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EFFECTS OF LEADERSHIP STYLE ON FRONTLINE EMPLOYEES’

COMMITMENT TO SERVICE QUALITY - A STUDY AMONG


VIETNAMESE USERS

1. Nguyen Thanh Tri, International University, Vietnam National University, Ho Chi Minh
City, Vietnam
E-mail: tringuyen15ntt@gmail.com

2. Vo Thi Huong Giang, International University, Vietnam National University, Ho Chi Minh
City, Vietnam
Email: huonggiangxu1@gmail.com

3. Bui Quang Thong, International University, Vietnam National University, Ho Chi Minh
City, Vietnam
Email: bqthong@hcmiu.edu.vn

Keywords: “Management commitment”, “service quality”, “participative leadership”,


“empowering leadership”, “shared values”, “role clarity”, “employees’ commitment”,
“leadership styles”, “job satisfaction”

INTRODUCTION
It is noticeable that Food and beverage (F&B) section has increasingly developed as a
consequence of the population growth. In Vietnam, the out-of-home consumption for this section
constituted over 72% of the total F&B market (USAD Foreign Agricultural Service, 2017). Indeed,
Vietnam’s F&B industry was estimated at 15 percent of GDP and valued approximately 30 billion
USD (Vietnamnet News, 2017; Nielsen Vietnam, 2016). In this industry, service quality plays an
important role in customer satisfaction. To attain a good service quality, employees are supposed to
commit to work their best because of it. Therefore, how to increase employees’ commitments to
service quality is vital to F&B firms.
Therefore, the aims of this paper are to contribute greatly to both foreign and Vietnamese
firms on how corporate levels and Human Resources Department should manage employees,
especially frontline employees as well as introduce new strategies to maximize their profits while
maintaining good employees’ loyalty and performance through suggested factors.

LITERATURE REVIEW
Management commitment to service quality
Ahmed and Parasuraman (1994) and Hartline and Ferrell (1996) refer to an compromise and
acceptance of thoughts of leaders to prompt those subordinates to follow company’s policies about
food quality. What’s more, commitments from corporate levels would encourage managers to
critically lead (Arnett, Laverie, & McLane’s study, 2002; Babakus, Yavas, Karatepe, and Avci,
2003). Having an agreement of this idea, Bass (1981); Bowen and Schneider (1985) states that for
those of leaders who have strong commitments of corporate policies tend to enable employees to be
more engaged and those leaders have a perspective of mutual benefits and collaborative spirit,
which is related to participative leadership styles and empowering leadership styles. Therefore, we
suggest
H1: A change of “management commitment to service quality” would positively lead to a change
of “Participative leadership styles”
H2: A change of “management commitment to service quality” would positively lead to a change
of “Empowering leadership styles”
Empowering leadership styles

