The effect of leadership's empowerment of korean companies in vietnam on employee innovation = Ảnh hưởng của việc lãnh Đạo trao quyền trong các công ty hàn quốc tại việt nam Đối với sự Đổi mới của nhân viên

The effect of leadership's empowerment of Korean companies in Vietnam on employee innovation = ảnh hưởng của việc lãnh đạo trao quyền trong các công ty Hàn Quốc tại Việt Nam đối với sự đổi mới của nhân viên

INTRODUCTION

Research Background & Objective

In today's rapidly evolving business landscape, companies must adapt swiftly to remain competitive amidst intensifying competition The unpredictable environmental factors that influence a company's sustainability necessitate a proactive approach to organizational change As the pace of change accelerates, businesses face increasing challenges in navigating these shifts, making it essential to embrace constant innovation Ultimately, innovation stands out as the most critical strategy for companies striving to thrive in a dynamic environment.

Innovation refers to the introduction of a new invention or the application of a novel idea by an organization or individual that was previously nonexistent The key aspect is that when a company adopts and implements a new concept for the first time, it transforms that idea into a true innovation.

Innovations are transforming the business landscape, enabling companies to adapt and thrive in a dynamic environment while fostering the emergence of new enterprises Historically, aggressive innovation has allowed firms to swiftly outpace competitors and seize market dominance However, the path to innovation can be fraught with challenges, leading some companies to struggle or even face bankruptcy, as exemplified by the rise of smartphones.

The transition from analog to digital cameras has significantly transformed the market, yet innovation remains a challenge for many companies, with only 45% successfully achieving their innovation goals This highlights the critical role of organizational members in driving successful innovation, as their engagement and motivation are essential for aligning with the organization's objectives Instead of merely following directives, companies should foster an environment that encourages innovation behavior, allowing individuals to contribute ideas and solutions Research indicates that innovation success factors can be categorized into leadership, organizational, member, and CEO-related elements This study focuses specifically on the impact of empowerment leadership, a crucial factor influencing the innovation behavior of organizational members, amidst various leadership styles such as autocratic, transactional, and ethical leadership.

This study investigates Empowerment Leadership, which inspires organizational members by providing autonomy and shared authority It focuses on the connections between empowerment leadership, trust, and innovation among Vietnamese employees.

Korean companies that entered Vietnam For this reason, „EMPOWERMENT LEADERSHIP‟S EFFECT OF KOREAN COMPANIES IN VIETNAM ON EMPLOYEE INNOVATION' was selected as the title of thesis.

Research Motivation

The COVID-19 economic crisis has necessitated urgent changes within companies, as adapting to the evolving corporate environment is crucial for survival However, many organizations find these adaptations increasingly challenging The shift from traditional, face-to-face work to a remote and flexible model, driven by advancing IT technology, calls for a redefined approach to corporate management Small and medium-sized enterprises (SMEs) often struggle to keep pace with larger corporations due to their limited economic scale and market competitiveness Despite this, SMEs are expected to compete in a landscape dominated by large firms, highlighting the need for innovation and effective leadership to navigate the rapidly changing business landscape.

Innovation, often referred to as 'creative breakthrough,' was defined by Harvard economist J.A Schumpeter in 1948 He characterized innovation, or 'creative destruction,' as the fundamental driver of economic development, particularly within capitalism Schumpeter emphasized that true innovation lies not in merely increasing production, but in transforming and enhancing the economic landscape.

Capitalism plays a crucial role in empowering factory-working girls by enabling them to purchase stockings with greater ease Additionally, leadership is defined as the ability to positively influence all members of an organization through close interaction, ultimately aimed at achieving the organization's goals.

Leadership is fundamentally a two-way communication process between a leader and organizational members aimed at achieving the organization's goals This interactive approach has significantly influenced past innovations In today's diverse business landscape, while various leadership styles like dictatorial and transactional leadership exist, there is a growing emphasis on empowerment leadership This style fosters corporate innovation by identifying and nurturing talent, and by decentralizing authority, which was traditionally held by a select few leaders Empowerment leadership enables team members to take ownership of their responsibilities, promoting autonomy and intrinsic motivation within the organization.

Empowerment leadership has garnered significant attention in research, revealing its positive influence on corporate innovation, including job satisfaction, teamwork performance, and creativity (Sparrowe, 1994; Birdi et al., 2008; Chen et al., 2007; Zhang & Bartol, 2010) However, despite the predominantly positive findings, some studies indicate that empowerment leadership may also have negative effects on task performance and outcome variables (Boatwright & Forrest, 2000; Wilkinson, 1998).

Korean companies have significantly expanded their presence in Vietnam, investing $67.7 billion from 1988 to 2019, which represents 18.7% of total foreign investment and ranks Korea first among 135 countries By 2020, over 10,000 Korean firms had entered the Vietnamese market, highlighting the growing interaction between Korean leaders and local business members Despite this growth, there is a notable lack of research on the leadership styles of Korean companies in Vietnam, particularly regarding how these leaders can foster innovation among their Vietnamese teams This study emphasizes the importance of empowerment, which can unlock the potential of organizational members, motivate them, and help companies adapt to rapidly changing environments, drawing on previous research in this area.

This master's thesis explores the connection between leadership styles and the innovative behaviors of organizational members, focusing on Korean companies operating in Vietnam.

This research model seeks to implement its findings across over 10,000 Korean companies in Vietnam, drawing on established principles of leadership development, change management, and employee innovation.

Research Method

In order to efficiently achieve the main purpose of this research, we first reviewed the existing literature on leadership Based on this, the type

Six types of leadership closely linked to innovation activities were identified A review of literature on trust and confidence among organizational members highlighted key factors influencing voluntary individual innovation behaviors Subsequently, a research model was created, and hypotheses were formulated based on the theoretical foundations established in prior studies.

The empirical analysis utilized a research model depicting the relationships between leadership, trust, felt trust, and individual innovation behavior To tailor the questionnaire for this study, items from previous research were adapted Data collection was conducted via a Google Form survey targeting Vietnamese workers employed by Korean companies operating in Vietnam, over a two-month period from August to September 2022 The reliability and validity of the data and model were assessed using SPSS, and the findings were interpreted in relation to the established hypotheses.

