How Generational Differences Influence Leadership Styles: The Case Study of SMEs in Vietnam

Leadership styles inevitably determine the success or failure of enterprises, especially the motivation, trust, willingness, and enthusiasm of employees. The efficiency of styles employed by leaders is greatly impacted by many factors, including their typical features related to generation. The main objective of this paper is to investigate the perceptions of 54 managers of small-and medium-sized enterprises (SMEs) in Vietnam regarding the influences of generational differences on leadership styles. It is revealed that generational characteristics shape the personalities as well as the methods that leaders employ to instruct their followers, therefore impacting their styles. Generally, older leaders tend to be more autocratic while younger ones are more democratic. Nevertheless, there are differences among leaders in the same generation regarding their styles. This study contributes to the extant literature on behavioral science and leadership styles in the emerging economy of Vietnam. The results are beneficial for SME managers and training/consulting institutions in assisting these leaders to adjust appropriate leadership behaviors in consideration of influential factors, particularly their generational differences.