Tác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhân

Tác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhânTác động của lãnh đạo chuyển đổi tới đổi mới tại các Ngân hàng thương mại Việt Nam: Vai trò điều tiết của vốn tâm lý cá nhân

FOREIGN TRADE UNIVERSITY

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SUMMARY OF PHD THESIS

THE IMPACT OF TRANSFORMATIONAL LEADERSHIP ON INNOVATION AT VIETNAMESE COMMERCIAL BANKS: MODERATING ROLE OF INDIVIDUAL PSYCHOLOGICAL CAPITAL

Major: Business Administration

Major: 9340101

NGUYEN THI ANH THO

Hanoi – 2024

Science instructor 1: Dr Nguyen Hong Quan

Science instructor 2: Dr Nguyen Thi Thu Trang

Reviewer 1:

Reviewer 2:

Reviewer 3:

The research will be protected in front of the council meeting at

The dissertations can be referred to at the National Library and Foreign Trade University library

INTRODUCTION

1 Research background

The business environment has been rapidly changing (Crossan

& Apaydin, 2010; Le & Lei, 2019) According to Austin (2015), the banking sector has faced challenges posed by global economic and financial crisis as well as the burdens of increasing operating costs and the deficit of profit margins Therefore, innovation has become a prerequisite for banks worldwide as well as Vietnamese commercial banks to cope with challenges, adapt to dynamic contexts, and achieve sustainable development

However, organizational structure characteristics in Vietnamese commercial banks, such as hierarchical structures, high formality, high compliance, high power distance, and a focus on excellence orientation, high performance, cost reduction, etc., become barriers to innovation (Jung et al., 2008) These barriers limit Vietnamese commercial banks from becoming dynamic organizations in the process of change, hinder the process of thinking, proposing, experimenting, and implementing innovations Therefore, research on innovation and factors influencing its outcomes, especially in Vietnamese commercial banks, has become a focal and urgent topic, attracting the attention of many scholars (Crossan & Apaydin, 2010; Le et al., 2018; Le & Lei, 2019)

However, researches on this topic have not been aligned with this industry practices Researches on innovation have often been interdisciplinary or focused on areas, specialties, and departments assumed to ne associated with innovation - creativity, for example, research and development (R&D) departments (Abbas & Raja, 2015), information technology, or marketing departments, Innovation and affecting factors in Vietnamese commercial banks have not received adequate attention The macro and micro business environment presents an urgent need, both theoretically and practically, to investigate on innovation at Vietnamese commercial banks

Leadership styles have been demonstrated to have significant impacts on the innovation process within organizations (Scott & Bruce, 1994; Tierney et al., 1999) Among them, transformational leadership (TL), over the past four decades, has been described as an ideal leadership style that motivates employees, stimulates intellect, transforms subordinates beyond personal needs to pursue the mission and common goals of the organization (Bass, 1996) The dissertation focuses on elucidating, analyzing, systematizing, and evaluating the relationship between TL - the most focused and researched leadership model (Hu et al., 2013), and innovation, especially in the context of Vietnamese commercial banks Moreover, the dissertation concentrates on clarifying the simultaneous impact of TL on innovation comprehensively at all three levels within the organization: individual innovation, team innovation, organizational innovation - these are the most popular categorizing methodology in researches (Crossan & Apaydin, 2010)

However, among researches on the impact of TL on innovation

at different levels within organizations, scholars' conclusions have not shown consistency The majority of studies conclude that TL positively impacts innovation within organizations (Gong et al., 2009; Jung et al., 2003; Hu et al., 2013) In addition, some scholars conclude that TL has negative (Basu & Green, 2009), nonlinear (Eisenbeiss & Boerner, 2010) impacts on innovation, or even conclude that this relationship is not statistically significant (Wang & Rode, 2010) The lack of consensus in conclusions about the impact

of TL on innovation at different levels within organizations emphasizes the necessity to explore the moderating role of a situational factor leading to this variation

