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MINISTRY OF EDUCATION AND TRAINING ĐA NANG UNIVERSITY NGUYEN THI THUY HANG THE RALATIONSHIP BETWEEN PERSONAL LEADERSHIP QUALITIES AND FIRM PERFORMANCE: RESEARCH IN VIET NAM Major: Business Administration Code: 62.34.01.02 SUMMARY OF DOCTORATE THESIS IN BUSINESS ADMINISTRATION Đa Nang, 2021 The work was completed at the University of Economics - Danang University Science instructor: First instructor: Dr Nguyen Hiep Second instructor: Assoc.Prof.Dr Nguyen Phuc Nguyen Reviewer 1: ……………………………………………… Reviewer 2: ……………………………………………… Reviewer 3: ……………………………………………… The thesis is protected at the dot Council the thesis graduated with a doctorate in Business Administration at Danang University on …… month year 2021 The thesis can be found at: - Center for Information and Learning, Da Nang University - National Library of Vietnam INTRODUCTION Necessity of research Every organization needs a leader and a leader must have followers Followers appear when a leader possesses certain qualities (Ahmed & Bach, 2014; Schuetz, 2017) Among leadership theories, transformational leadership is highly universal.The studies of transformational leadership not only examine the relationship between personal leadership qualities to firm performance, but also through organizational cultural mediation to find the relationship between them In Vietnam, very little research on this topic, especially the relationship between personal leadership qualities and firm performance In particular, there is mention of direct and indirect relationship through organizational culture In addition, the conclusions about these relationships of the current foreign studies not have general consistency Therefore, the author is based on theoretical and practical context, it is necessary to study "The relationship between personal leadership qualities and firm performance: Research in Vietnam" Research results provide practical insights for business, leaders, management and science Objectives and research questions 2.1 Research Objectives The overall objective of the thesis is to examine the relationship between personal leadership qualities and firm performance, including direct relationship and indirect relationship through organizational culture On that basis, identify factors that help improve firm performance, improve personal leadership qualities and develop criteria for assessing personal leadership qualities and organizational culture To accomplish that research objective, the thesis aims at the following specific objectives: - Building models on the relationship between personal leadership qualities and firm performance - Examining the impact of personal leadership qualities on the firm performance of Vietnamese enterprises; testing the mediating role of organizational culture in the relationship between personal leadership qualities and firm performance of Vietnamese enterprises - Research and propose implications from research results to help enterprise in Vietnam improve their firm performance Based on the assumption, the enterprises desire to improve their firm performance through a tool of personal leadership qualities and organizational culture 2.2 Research question - How are personal leadership qualities, organizational culture and firm performance identified and measured? - Does the personal leadership qualities have a direct impact on organizational culture, firm performance? Is organizational culture a mediating factor in the relationship between personal leacership qualities and firm performance? - What are the implications from the research results to help businesses make decisions related to personal leadership qualities and organizational culture towards the goal of improving firm performance? Object and scope of the research The thesis focuses on researching the impact of personal leadership qualities on firm performance In particular, the intermediate role of organizational culture is considered The scope of research: - Regarding the scope of the research content: The personal leadership qualities are studied based on transformational leadership approach including qualities of idealized influence, intellectual stimulation, inspirational motivation and individualized consideration - Regarding the scope of the research object: The research object of the thesis subject to the survey includes leaders, managers and employees The subjects of leadership, management are individuals of senior and mid-level managers, including members of the board of directors, directors, deputy directors and heads of attached departments Staffs are employees at the enterprise who perform the tasks of executing the above decisions of the above management and leadership subjects The scope of the survey is leaders, managers and employees who are Vietnamese nationals in Vietnamese business organizations Information from 2016 - 2017 according to the research time limit of the thesis The research method The research carries out a 6-step research design, which combines both qualitative and quantitative research methods Qualitative research methods, uses