Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.

An Improved Organizational Performance

Influenced by Leadership Styles and
Innovation: A Case Study of Hotel
Industry in Thailand
Vissanu Zumitzavan, Ph.D.
Mahasarakham Business School, Mahasarakham University
Mahasarakham Business School (MBS), Mahasarakham University, Kantharawichai,
Khamriang ,Mahasarakham, 44150, Thailand.
vissanu.z@acc.msu.ac.th

Sarinthree Udchachone
Department of Management, Essex Business School, University of Essex, UK
sudcha@essex.ac.uk

Varit Intrama, Ph.D.

Mahasarakham Business School, Mahasarakham University
Mahasarakham Business School (MBS), Mahasarakham University, Kantharawichai,
Khamriang ,Mahasarakham, 44150, Thailand.
varit.i@acc.msu.ac.th

Abstract - This research aims to investigate
the relationship between leadership styles,
innovation and organisational
performance. A quantitative approach will
be applied to analyse the data. This
research seeks to investigate the
relationship between leadership styles,
innovation, and organisational
performance. In addition, the mediation
will also be analysed to understand to
what extents the leadership styles and
innovation may be related to the
organisational performance. Hence, this
research aim to designate the effective
leadership styles of the managers and how
they should contribute to creating a
conductive environment to encourage
innovation in the organisation, and in turn
improve organisational performance.
Keywords - Organisational Performance,
Leadership styles, Innovation.
I. INTRODUCTION
Welcome to the digital age, the success
of an organisation in a world of tentative
market is directly associated with ways of
innovative leaders managing in the digital
economy. Business requires managers
composing impacts by competing
successfully in the context of globalisation .
Scholars have proposed the concept of
organisational learning to enhance
organisational performance in which
managers encourage a learning environment
within their organisations; knowledge
therefore needs to be distributed at every
level of the organisation. In addition, in
small firms, managers are the key persons in
making day-to-day decisions, and they are
considered as the most imperative drivers of
success in enabling firms to achieve their
organisational goals . This strengthens that
the decisiveness of the manager is an
essential contribution towards organisational
success .In particular, managers are
instrumental in creating an organisational
ethos of learning for each member of the
 An improved Organisational Performance Influenced by Leadership Styles
and Innovation: A Case Study of Hotel Industry in Thailand
organisation . Furthermore, establishing and
sharing a company ethos and culture is seen
as a desirable outcome for organisational
success. This is that attempting to secure the
best from employees through direct
supervision is at best costly and often simply
unattainable . A number of researchers have
emphasised that leadership is most
significant in organisations seeking to
transform themselves through organizational
learning . Handy highlighted that managers
play an important role in contributing
knowledge and encouraging a learning
environment in the organisation. Similarly,
Senge said that the sort of changes needed in
the creation of organisational learning are
extremely challenging and would need “real
leadership”.
II. LITERATURE REVIEWS
Based on the Resources Based View
-RBV, internal capabilities enhance
competitive advantage and performance.
For example, a system of knowledge
and a system of learning increase
competitive advantage through innovation
and strategic linkage of products . Georgellis
et al. discovered that innovation in products
and services are connected to providing
competitive advantage. While the system
may be restricted by the managers’ prior
experience, Brush and Chaganti emphasise
that the managers’ human capital is expanded
through the introduction of systems of
organising. Occasionally these systems are
adopted from formal training to address
specific problems such as quality, from
customers or business support agencies, or
from specific techniques such as HRM
policies .
One of the challenges in the tourism
and hospitality is a people-business requiring
a large number of organisational members
committed to penetrating customers’ needs .
Furthermore, the manager is the key person
who can make an impact to compete
successfully in the dynamic world economy.
Especially in Asia, where regulations are not
as stringent in others developed economies
p. 218. According to Williams, he predicted
8
that in 2017 the most jobs in voyage and
tourism industry are from Asia: China, India,
Japan, Indonesia and Thailand in
respectively . It clearly sees since Thailand is
gaining business opportunities for service
sector under ASEAN Economic Community:
AEC. Thai businesses have good prospects
following the gradual reductions in goods,
services, trade facilitation, although the pace
of liberalisation is slower than targeted .