Research Scope

This thesis focuses on the electronic manufacturing sector, specifically examining Korean companies operating in Vietnam, while acknowledging that similar studies could be conducted in various industries such as electronics, clothing, and precious metal processing.

A Google questionnaire was distributed to 122 employees of Korean companies in Vietnam to test the hypothesis, with all respondents providing data for analysis The collected data were analyzed using SPSS 20.0 statistical software.

Research Structure

Chater 3 Research Design and Methodology

LITERATURE REVIEWS

Research on leadership

2.1.1 Recent Changes in Leadership Studies

Leadership is a concept based on the relationship between humans and is defined as „the process of influencing others to achieve the goal pursued‟

Leadership in an organization, such as a company, can be defined as the process of guiding and influencing members to achieve the organization's goals effectively.

Leadership in business management remains a vital topic, especially as Korean companies have embraced organizational innovation since the 1990s to navigate an increasingly competitive and globalized landscape This shift has sparked interest in leadership research, giving rise to new concepts such as cultural, moral, charismatic, and innovative leadership These theories are closely tied to the evolving business environment, where competition intensifies due to globalization As a result, management strategies are transitioning from a focus on efficiency in stable conditions to enhancing flexibility and agility for rapid adaptation Consequently, the competencies of organizational members are now more critical than ever, highlighting the leader's role in maximizing their potential.

Bass (1985) criticized the traditional leadership theory of the past as

The traditional leadership style, effective in stable business environments, faces limitations in fostering growth within today's rapidly changing corporate landscape This necessitates a new leadership approach that motivates organizational members to exceed expectations amid increasing uncertainty Empowerment leadership has emerged as a relevant theory, addressing the demands of modern times by enhancing a company's viability and sustaining growth in response to the rapid changes brought about by the 4th Industrial Revolution This approach emphasizes agility and innovation, requiring a high level of empowerment to promote individual autonomy and creativity Furthermore, the accessibility of advanced management information through new communication channels, coupled with societal demands for corporate responsibility, underscores the growing importance of effective leadership in contemporary organizations.

Empowerment leadership can be seen as leadership that promotes the empowerment of members Therefore, in order to understand empowerment leadership, we first examined existing studies on empowerment

Empowerment is interpreted in various ways, such as empowerment, autonomy, and empowerment, depending on scholars First, in terms of

Empowerment within an organizational structure involves the transfer or sharing of formal power and authority from leaders to members, as noted by Ahearne, Mathieu, and Rapp (2005) This process, referred to as the relational structure approach by Conger and Kanungo (1988), goes beyond mere delegation; it encompasses the development of self-efficacy and capacity building among organizational members Thus, empowerment is not solely about authority transfer, but also about fostering a new leadership model that enhances the capabilities of individuals within the organization.

Empowerment is viewed as the enhancement of individual capabilities within an organization, where leaders grant greater autonomy to their members, fostering their competencies (Won-Woo Park, 1997, 1998; Ford & Fottler, 1995; Harari, 1993) This perspective transcends mere delegation of power, emphasizing the creation of genuine empowerment that prioritizes the growth and development of organizational members (Kim Ki-Hong, 2013; Ford & Fottler, 1995).

This approach to empowerment highlights the diverse and systematic nature of empowerment research, aiming to define and comprehensively understand empowerment through three distinct perspectives.

Empowerment leadership is understood differently by various scholars, reflecting diverse perspectives on empowerment itself According to Arnold et al (2000), it involves leader behaviors that enable organizational members to perform tasks independently, fostering a sense of control and alleviating feelings of helplessness Similarly, Srivastava et al (2006) describe empowerment leadership as a leader's approach that distributes authority among team members.

Empowerment leadership involves sharing authority with organizational members, which significantly boosts their intrinsic motivation Research indicates that this leadership style enhances the effectiveness of team members, ultimately fostering a more engaged and productive workforce (Niehoff et al., 2001).

Empowerment leadership focuses on the characteristics and behaviors of leaders related to empowerment Previously, „transformational leadership‟,

Super leadership and participative leadership are often regarded as similar leadership styles In contrast, empowerment leadership focuses explicitly on the leader's empowerment behaviors and characteristics This distinction sets it apart from other leadership types that address these elements more implicitly Research by Zhang and Bartol (2010) highlights the need for clear definitions of the key factors that constitute empowerment leadership, a task being undertaken by various researchers, including Arnold et al.

(2000) identified the components of empowerment leadership as participative decision making, leading by example, coaching, showing concern, and informing as five actions Specific details are as follows

Participatory decision-making involves incorporating the insights and opinions of members during the decision-making process, fostering an environment where individuals feel encouraged to freely share their thoughts and perspectives within the organization.

Leading by example involves a leader actively engaging in both their own responsibilities and the tasks of their team members This approach demonstrates a commitment to hard work, showcasing that the leader is dedicated to putting in more effort than those they lead.

Third, coaching refers to actions that support organizational members to solve problems and perform tasks efficiently It also includes actions that

12 help members voluntarily make suggestions to achieve goals and have a sense of self-efficacy

The expression of interest signifies a leader's engagement with the concerns of organizational members, fostering an environment where individuals can discuss welfare and other important issues.

Information sharing within an organization involves disseminating various types of information among its members, including key organizational decisions According to Konczak et al (2000), empowerment leadership encompasses elements such as empowerment, responsibility, encouragement of self-directed decisions, information sharing, and skills development Furthermore, it has been proposed that coaching aimed at enhancing innovation performance, particularly in technology development, should be structured around six specific dimensions.

The first is delegation of authority In previous studies on empowerment, delegation of authority such as decision-making authority (Conger & Kanungo,

1988) was said to be an important aspect of empowerment

Accountability is a crucial aspect of empowerment, which involves not only delegating authority but also ensuring responsibility for outcomes (Ford & Fottler, 1995) Conger (1989) emphasizes that assigning performance responsibilities is a key action for leaders who empower their teams.

