Researching on the influence of leadership style on employee performance in small and medium enterprises in Vietnam

Researching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in VietnamResearching on the influence of leadership style on employee performance in small and medium enterprises in Vietnam

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF commerce NGUYEN NGOC HUNG RESEARCHING ON THE INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE IN SMALL AND MEDIUM ENTERPRISES IN VIETNAM Major in business administration Code : 9340101 SUMMARY OF THE DOCTORAL THESIS IN ECONOMICS Hanoi, 2023 The work was completed at University of Commerce Science instructor: Assoc.Prof.Dr Nguyen Thi Bich Loan Dr Nguyen Thi Thanh Nhan Review 1: Review 2: Review 3: The thesis will be defended before the School level Thesis Evaluation Council at the University of Commerce At ……hour ……day ……month ……year ………… The thesis can be found at: - National Library - Library of the University of Commerce LIST OF PUBLISHED RESEARCH OF AUTHOR RELATED TO THE THESIS Nguyen Ngoc Hung (2020), “Leadership style measurement scale in Vietnamese enterprises”, Industry and Trade Magazine, no 9/2020, pp 178183 Nguyen Ngoc Hung (2021), “The influence of transformational leadership style on employee performance: A study in small and medium enterprises in Hanoi”, Industry and Trade Journal, no 20/2021, pp 158-162 Nguyen Thi Bich Loan, Nguyen Ngoc Hung (2022), “The impact of leadership style on employee performance in small and medium enterprises in Vietnam”, Journal of Commercial Science, no 170/2022, pp 40-55 PREAMBLE The need for research In Vietnam's economy, the small and medium enterprises sector currently plays an active role as one of the four decisive driving forces with fast growth, an important factor in employment and income for workers play an important role in the implementation of the country's social security policy Employee performance is very important and is a decisive factor in the success of businesses, especially small and medium enterprises with limited resources Boxall & Purcell (2003) have shown that individual job performance will determine the overall performance of the whole enterprise Leadership style plays an important role in the success of every business in general and small and medium enterprises in particular The first studies of Lewin, Lippitt and White (1939), then there are many theories of leadership style such as effective leadership style according to the study of Stogdil (1948), influence leadership style according to the study of Stogdil (1948), influence leadership style according to the study of Stogdil (1948), influence leadership style according to research by French & Raven (1959, Yukl (1992), Fieldler's contingent leadership model (1964), situational leadership style (Hersey & Blanchard, 2008) Next, it can be said that leadership style Comprehensive directing Bass & Avolio (2004) and Bass & Riggio (2006) The characteristics of Vietnamese small and medium enterprises are limited resources and competitiveness, while leaders of small and medium enterprises often focus on business activities such as sales, market development, mobilizing capital, but not focusing on employee development, not focusing on finding solutions to improve employee performance through the impact of leadership style Cummings and Schwab (1973) affirmed that if comparing all factors of the enterprise affecting employee performance, leadership style is the factor that must be put on top In Vietnam, research on leadership style is still sketchy and there is no research on the influence of leadership style on employee performance in small and medium enterprises From that theoretical and practical aspect, the PhD student chooses the thesis topic “Researching on the influence of leadership style on employee performance in small and medium enterprises in Vietnam.” Research objectives and questions 2.1 Objectives of the research The specific objectives of the thesis are as follows: - Building a research model on leadership style and the influence of leadership style on employee performance on the basis of theoretical overview and related research Building the research scale and hypothesis - To test the influence of leadership style on employee performance in small and medium enterprises in Vietnam - Proposing solutions to improve leadership style to improve employee performance in small and medium enterprises in Vietnam 2.2 Research question Based on the research objectives, the thesis answers the following research questions: - What elements does the research framework on leadership style and employee performance include? - How are leadership styles and employee performance measured? - How does leadership style affect employee performance in small and medium enterprises in Vietnam? - What solutions are needed to improve the leadership style, contributing to improving employee performance in small and medium enterprises in Vietnam? Object and scope of the research 3.1.1 Research subjects The thesis studies the influence of