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Vision-based
Vision-based leadership: leadership
relationships and consequences
in Thai and Australian retail stores
165
Sooksan Kantabutra and Pisanu Vimolratana
Leadership Research Group, College of Management,
Mahidol University, Bangkok, Thailand

Abstract
Purpose The purpose of this paper is to examine relationships between vision-based leadership
components, and customer and staff satisfaction in Thai and Australian retail stores.
Design/methodology/approach Two models are derived from the literature. The first model
expressing relationships among vision, store manager passion and staff vision sharing and staff and
customer satisfaction is tested in Thai retail stores. The second model expressing relationships among
vision attributes, motivation of staff and store manager passion, staff vision guiding and staff and
customer satisfaction is tested in Australian retail stores. Regression analyses are adopted.
Findings Store visions characterize by brevity, clarity, future orientation, stability, challenge,
abstractness and ability to inspire and containing references to sales, customer, employee and
leadership indirectly predict improved customer satisfaction in Thai retail stores. In Australian retail
stores, visions with the same characteristics as well as staff using vision to guide their store operations
directly predict improved customer satisfaction. Vision effects on staff satisfaction are negative. Store
manager passion for vision and staff vision sharing indirectly predict improvements in both staff and
customer satisfaction in Thai retail stores. In Australian retail stores, store manager visions with the
seven attributes, motivation of staff, store manager passion for vision and staff using vision as a guide
for their store operations directly predict staff satisfaction. Staff satisfaction also indirectly predicts
improved customer satisfaction in both Thai and Australian studies.
Practical implications Thai and Australian store managers should develop a vision
characterized by the seven attributes. Thai and Australian store managers should be passionate
about their visions, support their visions by actions and act consistently with their visions.
Originality/value While vision is core to vision-based leadership theories, little is known about
what characterizes an effective vision. Moreover, roles of follower use of vision in improving
performance have been little investigated. The present paper contributes to these areas.
Keywords Leadership, Retail trade, Motivation (psychology), Thailand, Australia
Paper type Research paper

Todays organizations operate in a highly dynamic business context, which is

compounded by complexity and uncertainty throughout the society. The complexity of
operating in a rapidly changing global environment has overwhelmed many
organizations throughout the world. With no exception, the Thai retail industry is
undergoing change. Competition gets tougher with unexpected factors (e.g. higher fuel
prices, escalating violence in the largely Muslim South and political uncertainty) that
hurt the economy and consumer confidence ( Economic Review Year-End, 2006 ). Sales Asia-Pacific Journal of Business
of almost all retail operators retreated to single-digit growth after staying in double Administration
Vol. 1 No. 2, 2009
digits every year since the 1997 financial crisis. Alternative selling channels (kiosks, pp. 165-188
home shopping, internet retailing, service stations, vending and direct selling have also q Emerald Group Publishing Limited
1757-4323
been introduced (Euromonitor International, 2006), often by foreign competitors. DOI 10.1108/17574320910989113
APJBA As a consequence, some Thai retailers, in recent years, have gone completely out of the
1,2 industry, others have been taken over.
The situation appears similar in the Australian retail industry. Over the past eight
years, strong consumer spending has produced booming sales and profits for retailers
(Australian Centre for Retail Studies, 2006). However, a slowing market, an interest
rate rise, and higher petrol prices brought about difficult trading conditions in 2005
166 (Australian Centre for Retail Studies, 2006). The retail slowdown in 2005 has placed on
a number of businesses with many companies being acquired by larger retailers. Other
challenges facing Australian retailers include new retail formats, heavy discounting by
major retailers, declines in the property market, high-petrol prices, rising retail rents,
and shortages of retail staff (Australian Centre for Retail Studies, 2006).
In such a constantly changing retail context, what kind of leadership is needed for
Thai and Australian retail organizations, particularly smaller ones, to survive and
remain competitive? To many writers, leadership with vision as a core component is an
answer (Bass, 1990; Conger, 1991; Conger and Kanungo, 1987; Tichy and Devanna, 1986),
with the core vision itself regarded as critical to organizational performance (Daft, 2005;
Isenberg, 1987; Maccoby, 1981; Mendall and Gerguoy, 1984; Peters, 1987; Slater, 1993).
Since research on vision has generally focused on four aspects: development,
articulation, communication, and implementation (Nanus, 1992; Quigley, 1993;
Robbins and Duncan, 1988; Sashkin, 1992; Wall et al., 1992; Westley and Mintzberg,
1989), what constitutes vision and how such vision might affect organizational
performance, particularly in the retail sector, has been largely overlooked by researchers.
Among the first reported studies, Baum et al. (1998) investigated relationships
between vision content and attributes, and organizational performance in new ventures.
They found that vision attributes of brevity, clarity, future orientation, stability,
challenge, abstractness, desirability or ability to inspire; and content of venture growth
imagery impacted venture growth positively, both directly and indirectly, via vision
communication. However, this study has a major limitation by including only one
categorical intervening variable of vision communication and did not take into
consideration variables stemming from leader and followers (e.g. leader passion and
shared vision).
Addressing the limitation, this paper presents results of two studies examining
effects of a store managers vision on customer and staff satisfaction, taking into
account various realization factors stemmed from leader and followers. The first study
examines relationships between store manager vision, store manager passion for vision
and staff vision sharing, and customer and staff satisfaction in Thai retail stores. The
second study examines the effects of a store managers vision on customer and staff
satisfaction in Australian retail stores, taking into account seven vision attributes,
motivation of staff, store manager passion for vision and staff vision guiding. These
relationships are depicted on two structural models. Predictions are tested, and the
outcomes are presented and discussed. Relevant literature is reviewed below.

Vision
Studies into vision are limited by a lack of clear definitions (Kantabutra and Avery,
2002). Mission, philosophy, vision and values are often used interchangeably.
Avoiding the confusing definitional issue altogether, Baum et al.s (1998) approach was
introduced. They define vision as each leader defines it, arguing pragmatically that it
is the leaders actual vision that guides his/her behaviour. Each leader develops a vision Vision-based
in his/her own way (Nanus, 1992) and a leaders style, vision content and operating leadership
context vary widely (Westley and Mintzberg, 1989). Thus, it is useful to consider the
effects of visionary tools that the leader actually employs, rather than possibly
confounding the findings by adopting an unrelated theoretical definition. Later on,
Mumford and Strange (2005) suggest that vision is ultimately a cognitive construction or
a mental model, a conceptual representation used both to understand system operations 167
and guide actions within the system. Given Baum et al.s (1998) and Mumford and
Stranges (2005) definitions, a vision is operationally defined in the present studies as a
mental model that each leader defines, given that it is the leaders actual mental model
that guides his/her choices and actions. Based on the literature review, vision comprises
two components: attributes and content. They are discussed in turn below.