Self-determination and decision-making opportunities are crucial for the success of self-managed teams Research by Manz and Sims (1980, 1987) highlights that fostering self-determination in decision-making and problem-solving significantly enhances team functionality As self-managed teams are inherently empowered, promoting self-determined decision-making is vital for achieving overall empowerment (Arnold et al., 2000).

A Research on Trust and Felt Trust

Recent studies highlight the critical role of trust in organizations, emphasizing its significant impact on performance Research increasingly shows that trust in leadership is essential for enhancing organizational effectiveness, as supported by various scholars (Argyris, 1962).

Golembiewski & McConkie, 1975; Larson & LaFasto, 1989), and some researchers have tested the correlation between trust and organizational performance (Kim & Mauborgne, 1993; Rich, 1997; Robinson, 1996) Dirks

Research indicates that trust among team members significantly influences team performance, particularly in sports like basketball (2000) Similarly, a study by Davis et al (2000) found a strong correlation between trust in restaurant managers and increased sales and profits Trust within organizations is characterized as a psychological state where individuals accept potential vulnerability based on the expectation of positive actions from others (Mayer et al 1995; Morris & Moberg, 1994) Additionally, Lewicki et al (1998) describe trust as a clear and positive expectation of another's behavior.

Trust is characterized as a positive attitude toward others, as defined by Elangovan & Shapiro (1998) Rousseau et al (1998) further elaborate on this concept, describing trust as a state where individuals are willing to accept potential losses or disadvantages due to their positive expectations regarding the actions or intentions of others.

Lewis & Weigert (1985) define trust as a social phenomenon that serves as the foundation for lasting relationships and solidarity among organizational members Rather than being an internal state, trust manifests as a positive belief in others within social interactions, helping to navigate the complexities of these relationships Although it may seem like a short-term loss, trust fosters the willingness to engage continuously, ultimately leading to mutually beneficial outcomes (Goo Dong-Woo, 2012).

Trust is a multifaceted concept that encompasses a readiness to accept risks or losses, a positive expectation of another's behavior, and confidence in their abilities and consistency In an organizational setting, trust reflects the willingness of team members to voluntarily place their trust in and follow their leader, even amid uncertainty.

Trust inherently involves uncertainty and risk, as it is unnecessary in situations devoid of these elements It is defined by the expectation that positive outcomes will arise from others' actions, with the degree of trust influenced by the level of expectation Additionally, trust is characterized by a dependency between the trusting individual and the trusted party, often emerging in scenarios free from control or retaliation This conscious awareness of others is shaped by their intentions and the context of the situation Recent research highlights common themes in trust, including the belief in positive actions from others, acceptance of potential negative outcomes, and mutual dependence (Kim Yang-Ho, 2003; Kim Seong-suk, 2004; Greenberg, 1990; Greenberg & Baron, 1997).

While numerous studies have explored the impact of trust on performance, Mayer and Gavin (2005) emphasize the necessity for additional research Existing literature primarily examines how one party's trust in another influences performance, leaving a gap in understanding how trust from the other party affects performance outcomes.

The behavior of organizational members is significantly influenced by their trust in leaders and the trust they feel from them While trust and felt trust are distinct concepts, they do not always align or interact To comprehensively understand how trust impacts performance, it is essential to investigate both the relationship between trust and performance and the influence of felt trust on organizational behavior, as highlighted in various studies.

This research examines the interplay between trust and organizational performance, particularly focusing on innovation behavior and member interactions Salamon & Robinson (2008) highlight that when leaders trust their organizational members, it fosters a culture of accountability Increased perceptions of accountability among members lead to enhanced organizational performance The study argues that a strong norm of responsibility within the organization correlates with more positive outcomes in performance.

This research is significant for two main reasons Firstly, it conducts empirical analysis on the relationship between trust and various organizational performance variables, an area that has been underexplored Most existing studies suggest that trust in another party is influenced by expectations regarding their future behavior, specifically the perception of their trustworthiness.

This research highlights that the perception of trust from leaders significantly influences the behavior of organizational members Trustworthiness encompasses not just the assessment of a leader's credibility, but also the actions that demonstrate a leader's trust in their team.

Recognizing and trusting the members of an organization fosters voluntary and proactive behaviors, including innovation, which positively impacts overall organizational performance This dynamic underscores the philosophical significance of effective organizational and personnel management.

The philosophy of organizational and personnel management is primarily rooted in economic rationality, focusing on control-oriented strategies However, from an empowerment-oriented perspective, the perception of trust among organizational members significantly influences their behavior, a factor often neglected by control-oriented management approaches (Davis, Schoorman, & Donaldson, 1997) Research suggests that fostering trust in employees is crucial for enhancing organizational performance (Argyris, 1962; Lawler, 1992).

Research on the impact of organizational members' self-confidence on performance is limited despite its conceptual significance Previous studies indicate that when members feel trusted by their organization and leaders, this "felt trust" positively influences organizational performance A supportive organizational environment, where leaders experience trust, enhances motivation and performance outcomes (Argyris, 1962; Davis et al., 1997; McGregor, 1960) However, empirical evidence linking trust and organizational performance remains scarce Notably, Salamon & Robinson (2008) demonstrated that responsibility norms mediate this relationship, highlighting the importance of individual accountability in enhancing organizational performance.

20 responsibility for organizational performance (Cummings & Anton, 1990; Latham, 1998; Pearce & Gregersen, 1991)

[Figure 2-1] The relationship between trust and organizational performance

According to this, the organizational environment is where the leaders of the organization trust the members of the organization If the awareness of

When leaders prioritize the well-being of their organization members, those members are more inclined to act in the organization's best interest rather than pursuing personal gains Trust within the organization fosters responsible behavior, ensuring that members align with organizational expectations This responsible conduct is crucial for achieving organizational goals and involves eliminating barriers that hinder success.

Research on innovative behavior

The word innovation is originally derived from the Latin word

The term "innovato" refers to the complete transformation and renewal of outdated customs and organizational methods Schumpeter (1934), a pioneering researcher in the field of innovation, described it as "creative destruction," highlighting innovation as a process that involves discarding old methods in favor of new ones This encompasses securing new materials, opening new markets, developing new products, introducing novel production techniques, and establishing new organizations Schumpeter underscored the importance of innovation as a driving force in economic progress.

