The Relationship Between Organizational Culture, Employee Commitment, and Firm Performance: Evidence from Ethiopian Airlines

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The study aims to investigate the relationship between organizational culture, employee commitment, and firm performance. We used a quantitative approach, a cross-sectional explanatory design, survey method, and questionnaire as a data collection instrument. Employees of Ethiopian Airlines (EAL) established the study setting. We selected survey participants using a simple random sampling technique. 365 questionnaires were distributed, of which 338 were collected, and only 329 were found usable for analysis. The study employed structural equation modeling (SEM) to analyze a battery of latent variables and test the role of the middle variable in the relationship between the antecedent and the consequent. Both Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were used for data reduction and identification of factor structures and validate study results, respectively. Results show EAL has an externally focused and stable organizational culture. The study also signpost organizational culture has both direct and indirect positive effects on firm performance and employee commitment partially mediates the relationship between organizational culture and firm performance. We conclude, specific organizational culture traits predict firm performance and employee commitment mediates their relationships.


A Thesis Submitted To College Of Business And Economics Of Addis Ababa University In Partial Fulfillment Of The Requirements For Masters Of Business Administration (Mba In Finance)


Employee’s Commitment, Ethiopian Airlines, Mediation, Firm Performance, Organizational Culture