Chung-Herrera et al. verified that
leadership is often raised as a core
competency in the hospitality arena. They
believed that leadership interconnections can
be asserted by the development of the
competency model. Moreover, Michie and
Sheehan found that different leadership
styles may lead to different levels of
organisational performance. At the same
time, Mabey found that different leadership
styles may create different levels of the
innovation. Hence, this may indicate that
different leadership styles with different
levels of creating innovation in the
organisation may lead to different levels of
organisational performance.
More specifically, scholars have
indicated that leadership styles, innovation
and performance are important and
interrelated variables contributing to
organisational performance and thus there is
a critical need to examine these
relationships . Leadership may be observed
as part of a learning process taking place
through carrying out day-to-day
responsibilities and in turn influencing to
create innovation and leading to increase the
organisational performance. Hence, adopting
appropriate Leadership Styles may help to
relocate and hearten learning in the
organisation and this would lead to creating
the innovation and improving employees’
skills, which in turn could improve
organisational performance overall.
III. LEADERSHIP STYLES
It is widely accepted that the managers,
as leaders, play key parts in ensuring
organisational learning. Highlighting this key
Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.D
role, Senge p. 321 asserted that “the
neglected leadership role is that of the
designer of the ship; no one has a more
sweeping influence on the ship than the
designer”. Leaders also face the task of
developing and sustaining fundamental
change in order to encourage learning in the
organisation. Daft suggested that the
leader’s role in the process of organisational
learning can be divided into three distinct
roles: to create and share vision; to design an
appropriate horizontal structure to help to
achieve this vision; and to act as “servant
leaders”; servant leadership facilitates the
growth, goals, and empowerment of
followers. Additionally, research underlined
that transformational forms of leadership are
particularly important in promoting
organisational learning (Bass 1985b; Bass
and Avolio, 1989, Gleue, 2002).
It has been suggested that the
transformational leadership approach is more
effective than others in creating change in an
organisation compared with transactional
leadership. In recent literature, Bass and
Avolio are widely acknowledged for
developing these new leadership concepts.
According to Bryman , their basic ideas are
heavily influenced by Burn’s work. Burn
believed that transactional leadership is more
common place than is transformational
leadership, if less dramatic in its
consequences. Bass however, further
developed the concepts of transactional and
transformational leadership. He established
them as two separate theories and
distinguished the different features for
transformational and transactional leadership
. behaviour, anticipate problems and take
Bass proposed that transformational
leaders are likely to make their employees
trust, respect, and admire them by
concentrating on idealised influence,
individualised consideration and
inspirational motivation, which in turn,
implies serving as a charismatic role model
and expressing a vision that could be created.
It also suggests a need for intellectual
stimulation, defined as questioning old
assumptions and the status quo [32, 33]. This
leadership style describes the managers
likely to focus on higher motivation
development and motivate the subordinate’s
motivation by inspiring vision of the future .
Elaborating further, transformational
leadership theory could be considered a form
of behavioural theory. It is based on the
premise that leadership could be learned [33,
36]. More importantly, there is substantial
evidence indicating that transformational
leadership helps to increase higher levels of
individual performance . For example, Judge
and Piccolo (2004) established that managers
at Federal Express who were rated as
transformational received higher
performance evaluation. However, Yukl
argued that Bass and Avolio’s leadership
theory would be more prominent if the
essential influence processes were identified
more clearly and used to explain how each
type of behaviour affects each type of
mediating variable and outcome.
Compared to transformational
leadership approach, transactional leadership
is recognised as the traditional management
function of leading . There are three key
dimensions making up transactional
leadership namely contingent rewards,
management by exception-active and
management by exception-passive.
Contingent rewards refer to the degree to
which the leader sets up constructive
transactions or exchanges with subordinates.
Transactional leadership clarifies
expectations and establishes the rewards for
meeting these expectations. On the other
hand, management by exception-active refers
to managers who monitor subordinates’
corrective actions before the behaviour
creates serious difficulties. In contrast,
management by exception-passive means
that the managers will take action when the
behaviours of their subordinates have already
produced problems .