Vision attributes
According to a vision theory by Kantabutra (2003), seven vision attributes are identified
for effective visions and tested in the present study: brevity, clarity, future orientation,
stability, challenge, abstractness and ability to inspire. Kantabutra (2003) asserts that all
seven vision attributes interact to create a positive impact on overall organizational
performance initially through follower satisfaction. A vision that is only brief will not
positively impact overall performance unless it is clear to followers as to what needs to
be done, or it may not challenge followers to do their best. A clear vision alone will not
positively impact follower satisfaction because it can be too lengthy, preventing a leader
to communicate it massively and frequently. It also may not be abstract, therefore
possibly creating conflicts among groups with different specific objectives and not
allowing for individual creative interpretation among followers. A too specific vision
makes it difficult to form an effective group to carry out the vision. Moreover,
abstractness reflects stability in the vision because it implies no drastic change over
time. An unstable vision suggests followers a serious lack of managerial integrity and
commitment to the vision, negatively affecting follower morale. A vision that is brief,
clear, abstract, challenging and stable will not draw follower commitment in working
toward the vision unless the vision is also inspiring or desirable. In addition, when a
vision is not inspiring, it is unlikely to nurture a shared vision, critical to organizational
performance. An inspiring vision that is clear, brief, abstract, challenging, and stable
will not be able to attract affective commitment from followers unless it offers a view of a
better future. Without an inspiring future picture, a leader is unlikely to be able to draw
followers from where they presently are to work toward the vision. Theoretically, each of
the attributes alone does not improve vision effectiveness (i.e. a brief or clear vision
alone does not always improve vision effectiveness). Therefore, vision characterized
only by all seven vision attributes is expected to improve the visions effectiveness.
These seven attributes are adopted in both Thai and Australian studies, because it
is anticipated that in combination they will improve performance outcomes.

Vision content
Baum et al. (1998) argue that the content or core of a vision needs to be addressed because
it is important to organizational growth. Westley and Mintzberg (1989) suggest that
the strategic content of a vision may focus on products, services, markets,
organizations, or even ideals, with this strategic component being the central image
APJBA that drives the vision. Moreover, Collins and Porras (1994) suggest that vision content
1,2 need not be common across different visionary organizations, consistent with Pearsons
(1989) view that a successful vision takes into account industry, customers, and the
specific competitive environment in identifying an innovative competitive position in the
industry. It appears that vision content can be just about anything. A possible reason for
the existence of many vision content proposals is that what to be included in vision
168 content depends on the type of business and competitive environment in which it
operates. In the retail sector, sales, customer, employee and store leadership were
identified as frequently mentioned vision content themes or imageries in Australian
retail stores (Kantabutra, 2003). Therefore, they are adopted as vision content imageries
in the present Thai study. It is anticipated that stores with visions containing references
to these imageries will bring about better performance outcomes than those without.
In addition to vision, the literature review identifies four realization factors stemmed
from leader and followers in the visionary leadership process: leader passion, motivation
of followers, follower vision sharing and follower vision guiding. Performance outcomes
of customer and employee satisfaction are also identified. These are discussed in turn.

Leader passion
Visionary leaders are passionate about their visions. Their passion for vision is said to
affect followers outcomes and overall business performance (Kotter, 1996). Visionary
leaders are said to live their vision by making all their actions and behaviours
consistent with it, and by creating a sense of urgency and passion for its attainment
(Nanus, 1992). They often express passion for their agendas in the hope of exciting
others to support their vision (Nanus, 1992). Even mildly expressed interest will
normally be observed by followers. Visionary leaders also inspire a shared vision by
their passionate belief that they can make a difference (Kouzes and Posner, 1995).
Through their strong appeal and quiet persuasion, they enlist followers in the dream,
breathe life into the shared vision and get people to see the exciting future possibilities.
Outstanding leaders behave consistently with their vision (Bennis, 1984; Conger and
Kanungo, 1988), because consistent behaviour reflects leaderships integrity (Kouzes
and Posner, 1987; Locke et al., 1991). This integrity is critical because followers
recognize very soon to what extent their leader really stands behind the vision, not only
within his/her mind, but also with his/her heart (Parikh and Neubauer, 1993). Leader
passion is operationally defined in both Thai and Australian studies as the extent to
which a store manager is perceived by staff to be:
.
passionate about his/her vision;
.
supportive to his/her vision by actions; and
.
to act consistently with his/her vision.

Motivation of followers
Motivation is viewed by scholars as fundamental to successful vision implementation.
Numerous writers suggest that visionary leaders motivate followers to achieve superior
performance (Awamleh and Gardner, 1999; Bass, 1985; Conger and Kanungo, 1988;
Cowley and Domb, 1997; Kotter, 1990; Kouzes and Posner, 1987; Locke et al., 1991;
Nanus, 1992; Tichy and Devanna, 1986; Tvorik and McGivern, 1997). Many (Chia,
1998; Goleman, 1998) have even associated motivation with performance outcomes,
because leaders cannot deliver performance outcomes on their own. They must motivate Vision-based
others to work toward them. While achieving a challenging vision, followers can become leadership
exhausted, frustrated, and disenchanted and thus leaders must encourage their
followers to carry on. Effective leaders motivate their followers through devices such as
the use of formal authority, role modelling, building self-confidence, creating challenge
through goal-setting, delegating and rewarding and punishing (Locke et al., 1991). It is
clear that motivation is related in some sophisticated ways to performance outcomes. 169
Motivation is operationally defined for the present Thai study as the extent to which a
store manager:
.
acts as a role model for staff;
.
builds staffs self confidence;
.
rewards staff who act consistently with the vision;
.
provides resources and support services to staff; and
.
encourages staff to make more decisions regarding daily operations.