House (1971), Hersey & Blanchard (1974) affirm that employee characteristics are the environmental factors that may adjust, encourage, or reduce the impact of leadership behavior on the desired outcomes of the organization, including innovation Inheriting that viewpoint, in this dissertation the author studies the

relationship between TL and innovation under the moderating role of employees' psychological capital (PsyCap) - intangible but invaluable assets within the organization (Le et al., 2018) The qualities that make up a good PsyCap employee such as self-efficacy, hope, optimism, and resilience have been found to positively impact innovation at different levels within organizations (Luthans et al., 2008; Jafri, 2012) However, research on mediating roles of PsyCap and its components has still been very limited Therefore, a comprehensive research is urgent, which will develop theoretical systems on organizational innovation, provide fresh conclusions in the research group on this topic, and propose practical solutions within organizations

In summary, to (1) find leadership solutions that encourage innovation, (2) reexamine the impact of TL on innovation at various levels in Vietnamese NHTM organizations, (3) study the important role of employees' PsyCap toward the TL – innovation relationship, conducting the dissertation "The impacts of transformational leadership on innovation at Vietnamese commercial banks: The moderating role of individual psychological capital" is essential and has theoretical and practical contribution to the research topic on the leadership-innovation relationship and to the Vietnamese banking industry

2 Research gap

First, TL is being described as a universal concept However, some studies have indicated that this leadership style is more effective in certain circumstances Nevertheless, research on the mechanisms of TL operation in specific contexts still has many limitations (Lei et al., 2019; Le & Lei, 2019)

Second, although there are many theoretical foundations and studies exploring the factors influencing innovation, research often focuses on examining innovation in specific types rather than conducting comprehensive innovation studies, such as at different levels of innovation within organizations

Third, scholars researching the relationship between TL - innovation have conflicting conclusions: TL may have a positive impact (Eisenbasis et al., 2008; Rank et al., 2009; Pieterse et al., 2010; Liu & Phillips, 2011; Lei et al., 2019), a strong negative impact (Basu & Green, 2009), or a parabolic relationship with innovation Thus, further studies to re-evaluate this relationship and explore contextual factors that moderate the effects of this leadership style on innovation is necessary

Fourth, although employees' PsyCap has been identified as

an intangible but invaluable asset - one of the situational factors influencing the relationship between leadership style, behavior, and organizational desired outcomes, studies on the moderating role of PsyCap in the impact of TL on innovation within organizations has not been relevantly investigated, or even unstudied, and not become a focus in studies on innovation and factors influencing innovation; or studies on leadership styles and leadership outcomes

Fifth, some fields such as technology, telecommunications, software development, or research and development departments, have become contexts in a large number of studies on innovation and factors promoting innovation However, researching these relationships in specific fields or industries is essential For example,

in the banking industry in Vietnam, specifically Vietnamese commercial banks, they are all facing complex, intense, and rapid changes in the business environment, leading to an urgent priority to implement comprehensive and in-depth innovation tasks

3 Research questions

RQ1a: Does transformational leadership have an impact on

innovation at different levels at Vietnamese commercial banks?

RQ1b: How does transformational leadership impact innovation at

different levels within Vietnamese commercial banks?

RQ2a: Does individual psychological capital moderate the relationship between transformational leadership and innovation at

different levels at Vietnamese commercial banks?

RQ2b: How does individual psychological capital moderate the relationship between transformational leadership and innovation at

different levels at Vietnamese commercial banks?

4 Research objectives

The objective of the dissertation is to propose recommendations to facilitate innovation at Vietnamese commercial banks by exploring the influence of transformational leadership on different levels of innovation within the organization and the moderating role of individual psychological capital toward this relationship

5 Research subjects and research scope

5.1 Research subjects

The research subject of the dissertation is the impact of transformational leadership on different levels of innovation at` Vietnamese commercial banks and the moderating role of employees' psychological capital in this relationship

5.2 Research scope

Regarding research content, the dissertation explores the

concept of "innovation" from the perspective of process innovation,

specifically innovation at three levels: individual level, group level,

and organizational level, and investigates "individual psychological capital" including four factors: self-efficacy, optimism, hope, and