Innovation is a crucial factor in corporate growth, encompassing the development of new products, services, or processes Various researchers have defined innovation in different ways, highlighting its significance across multiple fields Tompson (1965) described it as a series of processes for implementing new offerings within an organization, while Simmonds (1986) emphasized the creative use of new ideas for enhancing products, services, and marketing strategies Tidd et al (1997) viewed innovation as the creation, diffusion, and effective utilization of new ideas Shapiro (2002) distinguished innovation from invention, defining it as a core competency that generates unique value for companies, and underscoring the necessity of continuous pursuit in order to create new value.

In South Korea, the concept of innovation is interpreted in various ways According to Kim (1995), innovation involves significant changes within an organization through the implementation of new plans or programs that affect products, services, process technologies, management systems, and personnel Song (2006) expands on this by defining innovation as any activity aimed at developing new products and processes or enhancing existing ones to create new markets or boost market share Hoon Kim (2009) views innovation as a continuous endeavor essential for organizational growth and adaptation.

Innovation is a crucial competitive advantage for firms, defined as the process of generating and effectively utilizing new ideas According to Lee Yong-geun (2015), it involves creating products, services, and methodologies that hold economic value in the market by challenging conventional practices and synthesizing existing definitions This core capability not only contributes to value creation but also serves as a vital competitive weapon for achieving sustainable advantages Kim Hong-cheol (2015) emphasizes that innovation encompasses developing new ideas and technologies, whether sourced internally or externally, and successfully implementing them from development to commercialization Thus, innovation represents any organizational effort aimed at creating differentiated value.

Innovation is defined by scholars in multiple ways, encompassing the creation of new concepts as well as the reconfiguration of existing elements to generate new value Essentially, innovation involves applying fresh ideas and reorganizing or recombining resources to enhance organizational performance A summary of various definitions of innovation from previous studies is presented in [Table 2-1] below.

Innovation can be divided into organizational-level innovation and individual-level innovation (King & Anderson, 1990) Organizational-level

Process of creative disruption in procurement of new raw materials, discovery of new markets, new product development, introduction of new production methods, and new organizational structure

Tompson (1965) The set of processes by which a new product, service, or process is initially developed and implemented within an organization.

Zaltman at al (1973) The acquisition or adoption of a new product, service, policy, or technology by an organization.

(1979) The social process of accepting new things within the organization

Kanter (1988) A process that enables ideas to be used in terms of solving new problems or providing opportunities.

Evan (1984) Implementing new technical / managerial ideas within the organization

Van de Ven (1986) The institutional development and implementation of new ideas by those who are forming relationships with others.

Essentially transforming an important part of an organization by implementing new products, services, process technologies, management systems, and new ways of transforming members of the organization.

Changes in the constitution of the entire organization to actively and actively respond to radical environmental changes and strengthen competitiveness

Activities that develop new products and processes or improve existing products and processes to create new markets or increase market share

Kim Hoon (2008) All processes in which ideas are created and utilized through continuous activities for a company's competitive advantage

Innovation involves the development of new products, services, and systems by organizations, as well as the introduction and utilization of existing ones At the individual level, innovation pertains to the work roles of organizational members, who actively engage in creating, proposing, promoting, and implementing new ideas to enhance performance at the individual, departmental, and organizational levels This individual-focused innovation is referred to as 'Role Innovation Action' (West & Fart, 1990).

2.3.2 Research on Innovation Success Factors and Innovation Behavior

Research into the success factors of innovation has revealed diverse perspectives, with many studies identifying the interest and support of top management as crucial (Steward, 1994; Randall, 1993; Champy & Amoudse, 1992) Effective leadership from top management not only motivates organizational members to innovate but also provides the authority to address challenges during implementation Prior to the 1990s, CEO leadership was deemed the primary success factor for innovation, emphasizing the need for CEOs to demonstrate commitment and foster consensus on management innovation (Yoo Yeon-woo, 2010) However, by the 2000s, the focus expanded to include the significance of information and knowledge infrastructure across various organizational domains, alongside CEO leadership, as essential for driving management innovation.

Innovation is driven by 26 key factors, including strong managerial leadership, a clear vision, effective measurement of innovation performance, and alignment of innovation activities with organizational goals Kanter (1988) emphasized that enhancing commitment to innovation requires involving employees in decision-making, rewarding innovative behaviors, providing prior education on innovation, fostering interdepartmental communication, and ensuring ongoing support from top management Additionally, cultivating a culture that encourages bold initiatives and information sharing is crucial Harry & Schroeder (2000) identified the importance of specific innovation activities, such as Six Sigma, as vital success factors for driving innovation.

(2003) presented CEO leadership, organizational culture and organizational atmosphere, communication, cooperation, and rewards for innovation as success factors for innovation Many similar studies have been conducted in Korea Lee

(1997) summarized five factors for the successful promotion of reengineering, a part of management innovation, and conducted empirical analysis based on these factors

The five key success factors for effective management innovation in SMEs include the CEO's commitment, adjustments in the management system, fostering an autonomous corporate culture, encouraging participation in decision-making, and promoting work integration Research by Song Gwang-soon (1997) emphasizes that the active involvement and backing of management is crucial for assessing the objectives and strategies of innovation initiatives.

The evaluation of management innovation emphasizes the significance of a supportive atmosphere, long-term perspectives, interdepartmental collaboration, and the expertise of responsible individuals Additionally, the presence of a dedicated promotion organization and the involvement of external experts are crucial factors Shin Guen-Ho (1998) highlighted the importance of these elements in effective management practices.

A positive attitude towards innovation, along with the formation of a consensus among team members, plays a crucial role in driving successful management innovation Key success factors include the systematization of management practices and the enhancement of environmental conditions According to Kim Hoon (2009), the CEO's attitude, support, collaborative efforts, and organizational culture are vital for fostering innovation within a company.

