Transformational Leadership and Human Resource Management for Operational Efficiency in Small and Medium Enterprises
Article Sidebar
Main Article Content
Abstract
This research article aims to study (1) the second-order confirmatory factors of operational efficiency in small and medium enterprises in Thailand, and (2) the influence of transformational leadership and human resource management on operational efficiency in SMEs in Thailand. It is quantitative research. The population consists of employees working in SMEs in Thailand, totaling 12,828,236 individuals. A convenience sampling method was employed, a sample size of 580 respondents test the hypotheses, using and multiple regression analysis, second-order confirmatory factor analysis.
Finding are as follows: (1) The operational efficiency of SMEs in Thailand can be broken down into four key factors: For outcomes, the most significant factor was efficient use of resources For processes, the most significant factor was work accuracy For human resources, the most significant factor was employee job satisfaction For organizational structure, the most significant factor was the focus on achieving organizational goals, and (2) Transformational leadership has
a statistically significant influence on the operational efficiency of SMEs in Thailand, with
a coefficient of 0.68 and a predictive power of 86%. Human resource management also has a statistically significant influence on operational efficiency, with a coefficient of 0.17 and
a predictive power of 21%.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Academic articles, research articles, and book reviews in the Ph.D. in Social Sciences Journal are author’s opinions, and not the publisher’s, and is not the responsibility of the Ph.D. in Social Sciences Journal Philosophy Association, Ramkhamhaeng University. (In the case that research is done on human, the researcher has to be trained in Ethics for Doing Research on Human Training and has to produce the evidence of the training).
References
Ahmed, K., & Chowdhury, T. A. (2009). Performance evaluation of SMEs of Bangladesh. International journal of Business and Management, 4(7), 126-133.
Ahmad, M., & Ejaz, T. (2019). Transactional and transformational leadership impact on organizational performance: Evidence from textile sector of Pakistan. European Online Journal of Natural and Social Sciences, 8(2S), 97-103.
Al Khajeh, E. H. (2018). Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 2018, 1-10.
Al-Abrrow, H. (2014). Transformational leadership and organisational performance in the public healthcare sector: The role of organisational learning and intellectual capital. Irish Journal of Management, 33(1), 27-48.
Al-Hawary, S. I. S., & Shdefat, F. A. (2016). Impact of human resources management practices on employees’ satisfaction: A field study on the Rajhi cement factory. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(4), 274-286.
Ameh, O. J., & Daniel, E. I. (2017). Human resource management in the Nigerian construction firms: Practices and challenges. Journal of Construction Business and Management, 1(2), 47-54.
Aubry, M., & Hobbs, B. (2011). A fresh look at the contribution of project management to organizational performance. Project Management Journal, 42(1), 3-16.
Bass, B. M. (1985). Leadership: Good, better, best. Organizational Dynamics, 13(3), 26-40.
Bass, B. M., & Avolio, B. J. (Eds.). (1994). Improving organizational effectiveness through transformational leadership. Sage.
Bass, B. M., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Psychology Press.
Bycio, P., Hackett, R. D., & Allen, J. S. (1995). Further assessments of Bass’s (1985) conceptualization of transactional and transformational leadership. Journal of Applied Psychology, 80(4), 468-478.
Cengiz Toklu, M., & Taşkin, H. (2017). Performance evaluation of small-medium enterprises based on management and organization. Acta Physica Polonica A, 132(3), 994-998.
Chams, N., & García-Blandón, J. (2019). On the importance of sustainable human resource management for the adoption of sustainable development goals. Resources, Conservation and Recycling, 141, 109-122.
Cotes, J., & Ugarte, S. M. (2021). A systemic and strategic approach for training needs analysis for the International Bank. Journal of Business Research, 127, 464-473.
Garengo, P., Biazzo, S., & Bititci, U. S. (2005). Performance measurement systems in SMEs: A review for a research agenda. International Journal of Management Reviews, 7(1), 25-47.
Hansen, E. B., & Bøgh, S. (2021). Artificial intelligence and internet of things in small and medium-sized enterprises: A survey. Journal of Manufacturing Systems, 58, 362-372.
Howell, J. M., & Avolio, B. J. (1993). Transformational leadership, transactional leadership, locus of control, and support for innovation: Key predictors of consolidated-business-unit performance. Journal of Applied Psychology, 78(6), 891-902.
