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

BANKING ACADEMY OF VIETNAM BUSINESS ADMINISTRATION OF FACULTY

GRADUATION THESIS

TOPIC: 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

Student’s Name: Phan Thi Lan Anh

Class: K23CLC-QTA Student’s ID: 23A4030028 Supervisor: Prof Dr Nguyễn Vân Hà

Ha Noi, May 3, 2024

GUARANTEE

I solemnly declare that the research topic "Investigating The Impact Of Transformational Leadership On Employee Job Performance Through Employee Self-Efficacy And Creativity In The F&B Industry In Vietnam Experiences For Golden Gate Group" is my own research work conducted during my internship under the guidance of Associate Professor Nguyễn Vân Hà

The data and results presented in the research are completely truthful, without any copying or use of results from other studies All information and data used in the research are sourced and cited correctly according to regulations I take full responsibility for this declaration!

Student

Phan Thị Lan Anh

ACKNOWLEDGEMENT

First of all, I would like to express my sincere gratitude and deepest appreciation to the esteemed faculty members of the Business Administration Department at the Banking Academy for their dedicated teaching, guidance, and support throughout this period It is through your commitment that I have not only gained valuable knowledge but also important practical lessons necessary to complete this thesis

In addition, I want to extend my thanks to of Associate Professor Nguyễn Vân

Hà and Mr Nguyễn Đức Lợi for providing invaluable guidance and advice, enabling

me to refine my thesis to the best of my ability

Finally, I would like to express my gratitude to the Board of Directors and all the staff of Golden Gate Group Joint Stock Company for providing me with the opportunity to intern and engage in practical tasks, as well as for their tremendous support during the data collection process for my research

Throughout the internship and the thesis research process, I acknowledge that

my arguments and experiences may have limitations and shortcomings I eagerly welcome the valuable feedback and contributions from you all so that I can further enhance and refine my knowledge and expertise

Thank you sincerely!