The CEO emphasized that successful innovation hinges on recognizing its importance and fostering a supportive company-wide culture Innovation requires participation from all members and departments, necessitating a diverse environment where ideas can be freely expressed and implemented According to Gwangsun Jang et al (2010), factors such as managerial interest, employee awareness, and institutional support are crucial for fostering innovation Research by Park Moon, Kyu, Hwang Hyeon-sook, and Kim Gap-su (1998) highlights that changes in management systems are key success factors in both Korea and the United States While previous studies underscore the CEO's role, the U.S context increasingly values an autonomous culture over top-down directives Effective management innovation relies on comprehensive organizational changes, including adjustments in compensation, communication, performance metrics, and cultural transformation to drive behavioral change.

The success factors for companies can vary significantly due to differences in environment, culture, and social systems As many businesses expand their operations internationally, this research offers valuable insights into the innovative activities of companies operating abroad.

Research on individual innovative behavior, notably by Scott & Bruce (1994), highlights it as a continuous process of generating and applying new ideas to enhance both personal and organizational performance This behavior encompasses innovation consciousness and practice, requiring the simultaneous generation, recognition, and implementation of ideas Innovative actions often emerge when individuals encounter challenges, departmental incongruities, or unexpected situations, prompting them to propose solutions from fresh perspectives (Amabile et al., 1996; Mumford, 2000; Woodman, Sawyer, & Griffin).

Promoting awareness among members about the importance of new ideas is crucial for organizational success Even the best ideas struggle to yield results without strong support from the organization and its leaders.

RESEARCH DESIGN AND METHODOLOGY

Research Models and Hypotheses

This research examines the impact of empowerment leadership on individual innovation behavior, emphasizing the role of trust among organizational members It explores the relationship between trust in leaders and the felt trust from leaders, analyzing how these dynamics influence innovation behavior The study aims to determine if leadership behaviors can be differentiated based on organizational culture, reflecting the thoughts and perceptions of members Additionally, it seeks to assess the generalizability of this model within Korean companies operating in Vietnam, where cultural differences are evident.

[Figure 3-1] Empirical Research Concept Model

In this research, based on the contents of the preceding studies and the empirical research model mentioned above, the hypothesis was established as follows

H 1: Empowerment leadership will have a positive effect on the trust of organizational members

H 2: Empowerment leadership will have a positive effect on the felt trust of organizational members

Empowering Leadership Individual Innovation Behavior

Felt Trust by Leader Trust

H 3: The trust of organizational members will have a positive effect on the felt trust that organizational members feel

H 4: The trust of organizational members will have a positive effect on individual innovation behavior

H 5: Felt trust of organizational members will have a positive effect on individual innovation behavior.

Operational definition of constructs

This research utilized measurement items with verified reliability and validity from prior studies to construct its concepts It specifically examines the impact of leadership on trust, felt trust, and individual innovation behavior among SME members, necessitating slight modifications to the inquiry items for contextual relevance Furthermore, the questionnaires were developed based on the five elements of empowering leadership identified by Arnold (2000): leading by example, coaching, participatory decision-making, information provision, and expression of interest.

This research focuses exclusively on empowerment leadership, which is characterized by a supervisor's active consideration of organizational members' opinions in decision-making and a belief in their authority and performance, as defined by Ahearne et al (2005) and Zhang & Bartol (2010) A total of 12 items were assessed using a 5-point Likert scale, ranging from 1 (Absolutely Disagree) to 5 (Totally Agree).

① My boss helps me understand how my goals and goals relate to the company

② My supervisor helps me understand how important my work is to

33 efficiency at the corporate level

③ My supervisor helps me understand how well my job fits the company as a whole

④ Most of the time, my boss makes decisions with me

⑤ My boss often consults with me when making strategic decisions

⑥ My supervisor seeks my opinion on decisions that affect me

⑦ My boss believes that I can handle difficult tasks

⑧ My boss believes that I can improve even when I make mistakes

⑨ My boss is confident that I have the ability to create a high level of performance

⑩ My boss allows me to do things my way

⑪ My boss provides simple and clear rules and norms to help me perform my work efficiently

⑫ My supervisor grants me authority to make decisions so that I can quickly satisfy customer needs

⑬ My boss doesn't give me any authority at all

3.2.2 Organizational member Trust, Felt trust

Trust among organizational members, as defined by Mayer & Gavin (2005) and Colquitt & Rodel (2011), allows for open discussions about work-related issues and fosters an environment where employees can share their opinions and collaboratively solve problems This trust is quantitatively assessed using a Likert 5-point scale, ranging from 1 (Absolutely Disagree) to 5 (Totally Agree), covering five key items related to trust.

① I will trust and entrust my future in this company to my boss

② Even if I cannot observe all the actions of my boss, I can discuss with my boss a task or problem that is important to me without

③ Even if there is a risk that my evaluation will deteriorate, I will report the work mistakes I have made to my supervisor

④ Even if my opinion is not supported, I will share my opinion on sensitive issues with my supervisor

Felt Trust refers to the extent to which employees perceive that their leaders have confidence in them This concept is assessed using five scales, ranging from "Absolutely Disagree" to higher levels of agreement.

= Disagree, 3 = Normal, 4 = Agree, 5 = Totally agree)

① My boss doesn't trust me

② My boss thinks of me as someone I can trust

③ My boss believes in me as a reliable person

It was defined as the willingness of organizational members to act innovatively while making efforts to find new technologies and ideas (1 Absolutely Disagree, 2 = Disagree, 3 = Normal, 4= Agree, 5 = Totally agree)

① I try to find new skills, work procedures, or ideas

③ I stimulate and promote the ideas of other members

④ I find and secure the necessary resources to implement new ideas

⑤ I develop an appropriate plan and schedule for implementing new ideas

RESEARCH RESULT

Data Collection

This research investigates the impact of empowering leadership on individual innovation activities by enhancing trust among organizational members within Korean companies operating in Vietnam, specifically focusing on BBK Co., Ltd, which manufactures medical devices and industrial robot parts, and JT SENSOR Co., Ltd, a producer of electronic temperature sensors for home appliances Both companies are situated in Ha Nam Province, Hanoi City A questionnaire was distributed to Vietnamese employees of these companies, and the findings are presented in the results section.