Regarding research location, the dissertation conducts research

at Vietnamese commercial banks, primarily focusing on Hanoi and

Ho Chi Minh City - the two largest cities with the presence of most

Vietnamese commercial banks

Regarding research time, the qualitative survey was conducted from October 2021 to May 2022 Additionally, data collection, analysis, and synthesis as well as observation and argumentation

processes took place from February 2021 to April 2024

6 Research structure

There are five chapters, including the introduction, Chapter 1: Literature review of the impact of transformational leadership on innovation and the moderating factors; Chapter 2: Theoretical framework on the impact of transformational leadership on innovation and the moderating role of individual psychological capital; Chapter 3: Model and research methodology; Chapter 4: Research results on the impact of transformational leadership on innovation and the moderating role of individual psychological capital at Vietnamese commercial banks; Chapter 5: Recommendations to promote innovation at Vietnamese commercial banks through the practice of transformational leadership and reinforcement of individual psychological capital

CHAPTER 2: THEORETICAL FRAMEWORK ON THE IMPACT OF TRANSFORMATIONAL LEADERSHIP ON INNOVATION AND THE MODERATING ROLE OF INDIVIDUAL PSYCHOLOGICAL CAPITAL

2.1 Theoretical framework on transformational leadership

2.1.1 Definition, function, and role of transformational leadership

The concept of "transformational leadership" was first

introduced by James V Downton (1973), defining transformational leaders as individuals who strive to change the way of thinking, doing, and achieving current personal goals towards greater outcomes and benefits Subsequently, TF has become one of the topics in the field of management and leadership that has attracted attention from the 1980s to the present day, proven to be one of the most universal and successful leadership styles compared to other styles such as transactional leadership or laissez-faire leadership (Bass & Avolio, 1996) In the dissertation the author employs the definition of transformational leadership as the process where leaders

guide employees to pursue the organization's common goals by elevating their maturity, motivating them to assert themselves, and bringing benefits to others, the organization, and society

2.1.2 Components of transformational leadership

Bass and Avolio (1990), as well as Robbins (2020), have demonstrated that transformational leadership comprises four factors: (1) Idealized Influence: Transformational leaders serve as ideal role models, setting an example for subordinates to follow They deeply convey their ideals and beliefs to their followers, emphasize a strong sense of purpose, demonstrate high ethical standards, and refrain from using power for personal gain (2) Inspirational Motivation: Transformational leaders generate strong motivation, communicate vision effectively, and instill employee self-efficacy in the organization's vision They bolster employees' enthusiasm, inspire through goal setting and challenging job designs, encourage innovative thinking, and foster team spirit towards the organization's mission (3) Intellectual Stimulation: Transformational leaders enhance employees' concern and awareness of workplace issues, develop capabilities, and promote creative problem-solving They encourage employees to seek new solutions to current challenges and nurture a culture of innovation (4) Individualized Consideration: Transformational leaders care about individual differences and the development of each individual They promote a transformational process where actions based on self-interest are transformed into actions for the benefit of others They lead subordinates towards

solutions that benefit the collective and the organization

2.1.3 Affecting factors of transformational leadership

The dissertation presents and analyzes these factors, including individual, organizational, and external environmental factors Specifically, individual factors influencing TF include personal ethics and gender Organizational factors include training and development activities, organizational culture, and workforce diversity External factors outside the organization, such as national culture, also play a

2.2.2 Types of innovation

The approach of Crossan and Apaydin (2010) is elaborated

to present different aspects of innovation According to this

approach, the definition of the term "innovation" emphasizes the

need for an innovation process before achieving the results of innovation Thus, when discussing the aspects of innovation, the

author divides this concept into "innovation as a process" and

"innovation as an outcome" While the former focuses on answering the question "how" of innovation, the latter addresses the question

"what" of innovation

"Innovation as a process" seperates innovation along

motivation (whether innovation originates internally within the organization or from external influences); origins (invention, organizational improvement, or market application of new solutions); scope (internal innovation or network innovation); direction (top-down innovation or bottom-up innovation); and level (individual innovation, team innovation, organizational innovation)

"Innovation as an outcome" classifies innovation based on

reference system aspects (innovation within the organization, for the market, or for the entire industry); form (product/service innovation, process innovation, or business model innovation); scale (incremental innovation or radical innovation); content (technical innovation,

administrative innovation); and characteristics (implicit innovation, explicit innovation)