historical research methods with secondary data sources, to build a theoretical basis for research; interview experts and leaders, managers and employees to determine the approach, define the scale and shape the content of the scale and survey questionnaire Quantitative research is conducted through sociological survey method and uses SPSS 22.0 and AMOS 20.0 software to perform conbach’s alpha, EFA, CFA, SEM analysis and test research hypotheses From there answer the research questions posed New contributions of the research 5.1 Contribution of the research in term of theory + The thesis has systematized the theoretical basis of personal leadership qualities, organizational culture and firm performance At the same time, it also systematizes direct and indirect relationships between concepts, providing information and updating judgments and changes related to concepts This work has contributed not only to re-rendering the theoretical foundation of personal leadership qualities but also its relationship with organizational culture and firm performance + Especially, in measuring personal qualities of leaders, prior to this, it was more of a qualitative assessment The thesis provides empirical evidence on the Multifactor Leadership Questionnaire (MLQ-5X) of Bass and Avolio (1995), the Denison Organisational Culture Model, is a tool that can be used to quantitatively assess personal leadership qualities and organizational culture + The research thesis combines three concepts of personal leadership qualities, organizational culture, firm performance and direct and indirect relationships.Therefore, the thesis brings a new research trend on multilateral and diversified relationships in the business context in Vietnam More specifically, the thesis is also one of the empirical studies on this topic in the world 5.2 Contribution of the research in term of practice + The thesis has contributed to providing useful information for leaders and managers in Vietnam Information from the synthesis of previous studies and research results of the thesis, helping leaders and managers redefine themselves through the qualities of idealized influence, intellectual stimulation, inspirational motivation and individualized consideration In particular, the thesis helps leaders and managers reshape how to build relationships with partners, customers and most importantly with employees, to create organizational culture and improve firm performance + The thesis helps planners and businesses in Vietnam to develop criteria for evaluation and program to develop leaders and managers in enterprises At the same time, the thesis helps to detect factors affecting and orienting in building organizational culture and thereby improving firm performance + The thesis provides information to the public and all interested people about the influence of personal qualities of leadership, organizational culture and firm performance The thesis is also important to future scholars and researchers as it will provide empirical documentation on personal leadership qualities, organizational culture and firm performance In addition, the thesis also provides an orientation for further research, where future scholars can conduct research on this issue Structure of the thesis Chapter RESEARCH OVERVIEW 1.1 Overview of theoretical approaches to the role of leadership in an organization Through an overview of approaches in leadership research Each theory relies on a different context and focuses on different factors No theory is without its limitations However, the transformational leadership approach is an important basis in the study of individual leadership qualities The theory is a set of qualities (Lievens et al., 1997), the trait, behavior, situation theories have not considered some typical qualities, these "new" qualities require a new theory, or a new leadership concept (Simić, 1998); transformation leadership application in Vietnam is quite suitable with the current context of deep integration (Simić, 1998); transformational leadership measurement tools are widely established and used in leadership and employee evaluation (Mahar, 2004) 1.2 Research overview 1.2.1 Research on the relationship between personal leadership qualities and organizational culture The relationship between personal leadership qualities and organizational culture attracts a great deal of attention from researchers Most studies conclude there is a relationship between personal leadership qualities and organizational culture.In Vietnam, organizational culture is also interested by many researchers However, the studies on culture often refer to the actual situation of organizational culture, evaluate organizational culture, etc The research direction of factors that create and affect culture is very rare 1.2.2 Research on the relationship between organizational culture and corporate performance The relationship between organizational culture and firm performance is almost an established thesis that there is a relationship between them In the case of firm performance in favor of financial factors, the relationship between