TABLE OF CONTENT

GUARANTEE i

ACKNOWLEDGEMENT ii

LIST OF ACRONYMS vi

LIST OF TABLES viii

LIST OF FIGURES xi

INTRODUCTION 1

1 Problem Discussion 1

2 Research Objectives 2

3 Research Scope 2

4 Research Questions 3

5 Research Methodology 3

6 Structure of The Research Project 4

CHAPTER 1: THEORETICAL BACKGROUND AND LITERATURE REVIEW 5

1.1 Theoretical Background 5

1.1.1 Transformational Leadership 5

1.1.2 Employee Work Performance 8

1.1.3 Creativity 12

1.1.4 Self - Efficacy 13

1.2 Current Status of Vietnam's F&B Industry 14

1.2.1 Current status of the F&B industry in Vietnam 14

1.2.2 Challenges and long-term development goals of the industry 16

1.3 Study Overview 18

1.3.1 Overview of Domestic Research 19

1.3.2 Overview of Foreign Research 20

1.3.3 Research Gap 22

CHAPTER 2: RESEARCH HYPOTHESES AND MODEL 25

2.1 Theoretical Framework 25

2.2 Research Model and Hypothesis 26

2.2.1 Proposed Research Model 26

2.2.2 Research Hypotheses 30

2.3 Research Scale 36

2.4 Research Process 42

CHAPTER 3: RESEARCH RESULTS 44

3.1 Description of The Research Sample 44

3.1.1 Research Sample 44

3.1.2 Descriptive Statistics of Quantitative Variables 47

3.2 Results of Testing the Factors 53

3.2.1 Testing the reliability of Cronbach's Alpha scale 53

3.2.2 Results of EFA exploratory factor testing 57

3.2.3 Results of CFA confirmatory factor testing 58

3.3 Results of Testing the Reliability and Convergence of The Scale 59

3.4 Results of Testing Hypotheses and Research Models 61

3.4.1 Results of Testing the Suitability of The Research Model 61

3.4.2 Test the Role of Mediating Variables 66

3.5 Testing the Average Difference in Employee Work Performance Among Categorical Variables 67

3.5.1 Test the average difference between different Gender groups 67

3.5.2 Test the average difference between different Age groups 68

3.5.3 Test the average difference between Educational attainment 70

3.5.4 Test the average difference between Work Positions 71

3.5.5 Test the average difference between Business model 73

3.6 Results of Testing the Research Hypotheses 74

CHAPTER 4: DISCUSSION AND RECOMMENDATION EXPERIENCE FOR GOLDEN GATE GROUP JOINT STOCK COMPANY 77

4.1 Discuss research results and Recommendations for F&B Businesses in Vietnam 77

4.1.1 Discussion of Research Results 77

4.1.2 Recommendations for F&B businesses in Vietnam 84

4.2 Experience for Golden Gate Group Joint Stock Company 89

4.2.1 General introduction about Golden Gate Group Joint Stock Company 89

4.2.2 History of Formation and Development of Golden Gate Group 90

4.2.3 Current status Golden Gate Group 93

4.2.4 Recommendation for Golden Gate to improve Employee Performance 97 4.3 Directions for Further research 99

CONCLUDE 102

REFERENCES 103

APPENDIX 113

LIST OF ACRONYMS

2 SPSS Statistical Package for Social Sciences

LIST OF TABLES

2 Table 2.1 Definitions of Transformational Leadership

Measurement Factors

29

3 Table 2.2 Scale measuring Idealized Influence (Attributed) 37

4 Table 2.3 Scale of Factor Idealized Influence (Behavior) 37

7 Table 2.6 Scale of Individualized Consideration 39

13 Table 3.2 Descriptive statistics on Idealized Influence

16 Table 3.5 Descriptive statistics on Intellectual Stimulation 49

17 Table 3.6 Descriptive statistics on Individualized

Consideration

50

18 Table 3.7 Descriptive statistics on Employees Creativity 51

19 Table 3.8 Descriptive statistics on Employee’s Self-

21 Table 3.10 Results of Cronbach’s Alpha testing for

Transformational Leadership scales

53

22 Table 3.11 Results of Cronbach’s Alpha testing for

Employee Ability scales

55

23 Table 3.12 Results of Cronbach’s Alpha testing for

Employee Work Performance scales

56

24 Table 3.13 Results of KMO and Bartlett's Test 57

26 Table 3.15 Results of Regression Weights (First time) 62

27 Table 3.16 Results of Regression Weights (Second time) 65

29 Table 3.18 T-Test the difference between Male and Female 68

30 Table 3.19 Levene test the difference in Age groups 69

31 Table 3.20 Robust test the difference in Age groups 69

32 Table 3.21 Levene test the difference in Educational

34 Table 3.23 Levene test the difference in Work Positions 71

35 Table 3.24 Robust test the difference in Work Positions 72

36 Table 3.25 Levene test the difference in Business model 73

37 Table 3.26 Robust test the difference in Business model 73

37 Table 3.27 Results of testing the research hypotheses 74

LIST OF FIGURES

1 Figure 2.1 Research Model of Nguyen Ngoc Hung (2023) 25

4 Figure 3.2 Results of running SEM analysis with

standardized coefficients

61

5 Figure 3.3 Results of running SEM analysis after removing

the inactive arrow

64

6 Figure 3.4 Graph of variation in work performance between

Educational attainment groups

71

7 Figure 3.5 Graph of variation in work performance between

Work Positions groups

72

INTRODUCTION

1 Problem Discussion

The F&B industry in Vietnam is undergoing a remarkable period of development, with stable growth and continuous expansion, even in the face of economic challenges like the present It is considered one of the most attractive and promising business sectors at the moment (Vietnam Earnings Insight, 2023) However, this very success breeds a new challenge: fiercer competition While consumer spending on dining remains resilient, even increasing by 1.26%, the number of F&B establishments has skyrocketed to 317,000 according to the 2023 F&B market analysis report by iPOS.vn Therefore, regardless of size, F&B businesses must carve out a unique niche and find ways to enhance their operational efficiency

Sustainable development is crucial, but in this competitive landscape, it's not enough Research by Ferris et al (1999) highlights human resources as a key differentiator, and within this realm, leadership plays a pivotal role Studies by Cummings and Schwab (1973) emphasize leadership style as the most critical factor impacting employee performance Effective leadership fosters employee effort, helps them overcome limitations, and drives superior results (Gong et al., 2009) Inspiring joy and excitement in the workplace lead to proactivity and creativity, key ingredients for successfully navigating complex situations (Ha Minh et al., 2019)

Transformational Leadership has emerged as a powerful tool for motivation, creativity, and boosting employee self-efficacy, thereby significantly impacting performance (Avolio, 1999; Pillai & Williams, 2004) However, research on the application of Transformational Leadership in the Vietnamese F&B industry is limited, particularly regarding its influence on employee performance through creativity and confidence

This research aims to bridge this gap by examining the impact of Transformational Leadership on employee performance in F&B businesses, from both theoretical and practical perspectives The goal is to provide solutions that help business leaders refine their leadership styles, ultimately leading to improved

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

Therefore, the thesis topic chosen is: "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."

2 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 on employees' Self-efficacy and Creativity, thereby analyzing the impact of employees' Self-efficacy and Creativity on the Employee Work Performance and on business activities of F&B enterprises in Vietnam

Thirdly, the author proposes recommendations to enhance the capacity of

managerial employees in restaurants, thereby improving the operational efficiency of restaurant staff This includes the Golden Gate Group, enterprise with a diverse chain

of restaurants distributed throughout Vietnam, aiming to enhance management efficiency and business effectiveness for future sustainability

3 Research Scope

3.1 Research subjects

The research subject of the thesis is the factors influencing Employee Work Performance in F&B businesses in Vietnam Specifically, the study analyzes the characteristics of Transformational Leadership, including Idealized Influence (Attribute), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration In addition, it examines the impact of factors related to employees, namely Self-Efficacy and Creativity

3.2 Research Scope

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

4 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?

5 Research Methodology

Both qualitative and quantitative methodologies are used in the investigation

Qualitative research: To build theoretical underpinnings, scales, and research models,

the thesis is carried out by synthesizing and analyzing prior articles, research projects, and documents that have been published in respectable journals and online platforms

in Vietnam and around the world

Quantitative research: Through online questionnaires created with Google Forms,

surveys are administered to restaurant staff via Facebook Messenger, WhatsApp, Zalo, and other media In order to gather data, the author met with the restaurant personnel in person and distributed the survey by Gmail as well Both probability and

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

6 Structure of The Research Project

In addition to the introduction, including acknowledgments and declarations, list of acronyms, list of tables and figures, list of references, and appendices, the research consists of 4 main chapters designed as follows:

Chapter 1: Theoretical Background and Literature Review

Chapter 2: Research Hypotheses and Model

Chapter 3: Research Results

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

CHAPTER 1: THEORETICAL BACKGROUND AND LITERATURE

REVIEW 1.1 Theoretical Background

1.1.1 Transformational Leadership

Burns (1978) introduced the concept of Transformational Leadership in his research to describe the leader's influence on employees Transformational Leadership aims to enhance employee motivation, foster employee commitment, and enthusiasm within the organization This leadership style helps employees unleash creativity and intelligence, aiming for larger visions and goals Transformational leaders serve as ethical role models, working for the benefit of the team, organization, and community Applying this style in managing operations helps organizations achieve their set goals Burns demonstrated that Transformational Leadership style significantly impacts both organizational and employee performance

Burns distinguished two types of leadership: Transformational Leadership and Transactional leadership Among them, transformational leaders lead by Idealized Influence, Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration When Transactional leadership is led by only two factors Management by exception - Active and Contingent Reward Transformational leaders hold a higher position than transactional leaders; they are powerful, complex, and more ethical They consistently push followers to achieve higher results According to him, both are ethical leaders, but transformational leaders hold a higher rank than transactional leaders Based on the above argument, the author decided to focus on reviewing and analyzing Transformational Leadership instead of the other styles

These leadership styles inherited and developed by Bass (1985) and Bass & Avolio (2004); demonstrated many advantages over previous theories of leadership style Bass elaborated on Burns's original concepts to clarify the nature of Transformational Leadership and affirm its measurable and positive impact on employee motivation and performance

The term "Transformational Leadership " was first coined by Downton (1973); however, its significance did not indeed garner attention until the publication of James Burn's classic book titled "Leadership" in 1978 Burn noted that most leadership models and activities are based on transactional processes, which focus on exchanges between leaders and their subordinates, such as promotion for outstanding performance or punishment for tardiness On the other hand, transformational leaders engage with their employees to establish connections that enhance motivation and ethics not only for the subordinates but also for the leaders themselves Transformational leaders complete their tasks by challenging and transforming individuals' emotions, values, ethics, standards, and long-term goals by nurturing credibility and expanding vision throughout the leadership process (Northouse, 2007) According to Bass & Avolio (2004), the Transformational Leadership style is measured by five factors These factors are also reiterated in the study conducted by Bass and Riggio in 2006 The five factors include:

- 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: Leaders demonstrate themselves as role

models for subordinates to learn from These leaders must uphold high standards of competence and moral character, garnering employee respect and trust

- Inspirational Motivation: Leaders inspire and motivate employees to work

fervently by presenting an appealing vision, persuading and directing employees to exert their highest efforts to achieve that vision Leaders regularly interact with employees, understanding their expectations and goals while outlining a grand and compelling vision to stimulate determined action from employees through fervent belief in achieving the goal Leaders continuously seek and create new visions and goals for the organization They

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

- Intellectual Stimulation: Leaders always aim to improve the organization to

achieve higher achievements based on innovative thinking To successfully change an organization, skills training courses and workshops to enhance innovation need to be organized regularly and comprehensively evaluated Intellectual stimulation indicates the degree to which leaders encourage others

to solve old problems in new ways creatively, creating an inclusive environment and encouraging everyone to question during the task execution Leaders need to instill trust and empower employees to unleash their potential

in the workplace

- Individualized Consideration: This entails building a work environment with

information exchange and shared responsibilities Leaders pay attention to the desires and aspirations of each employee to support them, which is also an action aimed at developing the organization Individualized consideration reflects the level of leadership showing concern for employees' emotions According to Burns (1978), Transformational Leadership is manifested in the leader's ability to understand, identify potential, create motivation, and help employees see their goals and responsibilities, while also seeking to meet their higher needs Bass (1985) described the measurement of this style as well as explained its impact on employee motivation and work performance Burns (1978) asserts that Transformational Leadership is a reciprocal process in which managers and staff work together to improve motivation and willpower In order to clarify the psychological foundations of Transformational Leadership, Bass (1985) developed the concept further by offering behavioral elements and models He described how to evaluate Transformational Leadership and investigate its effects on worker motivation and output Leaders embodying transformational styles inspire and stimulate employees to surpass expectations and cultivate leadership skills (Bass & Riggio, 2006), a definition upheld in this study

According to Avolio, Waldman, and Einstein (1988), the fundamental elements of unique transformative leadership are intellectual stimulation, idividualized consideration, and charismatic leadership A fourth element is found through advanced research: Inspirational Motivation After further conceptual development, "Idealized Influence" (Barbuto, 1997) takes the place of "charisma" and includes the traits and actions of a leader (Barbuto, 2005) The Multifactor Leadership Questionnaire (MLQ form 5X), which includes the five components indicated above, is used in this study to measure Transformational Leadership (Bass

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

1.1.2 Employee Work Performance

There are many different definitions of work performance Measuring this result can be based on organizational data, supervisor assessment or employee self-assessment Self-assessed job performance is not much different from management's assessment or assessment from company data (Behrman & Perreault, 1982)

The traditional perspective regards Employee Work Performance as completing tasks based on established goals and standards such as output volume, costs, time, and product quality (Fry & Cox, 1989; Neely, 1996) Traditional perspectives on employee work outcomes do not address the behaviors leading to those outcomes Subsequent researchers introduced the concept of work outcomes from a behavioral perspective, arguing that evaluating task completion outcomes alone does not accurately reflect the value that employees bring to the organization during the work process (Combell, 1993) According to Cambell (1993), work outcomes consist of all actions and behaviors related to organizational goals that can

be measured under the competent conditions of each employee's work He argues that work outcomes are expressed through behavior rather than just behavior results There is also the perspective of work outcomes based on behavioral measures, as Borman & Schmit (1997) argue: "Work outcomes are not considered individual actions but must pass through evaluation criteria; only actions that can be measured are considered factors contributing to work outcomes." According to Motowidlo

