The effects of leadership styles toward employee loyalty - A case of import-export companies in Ho Chi Minh city
Abstract
In recent years, import- export activities in Vietnam has experienced a significant
development thank to integrating into the global economy by joining many global
organizations, especially WTO (in 2007). In 2013, export (15.7%) and import (15.5%)
continue to grow, compared to the same period last year.However, with the fast operating
of many import- export companies in Vietnam, the competition of those companies in
this market is heated day by day.Good organizations understand that loyal employee will
result in a better business performance, so many are placing greater emphasis on
measuring employee loyalty.
This study was conducted to identify the factors that have direct and indirect
effect on the relationship between leadership style and employee loyalty toward import
export companies in Ho Chi Minh. The methodology uses in this research is through the
distribution of a set of questionnaire to two hundred and seventeen respondents.
Thanks to the results of the path analysis exploring the direct and indirect effects,
this study claims that for improving high employee loyalty, managers in import- export
companies in HCMC should have high level of organic leadership style, the better
transactional leadership style, and reduce the level of autocratic leadership style.
Moreover, from the result of this research, the findings indicate that the factors of
transactional and transformational leadership styles play crucial role regarding to both
extraversion characteristics of salespersons and loyalty of employee.
In conclusion, from the experiences in process of conducting research, it points
out limitations of this study and provides helpful recommendations for further
dissertation. And according to the research findings, the recommendation was given in
the final chapter of the research.