Follower vision sharing

A shared vision between leader and followers has long been widely regarded as a key to
superior performance (Avery, 2004; Reardon, 1991; Sashkin, 1985; Senge, 1990). People
need to find meaning in their work, especially in a world where such traditional sources of
meaning as family, church and community have been losing their ability to supply a sense
of purpose for many peoples lives (Nanus, 1992). With a shared vision, individuals can see
themselves not just as sales clerks or materials handlers, but as part of a first-rate team
growing in its ability to provide a valuable human product or service (Nanus, 1992). There
is a big difference in terms of pride, self-image, dedication and job performance between
one worker who, when asked what he does, replies simply Im a bricklayer and another
who may have the same job but answers the same question with Im building a home for a
family in my community (Nanus, 1992). Leaders use vision as a tool to induce their
followers to work toward a common goal (Locke et al., 1991). Visions must relate the
possibilities contained in them to organizational values, and make these values clear
(Nadler and Hibino, 1990; Oakley and Krug, 1993; Wilkens, 1989) so that the visions will
appear desirable to followers (Dupree, 1992; Galbraith et al., 1993; Wheatley, 1999). In
effect, a desirable vision can widen a leaders support base by reflecting the needs and
aspiration of many stakeholders, transcending individual differences, and drawing
stakeholders into a community of concerns about the future of the organization (Nanus,
1992). In fact, a reason people seek to build a shared vision is their desire to be connected in
an important undertaking (Senge, 1990). Therefore, follower vision sharing is
operationally defined in the present Thai study as the extent to which followers feel that:
.
their leader vision is desirable; and
.
they are part of their leader vision.

Follower vision guiding

The followers use of their leaders vision as a guide in their work is important (Conger
and Kanungo, 1988; Lipton, 1996; Senge, 1990; Shamir et al., 1993). One function of a
vision is to facilitate decision making, initiative, and discretion by followers at all levels
(Yukl, 1998). As a navigator, vision is regarded as possessing potent orienting capacities
APJBA (Davis and Meyer, 1998) for followers. Consistent with this view, Kantabutras (2003)
1,2 vision theory emphasizes the abstractness quality in a vision because an abstract
vision is inclusive to all organizational interests, thereby allowing followers to interpret
the vision in their own innovative ways to guide their duties. Therefore, whether and
how followers use the vision to guide their work could impact individual and collective
performance outcomes. In such a context, followers emotional commitment to their
170 leaders vision is considered important for a vision to take effect, because when followers
are committed, they tend to be willing to work toward the vision (Collins and Porras,
1994; Lipton, 1996). Organizations that create a meaningful vision for the future are often
able to stimulate emotions in their people (Ghoshal and Bruch, 2002). Panda and Gupta
(2003) conclude that a transformational leader may be able to elicit emotional
commitment from his/her subordinates by providing inspiration, intellectual
stimulation and individualized consideration to them. Eventually, vision inspires
people by transcending the bottom line (Nanus, 1992). Vision guiding is defined in the
present Australian study as the extent to which a staff member:
.
uses his/her store managers vision to guide daily activities; and
.
feels emotionally committed to his/her store managers vision.

Customer and employee satisfaction

Baum et al. (1998) employed financial measures (sales, profits and net worth) as
performance measures. However, employee and customer satisfaction are adopted as
performance outcomes in both Thai and Australian studies, given the following reasons.
First, applied studies have shown that a supervisors leadership style is related to the job
satisfaction of subordinates (Bass, 1985). Employees were more satisfied under
visionary leadership than under other leadership styles (Bass, 1985). Moreover, where
managers serve as immediate supervisors, the type and quality of leadership they
provide can influence employee satisfaction, either positively or negatively (Oliver,
1998). Employee satisfaction is also regarded as being closely related to customer
satisfaction, given that employee satisfaction leads to satisfied customers (Atchison,
1999; Medley and Larochelle, 1995; Hausfeld et al., 1994). Understandably, customer
satisfaction or dissatisfaction develops when a customer comes in contact with an
employee of a company (Evans and Lindsay, 1996). Finally, both employee and customer
satisfaction are more responsive to leaders behaviour within the short time frame of the
studies and are not difficult to obtain from small retail businesses. It must be noted that
customer and employee satisfaction are not regarded as exhaustively explaining overall
organizational performance because:
.
a close relation between employee satisfaction and performance has not been
established in prior studies (Brayfield and Crockett, 1955; Iaffaldano and
Muchinsky, 1985); and
.
limits to customer satisfaction as a performance indicator exist elsewhere
(Heskett et al., 1994; Passikoff, 1997).

Employee satisfaction is operationally defined in both Thai and Australian studies as

the degree to which an employee is satisfied with his/her job as measured by pay,
fringe benefits, autonomy, task requirements, employee policies, interaction, professional
status, guidance, co-workers, recognition and career advancement (Slavitt et al., 1986).
Customer satisfaction is operationally defined in both Thai and Australian studies as Vision-based
the degree to which a customer is satisfied with overall store services as measured by leadership
staff availability, friendliness, decoration, presentation of goods, cleanliness, quality of
goods, richness of choice, waiting time for checkout, payment methods, price labelling,
special offers and sales, shopping hours, prices and shelf/rack layout (Hackl et al., 2000).

Structural models and hypotheses 171

Thai model
Relationships among vision, store manager passion, staff vision sharing and staff and
customer satisfaction are not yet well understood. Figure 1 shows a structural model
tested in the Thai study, proposing relationships between vision, store manager
passion, staff vision sharing and staff and customer satisfaction, derived from the
literature review, and using variables relating to the retail sector.
Based on the literature review, it is hypothesized that vision and store manager
passion first create direct positive impacts on staff vision sharing which in turn
directly affects enhanced staff satisfaction. Staff satisfaction then directly affects
improved customer satisfaction. Accordingly, the following directional hypotheses are
generated:
H1. Vision is directly predictive of enhanced staff vision sharing.
H2. Store manager passion is directly predictive of staff vision sharing.
H3. Vision is indirectly predictive of enhanced staff satisfaction.
H4. Store manager passion is indirectly predictive of enhanced staff satisfaction.
H5. Staff vision sharing is directly predictive of enhanced staff satisfaction.
H6. Store manager passion is indirectly predictive of enhanced customer
satisfaction.
H7. Vision is indirectly predictive of enhanced customer satisfaction.
H8. Staff vision sharing is indirectly predictive of enhanced customer satisfaction.
H9. Staff satisfaction is directly predictive of enhanced customer satisfaction.

