Investigating the impact of transformational leadership on employee work performance through employee self efficacy and creativity in the fb industry in vietnam experiences for golden gate group

BANKING ACADEMY OF VIETNAM BUSINESS ADMINISTRATION OF FACULTY GRADUATION THESIS TOPIC: INVESTIGATING THE IMPACT OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE WORK PERFORMANCE THROUGH EMPLO

Problem Discussion

The Vietnamese food and beverage (F&B) industry is experiencing significant growth and expansion, making it one of the most attractive sectors despite current economic challenges (Vietnam Earnings Insight, 2023) However, this success has led to increased competition, with consumer spending on dining rising by 1.26% and the number of F&B establishments reaching 317,000, as reported by iPOS.vn in 2023 Consequently, all F&B businesses, regardless of their size, must establish a unique niche and improve their operational efficiency to thrive in this competitive landscape.

Sustainable development is essential, but it is not sufficient in today's competitive environment Research by Ferris et al (1999) identifies human resources as a crucial differentiator, with leadership being a key component According to Cummings and Schwab (1973), leadership style significantly affects employee performance Effective leadership not only motivates employees but also helps them overcome challenges and achieve outstanding results (Gong et al., 2009) Additionally, fostering joy and excitement in the workplace encourages proactivity and creativity, which are vital for successfully navigating complex situations (Ha Minh et al., 2019).

Transformational Leadership is a vital approach that enhances motivation, creativity, and employee self-efficacy, ultimately leading to improved performance (Avolio, 1999; Pillai & Williams, 2004) Despite its significance, there is a scarcity of research exploring the application of Transformational Leadership within the Vietnamese food and beverage (F&B) sector, especially concerning its effects on employee performance through fostering creativity and building confidence.

This research explores the influence of Transformational Leadership on employee performance within the Food and Beverage (F&B) sector, addressing both theoretical insights and practical applications The objective is to offer actionable solutions for business leaders to enhance their leadership styles, resulting in better employee performance and organizational success.

2 employee performance, enhanced management efficiency, and a stronger competitive edge in the market

This thesis explores the influence of transformational leadership on employee performance within the food and beverage industry in Vietnam, specifically examining how employee self-efficacy and creativity mediate this relationship, with a focus on the experiences of the Golden Gate Group.

Research Objectives

Firstly, the topic focuses on analyzing the impacts of factors of

Transformational Leadership including Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration on the Employee Work Performance of F&B businesses in Vietnam

Secondly, the study also concurrently analyzes and evaluates the influence of

Transformational leadership significantly influences employees' self-efficacy and creativity, which in turn enhances their work performance This relationship is crucial for the business activities of food and beverage (F&B) enterprises in Vietnam, as higher self-efficacy and creativity among employees lead to improved operational efficiency and innovation within the industry.

The author recommends strategies to strengthen the skills of managerial employees in restaurants, which will lead to improved operational efficiency among staff This initiative is exemplified by the Golden Gate Group, a company with a varied restaurant chain across Vietnam, focused on boosting management effectiveness and ensuring sustainable business practices for the future.

Research Scope

This thesis investigates the factors affecting Employee Work Performance in Vietnam's Food and Beverage (F&B) sector, focusing on the characteristics of Transformational Leadership, which include Idealized Influence (Attribute and Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration Additionally, the study explores how employee-related factors, such as Self-Efficacy and Creativity, influence performance outcomes.

In terms of space: The research was conducted through a survey method, both in-person and online, targeting employees who are currently or have previously worked in F&B businesses in Vietnam

Regarding time: Secondary data was collected from January to May 2024.

Research Questions

To address issues related to employee performance through Transformational Leadership, the study poses the following research questions:

Question 1: Is there an influence of Transformational Leadership, including Idealized

Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration on the Employee Work Performance of F&B businesses in Vietnam?

Question 2: Does Transformational Leadership impact the Creativity and Self-

Efficacy of employees in F&B businesses in Vietnam?

Question 3: Is there an influence of employee-related factors, namely Creativity and

Self-Efficacy, on the Employee Work Performance of F&B businesses in Vietnam?

Research Methodology

Both qualitative and quantitative methodologies are used in the investigation

Qualitative research involves synthesizing and analyzing existing articles, research projects, and documents from reputable journals and online platforms both in Vietnam and globally, to establish theoretical foundations, scales, and research models.

Quantitative research was conducted using online questionnaires developed with Google Forms, targeting restaurant staff through platforms like Facebook Messenger, WhatsApp, and Zalo The author also engaged with restaurant personnel in person to distribute the surveys via Gmail, employing both probability and non-probability sampling methods to gather comprehensive data.

4 non-probability sampling techniques are used to choose the sample AMOS 24 and SPSS 26 software were used to process the collected and examined data.

Structure of The Research Project

The research article comprises an introduction, acknowledgments, declarations, a list of acronyms, tables and figures, references, and appendices, structured around four main chapters.

Chapter 1: Theoretical Background and Literature Review

Chapter 2: Research Hypotheses and Model

Chapter 4: Discussion and Recommendations Experiences for Golden Gate Joint Stock Company

THEORETICAL BACKGROUND AND LITERATURE

Theoretical Background

Burns (1978) introduced Transformational Leadership, highlighting its influence on employee motivation, commitment, and enthusiasm within organizations This leadership style encourages creativity and intelligence, guiding employees towards broader visions and goals Transformational leaders act as ethical role models, prioritizing the welfare of their teams, organizations, and communities Implementing this approach in management enhances operational effectiveness and helps organizations achieve their objectives Burns' research illustrates the significant impact of Transformational Leadership on both organizational and employee performance.

Burns identified two distinct types of leadership: Transformational and Transactional Transformational leaders inspire and motivate through Idealized Influence, Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration, while Transactional leaders operate primarily through Management by Exception - Active and Contingent Reward Transformational leaders are considered more powerful, complex, and ethical, consistently encouraging followers to achieve greater results Although both leadership styles are ethical, transformational leaders are ranked higher than their transactional counterparts Consequently, the author has chosen to focus on reviewing and analyzing Transformational Leadership.

Bass's leadership styles, further developed by Bass and Avolio, offer significant advantages over earlier leadership theories By expanding on Burns's foundational concepts, Bass clarified the essence of Transformational Leadership, highlighting its measurable and positive effects on employee motivation and performance.

Transformational Leadership, a term first introduced by Downton in 1973, gained prominence following James Burn's influential 1978 book "Leadership." Burn emphasized that traditional leadership models often rely on transactional exchanges, such as promotions for performance or penalties for lateness In contrast, transformational leaders foster deeper connections with their employees, enhancing motivation and ethical standards for both subordinates and leaders By challenging and reshaping individuals' emotions, values, and long-term goals, transformational leaders cultivate credibility and broaden vision throughout their leadership journey (Northouse, 2007) Bass & Avolio (2004) identified five key factors that define the Transformational Leadership style, which were further explored in the 2006 study by Bass and Riggio.

- Idealized Influence Attribution: Leaders attract employees through exemplary qualities Some qualities of leaders include confidence, personal authority, magnanimity, and concern for the organization's and employees' welfare

Idealized Influence Behavior involves leaders serving as role models for their subordinates, embodying high standards of competence and ethical conduct By demonstrating integrity and professionalism, these leaders earn the respect and trust of their employees, fostering a positive and inspiring work environment.

Inspirational motivation is a key trait of effective leaders, who energize employees by presenting a captivating vision that encourages them to strive for excellence By engaging with team members and understanding their aspirations, leaders can articulate a compelling vision that fosters commitment and inspires action They consistently pursue and develop new goals for the organization, ensuring that employees remain motivated and aligned with the overarching objectives.

7 strive to breathe new life into the organization, always aspiring to implement standards higher than the previous ones

Leaders play a crucial role in fostering intellectual stimulation within an organization by promoting innovative thinking and encouraging creative problem-solving To drive meaningful change, it is essential to regularly organize skills training courses and workshops that enhance innovation and ensure comprehensive evaluation By creating an inclusive environment where team members feel empowered to ask questions and challenge the status quo, leaders can instill trust and unlock the full potential of their employees in the workplace.

Individualized consideration involves creating a collaborative work environment that fosters information exchange and shared responsibilities Leaders who prioritize this approach pay close attention to the unique desires and aspirations of each employee, supporting their growth and development This practice not only enhances employee satisfaction but also contributes to the overall advancement of the organization, demonstrating a leadership style that is deeply attuned to the emotional well-being of its workforce.

Transformational Leadership, as defined by Burns (1978), involves leaders who understand and identify employee potential, create motivation, and help staff recognize their goals while addressing their higher needs Bass (1985) expanded on this concept by detailing its measurement and impact on employee motivation and performance He emphasized that Transformational Leadership is a reciprocal process where managers and employees collaborate to enhance motivation and willpower Additionally, Bass introduced behavioral elements and models to clarify its psychological foundations, illustrating how to assess its influence on worker motivation and output Leaders who embody this style inspire employees to exceed expectations and develop their own leadership capabilities (Bass & Riggio, 2006), a definition that aligns with the findings of this study.

