Response of Vietnamese private enterprises' leader under global financial crisis: From theorical to empirical approach

Abstract

The recent problems of Vietnam enterprises' bankruptcy and ineffective performance under the impact of global financial crisis 2008 - 2009 had raised questions about how important leadership is and how to support leaders in enhancing their leadership in order to keeping their enterprises alive with the hardship. This paper aims to presents an empirical study of business leaders through business decisions they made during 2008-2012 to ensure their companies' survival; their forecasts and expectations for when the recession is over and the competencies needed for successful leadership in times of recession. The survey sample was composed of 478 CEO and 561 senior managers in Vietnamese private enterprises. The results indicate that 84% of the surveyed leaders agreed with much longer time to tender economic recovery. Besides, forecasted leadership and management performance were just at moderate level, under 3.25 on the average. Struggling with challenges of recession, the leaders recognized some necessary adjustments and adaptations in which business environment becomes increasingly complex and unpredictable and requires greater flexible leaderships. Especially, amongst the 14 factors, sustainability, working enthusiasm and willingness to take risk appear to be more responded in what leaders should do in times of economic downturn. Meantime, it also can be concluded from the survey of senior manager about leader's needed competences that all values are under 4.0, which means no leadership competencies or skills is evaluated as good or excellent. © the author(s).