leadership style on employee performance in small and medium enterprises in Vietnam 3.2 Research scope Spatial scope: The thesis studies Vietnamese small and medium enterprises with operating time of years or more In which the research and sampling are small and medium enterprises in Hanoi, Da Nang and Ho Chi Minh City representing the three regions of North, Central and South Scope of time: The thesis synthesizes secondary data of Vietnamese small and medium enterprises from 2017 to present Proposals to improve leadership style to improve employee performance are oriented towards 2030 Scope of content: The thesis studies the influence of leadership style on employee performance in small and medium enterprises in Vietnam The thesis approaches leadership style according to the comprehensive leadership style theoretical framework of Bass & Avolio (2004), Bass & Riggio (2006) The thesis approaches the employee performance according to the theoretical framework of Koopmans (2011) Research Methods To achieve the research objectives, the author used a combination of two research methods, which are qualitative research methods and quantitative research methods Scientific and practical significance of the research topic The thesis has contributions that are consistent with the goals set out initially 5.1 Contribution to theory - On the basis of an overview and selective inheritance of domestic and foreign studies, the thesis builds a research framework on leadership styles and employee performance in the Vietnamese context The thesis clarifies and develops some concepts of leadership style and employee performance in small and medium enterprises - The thesis builds models and research hypotheses on the influence of leadership style on employee performance in the context of small and medium enterprises in Vietnam - The thesis adjusts a number of scales of leadership style, and at the same time adjusts and adds a new scale of employee performance suitable to the context of Vietnamese small and medium enterprises 5.2 Contribution to practice - Through data analysis, the thesis has tested the research model of the influence of leadership style on employee performance in small and medium enterprises in Vietnam The test results show the influence of factors of leadership style on employee performance in small and medium enterprises in Vietnam, of which factors positively affect the employee performance is: Idealized Influence; Inspirational motivation; Intellectual stimulation; Individualized consideration, Contingent reward; Management by Exceptionactive One factor that has a negative impact on employee performance is the laissez-faire leadership style - The thesis proposes solutions to improve leadership style in order to improve employee performance in small and medium enterprises in Vietnam Structure of the thesis In addition to the table of contents, the lists, the introduction, the conclusion, the research works related to the topic, the appendix, the thesis consists of chapters: Chapter 1: Overview of research on leadership style, employee performance, the influence of leadership style on employee performance Chapter 2: Theoretical foundations and research models Chapter 3: Research Methods Chapter 4: Research results on the influence of leadership style on employee performance in small and medium enterprises in Vietnam Chapter 5: Discuss research results and recommendations CHAPTER RESEARCH OVERVIEW ON LEADERSHIP STYLE, EMPLOYEE PERFORMANCE, THE INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE PERFORMANCE 1.1 Research overview on leadership styles From 1939 to now, there are many authors who have studied leadership styles with different approaches: Leadership style according to the typical behavioral approach is studied by Lewin, Lippitt and White (1939); Ohio University (1948); research by the University of Michigan (1949) ; Robert Blake and Jane Mouton (1964) Leadership style according to the trait approach: Characteristics of effective leadership style according to research by Stogdil (1948); Characteristics of successful leadership (Stogdil, 1974); Digman's five-element model (1990) Leadership style according to influence approach , typically the study of French & Raven (1959), Influence leadership style according to Yukl (1992) Situational leadership style, typically the authors Tannenbaum & Schmidt (1958); Fieldler's Random Leadership Model (1964); Model Vroom and Yetton (1973); House's trail goal theory (1974, 1992, 1996); Alternative leadership styles according to Kerr & Jermier (1978); Yukl's Multidirectional Connection Leader (2002); Cognitive theory according to the research of Fiedler (1986); Situational leadership style theory (Hersey & Blanchard, 2008) Reciprocal leadership style: A study of Goleman's primitive leadership style (2001); Leadership by emotional intelligence according to research Goleman (1998), Stough (2002); Rost & Barker's relational leadership model (2000); Servant leadership style, research by Greenleaf (1977) Holistic Leadership Style: Bass & Avolio (1997, 