The Effect of Leadership Commitment on Organizational Performance: The Case of Selected Beverage Companies in Lideta Sub-city
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Date
2026-05-03
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Addis Ababa University
Abstract
This study observed that how leadership commitment can affect organizational performance. By using variables of employee development, transparency and sustainability practice on the side of leadership commitment, and also on the side of organizational performance productivity and operational efficiency variables were used to evaluate the success of an organization. To gather the primary data from respondents, the study used structured questionnaires. And the data has used for quantitative research approach. The study included 110 respondents. The data was analyzed using descriptive and inferential statistical methods like Pearson correlation and regression analysis. The result indicated that the performance of an organization can be significantly enhanced by leadership commitment. Productivity and operational efficiency were found to strongly positively correlate with employee development with the value of correlation coefficient of 0.605 and 0.689 respectively. Again there was a positive correlation between transparency and productivity with the correlation coefficient of 0.501. Also a sustainable practice has demonstrated a significant positive correlation with operational efficiency of 0.632 correlation coefficient. These results suggest that organizations that are dedicated on leadership are more likely to get greater level of organizational performance. In conclusion the study revealed that improving organizational performance needs a good leadership commitment. And in order to get improved outcomes, leaders who support employee development, sustainability practice and transparency are needed. Based on the result that is found from the study, the multiple regression analysis showed that employee development and sustainability practice significantly influenced the performance of an organization. And also employee development had a significant positive effect on both productivity and operational efficiency with beta value of 0.605 and 0.438 respectively. Likewise, sustainability practice has a positive effect on productivity and operational efficiency with the value of beta 0.422 and 0.307 respectively. But in the case of transparency, the study showed that it didn’t had a significant effect on productivity and operational efficiency with beta value of 0.053 and 0.065 when it is analyzed together with the other predictors. And the reason for this can be that transparency may be related with the performance of an organization when it is examined by itself or independently but may not be associated when it is considered with the other two independent variables which are employee development and sustainability practice. Besides for future studies, further research should be done to examine other aspects of leadership commitment and include other organizational contexts.
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Leadership Commitment, Organizational Performance, Employee Development, Transparency, Sustainability Practices, Productivity, Operational Efficiency.