organizational culture and corporate performance is not determined However, in Vietnam, very few studies are interested in researching this relationship But a few studies in Vietnam can be used as a premise for studying this relationship 1.2.3 Research on the relationship between personal leadership qualities and firm performance The relationship between personal leadership qualities and firm performance has attracted great attention from foreign scholars Most of them believe that there is a relationship between personal leadership qualities and firm performance Qualities such as idealized influence, intellectual stimulation, inspirational motivation and individualized consideration help improve firm performance In Vietnam, research on the qualities of Ho Chi Minh, soldiers, teachers, etc a lot Especially in the period of national renewal In the period of global integration, research on leadership capacity accounts for the majority, research on transformational leadership is of interest to a number of researchers However, transformational leadership studies find the relationship between transformational leadership and employee behavior, job performance and use the term transformational leadership style The relationship with firm performance has not been studied by many studies However, studies have opened up an approach and experiment to measure transformational leadership in Vietnam 1.2.4 Research on the relationship between personal leadership qualities and firm performance, with organizational culture as an intermediate element in this relationship Among the individual studies, studies that follow a tendency to combine all three concepts at the same time account for a large number In which, the study finds the relationship between personal leadership qualities and firm performance with mediating roles that can be mentioned as human resources (Wang et al., 2010; Whyte, 2012); satisfaction (Shurbagi, 2012); organizational dynamics (Jaskyte, 2004); learning organization (Mutahar et al., 2015) Research to find the relationship with the role of mediating organizational culture has attracted a lot of research attention In addition to identifying direct and indirect relationships through organizational culture mediation, studies also show a general lack of consistency in the relationship between these three concepts 1.3 Overview of research methods from research on qulities of transformational leadership According to Northouse (2015), the most popular transformation leadership measurement is a multifactor Leadership Questionnaire, called MLQ In general, the MLQ-5X of Bass and Avolio (1995) is an outstanding instrument in describing the components of qualities, validity and reliability (Antonakis, 2001) In addition, MLQ-5X of Bass and Avolio (1995) is used to investigate leaders, managers in many fields, sample sizes are very diverse, survey subjects include leaders, managers, owners, lecturers, staff, using Likert points with = Not completely to = always like Seyal and Rahman (2014) SPSS and Amos data analysis tool To measure organizational culture, the two commonly used models are the Denison Organizational Culture Survey (DOCS) and the Organizational Culture Assessment Instrument (OCAI) DOCS is determined by the authors: consistent with the scope of managers, presented in a leadership style and oriented to firm performance (Roldán & Bray, 2009); New model, detailed, applicable to all levels, applicable to change management organizations, widely used in different countries and how the results are influenced by culture (Pirayeh et al., 2011); Strong structure (Farshad et al., 2011) The majority of studies using a 5-point likert scale included strongly disagree = 1, disagree = 2, neutral = 3, agree = 4, strongly agree = Measures firm performance, which is determined to be very diverse, including many factors such as financial, non-financial and a combination of both In general, in Vietnam, measuring firm performance by non-financial factors has not done much research For non-financial factors, the commonly used likert scale is the likert scale from = strongly disagree to = strongly agree (Zakari et al., 2013; Ahmed & Shafiq, 2014) 1.4 Conclude Chương THEORETICAL BACKGROUND, RESEARCH HYPOTHESIS 2.1 Theory approach to research 2.2 Personal leadership qualities 2.2.1 The Concept of Leadership 2.2.2 The Concept of personal leadership qualities The qualities has a long research history, can be considered the oldest when it comes to leadership According to Lashway (1999), leadership quality is the perception of good things of leaders through others According to Zaccaro et al (2004), Leadership Qualities are manifested in the way that leaders observe and act on their own values and motivations and their followers, In this study, individual leadership qualities are the set of different qualities of a leader expressed through actions in different situations, are assessed and acknowledged by followers 2.2.3 The importance of personal leadership qualities 2.2.4 The composition of personal leadership qualities According to Ali (2005 p39) the transformative leadership