Leadership, empowerment, support, and job satisfaction: Insights from Vietnamese SMEs

Abstract

This study investigates the impact of authentic leadership on employee job satisfaction within Vietnamese SMEs, with a particular emphasis on the mediating roles of psychological empowerment and perceived organizational support. Analyzing data from 638 employees in the trade and service sectors using Structural Equation Modeling (SEM), the findings reveal that authentic leadership, directly and indirectly, fosters job satisfaction by promoting trust, transparency, and ethical behaviors. Psychological empowerment amplifies employees’ sense of autonomy and competence, while perceived organizational support strengthens their emotional connection to the organization. The research underscores the cultural importance of collective values and managerial support in the Vietnamese context. Practical recommendations include implementing leadership development programs prioritizing authenticity and empowerment alongside structured systems for employee recognition and support. Despite these contributions, the study is limited by its cross-sectional design and reliance on self-reported data. Future research should investigate longitudinal effects and consider additional mediating factors. This research provides valuable insights for improving SMEs’ employee satisfaction and organizational performance.