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There is a similar point from studies of Conger & Kanungo (1988), Quinn (1999), Cooke
(2000) that the behavior indicates a strengthening of employees’ power towards their works. In this
case, waiters or waitresses might be able to resolve customers’ unsatisfied things without a waiting
time of asking and responding answers from their supervisors. In food and beverage services,
customers are very sensitive. Their feelings are hardly measurable. Therefore, selling services is
definitely a form of arts in which frontline employees might be viewed as artists. When these artists
have more freedom in making decisions, simultaneously, frontline employees might feel being
listened and respected, they would tend to follow what the company implements. We suggest
H3: A change of “empowering leadership styles” would positively lead to a change of “Shared
Values”.
Participative leadership styles
Mullins (2005), Bass (1981) and Yousef (2000) explain that the term refers to engagements of
employees in decision making process. While Bass only mentions elements related to emotion
statuses of a person, the definition of Mullins includes mental awareness and critical thinking of a
person. Particularly, there is a deeply strong desire to contribute of every single individual (Mullins,
2005). It is reasonable to provoke frontline employees’ desires of contribution and enjoyment while
doing at work by enabling them to join into the company’s services. As a result, once waiters or
waitresses have a sense as a part of the company, it is possible that company would easily get what
shareholders want. In light of this, we suggest
H4: A change of “participative leadership styles” would positively lead to a change of “Shared
Values”.
Shared values
Summarize from previous studies such as McKee (2000), Hitt (1988) and Purcell (2003), the
term indicates how employees realize their benefits and tend to support back to their firms. There is
a consistency between thoughts and behaviors. For those of employees want to share firm’s
products, there must be a good awareness of their scope and responsibilities. In other words, those
actions are directly exposed by their perspectives and thinking. Berry (1985) proves when a waiter
knows he is recognized and appreciated by his company, he is probably happier and positively
contribute back to his company so that the company can benefit from the employees. They also tend
to serve customers better and even smile more.
H5: A change of “Shared Values” would positively lead to a change of “Role clarity”.
H6: A change of “Shared Values” would positively lead to a change of “Employees’ commitment
to service quality”.
H7: A change of “Shared Values” would positively lead to a change of “Job satisfaction”
Role clarity
Ruyter (2001) literally defines the term as interpretations and understandings between
superiors and subordinates, while Teas (1979) refers the concept considering employees’ desires to
be trained carefully. Likewise, Zajac (1990) and Singh (2000) state that it will be dangerous for a
firm if its employees do not really understand what they are supposed to do at work. Research
reveals that once waiters or waitresses understand work features and expectations of their
supervisors, they tend to have a sense of belonging and satisfaction. As a result, when service
providers know how to do their jobs, customers are easily get what they want. Consequently, H8
and 9 is suggested as follows
H8: A change of “Role clarity” would positively lead to a change of “Job satisfaction”
H9: A change of “Role clarity” would positively lead to a change of “Employees’ commitment to
service quality”.
Job satisfaction
Meanwhile Locke (1976) refers the concept associated with enjoyments, Edward and
Scullion (1982) raise the concept up to a higher level of working manners related to reception and
pleasure at the workplace. It can be seen that satisfying employees is always a good choice of
companies for good performance rather than let them depressed (Boshoff & Allen, 2000).
Therefore, we suggest

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H10: A change of “Job satisfaction” would positively lead to a change of “Employees’ commitment
to service quality”
Employees’ commitment to service quality
Cheng (2013) defines that it is the perception of customers toward the quality of provided
service with good or bad standards of personal criteria. Likewise, it is stated as correlations between
positive and negative products, anticipation and perception (Chuang and Hsu 2012; Parasuraman,
Zeithaml & Berry 1985; Ho and Su 1995); whereas, Hong (1999) claimed service quality is a much
more complicated issue related to marketing area in Food and Beverage industry.

Based on following reviews, we suggest following conceptual model

Figure 1: Conceptual Model (Ronald A. Clark, Michael D. Hartline and Keith C. Jones,
2008)

METHODOLOGY
The survey questionnaire has been constructed based on measurement scales of previous
studies (see appendix) within a month from the beginning of September to the beginning of October
in 2017 after a pilot test. The research targets workers between 18 – 40 because an overwhelming
majority of frontline employees in Food & Beverage companies not only is legally workable, but
also are young adults who are likely to be active. Surveys collected as the sample were chosen
from those of people who were currently working at both full-service restaurants and quick-service
restaurants or stores such as FKC, Lotteria, Highland, Starbucks, Burger King and so on. Through
online surveys thanks to Facebook, Gmail and offline sites, there are 400 valid responses out of
479.

RESULTS
The table below illustrates demographic collections and separations. There are productive
outcomes between these data and the final model.

