... In addition, choosing good education institutions as individuals as well as the components of leadership competency and its’ influence to well as good lectures is extremely important factor in order to get good education. firm performance. This forms the basis for CEOs to improve their leadership (for example countries having leading education like UK, U.S., Singapore ...). competency. 5.2.3. Improving Vietnam CEOs’ leadership competency based on the leadership 5.2. Oriented solutions to improve VietNam CEOs’ leadership competency actions 5.2.1. Improving VietNam CEOs’leadership competency based on the leadership traits For the action model the way: CEOs are aware clearly of their business value and For leadership traits were identified in the study, Vietnam CEOs should clearly beliefs. They keep the firm on by behaving in a way that is consistent with these aware of the nature of these traits as well as its role for leadership actions. For example, values (for example, principles of behavior with clients and colleague). To do this, flexible can help CEOs response quickly and consistently in building business vision CEOs must concern with others’ ability so that the company can reach its goals and behave consistent with individuals with different personalities inside the company. more realistic. Trustworthy, ethical, encourage help CEOs gain the trust and sympathy of the people, For the action enable others to act: VietNam CEOs should build the company’s generating invisible force to make everyone listen to and follow. Creative helps CEOs vision, give out the ideas shape the way the company will be. Then, they should refresh themselves and refresh formal and informal relationship between them and the transfer those in order to meet employee’s expectation. The CEOs with the ability others as well as the business with new products and services ... Sensitive helps CEOs of enabling others to act can gain the support and assistance of subordinators. So, exploit and recognize things early and be able to "go ahead" to solve problems (for CEOs need to establish the importance and trust in their subordinators. example, judgment is the mental state and the desire of employees to judge the trend of For the action inspire a shared vision: CEOs need to be aware of their role to market development product sales industry in the future ...). Those traits can be present shape, to build and to spread the vision in their business. To be able to share the at birth but it is important that CEOs must be aware of their training and continuing vision, CEOs should clearly aware of corporate vision at first. Then, by sympathy, learning. CEOs can learn from those around them and through publications, participating enthusiastic and effective networking skills, CEOs can share subordinators their in programs and courses for the CEO, self-testing exercises to assess traits themselves or point, show them the good result of sharing vision, through which the company's ordering people around them (lower level, family ...) evaluate in order to have the multi- objectives will be achieved. This action can be divided into two main topics which dimensional information. In addition, Vietnam CEOs should also note to train the traits are: envisioning the business future and sharing with subordinators about that
23 24 vission. CONCLUSION For the action encourage the heart: To continue to pursue the given vision, CEOs need to have their heart, minds and enthusiasm.This action can divide in two Thus, in the process of international integration, Vietnam CEOs should have components: recognizing one’s contributions and celebrating accomplishments. adequate knowledge not only about management but also leadership to have leadership For the action challenge the process: CEOs are pioneers – people who search out competency running the business better. In the context of changing international, opportunities even though they have to step into the “unknown” to build strategic regional and domestic business environment, improving Viet Nam CEOs’ leadership goals and long-term future of the company. CEOs can willing to take the risks. competency is the important solution to develop enterprises sustainable on the basis of There can be a failure following taking risks but CEOs must treat failure as people-centered as well as CEOs – center of management and leadership. learning opportunities. The two important points of challenging the process are History of leadership theory showed the debate about whether the leadership traits searching opportunities and experimenting new ideas. have made the leadership competency or not. As theory "Great man” confirmed the 5.2.4. Recommendation leader was born – because of she/he had her/his natural talent or her/his origin. The Strengthening leadership is not only the needs of CEOs themselves but also is one theory “Traits theory” gave "The element of the standard" making leadership of the key contents help to create high-quality human resources to meet the development competency of individuals and confirmed that individuals with these traits would have requirements of the country. However, in order to improve Vietnam CEOs’ leadership leadership competency. The identification of these leadership traits are valuable in competency, Viet Nam CEOs’ awareness and effort and the support of many other sides detecting the leadership talent, gathering the leadership traits expected from the are needed. Specific responsibilities and participation of these sides could be The follower. However, the view that leadership traits are due to natural born and therefore Government, the Association of departments, training facilities and businesses. could not be changed are thought to be wrong. A person can learn how to change his personal traits to get the necessary leadership traits. This survey was done to identify Vietnam CEOs’ leadership traits, knowledge and actions. By identifying and understanding the traits associated with Vietnam CEOs’ leadership competency as well as the basic leadership knowledge and actions, CEOs are able to detect and train themselves to improve and enhance their leadership competency. Believe that with CEOs’ sense of self-training and suitable training programs, the attention of the Government, the Association and business departments, Vietnam CEOs can improve their leadership competency to lead the organizations better. REFERENCES 1. Phan Anh (2009), Seriously lack of CEO, VnExpress 29.9.2009. 2. Phan thi Thuc Anh, Baughn, C., Ngo thi Minh Hang, & Neupet, K. (2006), Knowledge acquisiton from foreign parents in International Joint Ventures: An empirical study in Vietnam, International Business Review, 15(5), tr 463-487. 3. Tran thi Van Hoa (2011), Ministerial level research ”Improving Viet Nam CEOs in international economic integration”, National economics University. 4. Nguyen Manh Hung (2012), Viet Nam CEOs’ ability of leading and operating in changing business environment, Proceedings of Viet Nam human day. 5. Nguyễn Đinh Tho, Nguyen Thi Mai Trang, (2009), Research in business administration, Statistics Publishers. 6. Đặng Ngọc Sự (2011), The dissertation “leadership capability of leaders in Viet Nam SMEs”, CIEM. 7. Golden, Dornheim (1998), Lead and manage people, Republic of South Africa. 8. Wright, P. (1996) Managerial Leadership, London: Routledge.