Transformative leadership comprises essential elements such as intellectual stimulation, individualized consideration, and charismatic leadership, as identified by Avolio, Waldman, and Einstein (1988) Recent research has introduced a fourth element, Inspirational Motivation Additionally, "Idealized Influence," a concept developed by Barbuto in 1997, replaces charisma and encompasses the traits and actions of a leader (Barbuto, 2005) This study utilizes the Multifactor Leadership Questionnaire (MLQ form 5X) to assess these five components of Transformational Leadership, as proposed by Bass.

& Avolio, 1997) Numerous studies have made extensive use of this standardized instrument to evaluate Transformational Leadership behaviors

Work performance can be defined in various ways and measured through organizational data, supervisor evaluations, or employee self-assessments Notably, self-assessed job performance closely aligns with management evaluations and company data assessments (Behrman & Perreault, 1982).

The traditional view of Employee Work Performance focuses on completing tasks according to set goals and standards, such as output volume, costs, time, and product quality (Fry & Cox, 1989; Neely, 1996) However, this perspective overlooks the behaviors that lead to these outcomes Researchers like Cambell (1993) emphasize that work outcomes encompass all actions related to organizational goals, highlighting that these outcomes should be assessed based on employee behaviors rather than just results Borman & Schmit (1997) further assert that work outcomes are not merely individual actions; they require evaluation criteria, with only measurable actions contributing to overall work outcomes.

Employee work outcomes refer to the expected value an organization derives from the specific behaviors individuals exhibit within a designated timeframe This concept is examined from a behavioral perspective, emphasizing that these outcomes are the results achieved by employees through their actions, which are intricately connected to the organization's goals.

Campbell (1990) argues that certain measurement factors adequately capture the fundamental structure of work performance Viswesvaran (1993) identifies three key components of work performance: Productivity, Quality, and Expertise Borman and Motowidlo (1993) further refine this by distinguishing between two types of work performance: task-assigned and emergent These two categories represent distinct behaviors that contribute to overall work effectiveness Task-assigned work performance pertains to the specific duties outlined in an employee's job description and is crucial for organizational operational effectiveness, as noted by Borman (2004) In contrast, emergent work performance encompasses efforts that are not directly tied to an employee's primary responsibilities, often involving support for colleagues or participation in group tasks, thereby enhancing team dynamics.

According to Motowidlo (1993), employees can enhance the social-psychological environment of their organization in three key ways Firstly, they can positively influence their colleagues to adopt behaviors that foster a more constructive organizational atmosphere By promoting actions that reduce conflicts and build trust, employees can significantly improve communication and coordination within the workplace.

Current Status of Vietnam's F&B Industry

1.2.1 Current status of the F&B industry in Vietnam

In recent years, the global economy and Vietnam have encountered substantial challenges due to epidemics and conflicts, leading to downturns in multiple industries The COVID-19 pandemic in 2020 severely affected the tourism and food and beverage (F&B) sectors, with the General Statistical Office reporting a staggering 26% decline in revenue from lodging and food services in 2021, attributed to extensive social distancing measures that greatly impacted cafes, restaurants, and street vendors.

After a period of struggling with many new challenges posed in the market

As the socio-economic landscape stabilizes, the food and beverage (F&B) industry is witnessing a recovery, with revenue showing resilience against economic fluctuations According to IPÓ.vn's market analysis, the sector experienced impressive growth rates of 19.7% in 2022 and 11.6% in 2023, leading to a surge in F&B establishments to 317,000 this year This rapid expansion presents significant competitive challenges for businesses, prompting an analysis of the industry's current state to identify new strategies for companies to strengthen their market position.

The F&B sector in Vietnam is increasingly embracing customer-centric approaches, as consumers now seek holistic dining experiences that prioritize service quality, ambiance, and food quality According to Vietnam Briefing (2023), the introduction of the Michelin Awards in Vietnam, highlighting standout restaurants like Tam Vi, Gia Restaurant, and Anan Saigon, underscores the growing demand for comprehensive dining experiences This trend suggests that the future of the industry will focus on upscale dining establishments, as noted by F&B Director and Founder Do Duy Thanh, emphasizing the need for businesses to adapt accordingly.

15 continuously transform, innovate, and develop comprehensively to enhance customer experiences, maintain excellent service, and create attractive dining environments to attract and retain customers

Second, the impact of the digital transformation revolution is significant

Digital transformation has become a crucial driver for the food and beverage industry, significantly accelerated by the COVID-19 pandemic Restaurants are increasingly adopting online ordering systems and utilizing technology across operations, including customer care, human resource management, and supply chain management This shift requires commitment from both leadership and employees to continuously innovate and adapt in order to stay aligned with current digital technology trends.

Furthermore, the rapid expansion of the F&B market in Vietnam has increased competition between domestic and international brands InnoLab Asia

In 2022, strong leadership capabilities are essential for navigating market challenges and capitalizing on growth opportunities in a rapidly changing landscape Effective leaders must possess strategic acumen to identify market gaps, differentiate their services, and guide their businesses toward sustainable growth amidst rising competition.

Adaptive and innovative leadership is essential for success in Vietnam's F&B industry By prioritizing customer-centric approaches, effective talent management, and strategic market navigation, leaders can ensure their businesses thrive in a dynamic and competitive landscape, securing long-term survival and success.

Employee attitudes in the F&B industry significantly impact customer experience, as highlighted by a VietnamNet report that notes how impatience and unprofessionalism among restaurant staff can lead to negative customer impressions, distrust, and decreased sales Many businesses continue to struggle with this issue, suggesting that the root cause may lie with leadership rather than the employees themselves As John Maxwell aptly stated, "Leadership is the lid; it determines a person's level."

The attitudes and actions of leaders significantly shape employee behavior, fostering a comfortable and respectful work environment that enhances motivation and performance (Nguyen Van Ha, 2023) For F&B enterprises aiming to develop comprehensive services, the initial focus should be on empowering employees to work effectively, which necessitates adapting leadership styles to support this goal.

The F&B industry in Vietnam is experiencing significant growth, prompting businesses to adapt to new trends and innovate As reported by Thanh Nien Newspaper, many restaurants must invest in research and development to meet the diverse needs of modern customers In an era of digital transformation and globalization, it is essential for businesses to maintain a contemporary image through creativity and the confident expression of ideas This presents a challenge for leaders, who must cultivate an environment that promotes creativity and self-confidence among their employees Exploring effective leadership styles is crucial for fostering these essential qualities.

Leadership style is a crucial determinant of employee performance, as highlighted by Cummings and Schwab (1973) Effective leadership not only enhances employee effort but also enables them to overcome challenges and achieve exceptional results (Gong et al., 2009) Many restaurants have not fully tapped into their employees' potential, often relying on outdated management practices that stifle creativity and motivation To foster an innovative and empowered workforce, leaders must adopt Transformational Leadership, a style that promotes creativity and ownership among employees (Elkins & Keller, 2003).

1.2.2 Challenges and long-term development goals of the industry

In the context of the F&B industry in Vietnam, growth is evidenced by a notable increase in the number of F&B establishments (317,000 restaurants), both

17 domestic and international, competing for market share This has posed numerous challenges for businesses in the industry

First and foremost, the most apparent challenge is intense competition

In the competitive landscape of the food and beverage sector, both domestic and international brands are striving for market share, prompting the need for innovative strategies to distinguish their services Presently, two significant culinary trends are emerging: the adoption of Chinese culinary models and the rise of iPos.vn, showcasing the dynamic evolution within the industry.

In 2023, leading hot pot brands such as Hadilao, Manwah, and Crystal Jade are gaining popularity as customers increasingly seek sophisticated dining experiences and diverse culinary cultures from countries like South Korea, China, Japan, Italy, and France This trend has prompted renowned international brands to enter the Vietnamese market, highlighting the need for local businesses to implement sustainable development strategies to secure their market presence.

Customer expectations in the F&B industry are rising, as consumers seek comprehensive dining experiences that emphasize service quality, ambiance, and food excellence This shift necessitates continuous innovation and adaptation from businesses, highlighting the importance of building a dedicated and skilled team under strong leadership Additionally, the sector is experiencing a digital transformation accelerated by the COVID-19 pandemic, challenging traditional operating models Embracing technology, from online ordering to digital marketing, is essential for survival and growth Effective leadership is vital for navigating these market challenges, requiring a strategic vision, deep market insight, and the ability to foster innovation and employee engagement in a competitive landscape.

