The competitiveness of small and medium enterprises in the tourism sector: the role of leadership competencies

Le Chi Cong,Dao Anh Thu

doi:10.1108/jed-06-2020-0080

Abstract

PurposeThis research aims to adopt competitiveness theory to analyse the effects of leadership competencies on the competitiveness of small and medium-sized enterprises (SMEs) in the tourism sector.Design/methodology/approachThis research collected data from 200 participants, who are in management positions of tourism SMEs in Vietnam. Structural equation modelling was applied.FindingsThe results indicate satisfactory reliability and validity of the constructs and support for two models within a structural equation modelling to evaluate the influence of leadership competencies on the competitiveness of SMEs. The data from both customers and competitors show that the competitiveness and the performance of the enterprise are affected by hands-on experience; relationships building competencies; strategic vision; operations management competencies. Furthermore, customers also value professional knowledge of the enterprises' leaders.Practical implicationsThe study suggests that the government agencies and tourism SMEs themselves should focus more on leadership. Training courses, exchange programs, seminars and workshops should be provided for SMEs leaders to improve their leadership competencies.Originality/valueThe research findings provide a more comprehensive view of internal and external factors affecting the competitiveness of SMEs in the tourism sector in Vietnam. This also contributes to competitiveness and leadership research by presenting the positive linkage between leadership competencies and the competitiveness of SMEs.

Highlights

Research on the competitiveness of enterprises is not a new topic in Vietnam academic field (Tho and Trang, 2009)
This study aims to apply competitiveness theories to analyse leadership competencies affecting the competitiveness of small and medium-sized enterprises (SMEs)
To gather a specific view regarding the influence of leadership competencies on the competitiveness of SMEs in Khanh Hoa tourism sector, a survey was conducted with 250 leaders/managers of SMEs in the province

Summary

Introduction

Research on the competitiveness of enterprises is not a new topic in Vietnam academic field (Tho and Trang, 2009). Despite the differences in the research context, the research results of Goldberg et al (2003) and Robinson (2005) in the context of developed markets as well as Cong and Hai (2015) in the context of the Vietnam market, emphasised the aspects of management competencies of leaders such as the capability to build organisational structure; managing business units; executive competencies; leadership and direction; decision-making competencies; implementing and evaluating, etc These are considered as core competencies of leaders and relate to the competitive advantage of small and medium enterprises. The of SMEs in tourism results show that the observed variables have the appropriate correlation coefficients, which are greater than or equal to 0.3 (≥0.3) (Nunnally and Bernstein, 1994) (see Table 1)

Confirmatory factor analysis

Findings

Conclusion