(2003), work outcomes are the total value expected by the organization for discrete behavioral attributes that an individual performs within the required timeframe This thesis approaches the concept of employee work outcomes from a behavioral perspective Therefore, employee work outcomes are understood as the results that employees achieve through behavior and are closely linked to the goals of the enterprise

Campbell (1990) also suggests that these measurement factors are sufficient

to describe the underlying structure of work performance at the broadest level Viswesvaran (1993) presents three factors in work performance: Productivity, Quality, and Expertise According to Borman & Motowwidlo (1993), work performance is measured by two factors: (1) task-assigned work performance and (2) emergent work performance Moreover, task-assigned and emergent work performance in context are two independently contributing behaviors to work effectiveness These two factors describe specific behaviors of an employee in producing work performance Task-assigned work performance is based on the tasks and responsibilities in the individual's work description Subsequent research by Borman (2004) indicates that task-assigned work performance includes behaviors directly involved in producing goods, services, or activities indirectly supporting the core organizational business process, meaning that the employee's task-assigned work performance is the employee's contribution to the organization's operational effectiveness and emphasizes the requirements in the work description According to Borman (2004), emergent work performance is the individual's efforts unrelated directly to the function and main tasks of the employee; it does not include behaviors that directly contribute to the organization's operational results and are not in the work description regulations Emergent work performance may support others or perform other group tasks

Motowidlo (1993) suggests that employees have three ways to contribute to

improving the social-psychological environment of the organization: The first way is

to influence colleagues so that they have more positive behaviors for the organization Employees need behaviors aimed at reducing conflicts and increasing trust in the organization These behaviors will help improve communication and coordination

among employees and the organization The result will improve the completion of

tasks that require cooperation among employees The second way is through

employees' efforts to perform valuable behaviors for the organization At this level, employees must learn new skills and knowledge to adapt quickly to changes in the work environment and shift from passive to proactive work approaches In addition, employees are willing to take on new tasks, handle emerging issues effectively, and

adjust flexibly to organizational changes The third way is through positive behaviors

that affect the tangible resources of the organization, such as using equipment, materials, and company property to serve the organization's goals According to Borman & Motowidlo research (1993), emergent work performance includes five factors: Voluntary participation in activities outside official duties, Maintaining enthusiasm and enforcement when necessary to meet work requirements, Supporting others in work, Compliance with rules and procedures as prescribed, Protecting the organization's goals

Building on Campbell, Borman, and Motowidlo's research, Koopmans (2011) supplemented two additional variables to measure work performance The author proposed a model of 4 variables to measure Employee Work Performance, including:

- Task Performance includes measures such as Completing assigned tasks,

Completing the volume of assigned tasks, Volume, and quality of work, Work skills, Work knowledge, Keeping knowledge updated, Working accurately and quickly, Planning and organizing work, Management, decision-making, Problem-solving; Communication verbally and in writing; Managing organization resources

- Contextual performance includes measures such as Performing tasks not

responsibility; Effort, initiative, enthusiasm; Focusing on tasks; Resourcefulness; Diligence; Persistence, Work motivation; Contribution; Creativity; Cooperation and assisting others; Courteous behavior; Effective communication; Commitment to the organization

- Adaptive performance is how an individual can adapt to changes in the work

environment Measures of adaptive work performance include having new

creative ideas, creating new things, adjusting goals to fit the current situation, understanding different groups and cultures, demonstrating resilience, maintaining calmness, analyzing quickly, and taking appropriate actions

- Counterproductive performance is behavior that goes against organizational

standards and leads to negative results, causing harm to the organization, including Truancy; Taking excessive or prolonged leave; Absenteeism; Complaining, Frequently coming late to work; Not performing tasks correctly; Offending or speaking ill of colleagues; Fighting or arguing with colleagues; Disregarding safety in the organization, Exploiting authority; instigating conflicts; misappropriating organization property

However, subsequent research by Koopmans and colleagues (2013) demonstrated that adaptive work performance is a factor in emergent work performance Thus, Koopmans and colleagues (2013) pointed out that Employee Work Performance consists of three factors:

Table 1.1 Studies of Work Performance

Research Task

Performance

Contextual performance

Adaptive performance

Counterproductive performance

To analyze and measure the positive work performance of employees, this thesis inherits the theoretical framework of Employee Work Performance from Koopmans (2011) and Borman & Motowidlo (1993) and adjusts it to be suitable for F&B enterprises in Vietnam Accordingly, Employee Work Performance consists of three factors: Task Performance, Contextual performance, Adaptive performance

1.1.3 Creativity

According to Componential Theory of Creativity (Amabile, 1996), developed

by Teresa Amabile, a definition of creativity was the production of ideas or outcomes that are both novel and appropriate to some goal Creativity in the workplace is influenced by three components: intrinsic motivation, domain-relevant skills, and creativity-relevant processes Amabile emphasizes the role of the work environment

in fostering or hindering creativity

Creativity focuses on developing and adopting new ideas for which the necessary knowledge, strategies, and coordination have yet to be acquired (Hirst et al., 2009) This contributes to the unpredictable nature of creative processes, characterized by intermittent progress interspersed with unforeseen delays, setbacks, and costs (Janssen & Van Yperen, 2004) Given these challenges, employees navigating creative tasks often face ambiguous work choices and engage in trial-and-error activities, underscoring the need for autonomy and control over task processes (Ohly et al., 2006)

