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Authentic Leadership, Organizational Culture, Competitive Advantages, and Firm Performance: Empirical Evidence from Vietnam

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Purpose: This study was conducted to investigates the direct and indirect relationships among authentic leadership, organizational culture, competitive advantags, and firm performance simultaneously, especially in the Vietnamese context. Design/methodology/approach: The study applied the quantitative research method with data collected from 119 firms located in Ho Chi Minh City by survey questionnaires and processed by using SmartPLS. Findings: The findings indicate that authentic leadership (AL) has a positive direct and indirect impact on CA through OC significantly at 5%. OC has a positive direct and indirect impact on FP through CA at the significance level of 1%. We also found the positive relationship among our factors (AL, OC, CA, and FP) at the significance level of 5%. Research limitations/implications: The findings imply that AL drives positive OC, then enhances CA, and results in high FP. It is recommended that managers should be authentic leader and build a positive organizational culture to increase a firm’s competitive advantages and firm performance. Originality/value: The research’s findings contribute empirical evidence to confirm the correctness of theories of organizational behavior. The further research should be conducted with larger sample size and diversified context to increase the generalizability of research findings.

Abstract

Purpose: This study was conducted to investigates the direct and indirect relationships among authentic leadership, organizational culture, competitive advantags, and firm performance simultaneously, especially in the Vietnamese context. Design/methodology/approach: The study applied the quantitative research method with data collected from 119 firms located in Ho Chi Minh City by survey questionnaires and processed by using SmartPLS. Findings: The findings indicate that authentic leadership (AL) has a positive direct and indirect impact on CA through OC significantly at 5%. OC has a positive direct and indirect impact on FP through CA at the significance level of 1%. We also found the positive relationship among our factors (AL, OC, CA, and FP) at the significance level of 5%. Research limitations/implications: The findings imply that AL drives positive OC, then enhances CA, and results in high FP. It is recommended that managers should be authentic leader and build a positive organizational culture to increase a firm’s competitive advantages and firm performance. Originality/value: The research’s findings contribute empirical evidence to confirm the correctness of theories of organizational behavior. The further research should be conducted with larger sample size and diversified context to increase the generalizability of research findings.

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