① BBK Co.,Ltd a General Information

[Table 4-1] BBK CO.,LTD b Main Products

Company Name BBK CO.,LTD

BBK Co., Ltd, a Vietnamese subsidiary of BK Electronics, has been a dedicated leader in the electronics industry for over 30 years since its inception in 1987 The company is committed to building trust through high-quality products and relentless efforts to achieve customer satisfaction Its primary offerings include industrial robot controllers and medical devices.

Address D3 street, lot D- Hoa mac industrial zone, Hanam province,

Email bbk@bkec.co.kr

Official Web www.bbkvn.com

② JT SENSOR CO.,Ltd a General Information

INFRARED THERMOMETER Rapid test Analzer for disease diagnosis Lazer Skin Care Machine

[Table 4-4] JT SENSOR CO.,LTD b Main Products

Company Name JT SENSOR CO.,LTD

JT SENSOR, established in 1977 as a Vietnam branch of JAMESTEC, has pioneered the thermistor industry and specializes in manufacturing thermistors for boilers, refrigerators, air conditioners and automobiles.

Address KCN Dong Van 4, Kim Bang, Ha Nam province, Vietnam

Official Web www.jamestech.co.kr

This research investigates the impact of empowerment leadership on the individual innovation behavior of SMEs, focusing on the mediating roles of trust and trust in organizational members Data was collected from organizational members of Korean companies operating in Vietnam using a structured questionnaire distributed via Google Forms from August to September 2022 A total of 120 questionnaires were gathered, with 100 valid responses analyzed after excluding those with insincere answers or errors The demographic details, including gender, age, and work duration of the respondents, are presented in [Table 4-6].

Temperature sensor for refrigerator Temperature sensor for washing machine

[Table 4-6] The basic frequency of basic questionnaire

Due to the nature of the general electronics manufacturing industry, the proportion of women is high, and about 42% are in their 40s or younger

Over 85% of employees have less than five years of work experience, with the majority having between one to four years Consequently, a tenure of one year or more is deemed adequate for evaluating an employee's experience.

41 to experience leadership, trust, trust and innovative behavior within the organization.

Factor analysis

To effectively measure the concepts in this research, a selection of measurement items was necessary Prior to data analysis, factor analysis was conducted to refine and tailor these measurement items to align with the research objectives.

Factor analysis serves as a crucial tool for the preliminary assessment of measurement items, providing insights into their reliability, convergent validity, and discriminant validity To evaluate the reliability of these measurement items, the Cronbach Alpha coefficient is employed to analyze the relationships between theoretical variables Furthermore, the validity of the constructs is further examined through confirmatory factor analysis, ensuring robust measurement integrity.

To evaluate the reliability of theoretical variables measured by multi-items, it is essential to assess the consistency of the measurement items using Cronbach Alpha (Lee Hak-Shick, 1997) This research employed the Cronbach Alpha coefficient, which Nunnally (1967) suggested should exceed 0.6 for basic research Furthermore, Jeong Hyeong Cheol (2008) emphasized the importance of the Cronbach Alpha coefficient as a critical variable in measuring the reliability of constituent items.

As for the questions, 13 items of empowerment leadership, 4 items of trust, 3 items of trust, and 6 items of individual innovation behavior were

42 finally selected Attempts were made to check for insincere respondents, including two 'negative questions'

- Question No 13 in Empowerment factor

- Question No 19 in Felt Trust factor

Cronbach's alpha test is essential for assessing the reliability of multi-question Likert scale surveys, as it evaluates latent variables like openness and conscientiousness in respondents' answers This coefficient indicates the degree of interrelatedness among a set of test items, enabling researchers to determine consistency among factors and identify potential issues in variable generation through averaging The Cronbach's alpha value ranges from 0 to 1, with a score of 0.6 or higher typically indicating acceptable reliability; thus, a value closer to 1 signifies greater reliability.

The Cronbach Alpha coefficient, which exceeded 0.6 for all questions, indicates that respondents completed the questionnaire with a high level of trust.

The Kaiser-Meyer-Olkin (KMO) measure assesses sample fit by indicating the proportion of variance in a variable attributable to underlying factors High KMO values, approaching 1.0, suggest that factor analysis could be beneficial for the data, while values below 0.50 indicate that the results may be less reliable.

Bartlett's test serves to test the hypothesis that the correlation matrix is the identification matrix This indicates that the variable is irrelevant and therefore not

43 suitable for structure searches In general, small values (less than 0.05) of the importance level indicate that factor analysis might be useful for your data

The KMO value was 0.878, indicating a suitable factor analysis model, supported by a Bartlett test significance probability of less than 0.05 Additionally, a cumulative variance of 72.462 demonstrated that the explanatory power of the four identified factors was acceptable.

Commonality, also known as common variance or common factor variance, represents the percentage of each variable explained by underlying factors By analyzing common variance, researchers can determine the extent of variance accounted for by these factors A commonality value below 0.4 or 0.5 suggests that the variable may be excluded from the analysis In this study, all factors demonstrate commonality values exceeding 0.4, indicating their validity [Appendix 2].

The analysis reveals a high explanatory power of the factors, with a cumulative variable exceeding 60% The items are categorized into four factors: the first comprises 13 items, the second has 4 items, the third includes 3 items, and the fourth contains 6 items These factors are designated as Empowerment (E), Trust (T), Felt Trust (FT), and Innovation (I) All factor loading values exceed 0.4, confirming the validity of the overall measurement tool, as detailed in Appendix 3.

KMO and Bartlett' s Test Kaiser-Meyer-Olkin Measure of Sampling

4.2.2.4 Correlation analysis for all metrics

Correlation is a statistical method used to determine the relationship between two variables and the strength of their association This relationship is quantified using a correlation coefficient, denoted as 'p', which ranges from -1 to 1 In our research model, a correlation analysis was conducted on all measurement items, yielding a significant result (p=0.000).

Validation of research hypotheses

The correlation analysis results presented in [Table 4-5] indicate a positive correlation between the two factors, as evidenced by an r value greater than 0 and a p-value of less than 0.001.