Details Frequency Percentage


Male 252 63%
Gender
Female 148 37%
Male 174 43.5
Supervisor’s gender
Female 226 56.5
18-22 282 70.5
23-30 99 24.8
Age
30-35 16 4.0
over 35 3 .8
Type of occupation Part time 323 80.8

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Full time 77 19.3
1 job 324 81%
2 jobs 60 15%
Total jobs respondent works
3 jobs 16 4%
Over 3 jobs 0 0%
12/12 155 38.8
College or equivalents 176 44.0
Education level
University 63 15.8
Others 6 1.5
Ownership type of the Franchising 272 68%
company Exclusive 128 32%
Full-service
137 34.3
restaurants
Type of restaurants/stores
Quick-service
263 65.8
restaurants
Under 2 months 42 10.5
Working experiences in the 2 – 6 months 138 34.5
company 6 - 12 months 128 32.0
Over 1 year 92 23.0
Under 2 months 40 10.0
Working experiences in the 2 – 6 months 113 28.3
F&B services 6 - 12 months 152 38.0
Over 1 year 95 23.8
Under 1.5 millions 137 34.3
1.5 - 3 millions 118 29.5
Income
3 – 5 millions 64 16.0
Over 5 millions 81 20.3

Table 1: Demographic Analysis

Reliability analysis test is a measure showing how results are whether consistent and reliable
or not through analysis of Cronbach’s Alpha. Nguyen Dinh Tho (2011) proves that each factor
having greater than 3 items and range from 0.6 – 1.0. Management commitment to service quality
has 07 items with Crobach’s alpha 0.877; Participative leadership style has 04 ones with 0.815;
Empowering leadership style, Shared customer-oriented values, Job satisfaction, Role clarity,
Employee commitment to service quality has 06, 06, 05, 14, 09 items and 0.868, 0.858, 0.836,
0.915, 0.889 respectively. The research, as a result, is strongly reliable.
Explanatory Factor Analysis (EFA) is to determine the validities of scale of each variable as
well as group items in order to improve its validity. 47 out of 51 items are left and divided into 7
groups after to 3rd time running, SPPS shows KMO = .905 and Barlett test has Sig.= .000 (< .05),
eigenvalue = 1.517, there are 7 extracted components from 47 items with total variance 60.033% (>
50%). In addition, there are not any new factors generated compared to initial model. This test is
well valid.
Confirmatory factor analysis (CFA) aims at analyzing and illustrating relations between
variables through a software AMOS. The data shows that Chi-square = 1648.531; df = 1013;
p= .000 ; CMIN/df = 1.627 (good < 2); GFI = .850; CFI = .930 and TLI =.925 (acceptable ≥ .90);
RMSEA = .040 (good < .08) after testing fitness of the model. This data is relatively satisfied.
Other tests are convergent measure, in which the results have all p-values less than 0.000;
estimates of Standardized Regression Weights are 0.616 - 0.871 (>0.50); divergent test shows all
figures for S.E are less than 0.5 and for P-values are greater than 95%; composite reliability indices
are range from 0.836 to 0.923 (≥ 0.70) as well as AVE ranged from 50.1% to 64.5% (≥ 50%).

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Structural Equation Modeling (SEM) has been built to test correlations of latent factors
accompanied by weights of them based on structural model. Although Chi-square has p = 0.000
(Chi-square = 1833.085) but Chi-square adjusted by CMIN/df is 1.790 (satisfied < 2.00). The rest of
results with Chi-square = 1833.085; df=1024; p=.000; CMIN/df= 1.790; GFI =.834; CFI = .911;
TLI= .906; RMSEA=.045 are acceptable. After all, 9/10 hypothesis have been accepted, but H8.
Finally, Bootstrap test plays an important role of proving whether sample is representative to
the population. All p-values are significantly nearly 1, which is definitely greater than 0.5 that final
model has representative features of population in the industry.

