The Causal Relationship between Transformational Leadership and Crisis Management of Business Organization in Thailand

Abstract

The purposes of this research are (a) to study the components of transformational leadership of business organization in Thailand, (b) to study the components of crisis management of business organization in Thailand, and (c) to study the causal relationship between transformational leadership and crisis management of business organization in Thailand. The researcher applied the quantitative research in conducting this study and distributed the research questionnaires to 300 samples. The statistics used in this research are consisted of frequency, percentage, mean, standard deviation, t-test, Analysis of Variance by F-test, Pearson Correlation, Confirm Factors Analysis, and Structural Equation Model: SEM.

The research results show that with regard to the components of the transformational leadership, the samples always practice transformational leadership, which the component with the highest mean is idealized influence, followed by individualized consideration, intellectual stimulation, and inspiration motivation respectively. While the samples often practice the crisis management of the business organization, which the component with the highest mean is containing the crisis, followed by resolving the crisis, learning from the crisis, recognizing the crisis, avoiding the crisis, and preparing to manage the crisis respectively.

The results of hypothesis testing regarding transformational leadership and  demographic profiles show that,  in total, entrepreneurs with different gender have the same behavior about the transformational leadership, which is not relevant to the set hypothesis; while the entrepreneurs with different age, education level, operation period, business type, and crisis type have different behavior about the transformational leadership with the statistical significance at the level of .05, which is relevant to the set hypothesis. The analysis of the causal relationship between  transformational leadership and crisis management of the business organization in Thailand is that the components of the transformational leadership, consisting of inspiration motivation, idealized influence, intellectual stimulation, and individualized consideration, and the variables of the crisis management of the business organization are the real components of the causal relationship between transformational leadership and crisis management of business organization in Thailand, which is relevant to the set hypothesis. The component weight of variables in terms of  inspiration motivation, idealized influence, and individualized consideration, is positive and has the statistical significance (P<0.01), which means that these are important variables indicating the crisis management of business organization in the same direction; while the component weight of the variables of intellectual stimulation is negative and has the statistical significance (P<0.01), which means that these are important variables indicating crisis management of business organization in the opposite direction.