The Effect of Entrepreneurial Leadership, Value Creation and Automotive Parts Manufacturing Businesses Performance in Thailand

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Wanlee Putsom
Pornlapas Suwannarat
Nitiphong Songsrirote


The purpose of this research is to investigate the effect of four dimensions of entrepreneurial leadership (EL) on value creation and business performance through the leaders’ perspectives. The structural equation modelling (SEM) approach was used to test the credibility of the four dimensions of EL, which are personal competency (PC), managerial competency (MC), proactive competency (PRC) and technological competency (TC). Value creation and business performance models from prior research were used as the source of this research questionnaire for 235 automotive-parts manufacturers in Thailand. The questionnaire contains thirty-eight items included twenty-eight items on EL, five items on value creation and five items on business performance. The outcomes revealed that the conceptual model generated had a good fit with construct relationships and empirical data results. These data were further investigated within the questions dealing with construct and model relationships by using the explanatory multiple analysis. The results showed that the strong effects of EL and business performance noted are mediated by value creation. It was established that leaders in automotive parts businesses have a chance to influence existing skills and competency that create more value to move toward superior business performance and outcomes. This study concludes and describes the implications of the data for future research in EL theory.

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