Takele, Yitbarek (Ph.D.)Tsegaye, Abiy2021-09-012023-11-042021-09-012023-11-042021-06http://etd.aau.edu.et/handle/123456789/27769This 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.enDynamic capabilityEntrepreneurial orientationSensing CapabilitiesThesis