The Effects of Strategic Leadership on Organizational Performance: A case study of Hibret Bank

Abstract

This study examines the determinants of organizational performance, with a specific focus on key managerial and strategic factors. The objective was to identify significant predictors of organizational performance and assess their relative influence using empirical evidence. Employing a quantitative research approach, primary data were gathered from 250 respondents selected via appropriate sampling techniques using a structured questionnaire. Data were analyzed using descriptive statistics, correlation analysis, and multiple linear regression. The regression results demonstrate a strong, positive relationship between the independent variables and organizational performance, with the coefficient of determination indicating that 78.1% of the variation in organizational performance is explained by the combined effect of the explanatory variables. Furthermore, the model is statistically significant and explains a substantial proportion of the performance variance. The findings reveal that strategic decision-making, innovation orientation, and talent development exert positive and statistically significant effects on organizational performance, implying that organizations excelling in these areas achieve superior outcomes across financial and non-financial dimensions. Consequently, the study recommends that organizational leaders strengthen evidence-based strategic decision-making, foster a culture of innovation, and implement systematic talent development programs to enhance long-term competitiveness and sustainability.