2.2.3 Affecting factors of innovation

Based on the three foundational theories, upper echelons theory (Hambrick & Mason, 1984), dynamic capabilities theory (Teece et al., 1997), and organizational business process (Engestrom, 1993), the dissertation identifies factors influencing innovation, including: (1) Innovation Leadership: Leaders play a crucial role not only in encouraging, supporting, and guiding innovation but also in strengthening effective interactions among individuals within the group, especially in the early creative stages They also facilitate subsequent stages of innovation (Mumford & Licuanan, 2004) (2) Management Levers: This encompasses a synthesis of internal factors within the organization that influence innovation, including innovation strategy, resource allocation, organizational structure, learning environment, and innovative organizational culture (3) Business Process: The business process in the context of innovation involves idea generation, portfolio management, development and implementation, project management, and commercialization

2.3 Theoretical framework of individual psychological capital

2.3.1 Definition of psychological capital

Based on the positive psychology theory (Peterson, 2006; Seligman & Csikszentmihalyi, 2000), the positive organizational behavior theory (Cameron et al., 2003), and positive organizational behavior theory - a newly emerging research area (Wright, 2003), Luthans and colleagues have successfully developed the concept of Psychological Capital (PsyCap) PsyCap is a positive psychological state of an individual, consisting of four positive psychological resources: self-efficacy, optimism, hope, and resilience

2.3.2 Components of psychological capital

(1) Self-efficacy: Belief in one's own ability to perform a task

or face a certain situation (Bandura, 1997, 2012)

(2) Hope: Positive belief or expectation of an individual in achieving goals or desired outcomes

(3) Optimism: Individual's expectation and trust in a positive outcome in the future (Scheier et al., 2001)

(4) Resilience: The ability of an individual to bounce back from adversity, uncertainty, risks, or failures and adapt to the constantly changing and stressful demands of life (Masten & Reed, 2002; Tugade & Fredrickson, 2004)

2.3.3 Roles of individual psychological capital

First, PsyCap has a positive impact on employees' positive attitudes, such as commitment, job satisfaction (Larson & Luthans, 2006), and organizational loyalty (Avey et al., 2011)

Second, PsyCap is positively related to positive organizational behaviors, such as organizational citizenship behavior (Avey et al., 2008; Norman et al., 2010) Additionally, PsyCap has a negative impact on undesirable workplace behaviors such as counterproductive behavior or deviant behavior (Avey et al., 2010)

Third, individuals with higher PsyCap often have more resources to pursue their goals (Hobfoll, 2002), thereby contributing to better job performance compared to individuals with lower PsyCap (Luthans et al., 2007; Luthans et al., 2008)

Fourth, PsyCap has been shown to enhance the quality of employees’ work-life balance (Baron et al., 2013; Nguyen & Nguyen, 2012), positively impacting the mental and physical health of individuals

2.3.4 Affecting factor of individual psychological capital

Recent studies on PsyCap, while not exhaustive, have clarified some factors influencing PsyCap and identified environmental characteristics that impact PsyCap Factors influencing PsyCap include aspects of the work environment, work-life balance, and leadership styles

2.4 Theoretical framework on transformational leadership on innovation

2.4.1 Transformational leadership directly impact innovation

The studies on the relationship between TF and organizational innovation (OI) have not shown high consistency While the majority suggest that TF has a positive impact on organizational innovation, there are also studies demonstrating that

TF does not have a significant relationship with this dependent variable (Wang & Rode, 2010) Additionally, some scholars conclude that TF has a reverse impact (Basu & Green, 2009), a non-linear impact (Eisenbeiss & Boerner, 2010) on innovation, or even that this relationship is not statistically significant (Wang & Rode, 2010)

2.4.2 Transformational leadership indirectly impact innovation

TF indirectly influences different levels of innovation through intermediate factors At the individual level, self-efficacy acts as an intermediate factor between transformational leadership and individual innovation TF impacts team innovation through collective self-efficacy, knowledge sharing, and an environment that fosters innovation Transformational leadership affects organizational innovation through the organizational learning process

2.5 Theoretical framework of moderating role of psychological capital on the transformational leadership’s impact on innovation

2.5.1 Moderators of the transformational leadership’s impacts on innovation

The relationship between TF and different levels of innovation is moderated by various factors, either characteristics of the external environment or characteristics of the employees

The impact of TF on individual innovation is enhanced by psychological empowerment and organizational self-esteem, while self-expression tendencies – adjusting behavior to adapt to the environment – act as a moderating factor reducing the influence of transformational leadership on individual innovation

The impact of TF on team innovation is strengthened by the