The Influence of Strategic Management Practices on Organizational Performance: Examining the Mediating Roles of Organizational Culture and Employee Engagement: The Case of Ethio-telecom
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Date
2024-11-07
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A.A.U
Abstract
The aim of this study was to investigate the influence of strategic management practices on
organizational performance and examine the mediating role of organizational culture and
employee engagement in Ethio-telecom. The target population for this study comprised the
employees of Ethio-telecom, from which a sample of 280 participants was drawn. Primary data
were collected using a structured questionnaire, with 217 completed responses used for the
analysis. The study employed a stratified sampling technique, ensuring that respondents were
randomly selected from each stratum. A mixed research design, incorporating both explanatory
and descriptive elements was used, with a focus on quantitative analysis. Descriptive statistics,
such as mean and standard deviation, along with structural equation modeling were applied. Data
analysis was conducted using SPSS version 25 and SPSS AMOS version 23. The reliability of the
data was assessed using Cronbach's Alpha. The study revealed environment scanning, strategic
formulation, strategic implementation, and strategic monitoring and evaluation had a significant
positive influence on the organizational performance of Ethio-telecom. Besides both
organizational culture and employee engagement effectively mediate the relationship between
strategic management practices and organizational performance. Ethio-telecom demonstrates
strong strategic management practices and a conducive organizational culture, characterized by
active employee engagement and responsiveness to the business environment. Despite recent
market changes and heightened competition, Ethio-telecom has maintained a strong position. This
research suggests that Ethio-telecom should further enhance the capacity of lower-grade staff to
contribute to strategic planning, ensure thorough oversight and support for internal advisors and
external consultants, and continuously refine its strategic management practices, organizational
culture, and employee engagement. These measures will help sustain its competitive edge and
further strengthen organizational performance. This study offers valuable insights for other
companies and serves as a significant resource for future research.