The Impact of Leadership Style on Project Performance: In the Case of Ethiopian Construction Works Corporation (ECWC)
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Date
2026-10
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Addis Abeba Universty
Abstract
This study investigates the impact of leadership styles on project performance in the Ethiopian Construction Works Corporation in Addis Ababa using a sequential explanatory research design,
combining descriptive and explanatory methods. A quantitative approach was adopted and data were collected through a structured, self-administered 5-point Likert scale questionnaire
administered to all 67 employees selected using census method. Data analysis involved both descriptive and inferential statistics including correlation and multiple linear regression analysis,
using SPSS version 27. The results of correlation analysis show that project performance is positively correlated with transformational leadership (r=0.384, p=0.001), Transactional
leadership (r=0.659, p=0.000) and democratic leadership (r=0.585, p=0.000). Autocratic leadership is negatively correlated with project performance (r=-0.250, p=0.041), however,
laissez-faire leadership shows no significant correlation (r=0.173, p=0.161). The regression analysis indicates strong relationship between the independent variables and project performance
(R = 0.723), with an R² value of 0.524, meaning that approximately 52.3% of the variability in project performance is explained by the leadership styles in the model (F=13.393, p < 0.001).
Transactional leadership found to be the most significant predictor (beta = 0.415, p = 0.002), followed by democratic leadership (beta = 0.302, p = 0.011). The study aimed to provide evidencebased understanding on how different leadership styles influence project performance. Thereby the study designed contribute to improved management practices in the construction sector in Ethiopia.
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Keywords
leadership styles, project performance, Ethiopian Construction Works Corporation, transformational leadership, transactional leadership, laissez-faire leadership, autocratic leadership, democratic leadership