traits have a strong positive relationship with the personal qualities of the leader.Therefore, with the transformative leadership approach, the components of transformational leadership in this study are considered as components of personal leadership qualities 2.5.3 The relationship between organizational culture and firm performance Hypothesis H3: There is a positive relationship between organizational culture to firm performance 2.6 Research models Personal leadership qualities Organizational culture Idealized Influence H2a Inspirational Motivation H2bH1a H1b H1c H2cH1d Intellectual Stimulation Individualized Consideration H3 Firm performance H2d Figure 2.1.Theory model Source: author suggested 2.7 Conclude Chapter RESEARCH METHOD 3.1 Background introduction / research subjects 3.2 Research process The research carried out a 6-step research design, which combines both qualitative and quantitative research methods 3.3 Qualitative research methods Qualitative research methods, uses historical research methods with secondary data sources, to build a theoretical basis for research; interview experts and leaders, managers and employees to determine the approach, define the scale and shape the content of the scale and survey questionnaire 3.4 Quatitative research methods 3.4.1 Determine the scale In this study, using the MLQ-5X questionnaire by Avolio and Bass (1995) In it, the total number of indicators for personal leadership qualities including 20 indices to measure Idealized Influence (attributes and behaviors) indices, Inspirational Motivation, Intellectual Stimulation and Individualized Consideration each type of indices A 5-point Likert scale is applicable, with anchors labelled as = not at all to = always For organizational culture, the author inherits the scale in Roldán and Bray (2009) with 12 indicators to measure four organizational cultural characteristics such as consistency, mission, Involvement, adaptability To test the perception of leaders, managers and employees about the organizational culture of the business, use the 5-point Likert scale with strong disagree = 1, disagree = 2, Neutral = 3, agree = 4, strongly agree = Regarding firm performance, two factors of business performance and organizational efficiency are drawn from the study of Wang et al (2010) including 03 indicators for business performance and 03 for organizational effectiveness Using a 5-point Likert scale from = strongly disagree to = strongly agree 3.4.2 Design of research samples For preliminary research, the sample size is 200 votes for leaders, managers and 600 votes for employees The results include 150 leader, manager and 433 votes for employees, which can be used The votes were rejected for the same and missed more than 10% of the questions However, with limited resources, the survey was representative of some areas of Da Nang, Quang Ngai, Ho Chi Minh City and Hanoi The questionnaire had the same content, only different in the form of presentation for each object Particularly for foreign-invested enterprise, the questionnaire is sent to Vietnamese managers Direct and indirect investigation methods For formal research, the subject and scope of the survey are similar to the sample designs for preliminary research In the official study, using 38 observed variables, the sample size according to the minimum size is 38x5 = 190 observations and according to Tabachnick and Fidell (1996) is 8x38 + 50 = 354 observations In order to ensure that the number of votes collected satisfies both conditions and is highly representative, the study released 600 questionnaires for leaders, managers and 1,800 questionnaires for subjects being employees in two installments Phase 1, in Quang Ngai and Da Nang Second round, in Hanoi and Ho Chi Minh City Data collection through questionnaire with direct and indirect investigation method The result was 414 leaders, managers and 982 votes for employees, which can be used 3.4.3 Data analysis method Quantitative research is conducted through sociological survey method and using SPSS 22.0 and AMOS 20.0 software to perform conbach’s alpha, EFA, CFA, SEM analysis to test research hypotheses From there answer the research questions posed 3.5 Preliminary assessment of the scale 3.5.1 Preliminary assessment of scale on leaders and manager samples 3.5.2 Preliminary assessment of scale on employee samples Thus, preliminary quantitative research with two tools, Cronbach's alpha and discovery factor analysis Shows 10 factors including 38 observed variables, measuring three components: personal leadership qualities, organizational culture and firm performance, under evaluation from samples of leadership, management and employee, no observed variables are excluded and the observed variables extract the corresponding factors in theory Therefore, the questionnaire used for preliminary quantitative research remains the same for formal research 3.6 Conclude Chapter RESEARCH RESULTS 4.1 Research results with research samples are leadership and management 4.1.1 Sample description statistics In terms gender, out of 414 enterprises is 272 leaders and