Managers who have this leadership
style are less likely to support their
employees in terms of developing their
skills. Instead they prefer to provide
appropriate rewards and focus on clarifying
 An improved Organisational Performance Influenced by Leadership Styles
and Innovation: A Case Study of Hotel Industry in Thailand
the role and task requirements of employees
and initiate structure (Kuhert, 1994). These
attributes of transactional leadership could
lead to an increase in organisational
performance as researchers have also
suggested that managers with this leadership
style are likely to be diligent and broad-
minded. They are more concerned with the
efficiency of the tasks than building
members’ abilities. They often stress the
impersonal aspects of performance such as
plans, schedules and budgets. They also tend
to follow the organisational norms and
values (Daft, 2000). Nonetheless, some
studies have found both positive and
negative correlations between transactional
leadership and performance (Jens and
Kathrin, 2007).
In comparison to transformational and
transactional leadership, laissez-faire or non-
leadership describes managers who are
neither task oriented nor people oriented.
They let their subordinates work on their
own. They avoid making decisions, often
hesitating to take action and are more likely
to be absent when needed. Laissez-faire
leadership is also related to management by
exception-passive leadership (Judge and
Piccolo, 2004). It appears that they are not
highly motivated, their power only comes
from their position in the organisation but
they are less likely to carry out their
responsibilities. Almost inevitably, laissez-
faire leadership is likely to result in
damaging consequences for the working
environment, health and well-being of
employees .
To conclude, Bass and Avolio’s
approach to leadership is arguably one of the
most prominent theories in contemporary
research. It provides much insight into how
to create change and sustain organisational
learning for the entire organisation .
Although a number of scholars have claimed
that leadership is positively related to
organisational performance, the interplay
between leadership and diversity remains
largely unexplored , p. 812. Kristy et al.
(2007) strongly suggested that the
demographics of managers also need to be
10
premeditated in relation to leadership. To a
large extent, the leadership style which is
supportive to this particular business is in
need of further investigation. Taking into
account the various strengths and limitations
of previous research into leadership styles,
this study attempts to incorporate Bass and
Avolio’s leadership theory specifically and
study its relationship to organisational
performance.
IV. INNOVATION
According to the study of Schumpeter
(1934, 1942), innovation is influenced by
firm’s sizes. the larger organisation
elaborates the greater of economies, smaller
risk, greater market better appropriation
possibilities and on the other hands, the
smaller organisation could have greater
flexibility, better communication and greater
specialisation possibilities, informal and
strategic control. Moreover, Horowitz
(1962), Lunn and Martin (1986), Braga and
Willmore (1991), Henderson and Cockburn
(1996) Gumbau (1997) and Arundel and
Kabla (1998) also supports the relationships
of organisation’s size and innovation through
their empirical findings. Another factor for
innovation is the level of debt, there are
several academic researches expose the
negative effect toward innovation
(Grabowski, 1968; Elliott, 1971; Kamien and
Schwartz, 1978; Hall, 1990; Long and
Revenscraft 1993; Branch, 1994; Giudici and
Paleari, 2000)
The intangible factors toward
innovation are relatively difficult to
delineate. Since intangible resources are
more difficult to measure due to the
difficulty of empirical literature (Cohen,
1995). Nevertheless, intangible factors for
innovation are very crucial for better
understanding of innovation. The works of
Galende and Suarez (1998, 1999) and
Martinez-Roz and Salas (1999) demonstrated
the positive influence of human resources
comprise a team of scientists and technicians
with qualification and experience in R&D
and innovative activity, towards innovation.
Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.D
Excluding human resource, Freeman
(1973) and Rothwell et al. (1974) proposed
the significance of commercial resources, the
understanding of user’s necessities and the
better efforts in marketing and publicity.
Thus, commercial resources could also
describe the success or failure of the
innovation. According to Bughin and
Jacques (1994) and Dyerson and Mueller
(1999), the organisational resources may
generate the prodigious relationships to
innovation. They found that efficiency and
synergies occur between marketing and
research and development (R&D),
communication capability within the
organisation, managing and organisational
excellence, promoting of integration of
knowledge through teamwork and fostering
of learning from external sources, have
positive association with innovation. In
addition, the importance of organisational
strategies may also cause the huge impact on
innovation particularly diversification
strategy. Several academic researches
highlighted the negative association between
diversification and innovation (Hoskisson,
1989; Baysinger and, Hoskisson and
Johnson, 1992; Hoskissonet al., 1993; and
Hoskisson and Hitt, 1998). However,
McEachern and Romeo (1978), Link (1982)
and Chen (1996) proposed and expressed the
positive influences. Further, diversification
strategy, internationalisation strategy was
also premeditated. It could manifest the
relationship towards the development of
technology. There are a quantity of academic
researches established the positive
relationship between innovation and the
organisational performance (Meisel and Lin,
1983; Lunn and Martin, 1986; Braga and
Willmore, 1991; and Kumar and Saqib,
1996).
