Employee well-being has been an important emerging trend in business research over the last few decades. Despite the rising significance of this resource to firms, the existing literature still has a dearth in understanding how leadership models lead to multiple outcomes of employee well-being. Thus, the purpose of this study is to propose a framework that sheds light on the mechanism underlying the nexus between leadership styles and employee well-being.
Qualitative methods followed by semi-structured interviews and observations were employed. A total of 24 interviews were conducted with non-family employees who worked for either micro or medium sized family businesses in Northern Vietnam. Further, observation through many field visits was carried out.
This study uncovers several novel insights. First, the proposed framework supports the assertion that, although artisanship is a shared characteristic, varying leadership styles result in distinct outcomes concerning employee well-being. Second, the findings suggest a trade-off between employees’ physical and mental health outcomes under two identified leadership styles. In other words, neither leadership style, across different business models, fully addresses the complexities of employee well-being.
This study offers a novel framework that helps explain the accumulative well-being outcomes drawing on leadership. The proposed framework not only portrays different angles of leadership styles but also presents a trade-off between physical and mental health among non-family employees.