To maintain a foothold, expand, and continue developing in the F&B industry, the following are key areas that businesses should focus on and build as long-term

Building a customer-centric culture is essential for achieving the 18 sustainable development goals, emphasizing the importance of delivering high-quality dining experiences through exceptional food, service, ambiance, and unique offerings This requires strong leadership and unanimous employee support Embracing innovative technologies is also crucial for optimizing operations and enhancing customer interactions, necessitating investments in digital skills to maintain competitiveness However, many businesses struggle with employee engagement in learning new technologies, leading to underutilization of expensive equipment To address this, developing leadership capabilities at all management levels is vital, as adaptive and innovative leadership inspires creativity, empowers employees, and fosters a positive work environment Encouraging employee creativity and confidence is key, as those directly involved in operations can provide valuable insights and ideas that enhance work efficiency and drive overall business effectiveness.

Study Overview

The food and beverage (F&B) industry is increasingly solidifying its role in the national economy, showcasing significant growth driven by improving living standards As consumer expectations for service quality and dining experiences rise, the demand for enhanced service and ambiance in F&B establishments is also growing While the industry boasts strengths like a vibrant culinary culture and abundant raw materials, it must continue to adapt to these evolving consumer needs.

19 a glaring deficiency persists in the underinvestment in human resources This important aspect, along with development trends and current market needs, poses great challenges for businesses operating in the F&B sector

The global food and beverage (F&B) industry has attracted significant research attention, highlighting its crucial role in the overall development of the sector However, there is a marked lack of domestic studies addressing this essential topic This gap underscores the urgent need for in-depth exploration and understanding of the complexities within Vietnam's F&B industry.

In their 2014 study, Nguyen Minh Ha, Pham The Khanh, and Le Khoa Huan examined the impact of Japanese leadership styles on employee performance in Japanese companies operating in Vietnam The research aimed to understand these leadership styles' effects and to suggest policies for enhancement Using a convenient sampling method, they analyzed data from 241 questionnaires through various statistical techniques, including descriptive statistics, Cronbach's Alpha reliability test, exploratory factor analysis (EFA), and regression analysis The findings revealed that the Performance leadership style accounted for 60.7% of work outcomes, while the Maintenance style contributed 18.6% Furthermore, the combined influence of both Performance and Maintenance styles was found to affect 61.7% of employee performance.

Vu Thi Anh Tuyet (2019) conducted a study on the impact of leadership styles on organizational performance in Vietnamese universities, utilizing regression analysis to assess their effects on professional and financial outcomes The results indicated that Transformational Leadership positively influences organizational professional outcomes, while contingent rewards and management by exception also contribute positively However, the study did not address the effects of these leadership styles on employee work outcomes within enterprises.

Approach to the Impact of Transformational Leadership on Employee Attribute Factors, Le An Khang's (2013) study focused on the impact of

Transformational leadership plays a significant role in fostering employee organizational commitment in Vietnam, as evidenced by a study involving 321 employees in Ho Chi Minh City, which found a positive yet weak influence of this leadership style on commitment levels Additionally, trust in managers was positively correlated with employee commitment Research by Vu Viet Hang and Phan Thi Tra My (2020) in the logistics sector indicated that transformational leadership positively impacts confidence, creativity, and overall work outcomes In a separate study, Cao Minh Tri and Cao Thi Ut (2017) examined leadership styles among civil servants in Soc Trang province, revealing six key factors affecting work performance, with contingent rewards having the most substantial influence Similarly, Mai Thi Kieu Lan, Ho Thi Thuy Nga, and Hoang Trong Hung (2021) found that leadership styles significantly enhance work performance outcomes for hotel employees in Da Lat, again highlighting the importance of contingent rewards.

Approach to the Relationship between Leadership Styles and Employee Work Performance, that relationship has been extensively explored by various researchers

Bass and Avolio (2003) explored the Transformational Leadership style among 72 light infantry leaders, revealing its positive impact on the effectiveness, cohesion, and performance of U.S military units Building on this research, Fred and Avolio (2008) studied 437 participants from six U.S banking organizations to analyze how Transformational Leadership affects supervisory-rated performance Adeyemi (2010) further contributed to this field by conducting a survey.

A study involving 7,460 teachers from 281 secondary schools in Nigeria examined the positive impact of organizational leadership styles on teacher work outcomes Sundi (2013) found that Transformational Leadership significantly enhances employee work outcomes in a study of 126 employees at the Konawe Education Office in Southeast Sulawesi Additionally, research by Avinash Advani and Zuhair Abbas (2015) highlighted crucial factors for organizational development, stressing the vital role of employee engagement in achieving success.

Research highlights the vital role of leadership styles in driving organizational success through employee performance Raed Awamleh (2004) explored Transformational Leadership theory among managers in Jordanian banks, revealing its positive impact on employee satisfaction and work outcomes Additionally, Sabiya Babatunde (2015) emphasized the importance of leadership style in meeting organizational goals via improved employee performance Collectively, these studies underscore the essential connection between leadership approaches and work outcomes, offering valuable insights for enhancing organizational effectiveness.

Research by Pillai and Williams (2004) and Cavazotte, Moreno, and Bernardo (2013) emphasizes the significant positive influence of Transformational Leadership on employee confidence, commitment, and overall work performance Additionally, findings from Wang and Netemeyer support these conclusions, further illustrating the critical role of leadership in enhancing employee attributes and driving organizational success.

(2004) and Krishnan et al (2002) found that confidence in personal ability correlates positively with sales performance in various industries Gum Usluoglu and Ilsev

Transformational Leadership significantly influences employee creativity and performance in various industries, including software and telecommunications Research indicates that this leadership style enhances employees' learning orientation, confidence, and engagement, ultimately boosting sales volume and work efficiency Studies show that intermediary psychological factors, such as self-identity and accountability, are vital in linking Transformational Leadership to employee commitment and positive work outcomes Furthermore, empowering employees and fostering organizational commitment are crucial for enhancing capabilities and driving success Collectively, these findings highlight the essential role of Transformational Leadership in promoting employee performance and organizational effectiveness.

22 in fostering employee ability ultimately leading to enhanced work performance and organizational success

Approaching to define the ways to measure leadership style outcome, Reave

Research has highlighted the critical relationship between leadership competence, defined by personal qualities like integrity and empathy, and leadership outcomes Judge and Bono (2001) explored how core self-evaluations influence work satisfaction and performance, particularly in the context of Transformational Leadership Additionally, Mumford et al (2000) categorized military officers to assess leadership outcomes through decision quality and individual performance Thun (2009) examined how personal traits such as courage and empathy affect leadership results, focusing on individual behavior and commitment Furthermore, Wang et al (2004) investigated the effects of Transformational Leadership on employee performance and organizational citizenship behavior, emphasizing the importance of group membership in leadership studies Collectively, these findings enhance our understanding of leadership dynamics and their implications for organizational success.

Research highlights the necessity for further investigation into the effects of Transformational Leadership styles on Employee Work Performance specifically within the Food and Beverage (F&B) sector in Vietnam While existing studies have explored the relationship between Transformational Leadership and employee outcomes across diverse contexts, findings remain scarce, with only a few studies focused on F&B companies.

In Vietnam, the relationship between Transformational Leadership and Employee Work Performance, particularly in the Food and Beverage (F&B) sector, remains underexplored This research aims to address this gap by examining how different leadership styles influence employee performance, ultimately offering actionable solutions to enhance productivity within F&B businesses.

There is a limited amount of research examining the intermediary relationship between Transformational Leadership and Employee Work Performance, particularly through the lenses of Self-efficacy and Employee Creativity While prior studies have highlighted the mediating effects of these factors, the specific influence of each characteristic of Transformational Leadership on Employee Self-efficacy and Creativity remains underexplored To address this gap, the author is conducting a study titled "Investigating The Impact Of Transformational Leadership."

On Employee Work Performance Through Employee Self- Efficacy And Creativity

In The F&B Industry In Vietnam Experiences for Golden Gate Group." which does not overlap with previous studies

This thesis explores leadership styles through the frameworks of Bass & Avolio (2004) and Bass & Riggio (2006), employing the MLQ - 5X scale tailored for the Vietnamese F&B industry It examines employee work outcomes based on the theories of Koopmans (2011) and Borman & Motowidlo (1993), focusing on assigned, generated, and adaptive work outcomes relevant to this sector Additionally, the study incorporates the intermediate variables of Self-Efficacy and Creativity, guided by the theoretical frameworks of Wang & Netemeyer (2004) and Parker (1998).

In Chapter 1, the author focuses on clarifying definitions related to

"Transformational Leadership", "Employee Work Performance", "Creativity", and

RESEARCH HYPOTHESES AND MODEL

Theoretical Framework

The topic is developed from the doctoral dissertation of Nguyen Ngoc Hung

A 2023 study conducted at Thuong Mai University explored the impact of various leadership styles on employee performance within small and medium enterprises in Vietnam Grounded in the comprehensive leadership theories proposed by Avolio & Bass (2004) and Bass & Riggio (2006), the research examined key leadership factors that affect employee performance Furthermore, the study utilized the work outcomes framework established by Koopmans (2011) and Borman & Motowidlo (1993) to assess employee performance outcomes.