2004) and Bass & Riggio (2006) offer the full range of leadership model with three leadership styles as holistic process the dimensions (transformational leadership, transactional leadership, faire leadership consisted of nine elements and were measured by the Multifactor Leadership Questionaire (MLQ) In particular, the nine elements of a comprehensive leadership style include: Idealized Influence Attribution, Idealized Influence Behavior, Inspirational Motivation and intelligent stimulation, and individualized consideration, Management by exceptionactive, Management by exception - passive, faire leadership 1.2 Research overview on employee performance Armstrong and Baron (2005) prove that increased employee performance will increase organizational performance There are many authors who have studied employee performance (Employee performance or Job performace) according to different concepts and approaches According to Fly & Cox (1989), the employee's work result is the employee's job completion in terms of criteria such as actual time compared to the standard time, volume, and quality of output out from the standard The above traditional views on employee performance not address the work behavior that leads to employee performance Some researchers later introduced the concept of job performance from a behavioral point of view and argued that if only evaluating employee performance based on results, it would not reflect the true value that employees brought to the organization In working process Murphy (1989) argues that employee performance is the set of employee behaviors aimed at achieving organizational goals According to Borman & Moowwidlo (1993), employee performance are measured by two factors: (1) employee performance are assigned according to obligations, (2) employee performance are generated And employee performance are assigned according to obligations and job performance generated by context are two independent contributing behaviors to job performance These two factors describe the specific behavior of an employee in producing employee performance Inheriting the studies of Campbell, Borman & Motowidlo, the study of Koopmans (2011) has added additional variables measuring work performance Koopmans has introduced a variable model to measure employee performance, including: task performance, contextual performance and adaptive performance, counterproductive behavior However, then the research of Koopmans et al (2013 ) proved that adaptive performance is a factor of the contextual performance factor 1.3 Research overview on the influence of leadership style on employee performance Bass, Avolio (2003) researched the transformational and transactional leadership styles of 72 light infantry leaders to assess the effectiveness, coherence, and performance of U.S military units engaged in combat simulation exercises Both the transformations and transactions of the army leadership and the sergeants predicted the performance of the unit Raed Awamle (2004) found that transformational leadership, transactional leadership, and effectiveness are all related to job satisfaction and thereby improve job performance Adler & Reid (2008) demonstrated a positive relationship between transformational leadership style, transactional leadership style and employee performance Azka Ghafoor, Tahir Masood Qureshi (2011) has studies the relationship between transformational leadership, employee engagement, and employee performance, showing the relationship between transformational leadership , employee engagement, and employee performance employee work Sundi (2013) evaluated the influence of Transformative and transactional leadership styles on employee performance Research results show that transformational and transactional leadership styles both positively affect employee performance OSabiya Babatunde (2015) has shown the impact of leadership style on employee performance in an organization Nguyen Minh Ha, Pham The Khanh, Le Khoa Huan (2014) studied the influence of Japanese leadership style on employee performance at Japanese companies in Vietnam The results show that Performance (P) leadership style affects 60.7% of employees performance, Maintenance (M) leadership style affects 18.6% of employees performance Performance & Maintenance affects 61.7% of employee performance Cao Minh Tri, Cao Thi Ut (2017) studied the impact of leadership style factors on the performance of civil servants in professional agencies in Soc Trang province The results of the regression analysis show that there are factors affecting the performance of civil servants in descending order of impact: (1) Management by exception-active, (2) Idealized Influence Attribution, (3)intellectual stimulation, (4) inspirational motivation (5) Individualized consideration, (6) Contingent Reward Vu Thi Anh Tuyet (2019) found that transformational leadership style with intellectual stimulation and personal attention has a positive effect on the professional results of the organization, but has the opposite effect direction to financial results The analysis