The Mediating Role of Entrepreneurial Orientation in The Relationship Between Dynamic Capability and Performance 0f Ethiopian Airlines
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Date
2021-06
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A.A.U
Abstract
This study investigated the mediating role of Entrepreneurial Orientation (EO) in the
relationship between dynamic capability (DC) and performance (P) of Ethiopian Airlines.
The research followed cross-sectional explanatory research design, quantitative approach,
survey method and questionnaire was used as data collection instrument. The study
employed exploratory factor analysis (EFA) through principal component analysis (PCA)
and structural equation modeling (SEM) to validate study results. Middle level managers
(managers, team leaders and successors), of Ethiopian Airlines headquarter, Bole
International airport Addis Ababa were the target population. To represent the target
population stratified sampling was used and respondents of 222 were selected randomly. 167
responses were collected. The finding indicated Entrepreneurial Orientation has a
complimentary mediation role. Moreover, second order variables maintained a significant
association with dynamic capability. Finally, the independent analysis indicated dynamic
capability dimensions have a positive and significant relationship with the firm performance.
The research concludes the Ethiopian airlines should focus on and strengthen its dynamic
capability for the better performance in the industry. As a recommendation the researcher
recommends managers and other employees of the Ethiopian Airlines needs to exercise and
increase its sensing, coordinating and learning capabilities to improve its performance and
compete in the international market.
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Keywords
Dynamic capability, Entrepreneurial orientation, Sensing Capabilities