Australian model
Similarly, relationships among vision attributes, intervening variables and customer
and staff satisfaction are not yet well understood. Figure 2 shows a structural model
tested in the Australian study, that proposes a link between vision attributes,
intervening variables and customer and staff satisfaction outcomes derived from the
literature, and using variables relating to the retail sector.

Store Figure 1.
manager Structural model showing
passion relationships between
vision and intervening
Staff vision Staff Customer variables, and staff and
sharing satisfaction satisfaction customer satisfaction for
Effect path Thai study
Vision
APJBA Based on the literature, we hypothesize that vision attributes, motivation of staff and
1,2 store manager passion positively, directly affect staff satisfaction. Staffs then use store
managers visions to guide their activities to positively, directly affect customer
satisfaction. Accordingly, the following directional hypotheses are generated:
H10. Vision attributes is directly predictive of enhanced staff satisfaction.
172 H11. Motivation of staff is directly predictive of enhanced staff satisfaction.
H12. Store manager passion is directly predictive of enhanced staff satisfaction.
H13. Staff vision guiding is directly predictive of enhanced staff satisfaction.
H14. Vision attributes is indirectly predictive of enhanced staff vision guiding.
H15. Motivation of staff is indirectly predictive of enhanced staff vision guiding.
H16. Store manager passion is indirectly predictive of enhanced staff vision
guiding.
H17. Staff satisfaction is directly predictive of enhanced staff vision guiding.
H18. Staff vision guiding is directly predictive of enhanced customer satisfaction.
H19. Vision attributes is indirectly predictive of enhanced customer satisfaction.
H20. Motivation of staff is indirectly predictive of enhanced customer
satisfaction.
H21. Store manager passion is indirectly predictive of enhanced customer
satisfaction.
H22. Staff satisfaction is indirectly predictive of enhanced customer satisfaction.

Samples
Thai sample
The Thai sample is drawn from retail apparel stores in the Bangkok, Thailand, that
sell brand-new, finished clothing products for individual use, excluding shoes and
accessories. Both independent stores and those belonging to a parent company are
sampled. All are located in a shopping mall and have their own identity, being in a
clearly defined walled area.
A total of 12 shopping centres in Bangkok major shopping areas are chosen,
because they geographically represent the population of the entire Bangkoks major
shopping areas. The major shopping areas are systematically selected to eliminate
human bias. In selecting, three shopping malls directories are consulted. Shopping

Vision
Figure 2. attributes
Structural model showing
relationships between Motivation of Staff Vision Customer
vision and intervening staff satisfaction guiding satisfaction
variables, and staff and
customer satisfaction for
Australian study Store manager Effect path
passion
malls considered too small with one staff member are eliminated. All qualifying stores Vision-based
in each area are approached. Of these, 126 stores (88.7 per cent) agree to participate, leadership
with 16 stores (11.3 per cent) refusing. From the participating stores, store managers
and up to half of each stores total staff members are interviewed. Based on the number
of staff determined for each store, the same number of customers is also interviewed for
each respective store. Store manager, staff and customer samples are opportunistic as
they are composed of those who are willing to participate in the study. 173
Store managers refer to full-time store employees who manage their own stores and
are stationed there daily. The latter criterion is important because the study is
interested in the effects of one store managers vision only. Staff members are fulltime,
part time and casual employees working under the store managers, and customers are
individuals who are observed buying a product or service during the researchers visit.
If no customer is observed buying during the researchers visit, the researcher returns
some time later until the determined number of customers agrees to participate or three
visits are made to the store. Finally, 251 staff members and 258 customers are surveyed.

Australian sample
The Australian sample is drawn from apparel stores in Sydney, Australia, that sell
brand-new, finished clothing products for individual use, excluding shoes and
accessories. Both independent stores and those belonging to a parent company are
sampled. All are located in a shopping mall and have their own identity, being in a
clearly defined walled area.
A total of 19 shopping centres in Sydney major shopping areas are selected because
they geographically represent the population of the entire Sydneys major shopping
areas. The major shopping areas are systematically chosen to eliminate human bias.
In choosing, two shopping malls directories are consulted. Small shopping malls
considered too small with one staff member are eliminated. All qualifying stores in
each centre are approached. Of these, 111 stores (70 per cent) agree to participate, with
48 stores (30 per cent) declining. From the participating stores, store managers, and up
to three staff and three customers are interviewed. Store managers, staff and customer
samples are opportunistic as they comprise those who are willing to participate in the
study. Three staff members per store represent over 50 per cent of each stores staff
population on average, given that 70 per cent of the Australian Retailer Associations
members in 2001, in New South Wales, employed five or fewer employees on average
(www.ara.com.au/). Since the customer population is unknown, a minimum of three
customers per store is adopted as the customer sample size, consistent with the staff
sample.
Store managers refer to those full-time store employees who manage their own
stores and are stationed there daily. The latter criterion is important because the study
is interested in the effects of one managers vision only. Staff members include fulltime,
part time and casual employees working under the store managers, and customers are
individuals who are observed buying a product or service during the researchers visit.
If no customer is observed buying during the researchers visit, the researcher returns
later until three customers agree to participate or three visits are made to the store.
About 148 staff members and 214 customers are surveyed.
APJBA Data collection and analysis
1,2 Separate questionnaires are used for store manager, staff and customer respondents.
A nine-point ordinal scale underlay all questionnaire items measuring the domains in
Figures 1 and 2. Store managers, and their staff and customers are interviewed by
three trained researchers. In Thai retail stores, three research assistants, trained in
administering the questionnaires, interviewed store managers, their staff and
174 customers. The research assistant asked the store manager if he/she would agree to
participate in the study, and allow the research assistant to approach his/her staff. If the
store manager agreed to participate, the research assistant proceeded to instruct
him/her in how to answer the questionnaire. After the store manager finished
answering the questionnaire, the research assistant would ask for permission to
approach his/her staff. The staff member was first informed that no one would be able
to learn about his/her responses. The staff member was then asked if he/she was
willing to participate in the study. If he/she agreed, the research assistant would
accompany him/her out of the store to fill in the questionnaire.
Although the store manager could see which staff completed the questionnaire,
he/she was not able to access the staffs responses. After the first staff member agreed
to participate, the research assistant then continued by approaching the next staff
member he/she met at the store until the determined number of staff questionnaires
were completed, or until it was not possible to complete the determined number of staff
questionnaires (i.e. a store did not have enough staff members at the time of interview).
Similarly, the customer was asked if he/she was willing to participate in the study.
If he/she was willing to do so, the research assistant instructed him/her to answer the
questionnaire. The research assistant continued by approaching the next buying
customer until the determined number of customer questionnaires were completed, or
until it was not possible to complete the determined number of customer
questionnaires (i.e. a store did not have the number of customers who were buying
a product during the day of visit at the time the research assistant was in the store).
Similarly, three trained research assistants approached store managers, staff and
customers in Australian retail stores in the same manner. Since three staff members
per store represented over 50 per cent of each stores staff population on average, given
that 70 per cent of the Australian Retailer Associations members in 2001 in New South
Wales employed five or fewer employees on average (www.ara.com.au/), and since the
customer population was unknown, a minimum of three customers per store was
adopted as the customer sample size, consistent with the staff sampling.
Response rates for the Thai staff and customers are 66.40 and 68.25 per cent,
respectively, while response rates for the Australian staff and customers are 44 and
64 per cent, respectively. Those who refused are not re-approached.
As for the Thai sample, the questionnaires are initially developed in English, and
are translated into Thai for respondents by a bilingual professional translator. The
Thai questionnaires are translated back to English by a different bilingual professional
translator to ensure face validity. The English translation is consistent with the
original English version.
The store manager questionnaire collects data on vision and demographic
information. Specifically, store managers are asked to describe their vision or mental
model on a space provided. A vision or mental model is defined for them as a future
envisioned for their stores and how they would like to see their stores develop
in the future. Questions measuring leader passion, motivation, follower vision sharing Vision-based
and vision guiding are included in the staff questionnaire. Staff members also respond leadership
to six components of job satisfaction based on criteria developed by Slavitt et al. (1986).
The customer questionnaire collects data on 14 items measuring customer satisfaction
with services at the store using criteria from Hackl et al. (2000).
Store manager vision statements are rated by three independent raters, using a
five-point ordinal scale, where one indicates absence of each vision attribute/content 175
imagery and five indicates strong presence of each vision attribute/imagery. While
rating, each rater keeps referring to vision prototypes adapted from Baum et al. (1998).
All inter-rater reliability values for vision attributes/content imageries exceed 0.8, the
criterion for acceptable reliability (Fornell and Larker, 1981). Where managers report
no vision, zero is assigned to the vision attributes/content imageries. It must be noted
here that the Thai staff respondents rate the challenging and inspiring attributes by
themselves, as opposed to having independent raters rate them, to address the vision
rating limitation of the prior study by Baum et al. (1998). Doing so is more accurate
than having outside independent raters to rate the two vision attributes since staff
respondents know the status quo of their stores better. The Sydney store manager
vision statements are still rated for all seven vision attributes by three independent
raters, because the study is conducted earlier than is the Bangkok one.