managers are male and 142 are female In terms of age, 17 people under 30 years old, 165 people from 31-40, 181 people from 41-50 and 49 people from 51-60 old, 02 people over 60 years old In terms of education, 14 people under college, 320 people at university level, 80 people at graduate level In terms title of work, 169 people who are business directors, 61 people who are deputy directors, 140 people who are heads of departments or sections and 44 people who are chief accountants In terms years of work, 89 people less than years; 195 people from 5-10 years; 130 people over 10 years In terms types of enterprises, state-owned enterprises have 48 enterprises, non-state enterprises have 345 enterprises, foreign-invested enterprises have 21 enterprises In terms of leadership style, most Vietnamese leaders use a mixture of styles including transformational, transactional leadership and non-leadership 4.1.2 Testing scale 4.1.3 Testing models, research hypotheses 4.1.3.1 Testing models Figure 4.2 SEM model results - Sample leadership, management (Source: Testing from survey data) 4.1.3.2 Test the research hypotheses Table 4.12 Test results (standardized) direct and indirect relationship between independent factors and firm performance - Sample of leadership and management Hypotheses Variationas Indirect Total Direct relationship relationship impact Esti S.E C.R P Esti P H1a KQDN< - AHTT 0.054 048 1.118 0.264 0.162 0.001 0.162 H1b KQDN< - DLCH -.021 049 -.427 0.669 0.170 0.001 0.170 H1c KQDN< - KTTL 0.119 048 2.507 0.012 0.211 0.001 0.330 H1d KQDN< - THCN 0.119 053 2.237 0.025 0.169 0.002 0.288 H2a VHTC< - AHTT 0.184 045 4.108 *** 0.184 H2b VHTC< - DLCH 0.191 045 4.244 *** 0.191 H2c VHTC< - KTTL 0.169 043 3.904 *** 0.169 H2d VHTC< - THCN 0.226 047 4.784 *** 0.226 H3 KQDN< -VHTC 0.723 110 6.599 *** 0.723 (Source: synthesized from the author's research) 4.2 Research results with research samples are leadership and management 4.2.1 Sample description statistics The survey results show that, in terms of gender, among 982 surveyed people, 59.1% are female and 40.5% are male, this indicates that female employee is more than male In terms of age, most employees are very young and the ages from 31-40, accounting for 46.6% The majority of employees have university degrees and work in private enterprises 4.2.2 Testing scale 4.2.3 Testing models, research hypotheses 4.2.3.1.Testing models Figure 4.4 SEM model results - Sample staff (Source: Testing from survey data) 4.2.3.2 Test the research hypotheses Table 4.24 Test results (standardized) direct and indirect relationship between independent factors and firm performance - Sample of leadership and management Hypotheses Variationas Direct relationship Indirect Total relationship impact Esti SE C.R P Esti P H1a KQDN< - AHTT 0,120 0,050 2.407 0,016 0.282 0,004 0,402 H1b KQDN< - DLCH -0,015 0,050 -.305 0,760 0.150 0,001 0,150 H1c KQDN< - KTTL -0,090 0,057 -1.578 0,115 0.162 0,001 0,162 H1d KQDN< - THCN -0,044 0,063 -.706 0,480 0.337 0,001 0,337 H2a VHTC< - AHTT 0,130 0,033 3.910 *** 0,130 H2b VHTC< - DLCH 0,121 0,033 3.660 *** 0,121 H2c VHTC< - KTTL 0,229 0,036 6.404 *** 0,229 H2d VHTC< - THCN 0,281 0,038 7.319 *** 0,281 H3 KQDN< -VHTC 1,159 0,127 9.147 *** 1,159 (Source: synthesized from the author's research) 4.3 Conclude Chapter COMMENT AND POLICY IMPLYCATIONS 5.1 Comment on the research results Table 5.1 Relationships between personal leadership qualities and firm performance Sample leaders, manager Sample employee Hypo Relationship H1a H1b H1c H1d H2a H2b H2c H2d H3 KQDN< - AHTT KQDN< - DLCH KQDN< - KTTL KQDN< - THCN VHTC< - AHTT VHTC< - DLCH VHTC< - KTTL VHTC< - THCN KQDN< - VHTC Direct Indirect 0.264 0.669 0.012 0.025 *** *** *** *** *** 0.001 0.001 0.001 0.002 Total impact 0.162 0.170 0.330 0.288 0.184 0.191 0.169 0.226 0.723 Direct Indirect 0,016 0,760 0,115 0,480 *** *** *** *** *** 0,004 0,001 0,001 0,001 Total impact 0,402 0,150 0,162 0,337 0,130 0,121 0,229 0,281 1,159 (Source: synthesized from the author's research) The main purpose of research is to find the relationship between personal leadership qualities to firm performance The results show that considering the total impacts from the leadership, management and employee samples, personal leadership qualities have had a positive impact on the firm performance Summarizing conclusions from qualitative and quantitative research shows that these leaders have used the following nine themes or strategies to make change in their organizations At the same time, in the current competitive landscape, leaders and managers have a variety of management skills and build good relationships with employees The study results also show that there are differences in the assessment results from the sample of the leadership, the manager and the employee sample In particular, the direct impact of personal leadership qualities on firm performance But there is no difference for the direct relationship between personal leadership qualities to organizational culture and the indirect relationship through organizational culture between personal leadership qualities to firm performance These findings are consistent with the study of Ogbonna and Harris (2000), Xenikou and Simosi (2006) and Imran et al (2012) However, for the relationship between organizational culture and other firm performance results from Sumarto and Subroto (2011) 5.2 Policy implycations 5.2.1 Implications relate to developing personal leadership qualities a Improving idealized influence qualities In order to improve firm performance, leaders and managers need to strengthen: Considers the moral and ethical consequences of decisions (PIB07); Displays a sense of power and confidence (PIA04); emphasize the importance of having a collective sense of mission PIB08) b Improve Intellectual Stimulation qualities Research results show that: in order to enhance firm performance, leaders and managers need to: Gets to look at problems from many different angles (PIS15); Seeks differing perspectives when solving problems (PIS14); Suggests new ways of looking at how to complete assign PIS16); Re-examines the appropriateness of critical assumptions (PIS13) c Improve individualized consideration qualities Research results leaders, managers need to: Helps to develop my strengths (PIC20); Treats as individuals rather than just a group member (PIC18); Considers an individual’s needs, abilities, and aspirations (PIC19) Besides, Whyte (2012): understanding individuals is a special behavior of leaders and has a significant impact on firm performance d Improve inspirational motivation qualities Indeed, the research results suggest that: Talks enthusiastically about what needs to be accomplished (PIM10); Expresses confidence that goals will be achieved (PIM12) and Talks optimistically about the future (PIM09) articulate a compelling version of the future (PIM11) From the above reasons, showing that the qualities of personal leadership is a key factor that must be included in the evaluation to train, develop leaders, manage in businesses (ElKordy, 2013) But first of all, it is important to recognize the important role of personal leadership qualities It must be expressed, communicated, developed in all jobs and affairs of the organization After that, must evaluate and maintain continuous criteria to improve firm performance Specific suggestions such as: The first group implies, recognizing the role of personal leadership qualities Qualities are a term that has been studied for centuries and is widely used (Zaccaro et al., 2004) According to Harrow (1972), quality often includes elements of the worldview that receive and respond to realities, valuing and prioritizing values Qualities and behaviors reflect the individual's attitude to work, motivation, as well as the qualities needed to perform a job well (Le Quan & Nguyen Quoc Khanh, 2012) Jones (2007) personal qualities are seen as the foundation for who is who, that is, who is aware of himself and who is perceived by others Dinh Duc Hoi (2012), qualities are characteristics of people or things that reach the required quality level to meet certain requirements of society, making a difference in rank and type with different objects According to Burns (1978) individual leadership qualities lie in the way leaders observe and act on their own values and motives and their followers (Sumarto & Subroto, 2011) Personal leadership qualities have the following characteristics: First, the stable and consistent feature of behavior (Allport, 1961, cited in Zaccaro et al., 2004) Second, are good or positive traits (Caprara et al., 2006) Third, the "appropriate" behavior (Zaccaro et al., 2004), is the difference in rank and type with different objects (Dinh Duc Hoi, 2012) Thus, for each different object such as leader or teacher, police, then the qualities is determined with different structures or set of priority values for each object Fourth, the inherent attribute of a leader (Russell et al., 2002; Paper, 2005) means that to become a leader must have certain qualities Fifth, a combination of personal characteristics that promote effective leadership (Zaccaro et al., 2004) or meet social requirements (Dinh Duc Hoi, 2012) The role of personal leadership qualities influences decision making and behavior and communicates individual values into the organization (Russell & Gregory Stone, 2002b); basis to identify the problem and reasons for good leadership decisions by leaders (Lashway, 1999); criteria for recruiting, selecting and placing leadership positions (Bolden, 2005); instill values over time into organizational culture; initiate organizational change (Smith, 2005); good leadership, the ability of the leader and the clear communication of the leader (Dewan et al., 2008); requirements in leadership roles (Ahmed & Bach, 2014); leadership results from the qualities of the leader himself (Fiedler cited in Mullins, 2004) In this study, the qualities of personal leadership influences organizational culture and firm performance, so it is important to realize its role in all areas of the business The second group implies, build criteria for evaluating and maintaining continuous improvement of personal leadership qualities to improve firm