Figure 2.1 Research Model of Nguyen Ngoc Hung (2023)

Source: Nguyen Ngoc Hung Doctor Thesis

Specifically, in this study, the author uses the Multifactor Leadership Style according to the theoretical framework of Avolio & Bass (2004) and Bass & Riggio

Multifactor Leadership Theory encompasses three leadership styles: Transformational, Transactional, and Laissez-Faire Leadership Transformational Leadership is evaluated through five key factors: Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration In contrast, Transactional Leadership is assessed based on two factors: Management by Exception – Active and Contingent Reward Laissez-Faire Leadership is measured by the factor Management by Exception – Passive Additionally, Employee Work Performance is evaluated through three dimensions: Task Performance, Contextual Performance, and Adaptive Performance.

Research Model and Hypothesis

This study focuses on the influence of Transformational Leadership on Employee Work Performance, as recent research indicates a shift towards leadership styles that foster employee comfort and empowerment, thereby enhancing creativity and independent contributions to organizational success Dvir and Shamir (2003) assert that Transformational Leadership promotes employee autonomy and encourages innovative input, aligning with the current emphasis on creating a work environment that prioritizes satisfaction and autonomy over mere financial compensation The Arbinger Institute highlights the necessity for leaders to redefine employee experiences to cultivate an atmosphere conducive to creativity and autonomy.

In the competitive F&B industry, innovation and creativity are essential for success, making Transformational Leadership vital for cultivating a dynamic work environment According to Bass and Riggio (2006), this leadership style enhances motivation and inspiration among team members, driving both development and creativity within the organization.

Encouraging teams to prioritize collective goals over individual interests fosters a culture of commitment and innovation, which is essential in addressing current industry challenges Building a positive workplace culture and enhancing employee satisfaction are critical for boosting performance and retaining talent.

In light of recent leadership trends and the unique characteristics of the food and beverage industry, Transformational Leadership emerges as an effective approach due to its significant influence on employee work performance and its positive effects on business development and success This study aims to explore and enhance the various aspects of Transformational Leadership within this sector.

The research is grounded in the Transformational Leadership framework proposed by Avolio & Bass (2004) and Bass & Riggio (2006), which encompasses five key elements: Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration Additionally, the study incorporates theoretical frameworks on work performance from Koopmans (2011) and Borman & Motowidlo (1993) to develop a comprehensive research model Furthermore, it examines two intermediate variables, Self-Efficacy and Creativity, based on the theories of Wang & Netemeyer (2004) and Parker (1998).

Source: Compiled by the author

Research Model with 5 factors belonging to Transformational Leadership influencing Employee Work Performance The factors measuring leadership style are defined as follows:

Table 2.1 Definitions of Transformational Leadership Measurement Factors

The degree of influence of the leader on employees through attributes such as confidence, self-sacrifice for the collective interest, sharing values and ideals with employees

The degree of influence of the leader on employees through behaviors aimed at enhancing collective consciousness of the organization's missions, instilling trust in the leader's expertise

The leader's ability to present an appealing vision and challenging tasks, convey experiences, and help employees feel confident in performing their tasks

The extent to which the leader encourages employees to innovate and be creative in approaching old problems with new methods

The extent to which the leader cares about the goals and needs of individual employees, understanding the differences between each employee

Source: Compiled by the Researcher

The factors constituting Employee Work Performance are defined as follows:

- Task Performance: The extent of employee effort in completing assigned tasks directly related to the employee's main functions and duties

- Contextual Performance: The employee's efforts in handling incidental tasks not directly related to the employee's main functions and duties

- Adaptive Performance: The degree to which employees can adapt to changes in the work environment

Transformational Leadership is shaped by five key factors, as outlined in the thesis approach The research hypothesis aims to explore the connection between these leadership style factors and Employee Performance Additionally, the study examines how Self-efficacy and Creativity serve as mediators in this relationship.

Transformational Leadership has emerged as a key approach to effective modern leadership, significantly influencing employee work performance by aligning subordinates with the organization's vision and goals (Butler, 1999) This leadership style enhances self-efficacy, empowering employees to recognize their capabilities in task completion (Tims et al., 2011) By fostering strong relationships within the organization and addressing employees' needs, transformational leaders create an environment where employees feel valued and motivated, leading to improved work performance (Zohar & Tennegazit, 2008) As these relationships strengthen, employees are more likely to align their personal goals with those of the organization and engage in behaviors that enhance the workplace environment (Li & Hung, 2009) Furthermore, transformational leaders facilitate better employee interaction, fostering mutual support and collaboration, which ultimately reduces tension and promotes a positive organizational culture (Bass et al., 2004).

31 work dissatisfaction, and consequently, strive to complete tasks as required by the organization and align with performance-related behaviors (Li & Hung, 2009)

● Idealized Influence (Attributed) & Employee Work Performance

A leader's idealized influence, characterized by qualities like knowledge, foresight, problem-solving abilities, and team-building skills, fosters trust and voluntary commitment among employees, resulting in high-performance outcomes.

Leadership attractiveness stems from a leader's ability to exert personal influence on employees by showcasing self-confidence and prioritizing the common good over personal interests Effective leaders share values and ideals with their team, fostering a collective spirit and enhancing overall workplace cohesion.

Transformational leadership is characterized by a leader's charisma and idealized influence, which are essential in effectively communicating the organization's vision and mission while motivating employees to achieve collective goals Such leaders exhibit strong competence and determination in overcoming challenges, which enhances employees' pride and dignity (Ahmad et al., 2014) In this supportive environment, employees are more likely to work diligently and strive to surpass their targets (Kahai et al., 2003) Moreover, a leader's attractiveness has a direct and positive effect on Employee Work Performance (Cao et al., 2017), as confirmed by research conducted by Mai Thị Kiều Lan and colleagues (2021) Therefore, it can be hypothesized that leader attractiveness significantly influences employee performance.

H1: "Idealized Influence (Attributed)" has a positively affects "Employee Work Performance."

● Idealized Influence (Behavior) & Employee Work Performance

Effective leadership significantly enhances employee satisfaction and task performance, as highlighted by Firestone (2010) The behavior of a leader plays a crucial role in shaping employees' ability to intervene and make decisions (Yukl, 2010) Establishing trust through positive leadership behaviors is essential for fostering a productive work environment.

Research by Vu Viet Hang and Phan Thi Tra My (2021) highlights that "Idealized Influence (Behavior)" significantly enhances Employee Work Performance by fostering confidence and creativity among employees Leaders who exemplify ethical behavior, provide guidance on work principles, and cultivate trust and respect positively impact their teams' performance This aligns with findings from Sundi (2013) and McColl et al (2002), which emphasize the direct influence of leader behavior on employee productivity Based on these insights, several hypotheses are proposed.

H2: "Idealized Influence (Behavior)" has a positively affects" Employee Work Performance"

● Inspirational Motivation & Employee Work Performance

Transformational leaders prioritize the needs and emotions of their team members, fostering a sense of engagement and commitment in the workplace This leadership style, rooted in visionary principles, inspires individuals to exceed their goals According to Densten (2002), effective managers leverage their vision to motivate employees to reach their full potential.

Leaders effectively utilize metaphors, symbols, and clear calls to action to enhance staff awareness and understanding of shared goals Inspirational leaders craft compelling visions of the future, motivating team members to elevate their efforts By fostering excitement and meaning in the workplace, these leaders ignite passion in their employees, driving them to excel and commit fully to the organization This dedication ultimately leads to improved performance and achievement (Mai et al., 2021) Thus, the research hypothesis is established.

H3: "Inspirational Motivation" has a positively affects "Employee Work Performance"

● Intellectual Stimulation & Employee Work Performance

Research by Bolkan, Goodboy, and Griffin (2011) indicates that fostering intellectual curiosity is linked to intrinsic motivation, which enhances employees' learning capabilities Transformational leaders play a crucial role by stimulating imagination, curiosity, and innovative problem-solving, thereby encouraging employees to think creatively and tackle challenges (Shin & Zhou, 2003) This leadership style leads to increased focus and engagement among workers, motivating them to explore better alternatives and experiment within their roles According to Deci and Ryan (2000), these factors contribute significantly to intrinsic motivation Additionally, Elgelala and Noermijatib (2014) emphasize the positive correlation between transformational leadership and employee performance, particularly highlighting the importance of intellectual stimulation and leader concern for staff Consequently, these insights support the formulation of relevant hypotheses.

H4: "Intellectual Stimulation" has a positively affects "Employee Work Performance"

● Individualized Consideration & Employee Work Performance

Research Scale

The leadership style measurement scale is derived from the Multifactor Leadership Questionnaire version 5X (MLQ-5X) developed by Bass and Avolio in 2004 This scale originally comprised 36 questions across nine factors, each with four observed variables that reflect leader behaviors Responses are assessed based on employees' perceptions using a 5-level Likert scale, where 1 indicates 'never' and 5 signifies 'always.'