At its core, creativity necessitates a departure from established work practices, which can sometimes lead to friction with coworkers, particularly in environments where the perceived value of creativity is contentious due to conflicting interests (George, 2007) Hence, creating an organizational environment that fosters a sense

of psychological safety and encourages the expression of creativity becomes paramount This includes providing opportunities for idea-sharing, encouraging risk-taking, and embracing diversity of thought

Moreover, research suggests a significant relationship between individuals' feelings of self-efficacy and their creative performance (Mumford & Gustafson, 1988; Redmond et al., 1993) Transformational leaders, in particular, play a crucial role in

nurturing subordinates' self-efficacy, thereby positively influencing their creative abilities (Bass, 1990b) By empowering employees to believe in their capabilities and providing support for their creative endeavors, transformational leaders can foster an organizational culture conducive to innovation and creativity

1.1.4 Self - Efficacy

Base on Self-Efficacy Theory (Bandura, 1997), Self- efficacy focuses on the belief in one's capabilities to organize and execute the courses of action required to manage prospective situations It plays a critical role in how goals, tasks, and challenges are approached

Self-efficacy, a cornerstone construct derived from Bandura's social-cognitive theory (1986), has been the subject of extensive investigation within organizational research over the past decade This psychological phenomenon is an individual's belief in their capacity to mobilize the necessary motivation, cognitive resources, and appropriate actions to address specific situational demands effectively However, Chen, Gully, and Eden (2001) have raised concerns about this definition, suggesting that it may inadvertently narrow researchers' focus by predominantly framing self-efficacy as a task-specific or transient construct Consequently, scholarly attention has recently shifted towards exploring general self-efficacy's more enduring trait-like aspect (2001) General self-efficacy captures individual differences in the propensity

to perceive oneself as capable across various task contexts, indicating broader confidence in one's ability to perform effectively across diverse situations

Social Learning Theory (Bandura, 1977) posits that people learn from one another through observation, imitation, and modeling It emphasizes the importance

of observing and modeling the behaviors, attitudes, and emotional reactions of others Numerous studies, including works by Eden (2001), Gardner (1998), and Judge (1997), have proposed that general self-efficacy functions as a motivational trait In contrast, task-specific or transient self-efficacy operates more akin to a motivational state While both forms of self-efficacy center around beliefs in one's ability to achieve goals, they differ in their scope of application Nonetheless, they share common antecedents such as direct experience, observational learning, verbal

encouragement, and psychological states Research findings have consistently demonstrated a robust correlation between general and task-specific self-efficacy, suggesting that a sense of efficacy across various tasks and situations emanates from general self-efficacy in specific instances (Sherer et al., 1982)

1.2 Current Status of Vietnam's F&B Industry

1.2.1 Current status of the F&B industry in Vietnam

The global economy and Vietnam have faced significant challenges in recent years due to epidemics and conflicts, resulting in downturns across various industries During the COVID-19 outbreak in 2020, the tourism and food and beverage (F&B) sectors were brutally hit The General Statistical Office reported a 26% decline in revenue from lodging and food services in 2021 due to widespread social distancing measures that severely impacted cafes, restaurants, and street vendors

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

As the socio-economic situation gradually stabilizes, the F&B industry has started to recover, demonstrating relative stability in revenue despite economic fluctuations Recent data from IPÓ.vn's F&B market analysis report shows robust growth rates of 19.7% in 2022 and 11.6% in 2023 The number of F&B establishments has skyrocketed to 317,000 in 2023 This poses significant competitive challenges for businesses in the industry Therefore, the author analyzes the industry's current state

to propose a new direction to help businesses assert their position

First, look at the current development trends of F&B businesses in Vietnam,

there is a notable shift towards customer-centric approaches in the F&B sector According to Vietnam Briefing (2023), consumers now prioritize holistic dining experiences, including service quality and ambiance, alongside food quality and pricing An exemplary illustration of the remarkable development in customers' demand for comprehensive experiences is the prestigious Michelin Awards making its debut in Vietnam, with three standout restaurants being Tam Vi (Hanoi), Gia Restaurant (Hanoi), and Anan Saigon (Ho Chi Minh) This indicates that the future trend will be towards holistic and upscale dining establishments, as shared by FnB Director and Founder Do Duy Thanh This indicates that businesses must

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

InnoLab Asia (2022) emphasizes that digital transformation is a critical driver, accelerated by the COVID-19 pandemic The F&B industry is most affected by this transformation, as restaurants are now adopting online ordering systems and leveraging technology in various operations such as customer care, human resource management, and supply chain management This demands determination from both the leadership team and employees of businesses, who must continuously innovate and adapt to harness and keep pace 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

(2022) underscores the necessity of strong leadership capabilities to overcome market challenges and seize growth opportunities in this evolving landscape Leaders must have strategic acumen to identify market gaps, differentiate their services, and steer their businesses toward sustainable growth in an increasingly competitive environment

These trends underscore the critical role of adaptive and innovative leadership

in Vietnam's F&B industry Leaders can position their businesses for success and long-term survival in a dynamic and competitive market by focusing on customer-centricity, talent management, and strategic market navigation

