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Does leadership personality affect business risks? New evidence from Vietnamese small and medium-sized enterprises

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Listed:
  • Do Vu Phuong Anh

    (Vietnam National University, Hanoi)

  • Mai Thanh Lan

    (ThuongMai University)

  • Bui Quang Tuyen

    (Vietnam National University, Hanoi)

  • Ta Huy Hung

    (Vietnam National University, Hanoi)

Abstract

The current study contributes to our body of knowledge by evaluating for the first time how a leader’s personality affects risk for small and medium-sized enterprises (SMEs) in Vietnam. According to the findings, managers with a strong aptitude for innovation are more likely to lower business risk by boosting labor productivity and revenue, enhancing inter-firm communication, and lowering stakeholder risks, such as corruption. In contrast to the influence of a manager with a risk-taking attitude, a leader’s external locus of control is inversely related to firm risk. The results show that training owners and managers in business skills can help human resource professionals create the best environment for leadership behaviors that improve firm performance and lower risk in SMEs.

Suggested Citation

  • Do Vu Phuong Anh & Mai Thanh Lan & Bui Quang Tuyen & Ta Huy Hung, 2024. "Does leadership personality affect business risks? New evidence from Vietnamese small and medium-sized enterprises," Risk Management, Palgrave Macmillan, vol. 26(2), pages 1-27, May.
    • Handle: RePEc:pal:risman:v:26:y:2024:i:2:d:10.1057_s41283-024-00140-w
    DOI: 10.1057/s41283-024-00140-w
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