The relationship between transformational leadership style, innovation capability, management accounting information systems, and performance in Vietnam’s manufacturing firms

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Type of the article: Research Article

Abstract
This study examines the interrelationships among transformational leadership style, innovation capability, management accounting information systems (MAIS) utilization, and firm performance within Vietnam’s manufacturing sector. Survey data were collected from 378 managers at medium and large-sized manufacturing firms, and analyzed by partial least squares structural equation modeling (PLS-SEM) to test the proposed hypotheses. The findings demonstrate that the transformational leadership style has significant positive effects on innovation capability, MAIS utilization, and firm performance. Furthermore, innovation capability positively impacts both MAIS utilization and firm performance, while MAIS utilization directly enhances performance outcomes. Beyond these direct effects, the study also explores multiple mediating mechanisms: transformational leadership style indirectly helps improve firm performance via innovation capability and MAIS utilization, and it fosters MAIS utilization via the mediating influence of innovation capability. Similarly, innovation capability contributes to enhancing firm performance via the effective use of MAIS. These results underscore the strategic roles of leadership, innovation, and accounting information systems in driving and improving firm performance and offer valuable insights for managers aiming to sustain competitive advantage in manufacturing industries.

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    • Figure 1. Proposed research model
    • Figure 2. Path coefficients of the structural model
    • Table 1. Description of research sample characteristics
    • Table 2. Reliability and convergent validity
    • Table 3. Discriminant validity
    • Table 4. Reliability and convergent validity (second-order variables)
    • Table 5. Discriminant validity (second-order variables)
    • Table 6. Explanatory power and predictive relevance
    • Table 7. The effect size f2
    • Table 8. Hypothesis testing
    • Conceptualization
      Thu Hien Nguyen, Dao Tung Nguyen
    • Data curation
      Thu Hien Nguyen, Dao Tung Nguyen, Tuan Anh Nguyen
    • Formal Analysis
      Thu Hien Nguyen, Tuan Anh Nguyen
    • Methodology
      Thu Hien Nguyen, Dao Tung Nguyen
    • Project administration
      Thu Hien Nguyen, Dao Tung Nguyen, Tuan Anh Nguyen
    • Software
      Thu Hien Nguyen, Dao Tung Nguyen
    • Validation
      Thu Hien Nguyen, Tuan Anh Nguyen
    • Visualization
      Thu Hien Nguyen, Dao Tung Nguyen
    • Writing – original draft
      Thu Hien Nguyen, Dao Tung Nguyen
    • Writing – review & editing
      Thu Hien Nguyen, Dao Tung Nguyen
    • Investigation
      Dao Tung Nguyen, Tuan Anh Nguyen
    • Resources
      Dao Tung Nguyen, Tuan Anh Nguyen
    • Supervision
      Dao Tung Nguyen, Tuan Anh Nguyen
    • Funding acquisition
      Tuan Anh Nguyen