EmpoweringLeadership Trust Felt Trust Innovation behavior Pearson

The correlation analysis results, displayed in [Table 4-5], indicate a positive correlation between the two factors, as evidenced by r > 0 and p ≤ 0.001.

[Table 4-10] Empowering Leadership & Felt Trust

The correlation analysis results presented in [Table 4-6] indicate a positive correlation between the two factors, as evidenced by an r value greater than 0 and a p-value of less than 0.001.

Empowerin g_13 Trust_1 Trust_2 Trust_3 Trust_4 Empowerin g_1

Empowerin g_13 Felt Trust_1 Felt Trust_2 Felt Trust_3 Empowerin g_1

The correlation analysis results displayed in [Table 4-7] indicate a positive correlation between the two factors, as evidenced by an r value greater than 0 and a p value less than or equal to 0.001.

[Table 4-12] Felt Trust & Innovation behaviour

Felt Trust_1 Felt Trust_2 Felt Trust_3 Trust_1 Trust_2 Trust_3 Trust_4 Felt Trust_1 Pearson

Felt Trust_1 Felt Trust_2 Felt Trust_3 Inno_1 Inno_2 Inno_3 Inno_4 Inno_5 Inno_6 Felt Trust_1 Pearson

Changes in innovative behavior according to the degree of

Changes in innovation behavior of employees according to the level of leader's empowerment were separately investigated

[Table 4-14] The basic frequency of basic questionnaire

Research indicates that over 93% of respondents experienced a positive impact from an increase in their leader's authority This suggests that employee behavior varies significantly based on the level of empowerment they receive.

Inno_1 Inno_2 Inno_3 Inno_4 Inno_5 Inno_6 Trust_1 Trust_2 Trust_3 Trust_4 Inno_1 Pearson

Summary and evaluation of empirical analysis results

As a statistical analysis method for hypothesis testing in this research, factor analysis using SPSS was performed In addition, the correlation between each construct was examined through correlation analysis

This research confirms that an organizational leader's empowering leadership positively influences the trust and confidence of organizational members, which in turn fosters innovative behavior among them The analysis results of the hypotheses are summarized in Table 4-14.

Empowerment leadership within the organization positively impacts the trust and confidence of its members, fostering an environment that encourages innovative behavior.

[Table 4-15] Validation of research hypotheses

H1 Empowering leadership will have a positive effect on the trust of organizational members Adoption

H2 Empowering leadership will have a positive effect on the felt trust of organizational members Adoption

H3 The trust of organizational members will have a positive effect on the felt trust that organizational members feel Adoption

H4 The trust of organizational members will have a positive effect on individual innovation behavior Adoption

H5 Felt trust of organizational members will have a positive effect on individual innovation behavior Adoption

CONCLUSIO AND IMPLICATION

Conclusion

This research highlights the significant role of empowerment leadership in fostering innovation activities within foreign direct investment (FDI) companies in Vietnam It concludes that empowerment leadership positively influences voluntary innovation by enhancing the trustworthiness among organizational members The comprehensive data analysis confirmed the acceptance of all five proposed hypotheses, underscoring the importance of effective leadership in sustaining company operations.

H 1: Empowerment leadership will have a positive effect on the trust of organizational members

H 2: Empowerment leadership will have a positive effect on the felt trust of organizational members

H 3: The trust of organizational members will have a positive effect on the felt trust that organizational members feel

H 4: The trust of organizational members will have a positive effect on individual innovation behavior

H 5: Felt trust of organizational members will have a positive effect on individual innovation behavior

This research highlights the significance of empowering leadership in fostering trust among team members, which is essential for enhancing individual innovation activities crucial for a company's sustainability and growth.

Implication

In today's fast-paced competitive landscape, companies are striving to thrive by embracing creativity, innovation, and the exploration of new business opportunities to ensure ongoing growth This dynamic business environment is characterized by a shift towards new management practices and hyper-competitiveness, necessitating adaptability and forward-thinking strategies for sustained success.

In today's competitive landscape, companies must embrace innovation as a fundamental strategy for sustainable survival rather than a temporary fix Empowering leadership is crucial for fostering innovation, which is vital for maintaining a company's competitiveness and driving continuous performance Research highlights the significant relationship between empowering leadership and innovation, underscoring their importance in achieving organizational success amidst environmental changes.

In today's fast-paced corporate landscape, fostering innovative behavior is essential for effective management However, individual innovation often struggles to manifest within an organization without support from the organizational structure and surrounding environment.

Empowerment leadership fosters flexible thinking among organizational members, enabling them to transform innovative ideas into reality Corporate innovation is not solely the result of individual contributions; it flourishes when the collective efforts of team members align harmoniously with their environment.

Empowerment leadership fosters innovation by instilling trust among organizational members When leaders and organizations demonstrate trust in their teams, it enhances work efficiency and bolsters innovative activities.

This research highlights a method to enhance the innovative behavior of organizational members by granting them authority and autonomy in their roles By empowering employees, organizations can foster a stronger commitment and sense of unity, ultimately leading to increased innovative contributions that benefit the organization.

51 seems that companies should give appropriate rights to organizational members so that they can freely participate in innovation activities and provide opportunities to increase job flexibility.

Limitation and directions for future research

This research explores the connection between leadership, trust, and innovation by analyzing the leadership styles of executives and the innovative capabilities of employees in Korean companies operating in Vietnam The study aims to present its findings in a novel manner to inform management strategies, although it acknowledges certain limitations in its approach.

The investigation into Vietnamese employees in foreign direct investment (FDI) companies was hindered by leadership concerns, as many leaders feared that employee surveys could reveal sensitive issues This reluctance to participate stems from a belief that employee feedback may reflect poorly on their leadership However, understanding employee perspectives is crucial, as accurate statistical data can significantly influence the operational strategies of these companies.

The language barrier hindered research on Vietnamese employees in foreign direct investment (FDI) companies from nations like the United States and Japan Additionally, since most FDI companies in Vietnam focus on labor-intensive industries, it limited the ability to explore the high-tech sector.

