The impact of leadership competences, organizational learning and organizational innovation on business performance

Abstract

PurposeThis study aims to investigate the effects of leadership competences (cognitive, interpersonal, and results-oriented competences) on organizational learning, organizational innovation, and business performance.Design/methodology/approachData were collected from owners, chief executive officers, top and middle management teams, and other managers of tourism and hospitality firms in Vietnam. A total of 638 valid responses was collected and processed using PLS-SEM technique.FindingsThe findings revealed that only results-oriented competence exerted significant influences on business performance. Organizational learning was affected by all three leadership competences, while only cognitive and interpersonal competences positively affected organizational innovation. The relationships among organizational learning, organizational innovation, and business performance were also confirmed. Moreover, the findings emphasized the mediating roles of organizational learning and organizational innovation in the relationship between leadership competences and business performance. Organizational learning and organizational innovation also acted as a mediator in the relationship between cognitive competence and business performance.Practical implicationsThis study provided some suggestions for tourism and hospitality leaders in exhibiting appropriate leadership competences, strengthening organizational learning, and fostering organization innovation to enhance business performance.Originality/valueAlthough the topics of leadership competences, organizational learning, organization innovation, and business performance have received a great concern among worldwide academia, there is scarce research examining the relationships among these four phenomena together. This paper is among the first study that offers a comprehensive model of the relationships among these domains.