In sum, the findings of this research are
anticipated the remaining gab to investigate
whether different leadership styles may
support to create the innovation occurred in
the organisation. In particular, which type of
the leadership styles may lead to create
supportive innovation in the organisation.
Organisational Performance
Organisational learning plays a vital
role in sustaining the company and achieving
its organisational goals, which in turn leads
to superior organisational performance.
Thus, many authors consider learning to be a
fundamental aspect of competitiveness and
link it with knowledge acquisition and
organisational performance (Lopez et al.,
2005). Michie and Oughton (2003) seek to
illustrate how knowledge can improve
organisational performance, and they believe
that the organisation should create a learning
environment to encourage members to
continue to learn. In pursuit of the
development of learning in the organisation,
recent researches confirmed that the
capability of the manager to support
members of the organisation should not be
underestimated, including encouragement of
appropriate learning in a way productive
corporately and individually (Mabey, 2002).
Correspondingly, Beaver and Jennings
(2001) suggested that the manager in the
small organisation is in the best position to
make the learning environment happen. In
each small organisation, the manager may
have varied perspectives, so the goals will be
at different levels. Grunburg (2004) and Wall
et al. (2004) suggested that subjective and
objective measures are important factors in
measuring organisational performance,
dependent on the goals of each organisation.
Objective measures can be considered in
different categories, such as profits, sale
volumes, market shares, and return on
investment, while subjective measurement
depends on, for example, the perceptions of
managers.
De Hoogh et al. (2004) studied small
and medium sized enterprises in the
Netherlands, examining the relationship
between leadership and organisational
performance; they focused on the objective
measure of financial performance,
comprising profitability, liquidity and
solvency. They found that leadership is
positively related to profitability but
unrelated to liquidity and solvency.
 An improved Organisational Performance Influenced by Leadership Styles
and Innovation: A Case Study of Hotel Industry in Thailand
Swinney et al. (2006) considered the
association between managers’ levels of
education, gender and organisational
performance and focused on subjective
measures obtained from managers’
perception. Results indicated that level of
education and the gender of the managers
interact to have an impact on organisational
performance. Wang and Ang (2004) applied
subjective or self-reported measures in three
dimensions: growth in market share, growth
in cash flow, and growth in sales, to
investigate how to develop organisation’s
performance. Questionnaires were
distributed to local organisation in
Singapore. They found that there is a
significant correlation between environment,
resource-based capabilities, strategy, and
venture capital in a organisation’s
involvement and performance.
Ardichvili (2001) studied the
relationship between leadership styles of
entrepreneurs and managers in three large
manufacturing companies in Russia. Three
subjective measures were used: satisfaction
(satisfaction with the managers’ leadership
styles), extra effort (the extent to which
managers were able to elevate employees’
motivation beyond their initial expectations),
and performance meeting employees’ needs).
Results indicated that there is a significant
difference between entrepreneurs and
managers in all three leadership styles
(Transformational, Transactional, and
Laissez-faire leadership) and subjective
measures.
Similarly, Wall et al. (2004) suggested
that it is valid to use different aspects of
subjective data; however, researchers need to
take care in data collection. Generally,
financial records are confidential and most
organisation are unwilling to provide these
kind of data, so some researchers have asked
respondents to rate the performance of their
organisation by using a rating scale which
compares them with other competitors in
their business sector (Love et al., 2002; Pett
and Wolff, 2007; Wiklund and Shepherd,
2005). In support of the previous concept,
Eskilden and Kristensen (2006) suggested
12
that organisational performance can be
typically evaluated on a rating scale whereas
importance can be either rated by the
respondents or estimated on the basis of
performance. Similarly, research to date has
used both objective and subjective
indicators, the results showing that both
approaches have been highly correlated or
equal (see, for example, Dess and Robinson,
1984, Pelham and Lieb, 2004; Garg et al.,
2003, Ghobadian and O'Regan, 2006; Guest
et al., 2003; Jennings and Young, 1990; Wall
et al., 2004).
However, one may question whether
the self-reported measures may be biased for
measuring organisational performance.