The male-female ratio in Vietnam's workforce, particularly in foreign direct investment (FDI) companies, reveals a significant imbalance These companies predominantly operate in the manufacturing sector, focusing on simple processing tasks that primarily employ women Consequently, this trend has led to a notable representation of women in various positions within these industries.

Finally, as the two companies under the survey had less than 10 years of history in Vietnam, it was not possible to conduct research on innovation of

„long-term employees‟ As the number of years of service increases, trust builds up, and the attitude of workers toward innovation is expected to change

Vietnam is a country with a lot of potential Accordingly, more FDI companies will move from their home countries to Vietnam in the future

Vietnam's economy is projected to grow by 8% in 2022, demonstrating resilience despite the challenges posed by COVID-19 With a youthful population of nearly 100 million and a long coastline that enhances trade opportunities, the country possesses significant development potential Additionally, Vietnam is actively implementing strategic initiatives to bolster its economic growth.

The Doi Moi (innovation) policy has transformed Vietnam into one of the most attractive emerging markets in ASEAN over the past 30 years, leading to over 10,000 Korean companies establishing a presence in the country, including 200 in Ha Nam Province The Vietnamese government is committed to driving economic growth while navigating the challenges of globalization and the 4th industrial revolution, particularly in artificial intelligence and ICT To ensure sustainable development, future efforts must focus on enhancing not only the competitive labor force but also advancing high-tech industries and high-value products and services within the supply chain This research aims to explore these critical areas for Vietnam's economic future.

① The same research targeting Vietnamese workers in the high-tech (mainly software) industry rather than the simple labor-based electronics industry

② The same research of employees working in foreign direct investment (FDI) companies in neighboring countries, using Vietnam's development as a model

③ Regarding the influence of cultural differences between countries, it is necessary to further verify whether generalization is possible through comparison with other countries

In his 2015 study, Henry P Sims Jr explores how vertical and shared leadership styles influence the effectiveness of change management teams The research examines various leadership behaviors, including aversive, directive, transactional, transformational, and empowerment approaches The findings highlight the importance of leadership dynamics in driving successful organizational change.

The study by Deukyoung Ko and Taeyong Yoo (2012) explores the connection between job autonomy and innovative behavior in the workplace It highlights that job satisfaction serves as a mediating factor in this relationship, while personality traits and the organizational innovation climate act as moderating influences The findings suggest that enhancing job autonomy can lead to increased innovation, particularly when employees are satisfied with their jobs and when the organizational environment fosters innovation.

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APPENDIX Appendix 1 : Cronbach Alpha coefficient

Factors Configuration of metrics Alpha

1 My boss helps me understand how my goals and goals relate to the company.

2 My supervisor helps me understand how important my work is to efficiency at the corporate level.

3 My boss helps me understand how well my job fits the company as a whole.

4 My boss usually makes decisions with me.

5 My boss often consults with me when making strategic decisions.

6 My supervisor seeks my opinion on decisions that affect me.

7 My boss believes that I can handle difficult tasks.

8 My boss believes I can improve even when I make mistakes

9 My boss is confident that I have the ability to create high levels of performance.

10 My boss allows me to do things my way.

11 My boss provides simple and clear rules and norms to help me perform my work efficiently.

12 My supervisor gives me authority to make decisions so that I can quickly satisfy the needs of my clients.

13 My boss doesn't give me any authority at all.

1 Even if I cannot observe all the actions of my boss, I can discuss with my boss a task or problem that is important to me without hesitation.

2 Even if there is a risk that my evaluation will deteriorate, I will report the work mistakes I have made to my supervisor.

3 Even if my views are not supported, I will share my views on sensitive issues with my supervisor.

4 Even if it is my fault, I will openly disclose the cause of the problem to my boss.

1 My boss doesn't trust me.

2 My boss thinks of me as someone I can trust.

3 My boss believes in me as a reliable person.

1 I try to find new skills, work procedures, or ideas.

3 I stimulate and promote the ideas of other members.

4 I find and secure the resources needed to implement new ideas

5 I make appropriate plans and schedules for implementing new ideas.

Extraction Method: Principal Component Analysis.

Initial Eigenvalues Extraction Sums of Squared

▣ The following survey was conducted online through 'Google Forms'

We wish you continuous progress This survey aims to conduct an in-depth analysis of the leadership and innovation behaviors of employees at a Korean company in Vietnam There are no right or wrong answers; please share your honest thoughts and feelings Your responses will be used solely for research purposes, and we assure you that your data will be processed with complete confidentiality We appreciate your cooperation in this research despite your busy schedule.

A The following questions are about the empowerment leadership behavior of a boss (the head of a team or department) Please indicate how you feel about each of the following items

1 My boss helps me understand how my goals and goals relate to the company

① Absolutely disagree ② Disagree ③ Normal ④ Agree ⑤ Totally agree

2 My boss helps me understand how important my work is to efficiency at the corporate level

3 My boss helps me understand how well my job fits the company as a whole

4 My boss usually makes decisions with me

5 My boss often consults with me when making strategic decisions

6 My supervisor seeks my opinion on decisions that affect me

7 My boss believes that I can handle difficult tasks

8 My boss believes I can improve even when I make mistakes

9 My boss is confident that I have the ability to create high levels of performance

10 My boss allows me to do things my way

11 My boss provides simple and clear rules and norms to help me perform my work efficiently

12 My boss gives me authority to make decisions so that I can quickly satisfy the needs of my clients

13 My boss doesn't give me any authority at all

B The following questions are about the trust of a boss (the head of a team or department) Please indicate how you feel about each of the following items

14 Even if I cannot observe all the actions of my boss, I can discuss with my boss a task or problem that is important to me without hesitation

15 Even if there is a risk that my evaluation will deteriorate, I will report the work mistakes I have made to my supervisor

① Absolutely agree ② Disagree ③ Normal ④ Agree ⑤ Totally agree

16 Even if my views are not supported, I will share my views on sensitive issues with my boss

17 Even if it is my fault, I will openly disclose the cause of the problem to my boss

C The following questions are about the felt trust of a boss (the head of a team or department) Please indicate how you feel about each of the following items

18 My boss doesn't trust me

19 My boss thinks of me as someone I can trust.

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