results also show that unexpected reward and management by exception have a positive impact on the professional results of the organization In addition, the laissez-faire leadership style has a positive impact on organizational performance and financial performance 1.4 Conclusion about the research gap Firstly, in previous studies, there are few studies on the effects of leadership style on employee performance in the direction of affecting three factors of employee performance including: task performance, contextual performance and adaptive performance Secondly, most of the studies on leadership styles in Vietnam approach the relationship between leadership style and leadership effectiveness, employee engagement, and employee loyalty There are relatively few studies on the influence of leadership style on employee performance Thirdly, in Vietnam, there has not been any research to study the influence of leadership style on employee’s performance with the target audience of Vietnamese small and medium enterprises This is a gap for the author to conduct research to clarify the influence of leadership style on employee performance, thereby proposing solutions for leaders of small and medium enterprises in Vietnam can improve employee performance through the influence of leadership style CHAPTER THEORETICAL BASIS AND RESEARCH MODEL 2.1 Theoretical foundations of leadership style 2.1.1 Leadership concept and leadership style 2.1.1.1 Leadership concept Most studies confirm that leadership is the influence of the top or middle level to subordinates (individuals or a group or organization) to achieve goals Robbins (2003) also pointed out that “leadership is the ability to influence a group of people towards the achievement of a common goal” This view is consistent with that of Northouse (2001) who introduced the concept of leadership as a process by which an individual influences a group of others to achieve a common goal Bass (1985) added that leadership is the transformation of subordinates into creating realistic visions of goals and guiding and helping them achieve those goals From the above synthesis, leadership according to the PhD student approach is the process of influencing individuals or groups so that they voluntarily and actively perform work, thereby achieving the goals of the organization or enterprise 2.1.1.2 Leadership style concept According to Stogdill (1948), leadership style “is a type of manner and ability to accomplish organizational goals and continue to influence all organizational activities” Leadership style refers to the relationship in which one person uses his authority and methods to get many people to work together and work together for a common job (Fiedler, 1969) Pardey (2007) concludes that “leadership style is the way in which a leader leads people to perform according to his or her ability and appropriate to the circumstances of the organization” From the perspective of leadership style, the approach of the thesis is: Leadership style in business is the way leaders interact and influence employees in order to motivate employees to voluntarily make efforts performance in order to achieve the goals of the business 2.1.2 Comprehensive leadership style in the business Bass & Avolio (2004) and Bass & Riggio (2006) provide a theoretical framework for full range leadership, including transformational leadership, transactional leadership and transactional leadership, laissez-faire leadership style This is also the theoretical framework of leadership style that the thesis approaches According to this approach, the holistic leadership style will have the following components: * Transformational leadership style According to Bass & Avolio (2004), transformational leadership style is measured by factors These factors are also repeated in the study of Bass and Riggio 2006 The five factors include: Idealized Influence Attribution; Idealized Influence behavior; Inspirational motivation; Intellectual stimulation; Individualized consideration 11 CHAPTER RESEARCH METHODS 3.1 research process The research process of the thesis is as follows: Figure 3.1 Thesis research process 3.2 Research design 3.2.1 Scales and questionnaires 3.2.1.1 Scale of leadership style and employee performance The scale for leadership style is inherited and adjusted based on the MLQ 5X multifactorial scale (Multifactor Leadership Questionaire version 5X) of Bass and Avolio (2004) The original MLQ - 5X scale originally consisted of 36 questions, elements with observed variables for each factor Koopmans (2011), employee performance are built as follows with 14 questions with factors: task performance, contextual performance and adaptive performance 3.2.1.2 Investigation question The survey questionnaire was designed based on the results of the review of the studies and the results of expert interviews to make adjustments to clarify the meaning of the question and be suitable for the Vietnamese context Through interviews and discussions with 15 experts including expert scientists and leaders of small and medium