The working attitude of employees in the F&B industry is considered a crucial factor influencing customer experience According to a report by VietnamNet, the impatience and unprofessionalism of some restaurant staff have left a negative impression on customers, leading to distrust and reduced business sales in the dining sector However, the reality shows that many businesses have faced this issue; even when personnel changes are made, the problem persists This raises a question: Could the issue stem not from the employees themselves but rather from their leaders? As John Maxwell once said, "Leadership is the lid; it determines a person's level." The

attitudes and actions of leaders strongly influence the attitudes and actions of employees Employees working in a comfortable environment, where they are respected and supported, will be motivated to perform better, and the business will benefit from their contributions (Nguyen Van Ha, 2023) Therefore, for an F&B enterprise want to develop comprehensive services, the first step is to enable employees to work effectively, and changing this begins with adapting leadership styles accordingly

Furthermore, the F&B industry in Vietnam is growing with the huge number

of restaurants, many businesses need to keep up with new trends and innovate According to Thanh Nien Newspaper, some restaurants must invest appropriately in researching and developing new products, thus being unable to meet the diverse needs

of modern customers In the digital transformation era and globalization, maintaining

a business's image requires everyone to keep up with the times, be creative, and confidently express all ideas This poses a challenge for business leaders, as they must find ways to promote creativity and self-confidence in their employees Which leadership styles will help foster these two factors?

Studies by Cummings and Schwab (1973) emphasize leadership style as the most critical factor impacting employee performance Effective leadership fosters employee effort, helps them overcome limitations, and drives superior results (Gong

et al., 2009) According to Urban Economics, many restaurants have yet to harness their employees' potential fully Instead of creating conditions for employees to unleash their creativity and take ownership of their work, many leaders still apply traditional management methods, making employees feel constrained and unmotivated Therefore, it is time for a change, and leaders need a new leadership method, namely Transformational Leadership, a leadership style whose behaviors align closely with factors that foster innovation and creativity in the workplace (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

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

Domestic and international brands are competing for market share, necessitating innovative strategies to differentiate and stand out in services Currently, there are two prominent culinary waves in the F&B sector: Chinese culinary models (iPos.vn, 2023) The most well-known brands at present are Hadilao, Manwah, and Crystal Jade Customers now tend to seek more sophistication in dining activities and are inclined to experience culinary cultures from other countries like South Korea, China, Japan, Italy, France, etc This has led renowned brands from these countries to enter Vietnam This raises the issue that businesses need to develop sustainable development strategies for their own stores to establish a foothold in the market

Secondly, customer expectations are increasing Consumers increasingly prioritize

comprehensive dining experiences, including service quality, ambiance, and food quality Dining now encompasses not only enjoying delicious dishes but also enjoying the restaurant's ambiance and experience These increasing customer expectations require F&B businesses to continually innovate and adapt, which may demand strictness and quality human resources So building a truly excellent team of

staff relies heavily on committed leadership Thirdly, there's the trend of digital

transformation The F&B sector is undergoing a digital revolution accelerated by the COVID-19 pandemic This poses challenges for long-established businesses accustomed to current operating models The times compel businesses to embrace technology, from online ordering systems to digital marketing and supply chain management This transformation requires strong commitment from leadership and

an employee workforce capable of effectively utilizing digital tools Effective leadership is crucial for addressing market challenges and driving sustainable growth Leaders must have strategic vision changes, profound market understanding, and the ability to promote innovation and employee engagement amid fierce competition and growing consumer demands

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

sustainable development goals Firstly, building a customer-centric culture is

paramount Continuously listening, improving, and prioritizing the delivery of comprehensive and high-quality dining experiences should be at the forefront This

is not an easy task as it encompasses not only food quality but also excellent service, great ambiance, and unique services that resonate with modern consumers Achieving this requires unanimous support from all employees, which is facilitated by

exceptional leadership Secondly, swiftly embracing innovative technologies remains

a long-term goal to optimize operations, enhance customer interaction, and streamline processes Investing in technology and enhancing digital skills among the workforce are necessary to maintain competitiveness However, this is also not straightforward,

as it requires considerable time and determination to familiarize employees with new technologies Many businesses invest millions in new equipment only to see it underutilized due to lackluster employee engagement in learning and using them This raises the question of how leaders can gain wholehearted employee support for

their decisions Therefore, developing leadership capabilities at all management

levels will be the next development target Developing adaptive and innovative leadership skills is crucial for long-term success in the F&B industry Effective leaders should inspire creativity, empower employees, and foster a positive work

environment that promotes talent development and employee satisfaction Lastly,

encouraging employee creativity and confidence will enable businesses to achieve further growth Employees are the ones most familiar with the business's issues, as they are directly involved in its operational activities Encouraging employee creativity and confidence is vital because it serves as a source of high-quality ideas that can quickly improve work efficiency, leading to overall business effectiveness

1.3 Study Overview

The food and beverage (F&B) industry is progressively cementing its status

as on the country's economy, experiencing a remarkable surge in growth amid an environment of improving living standards With people's expectations for service quality and overall dining experiences rising, the demand for elevated service and ambiance within F&B establishments continues to escalate Despite the industry's undeniable strengths, such as its rich culinary culture and ample raw material supply,

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

On a global scale, the F&B industry has garnered considerable attention through extensive and diverse research, underscoring its pivotal role in the broader development of the food and beverage landscape However, within the domestic sphere, a notable need exists for more studies focusing on this vital subject matter This shortage emphasizes the pressing need for comprehensive exploration and understanding of the intricacies within Vietnam's F&B industry