Table 2.2 Scale measuring Idealized Influence (Attributed)

IA1 My direct leader always focuses attention on the interests of the group rather than personal interests

(2004) & (2006) IA2 My direct leader always exudes power and confidence

IA3 My direct leader has exemplary qualities that make me respectful and proud to work with

IA4 My direct leader has a strong desire and work ethic

Table 2.3 Scale of Factor Idealized Influence (Behavior)

IB1 My direct leader advises me to have specific directions in work and life

IB2 My direct leader shared these with me values and ideals that everyone should aim for

IB3 My direct leader considers ethical issues when making decisions

IB4 My direct leader emphasizes team spirit in fulfilling the company's mission

Table 2.4 Scale of Inspirational Motivation

IM1 My direct leader expresses an optimistic view of the future

IM2 My direct leader presents an attractive vision that we can strive for

IM3 My direct leader demonstrates confidence in achieving set goals

IM4 My direct leader enthusiastically communicates the necessary experiences for success

Table 2.5 Scale of Intellectual Stimulation

IS1 My direct leader seeks multiple viewpoints when problem-solving

IS2 My direct leader introduces new approaches to completing tasks

IS3 My direct leader helps me see issues from different perspectives

IS4 My direct leader reassesses old approaches to see if they are still suitable in the current context

Table 2.6 Scale of Individualized Consideration

IC1 My direct leader cares about me both in work and personal life

(2004) & (2006) IC2 My direct leader takes time to mentor employees

IC3 My direct leader understands differences in motivation, capabilities, and needs among employees

IC4 My direct leader helps employees develop their own capabilities

Table 2.7 Scale of Employee’s Creativity

EC1 You come up with creative sales ideas Wang &

EC2 You provide quick and practical solutions to arising sales issues

EC3 You have new ideas to meet customer needs

EC4 You innovate how the company's products/services are introduced

EC5 You propose new approaches to current tasks

● Factor of Employee’s Self-Efficacy

Table 2.8 Scale of Employee’s Self-Efficacy

SE1 You are very confident in analyzing and finding solutions to work-related problems

SE2 You are very confident when presenting work to superiors

SE3 You are confident when interacting with company partners (clients, distributors, suppliers, etc.)

SE4 You are very confident when discussing work with colleagues

● Factor of Employee Task Performance

In the context of Vietnam, especially for F&B enterprises, Employee Task Performance needs to be adjusted to suit This scale inherits from the research results of Borman & Motowidlo (1993) and Koopmans (2011)

Table 2.9 Scale of Employee Work Performance

TP1 I perform tasks to high-quality standards Borman &

Motowidlo (1993) Koopmans (2011) TP2 I proficiently complete assigned core tasks

TP3 I complete work tasks on schedule

TP4 I cooperate well with colleagues for the best work results possible

TP5 I perform well tasks described in the job description

CP1 I enthusiastically complete job tasks Koopmans & colleagues (2011)

CP2 I am always ready to help with others' work when they are absent

CP3 I do not hesitate to take on challenging tasks

CP4 I am always willing to do tasks outside my main duties when necessary

CP5 I learn and update new knowledge to improve work performance

AP1 I easily adapt to changes in my work Koopmans & colleagues (2011) AP2 I provide creative solutions to work-related issues

AP3 I quickly overcame difficulties encountered at work

AP4 I handle unexpected situations well in the workplace

Research Process

The author developed the initial draft of the questionnaire by synthesizing and analyzing prior research To validate its effectiveness, the questionnaire was tested with 20 participants, including professionals from the food and beverage industry and management experts Feedback from these experts led to adjustments in the questionnaire, enhancing its clarity and accuracy for the formal survey This rigorous process aimed to ensure meaningful and reliable conclusions from the study.

The survey questionnaire was distributed to employees in the food and beverage industry through Gmail and social media platforms such as Facebook, Messenger, Zalo, and WhatsApp, with assistance from the internship unit Furthermore, the author directly reached out to some restaurant employees to gather responses The data collection occurred between January and April.

The author gathered 390 survey responses, ultimately filtering the data to obtain 359 valid responses for analysis Utilizing SPSS 26 and AMOS 24 software, the author assessed the scale's reliability through Cronbach's Alpha and conducted exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) to examine variable relationships Furthermore, the study investigated the role of mediating variables and analyzed differences among identity variables, contributing to new insights regarding employee work outcomes and enhancing the study's significance.

In this chapter, the author introduces a research model derived from Nguyen Ngoc Hung's doctoral dissertation (2023) By engaging in discussions and integrating feedback from diverse practical sources and data, the author enhances the model with additional variables Notably, the model comprises five key variables of Transformational Leadership, including "Idealized Influence (Attributed)."

The article explores key components of transformational leadership, including Idealized Influence, Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration It highlights the significance of intermediary variables such as Self-Efficacy and Creativity in enhancing employee engagement Ultimately, the research assesses Employee Work Performance through Task Performance and Contextual Performance, emphasizing how these leadership traits and variables contribute to overall workplace effectiveness.

To enhance clarity and facilitate the interpretation of results presented in Chapter 3, the author detailed the research process and methodologies utilized The objective and precise research method involved the use of survey questionnaires, with subsequent data analysis conducted through SPSS 26 and AMOS 24 software.

RESEARCH RESULTS

Description of The Research Sample

The study focused on employees in the food and beverage (F&B) sector in Vietnam After distributing the survey, 390 responses were collected, with 31 invalid questionnaires removed Ultimately, 359 valid responses were utilized for in-depth exploration and analysis.

Table 3.1 Description of the research sample

Work Positions Office Department (Human

Business model Street Food Model 58 16.2

Alcoholic Beverage Model (Bar/Pub)

Full-Service Restaurant Model 69 19.2 Fast Casual Restaurant Model 52 14.5

Fast Casual Restaurant Model (Michelin star)

From 5 - 10 million VND 90 25.1 From 10 - 15 million VND 83 23.1

Based on Table 3.1, the following observations can be made:

About Gender: Out of 359 survey responses, 285 were male (48.7%), and 184 were female (541.3%) This gender distribution is relatively balanced

About Age: Respondents under 25 numbered 120 (33.5%), those aged between 26 and 35 were 111 people (30.9%), and those between 36 and 45 years old were 81 individuals (22.5%), and those over 45 years old were 47 individuals (13.1%)

Out of 359 respondents, the majority possess higher education, with 34.8% having attended college or vocational school and 27.9% holding a university degree Additionally, 29.8% of participants completed high school, while only 5.3% achieved a master's degree and 2.2% obtained a doctorate This indicates that a significant portion of surveyed workers are educated at the college or university level.

In a survey of 359 respondents, the distribution of work positions revealed that 32% (115 individuals) were employed in back office departments such as Human Resources, Marketing, and Customer Service Service staff comprised 22.3% (80 individuals), while kitchen staff, including bartenders, accounted for 16.2% (58 individuals) Additionally, 14.2% (51 individuals) worked as janitors or security guards, and restaurant managers made up 9.2% (33 individuals) Finally, restaurant supervisors represented 6.1% (22 individuals) of the workforce.

In a survey of 359 respondents, the distribution of business models is notably balanced, with 19.2% working in Full-Service Restaurants, 18.4% in Alcoholic Beverage establishments, and 16.2% in Stress Food Restaurants Additionally, 14.5% are employed in Fast Casual Restaurants, while 8.1% work in Fast Casual Restaurants with Michelin star recognition The remaining respondents are involved in Self-Service Restaurants and Non-Alcoholic Beverage sectors, highlighting a diverse representation across the food and beverage industry.

In the F&B industry, a significant portion of respondents reported varying levels of experience: 20.3% had less than 1 year, 28.5% possessed 1 to 2 years, and 33.7% had between 3 to 5 years of seniority.

About Income: 80 surveyed workers had incomes below 5 million VND (22.3%), 90 had incomes between 5 million and 10 million VND (25.1%), 83 had

47 incomes between 10 million and 15 million VND (23.1%) and 106 had incomes above 15 million VND (29.5%)

3.1.2 Descriptive Statistics of Quantitative Variables

3.1.2.1 Descriptive statistics on Idealized Influence (Attributes)

To measure the factor " Idealized Influence (Attributes)" it is necessary to use

The observed variables IA1 through IA4 highlight key leadership qualities valued by employees, including a focus on group interests, exuding power and confidence, demonstrating exemplary traits, and possessing a strong work ethic According to Table 3.2, the mean values for these variables range from 3.31 to 3.45, with standard deviations between 0.722 and 0.799, indicating that employees place a high importance on these attractive leadership characteristics.

Table 3.2 Descriptive statistics on Idealized Influence (Attributes)

N Minimum Maximum Mean Std.Deviation

Source: Results of data processing using SPSS 26.0 software

3.1.2.2 Descriptive statistics on Idealized Influence (Behavior)

To measure the factor " Idealized Influence (Behavior )" it is necessary to use

4 observed variables denoted as IB1- " My direct leader advises me to have specific directions in work and life" ; IB2 - " My direct leader always exudes power and

The data reveals that employees place significant importance on leadership behavior, as evidenced by mean values ranging from 3.48 to 3.57 and standard deviations between 0.717 and 0.817 Key aspects include the consideration of ethical issues in decision-making and the emphasis on team spirit in achieving the company's mission.

