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The influence of leadership personality on profitability and firm investment in human capital: The case of Vietnamese SMEs

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  • Anh Do, Vu Phuong
  • Bui, Quang Tuyen

Abstract

The current study adds to the literature by examining for the first time the impact of leadership personality on small and medium enterprises (SMEs)' profitability and employee benefits in Vietnam. This study finds that managers with more innovative, internal locus of control, and risk-loving traits are more likely to earn higher profitability and invest in human capital. The findings suggest that by providing training in business skills to owners and managers, human resource specialists may help establish the optimal setting for leadership behaviors that encourage innovation and profitability in SMEs.

Suggested Citation

  • Anh Do, Vu Phuong & Bui, Quang Tuyen, 2022. "The influence of leadership personality on profitability and firm investment in human capital: The case of Vietnamese SMEs," Finance Research Letters, Elsevier, vol. 47(PA).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612322002161
    DOI: 10.1016/j.frl.2022.102960
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    More about this item

    Keywords

    Personality; SMEs; Employee benefits; Firm profitability; Vietnam;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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