The Effect of Strategic Leadership on Organizational Innovation: In Case of Selected Digital Tech Firms in Ethiopia

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Addis Ababa University


The purpose of the research was to assess the effect Strategic leadership on Organizational innovation for Digital tech companies that operate in Ethiopia. Level of Strategic leadership practices and Organizational Innovation implementations in the organizations were also assessed. Strategic Leadership dimensions of Strategic Thinking, Absorptive Capacity, Adaptive capacity and Operational efficiency were identified from literature and the impact of each on Organizational Innovation was assessed. The Digital tech companies were selected from the association (ICT-et). Systematic Random sampling was used and 192 responses were collected and analysis was done. The research employed explanatory research design. Analysis for describing, assessing relationships and explaining inference were done with the help of SPSS tool. Validity and reliability of the resulted was tested. Strategic leadership is found to be Strong and positive predictor of Organizational Innovation. All of the dimensions of Strategic leadership positively related to Organizational innovation. Adaptive Capacity of Strategic Leadership failed to significantly predict Organizational Innovation. Absorptive Capacity of Top Management is found to be the most important for Organizational Innovation. The Strategic leadership variable(s) explained 50.4% of the variation in Organizational Innovation. As Organizational innovation is critical to digital tech firms operating in dynamic environment; it is recommended that organizations work on development of Strategic leadership capabilities especially Absorptive Capacity



Leadership, Strategic leadership, Innovation