The Effect of Strategic Leadership on organizational Performance: In the case of Ethiopian Airlines
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Date
2025-09
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Addis Ababa University
Abstract
The objective of this research. is to examine strategic leadership and its effect on the organizational performance of Ethiopian Airlines. The research employs a quantitative approach with a descriptive-explanatory design that combines both descriptive and explanatory methods. A random sampling method was used to select the sample, resulting in 240 distributed questionnaires and 200 valid responses. The data analysis was conducted in two parts: descriptive analysis addressed the first research question, while regression analysis covered the remaining questions. The descriptive analysis reveals that strategic intent and vision, strategic ownership tendency, and human capital elicited a favorable response regarding current organizational performance. However, innovation received the highest level of disagreement. In the regression analysis, the correlation for organizational performance is significant at an 88% confidence level, while it ranges between 61% and 87% for the other variables. Strategic ownership tendency and human capital have a correlation confidence level varying from 79% to 98%, both positively correlating with the dependent variable. Conversely, the independent variable innovation demonstrated an insignificant and negative correlation with the dependent variable, at a confidence level of 89%. Additionally, a hypothesis test using beta coefficients indicated that strategic intent and vision, strategic ownership tendency, and human capital had a positive and significant effect on the organizational performance of Ethiopian Airlines, with P-values greater than 0.05 and beta coefficient values of 0.111, 0.216, and 0.320, respectively. In contrast, the independent variable innovation exhibited a negative and insignificant effect on the dependent variable organizational performance, with a P-value less than 0.05 and a beta coefficient value of -0.110. The findings of this study provide decision-makers with insights for improvement, particularly regarding variables that show a negative correlation, such as innovation. Additionally, management at Ethiopian Airlines should actively invest in fostering a culture of innovation within the organization. This can be achieved by implementing comprehensive awareness programs and training sessions that emphasize the importance of innovation in the workplace. Equipping employees with the necessary skills and resources will empower them to think creatively and contribute to the airline's growth.
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Keywords
Strategic Intent and Vision, strategic ownership tendency, Human Capital Management, Innovation, Organizational Performance