Construct validity
Thai sample
Based on:
.
Kantabutras (2003) vision theory which asserts that all seven attributes need to
interact to enhance the vision effectiveness;
.
the previous finding that vision attributes not characterized by all of the seven
attributes rendered no significant effect on staff and customer satisfaction in
Australian retail stores (Kantabutra and Avery, 2007);
.
vision content can be about reference to anything (Westley and Mintzberg,
1989); and
.
vision comprises attributes and content, all of the rated vision attributes and
content imageries scores are theoretically combined to form the vision variable in
the present Thai study.

Given the theoretical reason, a test for visions construct validity is not conducted.
Combining scores of sub-variables to form each of the other measurement domain
constructs in Figure 1 is considered justified, because they are adjusted according to
results of two confirmatory factor analyses (Tables I and II).
In Tables I and II, all factor loadings load at 0.7 or higher. Items whose extraction
values are below 0.5 or factor loadings do not load at 0.7 or higher are dropped for their
respective constructs (Hair et al., 2006). After the adjustments, construct validity for all
constructs is sufficiently present.
Cronbachs alphas are employed to confirm the reliability of vision (a 0.677),
leader passion (a 0.844), follower vision sharing (a 0.722), staff (a 0.914) and
customer satisfaction (a 0.951) variables. All variables indicate Cronbachs alpha
values exceeding or close to 0.7, an acceptable reliability value (Nunnally, 1978).
APJBA Since the literature consistently indicates that visionary leadership creates a
1,2 positively impact on performance outcomes, one tailed tests are adopted at the 5 per cent
level of significance for testing H1-H9.

Australian sample
Similarly, combining scores of sub-variables to form each independent measurement
176 domain construct in Figure 2 is considered justified, according to results of a
confirmatory factor analysis (Table III).
Since Kantabutras (2003) vision theory asserts that all seven vision attributes be
together to interact to create a positive impact on performance, all seven vision
attributes scores are combined to form the vision attributes variable. Similarly, the

Rotated component matrix Cronbachs

No. Variable name Measured item 1 2 Communalities alpha

1 Store manager Store managers passion for vision 0.835 0.708 0.844
passion Store managers support for vision 0.901 0.896
Store managers behavioural
consistency with vision 0.832 0.838
Table I. 2 Vision sharing Store managers vision desirability 0.897 0.835 0.772
Construct validity Staffs participation in store
for store manager passion managers vision 0.882 0.787
and staff vision sharing
for Thai study Note: Varimax with Kaiser normalization

Rotated component matrix Cronbachs

No. Variable name Measured item 1 2 Communalities alpha

1 Staff satisfaction Pay 0.742 0.551 0.914

Fringe benefits 0.816 0.688
Task requirements 0.830 0.695
Staff policies 0.854 0.730
Professional status 0.823 0.684
Recognition 0.768 0.591
Career advancement 0.875 0.777
2 Customer satisfaction Staff availability 0.734 0.561 0.951
Friendliness 0.744 0.574
Decoration 0.881 0.783
Presentation of goods 0.870 0.757
Cleanliness 0.817 0.672
Quality of goods 0.843 0.711
Payment methods 0.725 0.535
Price labelling 0.804 0.659
Special offers and sales 0.771 0.618
Table II. Shopping hours 0.813 0.661
Construct validity Prices 0.777 0.605
for staff and customer Shelf/rack layout 0.845 0.715
satisfaction for
Thai study Note: Varimax with Kaiser normalization
 Vision-based
Variable Rotated component matrix Cronbachs leadership
No. name Measured item 1 2 3 Communalities alpha