Table 3.3 Descriptive statistics on Idealized Influence (Behavior)

Source: Results of data processing using SPSS 26.0 software 3.1.2.3 Descriptive statistics of the variable " Inspirational Motivation"

The factor " Inspirational Motivation" is measured by 4 observed variables denoted as IM1 - " My direct leader expresses an optimistic view of the future" ; IM2

Employees highly value the inspirational motivation provided by their direct leaders, with mean values ranging from 3.78 to 3.81 and standard deviations between 0.743 and 0.799 This appreciation is reflected in their perception of leaders who present an attractive vision to strive for, demonstrate confidence in achieving set goals, and enthusiastically communicate the necessary experiences for success.

Table 3.4 Descriptive statistics on Inspirational Motivation

Source: Results of data processing using SPSS 26.0 software 3.1.2.4 Descriptive statistics of the variable " Intellectual Stimulation"

Intellectual Stimulation is evaluated through four key observed variables: IS1, which reflects the leader's effort to gather diverse viewpoints during problem-solving; IS2, highlighting the introduction of innovative task approaches; IS3, emphasizing the leader's role in helping employees view issues from various angles; and IS4, focusing on the leader's reassessment of outdated methods for relevance The mean values for these variables range from 3.17 to 3.21, with standard deviations between 0.701 and 0.739, demonstrating that employees significantly value the intellectual stimulation provided by their direct leaders.

Table 3.5 Descriptive statistics on Intellectual Stimulation

3.1.2.5 Descriptive statistics of the variable " Individualized Consideration"

The concept of "Individualized Consideration" is assessed through four key variables: IC1 highlights that employees feel their direct leader cares about them in both professional and personal aspects; IC2 emphasizes the leader's commitment to mentoring; IC3 reflects the leader's understanding of the diverse motivations, capabilities, and needs of employees; and IC4 showcases the leader's role in fostering employee development With mean values ranging from 3.26 to 3.32 and standard deviations between 0.737 and 0.792, these findings indicate a strong appreciation among employees for the individualized attention and support provided by their leaders.

Table 3.6 Descriptive statistics on Individualized Consideration

3.1.2.6 Descriptive statistics of the variable " Employee’s Creativity"

Employee creativity is assessed through five key observed variables: EC1 measures the generation of innovative sales ideas, EC2 evaluates the ability to provide quick and practical solutions to sales challenges, EC3 focuses on developing new ideas to address customer needs, EC4 examines innovation in product/service introduction, and EC5 looks at proposing new approaches to existing tasks The mean values for these variables range from 3.53 to 3.66, with standard deviations between 0.811 and 0.863, indicating that employees perceive their creativity to be fostered under Transformational Leadership.

Table 3.7 Descriptive statistics on Employees Creativity

Source: Results of data processing using SPSS 26.0 software 3.1.2.7 Descriptive statistics of the variable " Employee’s Self-Efficacy"

Employee self-efficacy is assessed through four key indicators: confidence in analyzing and solving work-related issues (SE1), presenting to superiors (SE2), interacting with company partners (SE3), and discussing work with colleagues (SE4) These variables exhibit mean values between 3.18 and 3.27, with standard deviations ranging from 0.749 to 0.854 This data suggests that employees experience a strong sense of confidence in their abilities, particularly under Transformational Leadership.

Table 3.8 Descriptive statistics on Employee’s Self- Efficacy

3.1.2.8 Descriptive statistics of the variable " Employee Work Performance"

Employee work performance is assessed through 14 variables categorized into Task Performance, Contextual Performance, and Adaptive Performance According to Table 3.9, the mean values of these variables range from 2.95 to 3.13, with standard deviations between 0.592 and 0.801 These findings suggest that employee work outcomes are at a satisfactory level, and the distribution of the variables aligns with normality, making them suitable for subsequent analytical processes.

Table 3.9 Descriptive statistics on Employee Work Performance

Results of Testing the Factors

3.2.1 Testing the reliability of Cronbach's Alpha scale

The reliability of the research model scales, including the Transformational Leadership scale, Employee Creativity and Self-Efficacy, and Employee Work Performance scale, was evaluated through an analysis of Cronbach's Alpha.

The findings reveal that all variables exhibit Cronbach's Alpha coefficients exceeding 0.7 and corrected item-total correlation coefficients above 0.3 Furthermore, removing any variable results in a decrease in the Alpha coefficient, confirming the scale's reliability and supporting the validity of subsequent analyses.

● Results of the reliability assessment of the Transformational Leadership scale

Table 3.10 Results of Cronbach’s Alpha testing for Transformational

Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

1.Idealized Influence (Attribute), Cronbach's Alpha = 0.816

2.Idealized Influence (Behavior), Cronbach's Alpha = 0.809

● Results of the reliability assessment of the Employee Ability scale

Table 3.11 Results of Cronbach’s Alpha testing for Employee Ability scales

2 Employee Self-Efficacy, Cronbach's Alpha = 0.835

● Results of the reliability assessment of the Employee Work Performance scale

Table 3.12 Results of Cronbach’s Alpha testing for Employee Work

3.2.2 Results of EFA exploratory factor testing

The proposed research model comprises 10 factors and 43 observed variables A Cronbach's Alpha reliability test was conducted on all observed variables to assess their correlation and the suitability of the survey variables The results of the KMO and Bartlett's tests were also obtained to further validate the model.

Table 3.13 Results of KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.896

Bartlett's Test of Sphericity Approx Chi-Square 7740.185 df 903

The Kaiser-Meyer-Olkin (KMO) measure of 0.896 indicates excellent suitability for exploratory factor analysis (EFA), while Bartlett’s Test of Sphericity result of 0.000 confirms significant correlations among the data Ten factors were extracted based on an Eigenvalue criterion of greater than 1, with the extracted Eigenvalue at 1.045 This analysis explained a cumulative variance of 75.218%, surpassing the 50% threshold, and accounted for 63% of the variance among the 43 observed variables involved in the EFA.

The initial run of the rotation matrix in the exploratory factor analysis (EFA) revealed that 43 observed variables were effectively grouped into 10 factors, with all variables exhibiting factor loadings exceeding 0.5 and no poorly loading variables present This indicates that the scale has achieved convergence, with each observed variable contributing meaningfully to the measured concept Consequently, we will utilize this scale, comprised of these observed variables, for subsequent testing.

3.2.3 Results of CFA confirmatory factor testing

The author utilized Confirmatory Factor Analysis (CFA) to evaluate the correlation between various factors Best practices for CFA indicate that CMIN/df should be less than or equal to 3, CFI should be greater than or equal to 0.9, GFI should be greater than or equal to 0.8, and the RMSEA index should be less than 0.06 The results of the analysis were subsequently reported.

Source: Results of data processing using AMOS 24.0 software

The results of the Confirmatory Factor Analysis (CFA) indicate a strong model fit, with a CMIN/df value of 1.490, which is below the threshold of 3; a CFI index of 0.944, exceeding the minimum of 0.9; a GFI of 0.868, surpassing the 0.8 benchmark; and an RMSEA of 0.037, well below the 0.06 criterion These findings demonstrate the model's excellent significance and suitability.

Results of Testing the Reliability and Convergence of The Scale

The composite reliability (CR) assessment indicates that each latent variable's CR value exceeds the required threshold of 0.7, confirming measurement model reliability (Hair et al., 2009) Validity is established through both convergent and discriminant validity, where the average variance extracted (AVE) surpasses the minimum of 0.5, and the square root of AVE for each latent variable is greater than its correlations with other variables (Hair et al., 2009) Results in Table 3.14 demonstrate that all standardized loadings exceed 0.5, with AVE values ranging from 0.503 to 0.632 and P-values below 0.05, indicating strong convergence The model aligns with market data, showcasing unidimensionality through AVE > 0.5 and CR > 0.7, while the AVE coefficients for the 10 constructs exceed the squared correlations, confirming discriminant validity Overall, the model effectively represents market data, illustrating convergence, unidimensionality, discriminant validity, and measurement reliability.

Table 3.14 Result of Model Validity Measures

TP AP IC EC IM SE IB IA IS CP

P: significance level; *** = p < 0.001 Source: Author's research results

Results of Testing Hypotheses and Research Models

3.4.1 Results of Testing the Suitability of The Research Model

To further verify the suitability of the research model, the team performed SEM analysis, the results are shown as follows:

Figure 3.2 Results of running SEM analysis with standardized coefficients

Source: Results of data processing using AMOS 24.0 software

The analysis yielded favorable results, with a CMIN/df value of 1.587, indicating good model fit, as it is below the threshold of 3 The CFI index was 0.932, surpassing the acceptable level of 0.9, while the GFI reached 0.857, exceeding the 0.8 benchmark Additionally, the RMSEA value of 0.040 is below the 0.06 cutoff, confirming that the research model aligns well with market data Further SEM analysis of the linear structural model continues to support these findings.

