Micro Entrepreneurs’ Leadership Skills and Employee Productivity: A Structural Equation Model Approach

Abstract

The study of significant differences, relationships, and structural equation models evaluates the correlations between leadership skills and employee productivity of those in the food industry under the microenterprise category in Bulacan, Philippines. The research utilized the Mann-Whitney U test and Kruskal-Wallis test to determine the significant difference in leadership skills and employee productivity when grouped according to the profile of respondents. Spearman's rank correlation coefficient was utilized to analyze the relationship between leadership skills and employee productivity. Moreover, the research utilized structural equation modeling techniques to analyze the correlations among the indicators of leadership skis and employee productivity. Research instrument with rating scales and a random sampling method was applied. The model fit, reliability, and validity were analyzed using confirmatory factor analysis. The result showed that there is a strong level of correlation between leadership skills and employee productivity. Finally, Technical Skills, Work Unit Effectiveness, and Work Quality are among the indicators of technical skills and employee productivity that are correlated as analyzed structural model and path analysis. Future research should be qualitative or mixed method to delve deeper into for a richer qualitative interpretation, and cohort or longitudinal research should be done in order to study this relationship in the long run.