enterprises in Vietnam, the author completed the questionnaire to officially survey 800 people, collecting 675 votes , including 623 valid votes The official questionnaire is presented in appendix 1, including the following parts: 12 Part and Part consist of 50 sentences, which are statements and statements to record the opinions of individuals surveyed The content of part is the comments about the leadership style of the direct leader, the content of part is the comments about the employee performance of the respondents The rating level is according to the 5-point Likert scale, in which the rating score is conventionally defined as follows: 1- never; 2- rarely; 3- occasionally; 4- regularly; 5- always Part 3: The information of the respondents, the content includes age, gender, working area, education, seniority, income 3.2.2 Survey form The total survey sample is 623 employees at small and medium enterprises in Hanoi, Da Nang and Ho Chi Minh City The author selects 58 enterprises, in which 26 enterprises in Hanoi, 12 enterprises in Da Nang and 20 enterprises in Ho Chi Minh City in three regions of North, Central and South representing small and medium enterprises in Vietnam by random sampling method Regarding the sample size in the study, out of 623 valid votes, Hanoi had 285 votes, reaching 45.7%, Da Nang had 132 votes, reaching 21.2% and Ho Chi Minh City had 206 votes, reaching 33.1% 3.3 Qualitative research 3.3.1 Research through in-depth interviews On the basis of theoretical overview of leadership style, employee performance and research model proposed by the author The author's in-depth interview method is used to understand the content and nature of leadership styles and employee performance in small and medium enterprises in Vietnam and assess the suitability of the scale including: observed variables that the author has synthesized and proposed before In addition, through in depth interviews, the author wants to discuss and consult with scientists and business leaders in order to adjust or supplement the measures appropriate to the Vietnamese context and complete the research model and quantitative survey questionnaires 3.3.2 Case study In this study, the Author conducts a case study of a small and medium enterprise named Nam Phuong Fashion Garment Co., Ltd to explore and deepen the research issues of the thesis The results of this case study also serve as the basis for and complement the thesis's hypotheses, and at the same time contribute to the thesis's recommendations 3.4 Quantitative research 3.4.1 Data collection The author has conducted a survey of 623 employees in small and medium enterprises in Hanoi, Da Nang and Ho Chi Minh City The author selected 58 enterprises, of which 26 were in Hanoi, 12 in Da Nang and 20 in Ho Chi Minh City 3.4.2 Data analysis 13 Collected data will be cleaned, encrypted and entered The author then analyzed the data using SPSS 26.0 software according to the following steps: (1) Descriptive statistics of the research sample ; (2) Analysis of Cronbach's Alpha to check the reliability of the scale; (3) Analysis of EFA discovery factor to verify the scale value; (4) Correlation analysis; (5) Multivariate regression analysis; (6) TTest and ANOVA analysis CHAPTER RESEARCH RESULTS IMPACT OF LEADING STYLE ON EMPLOYEE PERFORMANCE IN SME ENTERPRISE IN VIETNAM 4.1 Overview of the situation of small and medium enterprises in Vietnam * Number of small and medium enterprises in Vietnam: According to the white paper on Vietnamese enterprises 202 , the number of small and medium enterprises has increased over the years In terms of enterprise size, micro and small scale enterprises have the highest number of enterprises As of December 31, 2020, there were 478,601 micro-enterprises, accounting for 69.9% of the total number of enterprises nationwide, an increase of 6.6% compared to the same period in 2019 * Revenue of small and medium enterprises in Vietnam: By the end of 2020, the total revenue of small-sized enterprises reached VND 3,753 trillion, equivalent to 13.9% of the total revenue of all enterprises nationwide The group of medium-sized enterprises has the highest revenue growth rate among small and medium enterprises * Labor situation of small and medium enterprises in Vietnam : Among small and medium enterprises, the largest number of employees is in the group of small businesses with more than 2.5 million employees in 2020 and nearly 2.7 million employees in 2019 and 2018 with more than 2.8 million employees 4.2 Research results on the influence of leadership style on employee performance in small and medium enterprises in Vietnam 4.2.1 Descriptive statistics of the study sample With the number of 623 survey questionnaires at 58 small and mediumsized companies in Hanoi , Da Nang and Ho Chi Minh City, the structure is as follows: About the location: Out of a total of 623 questionnaires, the respondents in Hanoi were 285 people (equivalent to 45.7%), the survey subjects in Da Nang were 132 (equivalent to 31.2%), the survey subjects were 132 people (equivalent to 