Proceedings | Leadership area | Year 2016
 

Sustainable Leadership Practices Driving Financial Performance: Empirical Evidence from Thailand

by Suparak Suriyankietkaew
  
  The Symposium on Sustainable Leadership 2016 in Bangkok

Abstract

Which leadership and management practices drive superior financial performance has become an intriguing question for managers and researchers alike. Numerous leadership concepts for enhancing organizational sustainability have emerged in recent years, but none provides an integrative approach, with the exception of Sustainable Leadership (SL) (Avery & Bergsteiner, 2010, 2011). To respond to this important question and advance current limited knowledge, this empirical research examines the effects of various SL practices on financial performance. Using a cross-sectional survey, data stem from 439 managers in small and medium-sized enterprises (SMEs) in Thailand. Of the 23 SL practices identified by Avery & Bergsteiner (2010, 2011), 16 were significantly associated with corporate financial performance. Four SL practices, in particular, namely amicable labor relations, valuing employees, social responsibility, plus strong and shared vision, were significant drivers, and positive predictors, of enhanced long-term firm performance. Lastly, implications, limitations and future directions are discussed.

Keywords: Leadership; Sustainable Leadership; financial performance; sustainability; SMEs; Thailand