Table 3.15 Results of Regression Weights (First Time)

The results indicate a significant relationship with a high p-value, failing to satisfy the conditions of EC 0.05, indicating that there is no significant difference in the mean of work performance between different Business Models in the F&B industry in Vietnam

Results of Testing the Research Hypotheses

Table 3.27 Results of testing the research hypotheses

H1 " Idealized Influence (Attributed)" has a positively affects " Employee Work Performance."

H2 " Idealized Influence (Behavior)" has a positively affects" Employee Work Performance"

H3 " Inspirational Motivation" has a positively affects" Employee Work Performance"

H4 " Intellectual Stimulation" has a positively affects" Employee Work Performance "

H5 " Individualized Consideration" has a positively affects" Employee Work Performance"

H6 " Transformational Leadership" has a positive impact on employee creativity

H6a " Transformational Leadership" has a positive impact on employee creativity

H6b " Transformational Leadership" has a positive impact on employee creativity

H6c " Transformational Leadership" has a positive impact on employee creativity

H6d " Transformational Leadership" has a positive impact on employee creativity

H6e " Transformational Leadership" has a positive impact on employee creativity

H7 " Employee’s Creativity" has a positive impact on" Employee Work Performance”

H8 " Transformational Leadership" has a positive impact on employees' self-efficacy

H8a " Transformational Leadership" has a positive impact on employees' self-efficacy (Idealized Influence (Attributed))

H8b " Transformational Leadership" has a positive impact on employees' self-efficacy (Idealized Influence (Behavior))

H8c " Transformational Leadership" has a positive impact on employees' self-efficacy (Inspirational Motivation)

H8d " Transformational Leadership" has a positive impact on employees' self-efficacy (Intellectual Stimulation)

H8e " Transformational Leadership" has a positive impact on employees' self-efficacy (Individualized Consideration)

H9 " Employee Self- Efficacy" has a positive impact on" Employee Work Performance"

In Chapter 3, the author explores the influence of Transformational Leadership on Employee Work Performance within the Food and Beverage sector, focusing on the mediating roles of employee self-efficacy and creativity The analysis of the collected data yielded significant and practical outcomes, highlighting the positive effects of transformational leadership on enhancing employee performance.

After conducting reliability testing with Cronbach's Alpha, all criteria were successfully met, indicating a robust measurement scale The analysis revealed 10 groups comprising 43 observed variables Further reliability assessments using Composite Reliability (CR) and Average Variance Extracted (AVE) confirmed that the scale aligns well with market data, demonstrating convergence, unidimensionality, discriminant validity, and overall measurement reliability.

Exploratory Factor Analysis (EFA) demonstrated strong results, revealing a well-converging measurement scale with no negative variables and all observed variables effectively contributing to the intended concept Additionally, the Confirmatory Factor Analysis (CFA) indicated good model fit indices, confirming the model's high suitability.

Results of Linear Structural Equation Modeling (SEM) to test research hypotheses, with two rounds of analysis, there are 7 fully accepted hypotheses, and 2 partially accepted hypotheses

Research indicates that Transformational Leadership, along with the promotion of Self-Efficacy and Creativity among employees, significantly enhances Contextual Performance, which is the most influential factor in Employee Work Performance This is followed by Task Performance and Adaptive Performance.

Testing using the ONE-WAY ANOVA method revealed significant differences in Work Efficiency among employees based on their Educational attainment and Work Positions.

DISCUSSION AND RECOMMENDATION EXPERIENCE

Discuss research results and Recommendations for F&B Businesses in

The proposed model by the author includes 10 factors and 9 hypotheses, yielding favorable results that align with reality through evaluations using Cronbach's Alpha, EFA, and CFA indices The analysis confirms that the studied criteria are entirely suitable for real-world application, with SEM testing demonstrating compatibility between the theoretical model and the data All 7 proposed research hypotheses were accepted, revealing that "Employee Work Performance" is most strongly influenced by "Individualized Consideration," followed by factors such as "Employee's Creativity," "Idealized Influence (Attributed)," "Employee Self-Efficacy," "Inspirational Motivation," "Idealized Influence (Behavior)," and "Intellectual Stimulation." Additionally, two factors of "Transformational Leadership" were found to have no effect, leading to two partially accepted research hypotheses.

"Employee Creativity" and "Employee Self-Efficacy" is "Idealized Influence (Behavior) "and "Inspirational Motivation."

It can be seen that factors within the "Transformational Leadership" group, including "Individualized Consideration" , "Idealized Influence (Attributed)" ,

Inspirational Motivation, Idealized Influence (Behavior), and Intellectual Stimulation significantly enhance Employee Work Performance, with impact coefficients of 0.340, 0.172, 0.145, 0.137, and 0.110, respectively To improve Employee Work Performance in the F&B industry, leaders should prioritize the development of these key motivational factors.

Demonstrating concern for employees highlights a leader's attentiveness and understanding of their unique needs, which is essential for guiding their development According to Li and Hung's (2009) research, a leader's concern for employees significantly strengthens employee-leader relationships, ultimately leading to enhanced employee work performance.

This study aligns with Li and Hung's (2009) findings, highlighting that "employee concern" significantly influences Employee Work Performance Leaders who prioritize collective interests and embody high aspirations foster respect and admiration among employees, leading to enhanced performance In the context of Vietnamese F&B enterprises, where organizational structures are less formalized, the personal qualities of leaders greatly affect employee behavior Additionally, leaders who articulate compelling visions and maintain an optimistic outlook motivate employees to engage more deeply in their work By fulfilling their responsibilities and setting a strong example, leaders cultivate respect and trust, which boosts employee confidence and dedication to their roles.

Creating a psychologically safe environment where employees feel encouraged to share ideas and explore new approaches to old problems fosters creativity and innovation By promoting a culture of knowledge sharing, leaders transform individual insights into collective assets, enhancing the professional expertise of all team members As a result, this collaborative atmosphere not only boosts individual work performance but also contributes to the overall success of the organization.

The research results also demonstrate the positive impact of "Creativity" and "Self- Efficacy" of employees on "Employee Work Performance" with impact coefficients of 0.247 and 0.159, respectively

Encouraging employees to express ideas and approach problems from diverse perspectives leads to the generation of innovative and effective solutions This creativity not only enables quick problem-solving but also instills confidence and motivation in employees to achieve their work goals A culture that values creativity fosters a positive work environment, attracts potential talent, and enhances organizational diversity and productivity In the food and beverage industry, creativity is especially crucial for developing unique and appealing products and services that resonate with customers.

Employee self-efficacy plays a crucial role in enhancing work performance, as individuals who believe in their abilities tend to approach tasks with greater confidence and effectiveness This self-belief fosters initiative and proactive problem-solving, allowing employees to tackle challenges more efficiently Furthermore, those with high self-efficacy are inclined to set ambitious goals and achieve superior results Consequently, fostering an environment that nurtures creativity and boosts employee self-efficacy is essential for improving overall work performance and driving organizational success.

On the other side , the study identified two hypotheses that were partially accepted, namely the influence of Transformational Leadership on "Creativity" and "Self- Efficacy" of employees

Among these factors, "Individualized Consideration", "Idealized Influence (Attributed)", and "Intellectual Stimulation" positively influence the

Leaders who demonstrate individualized concern foster a unique and sincere work environment, significantly enhancing employee creativity, as indicated by coefficients of 0.334, 0.184, and 0.156 This approach encourages employees to feel respected and valued, ultimately driving their creative potential.

Fostering personal development and unique contributions among employees is essential for meeting their specific needs and expectations When employees feel valued, they are more likely to express creative ideas and share their thoughts Inspirational leadership that presents a compelling vision encourages employees to strive for higher goals and innovative solutions Positive relationships with leaders lead to an increase in new ideas and approaches from employees Furthermore, promoting intellectual stimulation within the organization nurtures creativity and the development of fresh concepts Companies that prioritize training and creative discussions create an environment conducive to intellectual growth, ultimately enhancing employee creativity.

Conversely, the impact of "Inspirational Motivation" and "Idealized Influence

The rejection of the notion that leaders' behaviors significantly enhance employee creativity highlights that while leaders can serve as role models, this does not inherently foster innovative thinking among employees Although idealized influence can cultivate a respectful workplace, it does not guarantee breakthrough creativity Furthermore, while leaders' inspiration can motivate employees, it must be paired with additional elements, such as setting ambitious goals and providing a supportive environment, to effectively translate abstract ideas into actionable outcomes.

With correlations of 0.424, 0.212, and 0.159, respectively, "Individualized Consideration", "Idealized Influence (Attributed)", and "Intellectual Stimulation "among these characteristics have a positive effect on employees'

Leaders who prioritize and support their team members foster dependable and unique work environments, enhancing employees' sense of worth and motivation to achieve their goals Personalized attention increases self-esteem, encouraging workers to make bold decisions and tackle common workplace challenges This idealized influence of leaders cultivates trust and respect among colleagues, further boosting self-confidence Additionally, promoting intellectual stimulation contributes to the development of knowledge and skills, creating a positive atmosphere that empowers employees to confront and manage tasks effectively.

Conversely, the impact of "Inspirational Motivation" and "Idealized Influence

Focusing solely on inspiring employees through ambitious goals may boost enthusiasm, but their self-efficacy is more significantly shaped by personal experiences and successes in their roles While respect and trust in leadership can enhance overall trust in the organization, they do not necessarily elevate self-efficacy Ultimately, self-efficacy is rooted in an individual’s sense of control and ability to face challenges, influenced by multiple factors within the work environment.

In terms of Employee Work Performance , according to research findings, applying

Transformational leadership in food and beverage management significantly enhances employee work performance by promoting self-efficacy and creativity Contextual performance emerges as the most influential factor, followed by task performance and adaptive performance When employees experience positive reinforcement from their leaders, they feel empowered to take on additional responsibilities beyond their primary roles This supportive environment encourages them to invest effort into their core tasks, ultimately leading to improved performance and greater contributions A welcoming atmosphere under effective leadership fosters a culture of concern and support, enabling workers to thrive.

Support and guidance play a crucial role in employee performance, while adaptive performance—defined as the ability to adjust to changes in the work environment—emerges as the least influential factor This adaptability is often influenced by individual professional skills and personal traits, making enhancements in this area more complex.

In addition, the study also found differences in Work Performance between different

"Educational attainment" and "Work Positions" groups

Regarding "Educational attainment", research results indicate that employees with higher education tend to be more effective in their work

Employees with Master's degrees exhibit the highest levels of work effectiveness, largely due to their specialized knowledge and advanced skills Their superior performance is often linked to previous managerial roles, which instill confidence in utilizing transformative leadership styles that significantly boost employee efficiency.

Experience for Golden Gate Group Joint Stock Company

4.2.1 General introduction about Golden Gate Group Joint Stock Company

- Trading name: Golden Gate Trade Services Joint Stock Company

- Business registration certificate number: 0102721191 issued by the Hanoi Department of Planning and Investment on April 9th, 2008; and amended for the 67th time on February 15th, 2023

- Address: Toyota Building, 315 Truong Chinh, Thanh Xuan District, Hanoi City, Vietnam

- Website: www.ggg.com.vn

4.2.2 History of Formation and Development of Golden Gate Group

The Golden Gate Service Trading Joint Stock Company, also known as Golden Gate, is a Vietnamese enterprise specializing in restaurant chains founded by

Founded in 2005, Golden Gate began its operations in 2008 after securing a $2.6 million investment from Mekong Capital With this backing, the company enlisted the former CEO of KFC Asia as an advisor, which helped to establish systematic and professional processes for its restaurant chain model.

In 2008, the Golden Gate Service Trading Joint Stock Company was established with a charter capital of 32 billion dong, acquiring assets from Hoang Thanh Trading Service Joint Stock Company The company specializes in food and beverage services, excluding karaoke, bars, and nightclubs At its inception, Golden Gate operated six Ashima restaurants, with three located in Hanoi and three in Ho Chi Minh City.

In 2009, the company launched its second brand, Kichi Kichi, establishing a conveyor belt hot pot restaurant chain During this period, the company also raised its charter capital to 51.53 billion dong through retained earnings, reflecting its ongoing growth and success.

91 efforts in the food service industry, the company was honored with The Guide Awards by the Vietnam Economic Times for "Amazing and Popular Mushroom Cuisine."

In 2010, Golden Gate capitalized on the strong market recognition of its Kichi Kichi brand to expand its restaurant network across Vietnam, particularly in Hanoi and Ho Chi Minh City This year also saw the launch of Sumo BBQ, the company's third brand, which diversified its offerings in the domestic market, with the inaugural Sumo BBQ restaurant opening in Hanoi.

In 2011, the Board of Directors of Golden Gate made a strategic decision to invest in the construction of a new Distribution Center at An Khanh Industrial Zone, aimed at enhancing the supply of quality ingredients and expanding its restaurant chain network This facility will feature both warehouses and food processing workshops to support their operational needs.

In 2012, Golden Gate expanded its restaurant portfolio by introducing several new brands, such as Vuvuzela, Daruma, Ba con Cừu, 37th Street, and iSushi, while also refining various business models to elevate the image of its restaurant chain brands.

2013: Constantly changing to develop, 2013 marked the launch of new brands such as: Gogi House, iCook which were positively received by the market

In 2014, Golden Gate significantly expanded its business with the successful introduction of brands such as Gogi House and Kichi Kichi, leading to a remarkable revenue growth of over 200% Additionally, the company launched a new brand, Citi Beer Station, further enhancing its market presence.

In 2015, Golden Gate experienced substantial growth in its restaurant locations, culminating in a total of 146 owned establishments by year-end The company expanded its brand portfolio by introducing several new concepts, such as Cowboy Jack's, Hutong Hotpot Paradise, Itacho Ramen, Kintaro Udon, K-pub, Magic Pan Food Palace, and Crystal Jade, increasing its total number of brands to 18.

2016: 2016 continued to be a successful year for Golden Gate in expanding its restaurant network, reaching 189 restaurants Revenue grew by 42% compared to

2015 The company also welcomed three new brands: Osaka Ohsho, Shogun, and Sừng Quăn

2017: Golden Gate introduced a new brand, Manwah, specializing in Taiwanese hot pot In a very short time, Manwah became an essential brand of the company alongside Gogi House and Kichi Kichi

In 2018, the company made significant strides in business development, expanding the Golden Gate restaurant network to over 300 locations across central provinces and cities nationwide Additionally, the introduction of the highly acclaimed Hutong Seafood brand further enhanced the company's offerings.

In 2019, Golden Gate significantly expanded its restaurant network to over 350 locations across various provinces and cities, marking an 18% increase from the previous year The company introduced four new brands: GoGi Steak, a creative Korean BBQ concept; Jack's 500 Pizzeria, known for its handmade, wood-fired pizzas inspired by traditional Naples recipes; The Coffee Inn, a unique cafe restaurant chain that merges fast food with a complete dining experience; and Chillies, a popular American Grill & Bar franchise offering an authentic blend of Texan and Mexican cuisines.

In 2020, despite the challenges posed by the COVID-19 pandemic, Golden Gate successfully expanded its restaurant network to over 380 locations across more than 40 provinces and cities in Vietnam The company also introduced the KTop brand, a Korean BBQ Buffet featuring authentic Korean-style sauces, offering customers a distinctive culinary experience By the end of the year, Golden Gate had grown its portfolio to include over 20 culinary brands in the country.

In 2021, despite the challenges posed by the pandemic, Golden Gate adapted its operations by maintaining its system and focusing on technological development The company successfully opened 44 new restaurants while closing and converting 37, resulting in an expanded network of nearly 400 locations nationwide by year-end.

In 2022, Golden Gate demonstrated a robust recovery from the ongoing effects of COVID-19, opening 73 new restaurants and expanding its total to 450 nationwide The company launched five new restaurants under the Citi Station brand, featuring open and vibrant spaces designed for relaxation after a long workday Additionally, Golden Gate made its debut in the hospital canteen sector by establishing a presence at Bach Mai Hospital, one of Vietnam's largest and most esteemed medical facilities.

In 2023, Vietnam's macroeconomic landscape experienced significant fluctuations, prompting consumers to reduce spending and impacting the revenues of many retail companies, including Golden Gate However, the company seized this opportunity to strengthen its business operations and introduce new brands, adding 12 diverse culinary styles to its portfolio Additionally, Golden Gate rebranded from "Golden Gate Trade & Service JSC" to "Golden Gate Group JSC" to align with its global expansion strategy A key milestone was the construction of the Food Factory in Thach That Industrial Zone, Hanoi, which is set to commence operations in February 2024, providing substantial support to Golden Gate's operational framework.

4.2.3 Current status Golden Gate Group a Business performance results in 2023

In 2023, it was a challenging year due to the fluctuations in the macroeconomic landscape, leading consumers to tighten their spending

In 2023, Golden Gate experienced a notable decline in demand for dining, gathering, and entertainment, leading to a significant impact on its profit structure The company's total net revenue fell to 6.289 trillion VND, representing a 10% decrease from 2022, while net profit after tax dropped from 658 billion VND.

139 billion VND, equivalent to a 79% decrease

Tiêu đề	Investigating The Impact Of Transformational Leadership On Employee Work Performance Through Employee Self-Efficacy And Creativity In The F&B Industry In Vietnam. Experiences For Golden Gate Group
Tác giả	Phan Thị Lan Anh
Người hướng dẫn	Prof. Dr. Nguyễn Vân Hà
Trường học	Banking Academy of Vietnam
Chuyên ngành	Business Administration
Thể loại	Graduation Thesis
Năm xuất bản	2024
Thành phố	Ha Noi

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