DISCUSSIONS
In terms of management, corporate levels are highly recommended to introduce policies that
allow frontline employees to join into conversations with corporate levels. Supervisors are supposed
to listen to their employees more and try to create opportunities for employees to contribute their
opinions or ideas rather than only use commands and obedience. In addition, employees are likely
to be happier and work with enjoyments if they have little power in decision making process.
Although Vietnam has a high index of power distance (Hofstede, 2010), leaders can change
perspectives and manners make employees feel better and contribute more. The more profits the
company gets, the greater amount of money regarding salaries managers and employees will have.
Moreover, if employees are happy, supervisors will have less pressure and operating process will
have less mistakes. Furthermore, training process must be viewed and conducted carefully to help
employees understand what they should do and what the company expect them to follow, so that
quality of company’s services will increase and attract more customers as well as earn more market
shares. Besides, supervisors should encourage and give compliments more than shouting at
employees. Managers at levels are supposed to help employees see they are respected as members
in a family rather than literal labor forces or employed.
Another worth mentioning point in regard with employees feeling, a majority of them hope
to be listened more than automatically work. Appropriate leadership styles would provoke feelings
of responsibilities and attachments to the company. In short, it must be flexible to apply
managements strategies to frontline employees so as to improve their efficiency.

CONCLUSION
Owing to a rare source of previous research studies mention to leadership manners on
quality of food and beverages services and considering both Vietnamese culture and thoughts,
therefore, the thesis would be valuable for corporate levels and Human Resources Departments in
managing frontline employees in an effective and efficient way, that can increase company
profitability for service businesses. Additionally, statistics show that the Vietnamese government,
especially Ho Chi Minh City states have been focusing on increasing service sector, compared to
industry and agriculture, therefore, this paper can be exploited to understand expectations as well as
working attitudes of frontline employees in supporting decision making process of corporate levels.
Over the past 22 years from 1986, since Vietnam’ economy has been transferred into market
economy, playgrounds for firms and multinational corporations have integrated and invested
substantially because of a lot of competitive advantages from a developing country for them.
However, old thoughts of Vietnamese leadership styles might prevent developments of firms and
make Vietnamese businesses have less opportunities to be launched globally. Moreover, the
manners have been influenced by Eastern culture which is seems reserved in high context culture,
thus, waiters or waitresses consequently tend to have low voices with their superiors. But they are a
set of images of companies because they face to face with customers everyday and customers would
come back or not depending mostly on these labor forces. Furthermore, service businesses are a
form of enjoyments which is hardly to measure customers satisfaction. Except foreign guests,
service companies rarely receive feedbacks or comments from customers owing to eastern cultural
behaviors. In a nutshell, managing frontline employees performance in order to increase service

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quality should be considered as a crucial role in decision making process of service business-related
companies, especially in Food and Beverage services.
As can be seen from the completed model, an overwhelming majority of frontline
employees are expecting to be treated closely and friendly by supervisors. They have desires to
contribute ideas, hope to be listened and trusted in some ways. Once they can perceive and
understand their values which are also perceived and recognized by companies, they would love
and deeply stay with organizations. As a result, these employees will work harder, contribute more
and less change workplaces. Afterwards, customers would more satisfy with company services.
Next results, company would get more money and be able to pay higher wages for their employees.
For these reasons, the company and employees should have close-knit correlations in stead of
separate relationships such as individuals with commands and obedience. On the other hand, the
employees seem less realize relationships between “role clarity” and “job satisfaction”. It implies
that to increase “job satisfaction”, employers should consider other factors such as incentives,
recognitions, etc

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APPENDIXE

Measurement Scales:

No. of
Variables Coding Sources
items
Management commitment to service “Mowday, Steers, and Porter
MCSQ 09 items
quality (1979)”
Participative leadership style PLS 04 items “Cook et al. (1981)”
Empowering leadership style ELS 06 items “Cook et al. (1981)”
Shared values SV 07 items “Enz (1986)”
“Chonko, Howell, and
Role clarity RC 17 items
Bellenger (1986)”
Job satisfaction JS 05 items “Brown and Peterson (1993)”
“Mowday, Steers, and Porter
Employee commitment to service quality ECSQ 09 items
(1979)”

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