Employee satisfaction and sustainable leadership practices in Thai SMEs

Abstract

Purpose – Given previous findings that employee satisfaction contributes to firm performance and sustainability, this study examined the relationships between 23 leadership/management practices on employee satisfaction. It identified specific practices with significant effects on employee satisfaction. The paper aims to discuss these issues. Design/methodology/approach – Using a theoretical framework and questionnaire derived from Avery and Bergsteiner's Sustainable Leadership Model, data were collected from 1,152 employees in small- and medium-sized enterprises (SMEs) in Bangkok, Thailand. Findings – Overall, adopting sustainable leadership (SL) practices was related significantly to employee satisfaction, consistent with Avery and Bergsteiner's model. Twenty of the 23 SL practices were linked to enhanced employee satisfaction, the exceptions being independence from the financial markets, self-management and environmental responsibility. Specific SL practices predicted enhanced employee satisfaction more than others, the strongest predictor being high staff engagement. Other practices associated with employee satisfaction were: valuing employees, ethical behaviour, considered organizational change, a strong and shared vision, an enabling culture, and quality in products and services. Research limitations/implications – Considerable scope exists for future research into the relationships between individual and bundles of SL practices with employee satisfaction in different national, industry and other contexts. Further limitations are discussed in the paper. Practical implications – Managers of SMEs in Thailand and possibly in other contexts should consider adopting the SL practices shown to significantly enhance employee satisfaction and in doing so help sustain their business success. Originality/value – This study pioneered research into a gap in the literature about the SL and management practices that positively predict enhanced employee satisfaction, an area of importance to both leadership practice and research.

Sustainable Leadership Practices Driving Financial Performance: Empirical Evidence from Thai SMEs

“…However, there are some exceptions: developing people, succession planning, CEO and top-team leadership, considered organizational change, environmental responsibility, stakeholder orientation, and self-management. These SL practices showed no effects on corporate financial performance in this study, which may be explained by the unique characteristics of the SME sample and specific cultural context of Thailand, as identified in previous literature [46,47].…”

“…Although writers highlight the need for strategic macro-views of leadership in addition to the growing literature on individual leader characteristics and behaviors, the emerging SL field is still at an early conceptualization stage. Apart from some case studies [4,5,19,45] and a few quantitative studies [46,47], systematic empirical research into the effects of SL practices on financial performance in firms is limited. Therefore, this study seeks to extend existing knowledge by examining the relationships between all 23 SL practices and corporate financial performance.…”

Corporate Social Responsibility and Population Health

“…Moreover, Chattu points to a case study of CSR on HIV/AIDS in Africa by the Johnson and Johnson Company, which has for many years been involved in projects globally to fight the spread of disease and improve the quality of life of people living with illness through sponsorship of local programmes as well as donations as an example of societal impact through CSR [53]. However, many companies, in a wide variety of contexts, still do not practice CSR [54]. Furthermore, CSR strategies have been implemented in community health through initiatives like healthy workplaces and health community projects [55].…”

Liderazgo basado en el personalismo: una propuesta de investigación

“…Así, se hace factible algo que desde la visión economicista parece irreconciliable y que se convierte en el mayor reto para el líder: que las personas encuentren las condiciones propicias para su desarrollo y, al mismo tiempo, que las empresas sean sostenibles 107 . Esto último supone atender a todos los grupos de interés (stakeholders) 108 y le exige al líder utilizar toda su capacidad y su creatividad.…”