Leadership and management factors predicting performance outcomes and organisational sustainability in Thai SMEs: an empirical investigation

Identifying leadership and management factors that drive both superior performance and sustainability in firms has become an important quest for both academics and business practitioners. Scholars frequently affirm the importance of leadership for enhancing superior performance and organisational sustainability. However, empirical research in this field is currently lacking, particularly in the context of SMEs and in emerging economies. The key purpose of this thesis is to bridge the above 2gaps in knowledge about predictive relationships between various leadership, management processes and performance outcomes towards organisational sustainability. The theoretical framework is built on Avery and Bergsteiner's (2010, 2011a) Sustainable Leadership (SL) framework, which identifies a set of 23 'Honeybee' practices underpinning organisational sustainability and superior outcomes for organisational sustainability (SPO) in enterprises. Validated questionnaire data were gathered from over 1,500 senior executives and employees of more than 360 small and medium-sizrd enterprises (SMEs) in Thailand. The theoretical framework is built on Avery and Bergsteiner‟s (2010, 2011a) Sustainable Leadership (SL) framework, which identifies a set of 23 „Honeybee‟ practices underpinning organisational sustainability and superior performance outcomes for organisational sustainability (SPO) in enterprises. Validated questionnaire data were gathered from over 1,500 senior executives and employees of more than 360 small and medium-sized enterprises (SMEs) in Thailand using a cross-sectional design. Thailand was chosen as the location for the research because organisations in emerging economies often seek to raise their global competitiveness, sustainability and performance. In a translated and slightly adapted version of Avery and Bergsteiner‟s (2010, 2011a) Sustainable Leadership Questionnaire, multiple item scales assessed organisational leadership practices and the various SPO measures as perceived by senior executives and employees in each organisation. The four research questions are: 1. What are the essential leadership and management factors derived from SL that underlie organisational sustainability in the context of Thai SMEs? 2. Which underlying leadership and management factors derived from SL predict enhanced performance outcomes for organisational sustainability as assessed by Sustainability Performance Outcomes (SPO)? 3. To what extent do underlying leadership and management factors derived from SL contribute to performance outcomes for organisational sustainability based on SPO in Thai SMEs? 4. Are there any differences in perceptions between senior executives (organisational leaders) and employees about which underlying leadership and management factors derived from SL predict enhanced performance outcomes for organisational sustainability based on SPO in Thai SMEs? If any, what are the differences? Data were analysed using several multivariate techniques, mainly exploratory factor analysis (EFA), multiple regression analysis and t-test statistic. The findings offer several insights including the following. First, this research uncovers 10 valid and reliable factor solutions that are considered essential leadership and management factors underlying organisational sustainability in the Thai SME context. Second, the thesis identifies five statistically significant factors among these leadership and management factors (i.e. valuing people/HRM, long-term perspective, empowerment, high quality and innovation) that positively predict enhanced financial performance outcomes (FPOs) and overall sustainability performance outcomes (SPOs), albeit in varying combinations and to different degrees. Third, the study reveals that senior executives and employees have different perceptions as to which of the essential leadership and management factors identified positively drive superior financial performance and organisational sustainability. Overall, it is evident in this thesis that these five leadership and management factors are the significant key drivers of, and contributors to, enhanced financial performance, long-term corporate success and organisational sustainability, in the context of Thai SMEs. Thus, the thesis answers the research questions it set out to investigate, thereby contributing to new knowledge. Findings and implications from the thesis make significant contributions to the existing literature for both academics and practitioners. Limitations are also acknowledged and directions for future research outlined.