Igbaekemen, G. O., & Odivwri, J. E. (2015). Impact of leadership style on organization performance: A critical literature review. Arabian Journal of Business and Management Review, 5(5), 1-7.
Jorgensen, F., Hyland, P. W., & Kofoed, L. (2008). Examining the role of human resource management in continuous improvement. International Journal of Technology Management, 42(1-2), 127-142.
Kamau, S. M. (2016). Performance measurement practices and operational performance of manufacturing firms in Kenya. Master’s Research Project of Business Administration, University of Nairobi.
Lashari, R., & Rana, A. H. (2018). The impact of transformational leadership and social interaction on organizational performance in the viewpoint of knowledge management: An empirical study in banking sector of Pakistan. International Journal of Organizational Leadership, 7, 383-397.
Lee, J. G., Park, Y., & Yang, G. H. (2010). Driving performance improvements by integrating competencies with human resource practices. Performance Improvement Quarterly, 23(1), 71-90.
Office of Small and Medium Enterprises Promotion. (2023). MSME situation report 2023. Retrieved from https://bds.sme.go.th/Files/f5e20d92-138e-48f2-a29f-5a6c3a37cfd0.pdf [In Thai]
Ogunyomi, P., & Bruning, N. S. (2016). Human resource management and organizational performance of Small and Medium Enterprises (SMEs) in Nigeria. The International Journal of Human Resource Management, 27(6), 612-634.
Özer, F., & Tınaztepe, C. (2014). Effect of strategic leadership dtyles on firm performance: A study in a Turkish SME. Procedia–Social and Behavioral Sciences, 150, 778-784.
Prabhu, H. M., & Srivastava, A. K. (2023). CEO transformational leadership, supply chain agility and firm performance: A TISM modeling among SMEs. Global Journal of Flexible Systems Management, 24(1), 51-65.
Rasool, S. F., Samma, M., Anjum, A., Munir, M., & Khan, T. M. (2019). Relationship between modern human resource management practices and organizational innovation: Empirical Investigation from banking sector of China. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 10(19), 1-11.
Ren, S., & Jackson, S. E. (2020). HRM institutional entrepreneurship for sustainable business organizations. Human Resource Management Review, 30(3), 100691.
Samad, S. (2012). The influence of innovation and transformational leadership on organizational performance. Procedia–Social and Behavioral Sciences, 57, 486-493.
Sanchez-Ruiz, L., & Blanco, B. (2019). Survey dataset on reasons why companies decide to implement continuous improvement. Data in Brief, 26, 104523.
Tarasansombut, V., & Puranitee, C. (2022). Human Resource Development for Competitive Advantage in Small and Medium Enterprises in Bangkok Metropolitan Region. Journal of Management Science Nakhon Pathom Rajabhat University, 9(2), 92-110. [In Thai]
Turner, M., Sermcheep, S., Anantasirijkiat, S., & Srisangnam, P. (2016). Small and medium-sized enterprises in Thailand: Government policy and economic development. Asia Pacific Journal of Public Administration, 38(4), 251-269.
Uthairat, N., Nami, M., & Sukato, N. (2023). The Importance of driving Thai small and medium enterprises from an exporter to multinational enterprise. Journal of Management Science Nakhon Pathom Rajabhat University, 10(2), 142-155. [In Thai]
Wickham, P. A. (2001). Strategy entrepreneurship: A decision-making approach to new venture creation and management (2nd ed.). Financial Times/Prentice Hall.
Wikhamn, W. (2019). Innovation, sustainable HRM and customer satisfaction. International Journal of Hospitality Management, 76, 102-110.
Yaghoubi, H., Mahallati, T., Moghadam, A. S., & Fallah, M. A. (2014). Transformational leadership: Enabling factor of knowledge management practices. Journal of Management and Sustainability, 4(3), 165-174.
Yamane, T. (1973). Statistics: An introductory analysis (3rd ed.). Harper & Row.
Zehir, C., Gurol, Y., Karaboga, T., & Kole, M. (2016). Strategic human resource management and firm performance: The mediating role of entrepreneurial orientation. Procedia–Social and Behavioral Sciences, 235, 372-381.
Zheng, C., Morrison, M., & O’Neill, G. (2006). An empirical study of high performance HRM practices in Chinese SMEs. The International Journal of Human Resource Management, 17(10), 1772-1803.
Zhu, J., & Huang, F. (2023). Transformational leadership, organizational innovation, and ESG performance: Evidence from SMEs in China. Sustainability, 15(7), 5756.