The Effect of Entrepreneurial Leadership on Value Creation and Performance of Automotive Parts Manufacturers Businesses in Thailand

Abstract

Entrepreneurial leadership (EL) in automotive parts manufacturing businesses is one of the fast growing research topics in Management. Understanding how EL in automotive parts manufacturing businesses react to value creation, which generats better performance performance is a prime concern for all organizations. Previous research has linked EL characteristics in several competencies and other organizational outcomes. However, only a few studies involved technological competency and other EL dimensions, including personal competency and managerial competency influence to value creation and business performance. Therefore, to fulfil this study gap, the main purpose of this study is to investigate four dimensions of EL that affect value creation and business performance. This study examined value creation as having the role of a mediator that influences the four dimensions of EL and business performance. This study also investigates organizational climate and organizational learning as moderators, which moderate between the four dimensions of EL and value creation influence to business performance. This research applies three theories to draw the conceptual model, including the entrepreneurial leadership theory, contingency theory of leadership, and dynamic capability theory. Automotive parts manufacturing businesses in Thailand have been regarded as population framework of the study. The population of this research is obtained from Thai Autoparts Manufacturers Association (TAPMA database), which listed 616 automotive parts manufacturing businesses. The data were collected by mail survey of questionnaires, which was sent directly to the department managers or general managers of each firm. A total of 235 questionnaires were usable. The structural equation model (SEM) is used to analyze the data.

The results of the study are described as follows. First, the result found that four dimensions of EL which are personal competency, managerial competency, proactive competency, and technological competency have positive effects on value creation. Second, the findings show that managerial competency impacts on business performance. However, personal competency, proactive competency, and technological competency do not effect to business performance. Thrid, the findings indicate that organizational climate is a moderator, which negatively moderate the association between managerial competency and value creation, while organizational learning is found to positively moderate the relationship between managerial competency and valule creation.Forth, the results indicate that value creation partially mediates the interation between EL and business performance. In addition, overall the study outcome shows that the model of the study fits and is consistent to the empirical results.

Grounding on the results of the study, manager and policy maker in automotive parts manufacturing businesses or other can utilize EL via managerial competency, technological competency, personal competency and proactive competency to enhance firm value creation and eventually create better business performance. As well, learning of employees could be continually encouraged and supported for sustainable growth of organization.

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