Vision‐based leadership: relationships and consequences in Thai and Australian retail stores

Abstract

PurposeThe purpose of this paper is to examine relationships between vision‐based leadership components, and customer and staff satisfaction in Thai and Australian retail stores.Design/methodology/approachTwo models are derived from the literature. The first model expressing relationships among vision, store manager passion and staff vision sharing and staff and customer satisfaction is tested in Thai retail stores. The second model expressing relationships among vision attributes, motivation of staff and store manager passion, staff vision guiding and staff and customer satisfaction is tested in Australian retail stores. Regression analyses are adopted.FindingsStore visions characterize by brevity, clarity, future orientation, stability, challenge, abstractness and ability to inspire and containing references to sales, customer, employee and leadership indirectly predict improved customer satisfaction in Thai retail stores. In Australian retail stores, visions with the same characteristics as well as staff using vision to guide their store operations directly predict improved customer satisfaction. Vision effects on staff satisfaction are negative. Store manager passion for vision and staff vision sharing indirectly predict improvements in both staff and customer satisfaction in Thai retail stores. In Australian retail stores, store manager visions with the seven attributes, motivation of staff, store manager passion for vision and staff using vision as a guide for their store operations directly predict staff satisfaction. Staff satisfaction also indirectly predicts improved customer satisfaction in both Thai and Australian studies.Practical implicationsThai and Australian store managers should develop a vision characterized by the seven attributes. Thai and Australian store managers should be passionate about their visions, support their visions by actions and act consistently with their visions.Originality/valueWhile vision is core to vision‐based leadership theories, little is known about what characterizes an effective vision. Moreover, roles of follower use of vision in improving performance have been little investigated. The present paper contributes to these areas.