1.3.1 Overview of Domestic Research

Approach to the Relationship between Leadership Styles and Employee Work Performance, Nguyen Minh Ha, Pham The Khanh, and Le Khoa Huan (2014)

investigated the influence of Japanese leadership styles on employee work outcomes

in Japanese companies in Vietnam Their study aimed to grasp the impact of these leadership styles and propose policies for improvement Utilizing a convenient sampling method with 241 questionnaires, they employed various statistical analyses, including descriptive statistics, Cronbach's Alpha reliability test, exploratory factor analysis (EFA), and regression analysis Results indicated that the Performance leadership style influenced 60.7% of work outcomes, Maintenance style influenced 18.6%, and the Performance and maintenance style influenced 61.7% Additionally,

Vu Thi Anh Tuyet (2019) analyzed leadership styles' impact on organizational performance outcomes in Vietnamese universities Using regression analysis, Tuyet explored how these styles affect professional and financial outcomes The findings revealed a positive influence of Transformational Leadership on organizational professional outcomes, with contingent rewards and management by exception also showing positive effects However, this study solely focused on organizational performance, omitting the examination of leadership styles' impact on employee work outcomes in 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 and trust on employee organizational commitment in Vietnam Engaging 321 employees in Ho Chi Minh City, the research revealed a positive but weak influence of Transformational Leadership on organizational commitment, alongside a positive correlation between trust in managers and employee commitment Vu Viet Hang and Phan Thi Tra My (2020) investigated the effect of Transformational Leadership on work outcomes among business employees

in the Ho Chi Minh City logistics industry, showing a positive influence on confidence, creativity, and work outcomes Cao Minh Tri and Cao Thi Ut (2017) investigated the impact of leadership styles on the work performance outcomes of civil servants in specialized agencies in Soc Trang province Using Bass's (2004) leadership style theory and Koopman's (2013) work performance outcome theory, they surveyed 229 civil servants and conducted regression analysis The results highlighted six factors influencing work performance outcomes, with contingent reward exerting the most substantial impact Similarly, Mai Thi Kieu Lan, Ho Thi Thuy Nga, and Hoang Trong Hung (2021) found that leadership styles positively affect work performance outcomes among hotel employees in Da Lat, with

contingent reward being the most influential factor

1.3.2 Overview of Foreign Research

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

Bass and Avolio (2003) delved into the Transformational Leadership style of 72 light infantry leaders, finding correlations with effectiveness, cohesion, and performance

of US military units Fred and Avolio (2008) expanded on this, examining 437 participants across 6 U.S banking organizations to understand how Transformational Leadership influences supervisory-rated performance Adeyemi (2010) surveyed

7460 teachers across 281 secondary schools in Nigeria to assess how organizational leadership styles impact teacher work outcomes positively Sundi (2013) conducted

a study on 126 employees at the Konawe Education Office, Southeast Sulawesi province, indicating the positive influence of Transformational Leadership on employee work outcomes Avinash Advani and Zuhair Abbas (2015) identified key factors for organizational development, emphasizing the importance of employee

work outcomes in motivating and influencing organizational success Meanwhile, Raed Awamleh (2004) examined the Transformational Leadership theory among functional-level managers in Jordanian banks, highlighting its impact on employee satisfaction and work outcomes Lastly, Sabiya Babatunde (2015) underscored the significance of leadership style in achieving organizational goals through employee work outcomes These studies collectively emphasize the crucial link between leadership styles and employee performance, shedding light on effective strategies for organizational success

Approach to Intermediate Variables as Employee Attribute Factors, Studies

by Pillai and Williams (2004) and Cavazotte, Moreno, and Bernardo (2013) highlight the positive impact of Transformational Leadership on employee confidence, commitment, and work performance Similarly, research by Wang and Netemeyer (2004) and Krishnan et al (2002) found that confidence in personal ability correlates positively with sales performance in various industries Gum Usluoglu and Ilsev (2009) demonstrated the strong influence of Transformational Leadership on sales employees' creativity in the software industry, while Gong et al (2009) identified how employee learning orientation and Transformational Leadership style enhance creativity and confidence, subsequently improving sales volume and work efficiency Furthermore, Azka Ghafoor and Tahir Masood Qureshi (2011) investigated the relationship between Transformational Leadership, employee engagement, and work outcomes, considering intermediary psychological factors such as confidence, attachment, self-identity, and accountability Results from a sample of 270 employees and managers in the telecommunications sector supported the link between Transformational Leadership, employee commitment, and work outcomes Widiartanto (2015) further confirmed the effectiveness of Transformational Leadership in enhancing employee capabilities and organizational commitment, leading to positive work outcomes The study identified empowering employees and organizational commitment as intermediary variables between Transformational Leadership and employee performance, emphasizing the intricate relationship between leadership style, employee empowerment, and organizational success Collectively, these studies underscore the crucial role of Transformational Leadership

in fostering employee ability ultimately leading to enhanced work performance and

organizational success

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

(2005) delved into the relationship between leadership competence, characterized by personal qualities such as integrity and empathy, and leadership outcomes Concurrently, Judge and Bono (2001) investigated how core self-evaluations shape work outcomes like work satisfaction and performance, examining their interaction with Transformational Leadership Meanwhile, Mumford et al (2000) undertook a nuanced study categorizing military officers, analyzing leadership outcomes through decision quality and individual performance Thun (2009) focused on the influence

of personal qualities like courage and empathy on leadership outcomes, utilizing criteria groups such as individual behavior and commitment—additionally, Wang et

al (2004) Explore the impact of Transformational Leadership on employee performance and organizational citizenship behavior, utilizing group membership as

a robust measure in leadership research These comprehensive insights contribute to

a deeper understanding of leadership dynamics and their diverse implications for organizational success

