* Corresponding author. Tel.: +84 0914 915 926E-mail address:[email protected](T.T.H. Phan)© 2019 by the authors; licensee Growing Science, Canadadoi: 10.5267/j.msl.2019.6.023Management Science Letters 9 (2019) 2105–2120Contents lists available at GrowingScienceManagement Science Lettershomepage: The impact of leadership style and corporate social responsibility practices on financial perfor-mance: Evidence from Textile industryThi Diep Uyen Doana, Van Hung Buib, Thi Thu Hien Phana*, Xuan Hung Nguyenband Thi KimLien TranaaUniversity of Economic and Technical Industries, VietnambNational Economics University, VietnamC H R O N I C L EA B S T R A C TArticle history:Received: May 17, 2019Received in revised format: June22 2019Accepted: June 23, 2019Available online:June 23, 2019The objective of this article is to assess the impact of leadership style on deciding to implementcorporate social responsibility (CSR) for Nam Dinh textile garment enterprises. At the same time,the article examines the mediate role of CSR on the relationship between transformational leader-ship and financial performance. Moreover, the article verifies the moderate role of firm size in therelationship between transformational leadership and financial performance, Stakeholder - orientedmarketing plays a moderate role in the relationship between transformational leadership and CSRpractice and moderate role of transactional leadership style in the relationship between CSR prac-tice and financial performance. Analysis was conducted on 168 textile garment enterprises in NamDinh. The results show that CSR played a mediate role in the relationship between transformationalleadership and financial performance. At the same time, all moderator variables were statisticallysignificant. The result encourages Nam Dinh textile and garment enterprises to conduct businessethically towards sustainable development by implementing CSR.© 2019 by the authors; licensee Growing Science, CanadaKeywords:Leadership styleCorporate social responsibilityFinancial performance1. IntroductionA lot of arguments have been happened on many studies for the relationship between leadership andCorporate Social Responsibility (CSR) (Du et al., 2013). Many theories have been used to explain theirrelationships between leadership and CSR, including: agency theory (Dunlop & Lee, 2004), institutionaltheory (Resick et al., 2013), managerial values theory (Schaubroeck et al., 2000), stakeholder theory(Coombs & Gilley, 2005) and upper echelon theory (Manner, 2010). Although many theories have beenused, researchers still argue whether leadership plays an important role in CSR decisions or not, therelationship between leadership and SCR has not gained consensus (Lewis, 2014).
2106Textile garment industry is considered as a key priority for development in Nam Dinh province. Theprovincial labor force can find the job in the textile garment industry. Known as “The cradle of textiles”,Nam Dinh textile garment industry is more and more develop, integrate and improve life quality for
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