1 Store Store managers passion for

manager vision 0.841 0.779 0.910
passion Store managers support for
vision 0.922 0.873 177
Store managers behavioural
consistency with vision 0.922 0.918
2 Motivation Store managers action as role
of staff model for staff 0.798 0.659 0.851
Staffs self confidence building 0.734 0.600
Reward to staff acting
consistently with vision 0.748 0.620
Resources and support services
to staff 0.892 0.819
Staffs encouragement to make
daily operation decisions 0.740 0.621
3 Vision Staffs usage of store managers Table III.
guiding vision to guide daily activities 0.857 0.750 0.730 Construct validity for
Staffs emotionally commitment store manager passion,
to store managers vision 0.875 0.813 motivation of staff, staff
vision guiding for
Note: Varimax with Kaiser normalization Australian study

dependent measurement domain constructs of customer and staff satisfaction are

justified according to results of a confirmatory analysis (Table IV), after relevant
customer and staff satisfaction items are dropped because of their extraction values not
exceeding or close to 0.7 (Hair et al., 2006).
Cronbachs alphas are employed to confirm the reliability of vision attributes
(a 0.883), motivation of staff (a 0.851), store manager passion (a 0.910), staff
vision guiding (a 0.730) and customer (a 0.958) and staff (a 0.894) satisfaction
variables. These variables indicate Cronbachs alpha values exceeding or close to 0.7,
an acceptable reliability value (Nunnally, 1978). Since the literature consistently
indicates that visionary leadership positively impacts performance outcomes, one
tailed tests are adopted at the 5 per cent level of significance for testing H10-H22.

Results
Thai sample
Store managers have been with the stores for 12-18 months on average. Staff members
have worked in their stores for an average of 18-24 months, indicating likelihood that
all staff members must have been influenced by their store managers leadership.
Stores average 5.57(^ 2.8) staff members. Among the 126 stores, 77 store managers
report having a vision for their store (61 per cent). Example vision statements are
shown in Table V.
Averaged total scores and pooled standard deviations for the major variables are
presented in Table VI.
In testing H1-H9, structural equation modelling (SEM) was considered. Since the
Thai sample size of the present study does not meet the minimum sample size of 150 as
APJBA
Rotated component matrix Cronbachs
1,2 No. Variable name Measured item 1 2 Communalities alpha

1 Staff satisfaction Autonomy 0.838 0.720 0.894

Task requirements 0.847 0.750
Staff policies 0.857 0.738
178 Interaction 0.796 0.730
Guidance 0.715 0.658
2 Customer satisfaction Staff availability 0.832 0.719 0.958
Friendliness 0.856 0.764
Decoration 0.863 0.764
Presentation of goods 0.873 0.802
Cleanliness 0.816 0.708
Quality of goods 0.865 0.770
Richness of choice 0.805 0.677
Waiting time for checkout 0.714 0.579
Table IV. Payment methods 0.725 0.598
Construct validity Price labeling 0.832 0.739
for customer and staff Shelf/rack layout 0.818 0.713
satisfaction for Australian
study Note: Varimax with Kaiser normalization

required by SEM (Hair et al., 2006), multiple regression analysis is therefore adopted. It
must be noted that a significant direct effect or relationship is defined in the present
study as an effect from an observed independent variable that is still shown
significant at p , 0.05 when all other observed independent variables are
simultaneously input into a regression analysis. As expected, vision and store
manager passion are two direct predictors of enhanced staff vision sharing (Table VII).
Moreover, vision is the only direct predictor of staff satisfaction in the present Thai
study (Table VII). Surprisingly, the relationship between vision and staff satisfaction is
negative. Vision ( p 0.038, b 0.185), store manager passion ( p 0.001, b 0.283)
and staff vision sharing ( p 0.002, b 0.275) are three indirect predictors of
enhanced staff satisfaction.
There are no significant direct effects on customer satisfaction, although vision
( p 0.023, b 0.202), store manager passion ( p 0.084, b 0.154), staff vision
sharing ( p 0.022, b 0.204) and staff satisfaction ( p 0.073, b 0.160) are four
indirect predictors of improved customer satisfaction. Therefore, all hypotheses are
accepted, except H3, H5 and H9.

Australian sample
Store managers have been with the stores for 3.39 years on average. Staff members
consist of full-time (30 per cent of respondents), part-time (23 per cent), and casual
(47 per cent), respectively, and have worked in their stores for an average of 2.64 years.
Stores average 6.29 staff members in total, including 2.34 full-time, 2.47 part-time and
4.35 causal staff members. Among the 111 stores, 81 store managers report having a
vision for their store (73 per cent). Example vision statements are shown in
Table VIII.
Averaged total scores and pooled standard deviations for the major dependent and
independent variables are presented in Table IX.
 Vision-based
Example vision statements
No. Thai English translation leadership
1 Serve every single customer. Polite,
enthusiastic staff who know their
duties. To make the store
well-known to customers at all levels 179
2 Hope to make xxx known to
everyone both in Thailand and abroad.
Hope to make xxx the cloths suitable
for all sexes and ages. Hope to serve so
well that every customer admires and
is satisfied with our services

3 Hope to develop service staff further

with new trendy, fashionable cloths
and beautiful store

4 Make beautiful store. Serve customers

5 Adjust staff positions so that
everyone is equal with the Table V.
same understanding of their Example vision
work statements in Thai study

No. Variable name n Mean SD

1 Vision 126 15.243 13.263

2 Leader passion 126 9.783 9.964 Table VI.
3 Follower vision sharing 126 5.923 5.812 Means and pooled
4 Staff satisfaction 126 43.968 11.102 standard deviations of all
5 Customer satisfaction 126 83.093 12.771 variables for Thai study

Follower vision
sharing Staff satisfaction Customer satisfaction
Dependent variables H1-H2 H3-H5 H6-H9

Vision 0.164 * (0.029) 2 0.275 * * (0.157) 0.202 (0.188)

Leader passion 0.341 * (0.039) 0.339 (0.238) 2 0.349 (0.283)
Follower vision sharing 0.549 (0.433) 0.504 (0.513)
Staff satisfaction 0.156 (0.107)
Adjusted R 2 0.855 0.082 0.034
F 369.228 * 4.740 * 2.243 * * * Table VII.
Regression table for
Notes: *p , 0.01, * *p , 0.05, * * *p , 0.10; unstandardized coefficients; SE in parentheses Thai study