1.3.3 Research Gap

An overview of the research indicates a need for studies on the impact of Transformational Leadership styles on Employee Work Performance in the F&B sector in Vietnam Although there have been numerous studies on the influence of Transformational Leadership styles on employee work outcomes in various contexts and populations, the conclusions remain limited, and only some studies have been conducted in F&B businesses

In Vietnam, there has yet to be research on the impact of Transformational Leadership on Employee Work Performance, especially in F&B businesses This creates a gap that the author intends to fill through research to elucidate the impact of leadership styles on Employee Work Performance, thereby proposing solutions to improve employee performance in F&B businesses

Moreover, there are very few studies on the intermediate relationship between Transformational Leadership and Employee Work Performance through Self-efficacy and Employee Creativity Previous studies have demonstrated the mediating effects of these two factors However, studies have yet to delve into the impact of each characteristic of Transformational Leadership on Employee Self-efficacy and Creativity With the desire to deeply understand this aspect, the author devotes their effort to a research 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

The research direction of the thesis approaches leadership styles based on the research framework of Bass & Avolio (2004) and Bass & Riggio (2006) The leadership style measurement will use the MLQ - 5X scale by Bass & Avolio (2004), adjusted to suit the F&B business context in Vietnam Furthermore, the research direction on employee work outcomes will be approached based on the theories of Koopmans (2011), Borman & Motowidlo (1993), adjusted to suit F&B businesses in Vietnam, including aspects of assigned work outcomes, generated work outcomes, and adaptive work outcomes Finally, the two intermediate variables, Self-Efficacy and Creativity, are considered according to the theoretical framework of Wang & Netemeyer (2004) and Parker (1998)

SUMMARY OF CHAPTER 1:

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

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

"Self-Efficacy" of employees Additionally, the author presents the current situation

of the F&B industry in Vietnam and the evidence of development trends and future leadership trends These provide important foundations for the arguments and analytical results in subsequent sections

Finally, the author reviews notable domestic and international studies and research findings related to leadership and Transformational Leadership, identifying research gaps to determine the direction and content of the author's pursued research

CHAPTER 2: RESEARCH HYPOTHESES AND MODEL

2.1 Theoretical Framework

The topic is developed from the doctoral dissertation of Nguyen Ngoc Hung (2023) titled "Study on the Impact of Leadership Style on Employee Performance in Small and Medium Enterprises in Vietnam" at the Thuong Mai University The research investigated leadership factors influencing employee performance The study was developed based on the theoretical framework of comprehensive leadership styles by Avolio & Bass (2004) and Bass & Riggio (2006) Additionally, employee performance outcomes were inherited from the theoretical framework of work outcomes by Koopmans (2011) and Borman & Motowidlo (1993) The model

is depicted as follows:

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 (2006) In particular, Multifactor Leadership includes Transformational Leadership, Transactional leadership and Laissez Faire Leadership Transformational Leadership

is measured by 5 factors Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation and Individualized Consideration; Transactional leadership is measured by 2 factors Management by Exception – Active and Contingent Reward; and finally factor Management by exception – Passive is used to measure the Laissez Faire Leadership Employee Work Performance is measured by 3 factors: Task Performance, Contextual Performance, Adaptive Performance

2.2 Research Model and Hypothesis

2.2.1 Proposed Research Model

In this study, the author only chose to analyze the impact of Transformational Leadership on Employee Work Performance because many research and articles have demonstrated that current leadership trends focus on methods that help employees feel comfortable and empowered, encouraging creativity and autonomous contribution to business success (WFU SPS (2024); Harvard (2024); HRD (2024)) According to Dvir and Shamir (2003), Transformational Leadership enhances employee autonomy and encourages their creative contributions to organizational success This current trend emphasizes creating conditions where employees feel comfortable and highly autonomous in their work, as highlighted by the Arbinger Institute, placing greater emphasis on work satisfaction over salary and underlining the importance of leaders who can redefine employee experiences to promote autonomy and creativity

In the F&B industry, where success and development rely heavily on innovation and creativity, Transformational Leadership becomes critical in creating

a dynamic and creative work environment Bass and Riggio (2006) suggest that Transformational Leadership fosters motivation and inspiration within work groups,

encouraging teams to operate beyond personal interests, thus fostering a culture of commitment and innovation within the organization This is particularly relevant given the current challenges in the industry, where building a positive culture and enhancing work satisfaction are crucial for improving performance and retaining employees (WFU SPS, 2024)

So, considering the current developments in leadership trends and the characteristics of the F&B industry, we can conclude that Transformational Leadership is a suitable choice because of its profound impact on Employee Work Performance and positive contributions to the development and success of businesses

in this industry Therefore, this study inherits and focuses on developing aspects of Transformational Leadership

Based on the research objectives and an overview of the literature, the author approached the research based on the theoretical framework of the Transformational Leadership style by Avolio & Bass (2004) and Bass & Riggio (2006) Accordingly, the comprehensive leadership style includes five elements: Idealized Influence (Attributed), Idealized Influence (Behavior), Inspirational Motivation, Intellectual Stimulation, and Individualized Consideration In addition, students also reviewed the theoretical frameworks of work performance by Koopmans (2011) and Borman and Motowidlo (1993) to build a comprehensive research model Finally, the two intermediate variables, Self-Efficacy and Creativity, are considered according to the theoretical framework of Wang & Netemeyer (2004) and Parker (1998)

Figure 2.2 Proposed Research Model

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: