The Influence Of Innovative Culture On The Prevention Of Job-Hopping Behavior In Vietnam Smes: The Mediating Role Of Transformational Leadership

Abstract

Innovation is regarded as a sustainable objective for market competition through the creation of novel products, services, and processes. Furthermore, it is essential to effectively manage the culture of innovation, which involves aligning the values, norms, and views inside innovation activities. Nevertheless, in order to enhance competitiveness and adapt to the post-COVID-19 economy, organizations, notably small and medium-sized enterprises (SMEs), are frequently confronted with a significant influx of individuals actively seeking new opportunities, a phenomenon commonly referred to as job-hopping. In addition, the role of transformational leadership in enhancing individuals' strategies has been well-established. However, there is a dearth of study on the relationship between creative cultural behavior, job-hopping, and the mediating effect of transformational leadership. Therefore, this study aims to analyze the impact of an innovative culture on employees SMEs in Vietnam. The study is based on an online survey conducted among valid 220 responses comprising 200 employees and 20 managers, using the framework proposed by Phu (2021) and drawing on two theories: Social Exchange theory and Conservation of Resources theory. The study specifically focuses on examining how transformational leadership factors can help prevent this phenomenon. The findings from the Smart PLS analysis indicate that an Innovative Culture can effectively decrease job hopping behavior. This reduction is achieved through the exclusive support of transformational leadership, which enhances job satisfaction and standardized commitment. However, innovative culture does not have an impact either through reducing emotional exhaustion or not being supported by transformational leaders. This study provides valuable insights and offers ideas to enhance human resource management practices in SMEs.