In testing H10-H22, multiple regression analysis is adopted because the Australian

sample size of the present study does not meet the minimum sample size of 150 as
required by SEM (Hair et al., 2006). Vision attributes, motivation of staff, store manager
passion and vision guiding are directly predictive of staff satisfaction (Table X).
APJBA Only vision attributes has a negative relation to staff satisfaction here. Staff satisfaction
1,2 and vision attributes are two direct predictors of improved vision guiding (Table X),
while motivation of staff ( p 0.077, b 0.194) and store manager passion ( p 0.002,
b 0.326) are indirect predictors of improved vision guiding. On the other hand, vision
attributes and vision guiding are the only two direct predictors of enhanced customer
satisfaction (Table X), while staff satisfaction is the indirect one ( p 0.000, b 0.475).
180 The other variables do not have any effect on customer satisfaction, neither directly
nor indirectly. Therefore, all hypotheses are accepted except H10, H14, H19, H20
and H21.

No. Example vision statements

1 To establish a good customer base who will return and return, to establish our label in our local
community and to watch our label and business grow. To develop a great team who will
succeed and grow with our business to reach all our goals
2 To create an environment that is different to other stores. Great music, promotions, night club
shop, fun, exciting to shop
Table VIII. 3 To achieve the highest level of exceptional customer service. An experience for every customer
Example vision to share when in store. Also to have the best and most appropriate product to offer
statements in Australian 4 Stocks flow aim towards mid-1920s and 1940s. Bring in more suits, more casual wear
study 5 To be known as the most interesting store in Sydney

No. Variable name n Mean SD

1 Vision attributes 84 1.839 1.318

Table IX. 2 Store manager passion 84 8.125 1.214
Means and pooled 3 Motivation of staff 84 7.724 1.329
standard deviations 4 Vision guiding 111 7.533 1.549
of all variables for 5 Staff satisfaction 111 7.199 1.522
Australian study 6 Customer satisfaction 111 6.883 1.136

Customer
Staff satisfaction Vision guiding satisfaction
Dependent variables H10-H13 H14-H17 H18-H22

Vision attributes 2 0.187 * (0.087) 0.334 * (0.142) 0.149 * (0.086)

Store manager passion 0.279 * * (0.088) 0.180 (0.152) 0.026 (0.090)
Motivation of staff 0.247 * * (0.078) 20.049 (0.135) 2 0.053 (0.080)
Vision guiding 0.193 * * (0.065) 0.130 * (0.066)
Staff satisfaction 0.516 * * (0.174) 0.086 (0.108)
Adjusted R 2 0.399 0.192 0.083
Table X. F 14.766 * * 5.920 * * 2.501 *
Regression table for
Australian study Notes: *p , 0.05, * *p , 0.01, * * *p , 0.10; unstandardized coefficients; SE in parentheses
Discussion Vision-based
Partially supporting Kantabutras (2003) vision theory and Westley and Mintzbergs leadership
(1989) suggestion that vision content may focus on products, services, markets,
organizations, or even ideals, Thai store visions characterized by the seven vision
attributes and containing references to the four imageries predict of both staff and
customer satisfaction. Interestingly, while such visions indirectly predict enhanced
customer satisfaction, they directly, negatively affect staff satisfaction in Thai stores. 181
One possible explanation is that when Thai store leaders are highly passionate about
their visions and their staff members also very much share their store manager visions,
the staff members will feel frustrated if they cannot for some reasons carry out the
visions (i.e. staff cannot conveniently serve customers). In such a context, customers
may be satisfied at the expense of staffs difficulty. An obvious example for such a
situation is when store systems have not been aligned to suit the store manager
visions, and therefore have not freed energies for staff to work toward the visions,
which up to then may have been consumed by internal friction and political infighting
(Kotter, 1999). Clearly, future research might want to explore possible effects from
organizational re-alignment on staff satisfaction in the visionary leadership context.
Vision attributes is directly predictive of both staff and customer satisfaction in
Australian retail stores. Somewhat surprisingly, the relationship between vision
attributes and staff satisfaction is negative, a similar finding to the Thai vision finding
discussed earlier. At first glance, this Australian finding seems not to support
Kantabutras vision theory. However, given that vision attributes is a direct predictor
of enhanced customer satisfaction in Australian retail stores, Kantabutras vision
theory as well as other scholars who regard the seven vision attributes as ones for
effective visions has indeed gained support. What is then a possible cause of the
negative effect from vision attributes on staff satisfaction? This negative vision
attributes effect can be explained in the same manner with the negative vision effect in
Thai retail stores discussed above, since the Australian study does not take into
consideration whether and how store systems are aligned to suit the store managers
visions. Ideally, organizational systems should be internally consistent with a vision
(Kotter, 1990; Kouzes and Posner, 1987; Locke et al., 1991; Nanus, 1992), while
simultaneously fitting the external environment facing the organization (Mintzberg,
1979). Together, the vision and the aligned systems help to direct the energies of the
people toward a common goal, to build a shared commitment to the vision, and to
empower people to act to make its attainment possible (Nanus, 1992). If the store
systems are not aligned to suit the store managers visions, staff members who are
using their store managers visions to guide their work and emotionally committed to
them may find it difficult to best serve their customers. In this context, customers may
be very satisfied, but staff may not. Such a situation might have been the case here.
Therefore, future research should include organizational alignment as another vision
realization variable.
The Australian finding on the positive effect of vision attributes on customer
satisfaction also lends support to the prior study by Baum et al. (1998) which
discovered that visions characterized by the seven vision attributes positively affected
organizational-level performance, as measured by venture growth in sales, profits,
employment, and net worth, in American woodwork start-up firms.
APJBA Store managers in Thai retail stores who are perceived by their staff as being
1,2 passionate about their visions, supporting their visions by actions, and acting
consistently with their visions indirectly predict improvements in both staff and customer
satisfaction in the Thai study. Similarly, store manager passion is a direct predictor of
enhanced staff satisfaction in Australian retail stores. Australian staff members are also
more satisfied when their store managers are perceived by them as being passionate
182 about their visions, supporting their visions by actions, and acting consistently with their
visions. Previous studies (Bennis, 1984; Conger and Kanungo, 1988) which reported that
outstanding Chief Executive Officers(CEOs) act consistently with their visions are
similarly endorsed by both Thai and Australian findings. Moreover, the following views
have gained support from these Thai and Australian findings:
.
leader passion for vision is said to affect followers outcomes and overall
business performance (Kotter, 1996);
.
visionary leaders are said to live their vision by making all their actions and
behaviours consistent with it and by creating a sense of urgency and passion for
its attainment (Nanus, 1992); and
.
outstanding leaders behave consistently with their visions (Bennis, 1984; Conger
and Kanungo, 1988).