Yeung and Berman highlighted that ‘a weak
measure on the right issue is better than a
strong measure on the wrong issue’ (Yeung
and Berman, 1997, Mabey and Ramirez,
2005). Nevertheless, the literature suggests
that responses on performance achievements
are reliable (Nayyar, 1992; Tan and Litschert,
1994, Ghobadian and O'Regan, 2006).
Hence, it appears that to understand the
organisational performance of each
organisation, gathering data using a rating
scale from the manager is also an effective
form of measurement.
In conclusion, organisational
performance can be measured on a variety of
dimensions and no single measurement
completely describes all aspects of
performance. In line with Walton and Aerts
(2006), financial performance is an
appropriate way to measure the basic overall
performance of each organisation against
others within the same business area. Due to
the nature of small business, the manager
plays a vital role in determining the creation
and development of the organisation (Bellas,
2004). Also, as suggested by Oliver (1997)
and Eskilden and Kristensen (2006)
organisational performance can be typically
evaluated on a rating scale whereas
importance can be either rated by the
respondents or estimated on the basis of
performance. It appears that to understand
the organisational performance of each
organisation, gathering data by using a rating
Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.D
scale from the manager can be an effective
form of measurement. Therefore, in this
study, the managers of each organisation
were asked to evaluate their financial
performance compared with other
organisation in their sector.
V. RESEARCH OBJECTIVES
The aim of this research is to
investigate which types of management
leadership style are supportive of the
company. Hotels in Thailand will be used as
a case study.
Research questions: The research is designed
to answer the question ‘Which types of
management leadership style are supportive
to the hotel? Hotel in Thailand will be used
as a case study. The research question has
been generated by these research objectives
which is to investigate the relationship
between leadership styles, innovation and,
organisational performance. Thus, this
research question reflects the specification
linked to the relevant literatures and also,
promises insights into the research topic.
Research Philosophy
The philosophy of social science is to
establish relations between the research
interests of those being studied, and to
ensure that the result of research can be
applied universally. For the social science,
gaining knowledge is by both deductive and
inductive. While, deduction tends to be
related to the quantitative approach,
induction seems to be correlated to a
qualitative approach. Accordingly, the
element of deductivism and inductivism are
indicative of the positivist basis quantitative
research. Therefore, this paper is thus
essentially found on positivist
epistemological position. It has enabled to
investigate which styles will be the most
supportive leadership styles to create
innovation within the firms and also
improved organisational performance.
The philosophical paradigms, deductive and
inductive approaches can be compared
through a series of the studies. The
descriptive of these studies do not imply that
any particular paradigm is stronger than the
other. In each review there are relative pros
and cons specific to any research question
under investigation . Hence, there are two
approaches of philosophy underpinning the
way the knowledge is developed; the
positivism and interpretivism. The research
model and design of this research have been
developed based on the theories moreover
data will be collected and developed theory
as a result of data analysis.
There are several main characteristics
of the deductive approach. Firstly, there is
the search to explain casual relationships
among variables that will be investigated.
This approach is engaged to investigate the
main objectives of this research to identify
the characteristics of hotel managers and to
explore their relationship with the success of
organisation in consideration of the
leadership styles theory. Upon this study the
research questions will be defined supportive
styles of the managers in the organisations.
Secondly, according to Saunders et al (2003),
“to pursue the principle of scientific rigour
the deductive approach dictated that
academic researchers should be independent
of what is being observed”. For this reason,
demographic data and length of management
experiences, need to be operationalised in the
ways generating questions measured
quantitatively . Regarding these factors, the
leadership styles of managers who have
different demographic backgrounds may
generate different levels of the business
success. Furthermore, the analysis is
implicitly related to the complex of business
situations; therefore, this research requires an
understanding of the perspective of managers
in term of managing the innovative
organisation.
The third characteristic of deduction is
to collect and analyse data to answer the
research questions. It will show which type
of leadership styles of the managers in those
leading organisations. Moreover, those
leadership styles of mangers of innovative
organisation will be particularly discussed
and explained.
 An improved Organisational Performance Influenced by Leadership Styles
and Innovation: A Case Study of Hotel Industry in Thailand
The deductive and inductive approaches
have uniquely different advantages.
According to Saunders et al , “the majority
of managers are familiar with the deductive
approach so that those managers or policy-
makers tend to put faith in the conclusions
emanating from this approach”. Thus, it
would be useful to apply this approach to
collect data because the respondents of hotel
hold management positions.