performance In the leadership development program, the Japanese program, they take the leader to the mountains to learn how to enjoy tea and observe the carp, to find ways to develop sensitivity, creativity and imagination in leaders instead of the traditional method European Program: (1) internal skills program, (2) external courses, seminars and conferences, (3) mentoring / coaching, (4) formal competencies, (5) ) turning around the work in the company, E-learning Comprehensive leadership development program, Oracle presents seven steps to effective leadership development They have determined the first step is to determine the best leadership style for the organization In general, leadership development is a common requirement of organizations and countries, they always give different ways to have excellent leaders In this study, the proposal for leadership and management development includes interactive exercises and situations related to qualities of the transformation leadership approach, because transformation leadership is a comprehensive, relevant program more appropriate with leadership requirements at different levels in the organization (Edwards & Gill, 2012; ElKordy, 2013; Cavazotte et al, 2013) Dew (2012) cannot measure good leadership by reviewing and evaluating past work to be systematically evaluated An evaluation system always includes the identification of goals and criteria for measuring personal qualities of leadership as shown in Table 5.2 5.2.2.Implications relate to developing organizational culture Organizational culture is part of a common culture In Vietnam, there are thousands of cultural identities such as true spirit, self-reliant will, behavioral principle and community / collective spirit Besides, the Vietnamese also have a bad culture such as striving, trying only to "honor their families", easily satisfied with the immediate benefits, afraid to compete In the period of globalization, there must be breakthroughs in organizational culture to develop modern businesses To improve firm performance, need to develop organizational culture by: Firstly, involvement The results of the thesis show that in order to improve firm performance, leaders and managers need to strengthen group orientation, such as: Work is organized so that each person can see the relationship between his or her job and the goals of the organization (VHG22) Or empowerment as Decisions are usually made at the level where the best information is available (VHG21) The results of this study support the judgment of Pirayeh et al (2011) that participation brings a sense of responsibility and ownership in the organization; absences and quits are rarely seen Second, consistency Research results show that, to improve consistency, leaders need to focus on developing core values by showing that: The leaders and managers “practice what they preach (VHT24).” There is a clear agreement about the right way and the wrong way to things There is good alignment of goals across levels (VHT25) Third, adaptability To improve resilience, enterprise need to focus more on customers, they need to have complete and accurate information from customers for organizational decisions (VHK28) and Different parts of the organization often cooperate to create change (VHK27) Fourth, mission To improveour vision creates excitement and motivation for our employees (VHS32) and people understand what needs to be done for us to succeed in the long run (VHS32) In short, organizational culture is the basis for long-standing confirmed human resource development.Although there was no agreement on the concept of organizational culture, the researchers affirmed that the organizational culture is dynamic, constantly evolving and changing It affects the operation of the business, bringing efficiency and success in the market To improve organizational culture: The third implied group, developing strengths to limit weaknesses of culture If we want to create, change and influence our cultural orientation, we must know its current state The goal is to develop strengths of culture and eliminate weaknesses Therefore, businesses must establish a step-bystep process to help people commit to this process The main steps in the process of cultural development are shown in Table 5.3 The fourth implied group, measurement of organizational culture The important role of culture is always mentioned, but the way to ensure that a culture remains valid over time is through measurement of organizational culture Based on the research results, the author proposes cultural development related to the development of organizational results of Denison in Table 5.4 5.3 Limitations and directions for future research 5.4 Conclude CONCLUDE The objective of the thesis is to find the relationship between personal leadership qualities and firm performance results including the direct relationship between personal leadership qualities to organizational culture, firm performance and indirect relationships through organizational culture Personal leadership qualities, approach to transformational leadership includes qualities of