31.2%) In Ho Chi Minh City, 206 people (33.1%) Regarding age: The respondents under 25 years old were 199 people (31.9%), from 25 to 35 years old there were 321 people (accounting for 51.5%) and over 35 years old was 103 people (16.6%) Regarding gender: Out of 623 questionnaires, 285 votes were male (accounting for 45.7%), the number of female respondents was 338 (54.3%) This ratio is relatively balanced 14 About seniority working at the current company: The number of people under years working at the current company is 343 people (equivalent to 55.1%, the number of people with years to years is 201 people (32.2%) The number of people working at the company for more than years is 79 people (12.7%) Regarding education level, out of the total of 623 people, 75 people have a university degree (accounting for 12.0% ), the number of people with university and college degrees is 466 people (74.8%), the number of people with at intermediate and high school level is 82 people (13.2%) Regarding income: 277 surveyed workers have income below 10 million (accounting for 44.5%), the number of people with income between 10 million and 20 million is 271 (43.5%), the number of people with income over 20 million is 271 75 people accounted for 12.0% 4.2.2 Descriptive statistics for quantitative variables * Descriptive statistics for measuring factors of leadership style Descriptive statistics for measuring factors Attractiveness by leadership qualities; Attraction by the leader's behavior; Inspiration of the leader; Intellectual stimulation; Personal care for employees; Contingent Reward; Management by exception - active The mean values of all variables are above points (4.23 - 4.31), the standard deviation is less than At the same time, the factor “management by exception - passivity” and “laissez-faire leadership” are measured by factors Observed variables, all variables have mean Mean value from 1.68 - 2.35, standard deviation is less than 1, so employees highly appreciate leadership style of direct leader * Descriptive statistics of employee performance The employee's performance factor is measured by 14 variables belonging to three factors: obligatory employee performance, incidental employee performance, and adaptive employee performance The mean values of the variables ranged from 3.81 to 4.20 and the standard deviations ranged from 0.688 to 0.761 This result shows that the employee's performance is at a good level and the measure of the employee's job performance is normally distributed and satisfactory for the next steps of analysis 4.2.3 Scale test results 4.2.3.1 Check the reliability of the scale * Results of assessing the reliability of the leadership style scale The results of the reliability analysis of the leadership style scale show that all variables have Cronbach's Alpha coefficient greater than 0.7 and the Corrected item-Total correlation is greater than 0.3, on the other hand the coefficients Alpha if the variable type is reduced compared to Cronbach's Alpha, the scale has enough reliability and assurance for the next analysis * Results of measuring the reliability of the work result scale The results of the reliability analysis of the employee's performance scale show that all variables have Cronbach's Alpha coefficient greater than 0.7 and 15 the Corrected item-Total correlation is greater than 0.3 Alpha coefficient if the variable type is reduced compared to Cronbach’s Alpha, the scale is reliable enough and guaranteed for the next analysis 4.2.3.1 Check the scale value * Leadership style After verifying the reliability of the scale, the EFA exploratory factor analysis was performed KMO value = 0.936 > 0.5, so factor analysis is appropriate Sig coefficient Bartlett's Test = 0.000 < 0.05 shows that the observed variables are correlated with each other in the population The coefficient Eigenvalues = 1,221 > at factor 7, so factors extracted from EFA have the meaning to summarize the information of observed variables the best In addition, the total variance extracted (Rotation Sums of Squared Loadings)= 61.218% > 50% This proves that 61,218% of the variation of the data is explained by factors Factor rotation analysis found that all variables had loading coefficients greater than 0.5, so it was enough to retain and interpret factors The analysis results also show that there is convergence and distinction in some groups of factors as follows: Factor 1: includes observed variables converging in the same column, of which variables (PC1; PC2; PC3; PC4) belong to the factor “Attractive by the quality of the leader” and variables (HV1; HV2 ; HV3; HV4) belong to the factor “Attracted by the behavior of the leader” The results of variables belonging to the two top factors converge on the same factor, showing that there is no distinction between these two factors Factor 2: including observed variables converging in the same column, of which variables (NLBD1; NLBD2; NLBD3; NLBD4) belong to the element “Management by exception – passivity” and variables (LDTD; LDTD); LDTD3; LDTD4) belong to the element of “laissez-faire leadership” The results of variables belonging to the two top factors converge on the same factor, showing that there is no distinction between these two factors Element 3:This element retains its original name of “Reward for Achievement” Factor 4: Including observed variables belonging to one element “Management by exception - active” This element retains its original name of “Proactive exception management” Factor 5: Consists of observed variables belonging to one element “The interest in individual employees” This element retains its original name as “Individualized consideration” Factor 6: Includes observed variables belonging to one element “Inspiration motivate” This element refers to the leader's behaviors to motivate and inspire employees This element retains its original name of “Inspiration motivate” 16 Factor 7: Includes observed variables belonging to one factor "Intellectual stimulation" This factor refers to the leader's behaviors to stimulate creativity in the work of employees This element retains its original name as “Intellectual timulation” * Employee employee performance KMO analysis results = 0.918 > 0.5, so factor analysis is appropriate Sig coefficient (Bartlett's Test) = 0.000 (sig < 0.05) shows that the performance variables are correlated with each other in the population The results of the rotation matrix show that there are factors extracted from the observed variables included in the EFA analysis The extracted variance is explained as 65.155% at an eigenvalue of 1,290 > The factor rotation analysis shows that all variables have a load factor greater than 0.5, so it is enough to retain and interpret the factors The analysis results also show that there is a distinction in groups of factors belonging to factors of Employee performance Therefore, the names of these three factors remain the same as the original proposal, including: task performance, contextual performance and adaptive performance These three factors together measure employee performance 4.2.4 Research model and adjusted research hypothesis 4.2.4.1 Modified research model After testing the reliability and analyzing the exploratory factors, the research model on the influence of leadership style on employee performance is adjusted as follows: Figure 4.1 Modified research model Source: Proposal of author 4.2.4.2 Adjusted Research Hypothesis As exploratory factor analysis, the research hypotheses are adjusted as shown in Table 4.22 Table 4.22 Adjusted Research Hypothesis Hypothesis H1 Content “Idealized Influence” positively affects “employee performance” Expected + 17 H2 H3 H4 H5 H6 H7 “Inspiration motivation” has a positive effect on employee performance “Intellectual stimulation” has a positive impact on employee performance “Individualized Consideration” has a positive impact on employee performance “Contingent Reward” has a positive impact on employee performance “Management by exception - active” has a positive impact on employee performance “Laissez - faire leadership” has a negative impact on employee performance + + + + + - Source: The author's data analysis and synthesis results 4.2.5 Research hypothesis test results 4.2.5.1 Correlation analysis The results show that all Pearson correlation sig values between the independent variables and the dependent variable are less than 0.05 Thus, the independent variables are all linearly correlated with the dependent variable Two factors of leadership style, "Idealized influence - SHD" and "Contingent reward TTTT" have the highest correlation with employee performance – encode KQLV” This correlation coefficient is 0.675 and 0.617, respectively, showing a positive relationship The factors "Inspiring motivation- TCH", "Intellectual stimulation Knowledge-based knowledge, “Individualized consideration”, "Management by exception active - NLCD" all have a positive relationship with employee performance when the correlation coefficient is from 0.536 to 0.572 The factor "Laissez-faire leadership" has a negative relationship with employee performance, the correlation coefficient is - 0.453 On the other hand, the factors of leadership style are correlated with each other, but the element of passive leadership style has a negative relationship with all the remaining elements of leadership style 4.2.5.2 Results of multivariate regression analysis to test the influence of leadership style on employee performance The results of the regression analysis are presented in Table 4.24 Table 4.24 Regression model analysis results Independent variables Unnormalized Beta coefficient (Constant) 1.185 Idealized Influence (SHD) 187 Inspiration motivation (TCH) Normalized Sig Value Beta significance t VIF coefficient level 9.513 0.000 272 9.216 0.000 1,750 134 204 7.312 0.000 1,566 Intellectual stimulation (KTTT) 084 125 4.552 0.000 1.512 Individualized Consideration (QTCN) Contingent Reward (TTTT) 055 085 2,911 0.000 1,731 174 268 9,770 0.000 1.516 Management by exception-active (NLCD) Laissez - faire leadership(BDTD) 078 119 4,333 0.000 1,519 -.086 -.099 -3.932 0.000 1.271