However, there are disadvantages of
the deductive and inductive approaches that
are necessary to appreciate. The deductive
approach may not be suitable for the depth of
complexity that underpins the business
situation. Focusing on the highly structured
approach rather than the individual
differences and there might be a possibility
that questionnaire will not be returning in the
sufficient amount. Also, for the purpose of
forming a general conclusion, it is necessary
to select a sample of sufficient size. This
means that this research approach requires a
degree of exertion to access the necessary
range of data. For the inductive approach, the
process of data collection and analysis
requires an extended time commitment.
Nonetheless, as highlighted by Saunders et al
(2009), “Not only is it perfectly possible to
combine approaches within the same piece
of research, but in our experience it is often
advantageous to do so.” Thus, combining
these different approaches could generate
various advantages to this study. However,
due to the limitation such as time and cost
constraints, this research aims to apply
deductive approaches to measure and
examine the data.
VI. RESEARCH METHODOLOGICAL
AND METHODS
In regards to the scientific method,
quantitative approaches generally rely on
testing theoretical proposition. Positivists can
establish relationships between social
phenomena by applying theory to generate
hypotheses analysed by observation. Lincoln
and Guba also disagreed that positivism can
be broken down and studied independently.
Leadership theory is one of the central
14
themes in management research . Leadership
researches have been grounded in the
positivist, objectivist, quantitative paradigm
to identify and understand leadership
problems and develop solutions that
scientifically tested, verified, and replicated .
In addition, Lee , the positivistic approach
involves “the manipulations of theoretical
propositions, using the rules of formal logic
and hypothetico-deductive reasoning so the
theoretical proposition satisfies four
requirements: falsifiability, logical
consistency, explanatory power, and survival
or the ability to survive attempts aimed at its
confirmation through controlled empirical
testing” (p.351).However, Lincoln and
Gubaasserted that the weakness of the
positivist approach included the assumption
that phenomena can be broken down and
studied independently, while ignoring the
whole. In this sense, in case the environment
may not be consistent; therefore, the findings
may be varied or misconstrued.
The purpose of this study is to explore
the performance attributes of managers in
terms of leadership styles which may impact
organisational performance. Hotel industry
in Thailand was selected as the unit of study.
A quantitative approach was applied to study
the relationship of the variables in the
context of this business. The study of the
quantitative approach helps to examine
relationships among the variable that will be
investigated in this study. Two distinctive
advantagesof quantitative research are:
firstly, statistics can ensure levels of
reliability and validity.
Research Methods
In excess of 2,400 hotels are
registered in Thailand and samples will be
classified by the Stratified Random Sampling
method, ensuring that the samples will be
equitably selected whilst each sample locates
in different provinces. Respondents: The
respondents will be the managers of each
hotel in Thailand. Different statistical tests
will be applied in this research such as
Descriptive Statistics. The major tool for
Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.D
data collection is the survey; questionnaire
will be probed and developed by the experts
in the academic research and management
fields. In the stage of the pre-test, the
managers will be asked to participate to
answer the questionnaires. Subsequently, the
levels of the validity and reliability will be
tested to ensure whether they are in the
satisfaction levels. Data collection methods
used in this study included survey
questionnaires; the data were subjected to
Multiple Regression Analysis.
Questionnaire: this method is suitable
for the research objectives to identify the
traits of leaders. There are also some
disadvantages of using this method. Robson
states that “what they say might contradict
with what they have done and they will not
necessarily report their real attitudes”.
Although, there are several advantages by
using questionnaires It represents a
straightforward approach to the study’s
attitude, beliefs and motives . And it is also
efficient in term of time limitation and
budgeting. However, the disadvantages of
conducting questionnaires; then the answer
might be incorrect. In conclusion, combining
primary and secondary data would be the
best way of enhancing the validity and
reliability of this study.
VII. DISCUSSION AND CONCLUSION
This study critically discusses the research
question acquiring adequate information to
frame the work. Then, philosophical
approaches are considered to select the
quantitative approach related to the
appropriate methods for this specific
research. In addition, to investigate the
relationships between leadership styles,
innovation and organisational performance,
this research aims to ascertain ‘which type of
leadership styles is suitable for hotel
manager?’ and to recommend the hotel
managers the ways to sustain the
organisational performance. In particular, the
hotel industry in Thailand where service
sector is one of the main economic driven
GDP rate [54]. The hotel executives and/or
managers authorised to probe the survey will
complete the questionnaires. The results may
leads to explain the supportive leadership
styles of the managers by maintaining the
employees’ skills and encouraging
innovation in the organisation, and in turn
increasing organisational performance.