idealized influence, inspirational motivation, intellectual stimulation, individualized consideration Denison's DOCS organizational culture consists of four components of consistency, involvement, adaptability and mission Firm performance from Wang et al (2010) includes business performance and organizational efficiency To achieve this goal, qualitative and quantitative research methods are applied The direct and indirect surveys of 600 leaders, managers and 1,800 employees in Vietnamese enterprises are used With the random sampling method, the obtained results, can be used with a sample size of 414 leaders, managers and 982 employees The questionnaire was used as the main tool in this research Data obtained from research tools was analyzed through Statistical Package for Social Sciences (SPSS) versions 22 and AMOS The thesis results, with a direct relationship Personal leadership qualities include qualities of idealized influence, inspirational motivation, intellectual stimulation, individualized consideration that affects organizational culture and firm performance on the two surveyed objects are leaders, managers and employees At the same time, organizational culture affects firm performance However, there is a difference in the judgment of leaders, managers and employees about the direct relationship between personal leadership qualities and firm performance Typically, the qualities of idealized influence, inspirational motivation does not have a direct impact on firm performance according to the judgment of management leadership, but the qualities of intellectual stimulation, individualized consideration has an impact on firm performance Whereas, with the assessment of employees, only the qualities of idealized influence impact on firm performance and the qualities that inspirational motivation, intellectual stimulation, individualized consideration does not directly impact the firm performance For indirect relationships, on both types of samples Organizational culture is the intermediary in the relationship between personal leadership qualities and firm performance Therefore, the improvement of these qualities helps improve organizational culture and firm performance Based on the research results, the enterprises are recommended to establish the development policies for leadership and organizational culture Meanwhile, the leaders and managers should build relationships with employees to create consensus and more engaged in business operations LIST OF WORKS BY AUTHOR [1] Nguyen Thi Thuy Hang, Nguyen Phuc Nguyen 2016 Business link: Build business relationships from personal leadership qualities The 5th Scientific Conference on Business and Management (COMB2016) -"Link - Improve competitiveness for enterprises in the Central Highlands in the context of integration" October 19, 2016 University of Economics University of Danang and Young Entrepreneurs Association of Da Nang City [2] Nguyen Thi Thuy Hang, Nguyen Hiep, Nguyen Phuc Nguyen 2017 4.0 Challenging Leadership The 6th Science and Administration and Business Conference (COMB 2017) “Improving corporate governance capacity” December 16, 2017.University of Economics, Da Nang University, University of Economics - Hue University, Nha Trang University [3] Nguyen Thi Thuy Hang, 2017 Role of personal leadership qualities in theory and practive Journal of Economic Studies University of Economics - Danang University, No:05(03) [4] Nguyen Phuc Nguyen, Nguyen Hiep and Nguyen Thi Thuy Hang, 2018 Personal leadership qualities, It’s ralationship with organizational culture and firm performance outcomes: an exploratory study Journal of Trade Science – Thuong mai University, No 114, P: 55-62 [5] Nguyen Thi Thuy Hang, Tran Mai Lam Ai, 2018 The future of leaders in an organization Journal of science and technology – Pham Van Dong University, No 16 [6] Nguyen Thi Thuy Hang, Tran Mai Lam Ai, 2019 Effectis of leadership styles on firm oerformance: the case of Five Stars Joint Stock.Company.Journal of Economic Studies - University of Economics - Danang University, No7(01) [7] Nguyen, N P and Hiep, N and Hang, N T T, 2020 The impact of leader's personal qualities on the firm performance: Case study at MBBank Quang Ngai Branch Journal of Trade Science, 8:4, 72 – 80 [8] Nguyen Thị Thuy Hang, Nguyen Hiep, Nguyen Phuc Nguyen, Hoang Trong Hung (2021) Relationship between organizational culture and firm performance: A case study in Viet Nam Hue University Journal of Science: Economics and Development, Vol.130, No5B, pp5-15 ... research method The research carries out a 6-step research design, which combines both qualitative and quantitative research methods Qualitative research methods, uses historical research methods with... determine the approach, define the scale and shape the content of the scale and survey questionnaire Quantitative research is conducted through sociological survey method and uses SPSS 22.0 and AMOS... Bass and Avolio (1995), the Denison Organisational Culture Model, is a tool that can be used to quantitatively assess personal leadership qualities and organizational culture + The research thesis