However, future research may want to explore how store managers are passionate
about their visions, support their visions by actions, and act consistently with their
visions.
Numerous authors (Awamleh and Gardner, 1999; Bass, 1985; Conger and Kanungo,
1988; Cowley and Domb, 1997; Kotter, 1990; Kouzes and Posner, 1987; Locke et al.,
1991; Nanus, 1992; Tichy and Devanna, 1986; Tvorik and McGivern, 1997) who
suggest that visionary leaders motivate followers to achieve desirable performance
have gained support from the Australian study. Motivation of staff is a direct predictor
of enhanced staff satisfaction in Australian retail stores. More specifically, Locke et al.
(1991) who suggest that effective leaders motivate their followers through devices such
as role modelling, building self-confidence, rewarding and delegating are supported.
Future studies however might want to explore how store managers use such devices.
In particular, since leaders from across cultures have different ways to motivate their
followers (Den Hartog and Verburg, 1997), future research might explore how
visionary leaders motivate their followers across different cultures.
Staff members in Thai retail stores who feel that their store managers visions are
desirable and that they are part of the store visions indirectly predict improvements in
both staff and customer satisfaction. Scholars who assert that a shared vision between
leader and followers is regarded as a key to superior performance (Reardon, 1991;
Sashkin, 1985; Senge, 1990) have been endorsed, because both staff and customer
satisfaction frequently bring about desirable performance. A common view that
visions must connect the possibilities contained in them to organizational values, and
make these values clear (Nadler and Hibino, 1990; Oakley and Krug, 1993; Wilkens,
1989) so that the visions will seem desirable (Dupree, 1992; Galbraith et al., 1993;
Wheatley, 1999) has also been supported by the Thai finding. However, little is known
about how staff members share their store manager vision. Future research might
want to explore this issue.
 Lastly, staff satisfaction indirectly predicts customer satisfaction in both Thai and Vision-based
Australian retail stores. A view that employee satisfaction leads to satisfied customers leadership
(Atchison, 1999; Medley and Larochelle, 1995; Hausfeld et al., 1994), has gained support
from this finding. Obviously, customer satisfaction or dissatisfaction develops when a
customer comes in contact with a staff member of a store.
Overall, a view that where managers serve as immediate supervisors, the type and
quality of leadership they provide can influence employee satisfaction, either positively 183
or negatively (Oliver, 1998) is supported by both Thai and Australian findings above.
In addition, the Thai and Australian findings lend support to more than 20 previous
studies that found positive associations between charismatic or transformational
leadership and follower performance, attitudes and perceptions (Shamir et al., 1993).
Similar to the findings of the present studies, they reported that leaders who engaged
in the theoretical charismatic behaviours produced the predicted theoretical
charismatic effects, as well as being associated with more satisfied and more-highly
motivated followers. The theoretical charismatic behaviours refer to symbolic leader
behaviour, visionary and inspirational messages, non-verbal communication, appeal to
ideological values, intellectual stimulation of followers by the leader, display of
confidence in self and followers, and leader expectations for follower self-sacrifice, and
for performance beyond the call of duty.
Given that the present studies are conducted in small retailers, future research
might want to explore vision-based leadership effects in larger retailers across different
industries and cultures, findings of which will benefit both practicing retail managers
and academics alike.

Managerial implications
Based on the findings, Thai and Australian store managers should develop a vision or
a conceptual representation and use it to understand store operations and guide actions
within the store. To enhance vision effectiveness, the vision should be characterized by
brevity, clarity, future orientation, stability, challenge, abstractness and ability to
inspire. In Thai retail stores, vision content should contain references to sales,
leadership, customer and staff. Given the uncovered direct, negative effects on staff
satisfaction in both Thai and Australian studies, store managers should carefully
espouse such vision and continuously monitor their staff satisfaction to identify and
get rid of possible obstacles (e.g. unnecessarily long processes of approval) they
encounter in their efforts to serve customers.
Thai and Australian store managers should be passionate about their visions,
support their visions by actions, and act consistently with their visions. Australian
store managers should also act as a role model for staff, build staffs self confidence,
reward staff members who act consistently with their visions, provide resources and
support services to staff, and encourage staff to make more decisions regarding their
daily operations. Australian staff members should use their store manager visions to
guide daily activities and be emotionally committed to their store manager visions to
improve both their own satisfaction and that of customers. On the other hand, Thai
staff members who feel that their store managers visions are desirable and they are
part of the visions should be supported and encouraged, because they will indirectly
bring about improved customer satisfaction.
APJBA Conclusions
1,2 Store visions characterized by brevity, clarity, future orientation, stability, challenge,
abstractness and ability to inspire and containing references to sales, customer,
employee and leadership indirectly predict improved customer satisfaction in Thai
retail stores. In Australian retail stores, visions characterized by the seven vision
attributes as well as staff using vision to guide their store operations directly predict
184 improved customer satisfaction. With the limited number of independent variables
(i.e. the exclusion of organizational alignment variable) in both Thai and Australian
studies, vision effects on staff satisfaction are negative. Store manager passion for
vision and staff vision sharing indirectly predict improvements in both staff and
customer satisfaction in Thai retail stores. In Australian retail stores, store manager
visions characterized by the seven attributes, motivation of staff, store manager
passion for vision and staff using vision as a guide for their store operations directly
predict staff satisfaction. Staff satisfaction also indirectly predicts improved customer
satisfaction in both Thai and Australian studies. Future research directions and
managerial implications of the findings have been discussed.

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188 About the authors

Sooksan Kantabutra is a Chief Researcher of Leadership Research Group, College of
Management, Mahidol University in Bangkok. He received his doctoral training in leadership
from Macquarie Graduate School of Management in Sydney. He is a former management
consultant with a leading global consulting firm where he advised multinational corporations on
leadership and change.
Pisanu Vimolratana is a PhD candidate within the Leadership Research Group, College of
Management, Mahidol University. His research interests include global leadership and
sustainable enterprises.

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