Different types of documentary
secondary data may support the analysis of
the research questions and meet the research
objectives. The main advantage of using
secondary data is the saving of resources
such as time and money . It is also easily
accessible, relatively inexpensive and
quickly obtained . In line with Saunders et al
that stated ‘if you need your data quickly,
secondary data may be the only viable
alternative.’ Consequently, using secondary
data could help save a lot of time and money
and then it could allow researcher to have
more time to think about theoretical aims and
substantive issues . However, there are some
disadvantages of secondary data; for
instance, it may cost a lot of money to access
an important data. Saunder and Lewis
suggested that there are a wide range of
available online sources with direct
connections to downloadable files, but such
data may not be valid or reliable.
Nevertheless, the secondary data used in this
research will be suspiciously selected.
Figure 1:Research Conceptual Framework
Independent variables: Demographic
profiles, leadership styles of managers of the
hotels in Thailand. At the same time, the
 An improved Organisational Performance Influenced by Leadership Styles
and Innovation: A Case Study of Hotel Industry in Thailand
innovation created in each organisation will
also be investigated.
Dependent variable: Organisational
Performance: the managers of each hotel will
be asked to evaluate their financial
performance compared with other firms in
their sector.
Figure 1 demonstrated the connection
between leadership styles, innovation, and
organisational performance. These concepts
are applied to elucidate the rendition of
leadership and innovation into organisational
performance. In addition, regarding the
ASEAN community, there is the
consideration of the continually growing
numbers of tourists travelling all around the
world. The well-understanding concerning
how to meet customers’ satisfactions may be
needed for any organisation to survive in
today business in the Southeast Asia,
especially in Thailand.
VIII. CONCLUSIONS
In conclusion, organisational
performance can be measured on a variety of
dimensions and no single measurement
completely describes all aspects of
performance. In line with financial
performance is an appropriate way to
measure the basic overall performance of
each organisation against others within the
same business area. Due to the nature of
small business, the manager plays a vital role
in determining the creation and development
of the organisation .
Also, as suggested by Oliver and
Eskildsen and Kristensen organisational
performance can be typically evaluated on a
rating scale whereas importance can be either
rated by the respondents or estimated on the
basis of performance. It appears that to
understand the organisational performance of
each organisation, gathering data by using a
rating scale from the manager can be an
effective form of measurement. Therefore, in
this study, the managers of each organisation
were asked to evaluate their financial
performance compared with other
organisation in their sector.
BIBLIOGRAPHY
16
In this study, we will investigate the
relationship between leadership styles,
innovation and organisational performance.
A quantitative approach will be applied to
analyse the data. We would like to find out
that the leadership styles will have a positive
correlation with organisational performance,
and which styles will be the most effective
leadership styles. At the same time, we
would like to know that in case the
innovation occurred in the organisation
would bring out the different levels of the
organisational performance. Hence, this
research has thus indicated how managers
might contribute to creating a conductive
environment to support innovation in the
organisation, and in turn improve
organisational performance.
LIMITATION AND
IMPLEMENTATIONS
This section considers limitations that
may take place in this research. There may
be difficulties of quantifying participants’
response to questionnaires concerning
incomplete data consequent upon issues of
confidentiality. For instance, although the
researchers emphasised confidentiality and
made attempt to reassure participants of
agreement, certain questions relating to
costing and accounts proved to be sensitive.
Moreover, some leaders may be reluctant to
provide information about their management
style and monetary returns. Restricted access
will affect data collection. To conquer this
limitation, participants will be offered the
declaration of confidentiality.
The results of this research may also
recommend the pathway to increase the
performance of the organization by
suggesting the appropriate implementations
and types of leadership styles which are
supportive to the organization. In addition,
the results of this research may be useful for
other allied industries and regions enclosed
the relevant conditions such as behaviours,
cultures and environments.
[
Vissanu Zumitzavan, Ph.D, Sarinthree Udchachone, and Varit Intrama, Ph.D