The Effects of Strategic Leadership on Organizational Performance: A case study of Hibret Bank
DOI:
https://doi.org/10.56778/rjslr.v4i2.734Keywords:
Organizational performance, strategic decision-making, innovation orientation, talent developmentAbstract
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.
References
Abuzaid, A. N., Ghadi, M. Y., Madadha, S. M., & Alateeq, M. M. (2024). The Effect of Ethical Leadership on Innovative Work Behaviors: A Mediating–Moderating Model of Psychological Empowerment, Job Crafting, Proactive Personality, and Person–Organization Fit. Administrative Sciences, 14(9), 191. https://doi.org/10.3390/admsci14090191
Ageli, R., Alzubi, A. B., Aljuhmani, H. Y., & Iyiola, K. (2025). How and When Entrepreneurial Leadership Drives Sustainable Bank Performance: Unpacking the Roles of Employee Creativity and Innovation-Oriented Climate. Sustainability, 17(20), 9259. https://doi.org/10.3390/su17209259
AlNuaimi, B. K., Kumar Singh, S., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636–648. https://doi.org/10.1016/j.jbusres.2022.03.038
Alsobai, B., & Aassouli, D. (2025). Assessing Digital Transformation Strategies in Retail Banks: A Global Perspective. Journal of Risk and Financial Management, 18(12), 710. https://doi.org/10.3390/jrfm18120710
Alsoukini, F. A. M., Adedokun, M. W., & Berberoğlu, A. (2025). Enhancing Sustainable Innovation Performance in the Banking Sector of Libya: The Impact of Artificial Intelligence Applications and Organizational Learning. Sustainability, 17(12), 5345. https://doi.org/10.3390/su17125345
Arévalo, T. L. F., Pacheco, J. D., Antequera, P. D., & López-Díez, A. (2025). Participatory methodology for risk management planning: A strategy for the implementation of the Tenerife Island Volcanic Emergency Action Plan. International Journal of Disaster Risk Reduction, 120, 105356. https://doi.org/10.1016/j.ijdrr.2025.105356
Ayobami, A., & Azhar, Z. (2026). The nexus between leadership competencies and sustainable corporate performance: A systematic literature review and narrative review. Discover Sustainability, 7(1), 666. https://doi.org/10.1007/s43621-026-02589-z
Biondi, L., & Russo, S. (2022). Integrating strategic planning and performance management in universities: A multiple case-study analysis. Journal of Management and Governance, 26(2), 417–448. https://doi.org/10.1007/s10997-022-09628-7
Biresaw, T. M., & Sibindi, A. B. (2025). The Assessment of Enterprise Risk Management Practices of Ethiopian Commercial Banks. Risks, 13(3), 51. https://doi.org/10.3390/risks13030051
Bubenik, P., Capek, J., Rakyta, M., Binasova, V., & Staffenova, K. (2022). Impact of Strategy Change on Business Process Management. Sustainability, 14(17), 11112. https://doi.org/10.3390/su141711112
Caldeira, R., & Infante-Moro, A. (2025). The Importance of Ethics in Organisations, Their Leaders, and Sustainability. Administrative Sciences, 15(9), 372. https://doi.org/10.3390/admsci15090372
Dafri, W., & Al-Qaruty, R. (2023). Challenges and opportunities to enhance digital financial transformation in crisis management. Social Sciences & Humanities Open, 8(1), 100662. https://doi.org/10.1016/j.ssaho.2023.100662
Dinka, S. T., & Asfaw, A. S. (2026). The impact of efficiency and income diversification on performance of commercial banks: Evidence from Sub-Saharan African countries. Cogent Business & Management, 13(1), 2597069. https://doi.org/10.1080/23311975.2025.2597069
D’Oria, L., Crook, T. R., Ketchen, D. J., Sirmon, D. G., & Wright, M. (2021). The Evolution of Resource-Based Inquiry: A Review and Meta-Analytic Integration of the Strategic Resources–Actions–Performance Pathway. Journal of Management, 47(6), 1383–1429. https://doi.org/10.1177/0149206321994182
Duressa, W. T., & Kidane, B. Z. (2024). Indirect effects of leadership behaviors on departmental performance via organizational learning in Ethiopian public research universities. Cogent Education, 11(1), 2354969. https://doi.org/10.1080/2331186X.2024.2354969
Ejigu, M. E., & Desalegn, T. A. (2023). How does strategic planning influence the performance of financial institutions? An empirical study of Ethiopia. IIMB Management Review, 35(1), 26–39. https://doi.org/10.1016/j.iimb.2023.03.003
Elmahdy, A. H. A. M., Abdelkader, M. T. K. M., & Shaker, M. A. M. (2025). Bridging the nexus between Fintech, operational efficiency and banks profitability: The moderating role of bank size. Future Business Journal, 11(1), 62. https://doi.org/10.1186/s43093-025-00478-x
Enaifoghe, A. (2026). The Rapid Growth of Digital Banking Services on Customer Behaviour and Satisfaction in South Africa. In M. Osman Gani (Ed.), Business, Management and Economics (Vol. 50). IntechOpen. https://doi.org/10.5772/intechopen.1012046
Felipe, T., Kaya, M., Mathews, S., & Torres De Oliveira, R. (2026). Rethinking digital transformation in commercial banking: A longitudinal analysis of business model innovation. Digital Business, 6(2), 100177. https://doi.org/10.1016/j.digbus.2026.100177
Felipe, T., Torres De Oliveira, R., Toth-Peter, A., Mathews, S., & Dulleck, U. (2025). Digital transformation in commercial banks: Unraveling the flow of Industry 4.0. Digital Business, 5(2), 100129. https://doi.org/10.1016/j.digbus.2025.100129
Gandrita, D. M. (2023). Improving Strategic Planning: The Crucial Role of Enhancing Relationships between Management Levels. Administrative Sciences, 13(10), 211. https://doi.org/10.3390/admsci13100211
Gaviyau, W., & Godi, J. (2025). Banking Sector Transformation: Disruptions, Challenges and Opportunities. FinTech, 4(3), 48. https://doi.org/10.3390/fintech4030048
Hassen, S., & Lemma, H. R. (2026). Intellectual Capital and Its Effect on Innovative Performance: Insights from the Ethiopian Public Sector. Sage Open, 16(1), 21582440251407206. https://doi.org/10.1177/21582440251407206
Höglund, L., Holmgren Caicedo, M., Mårtensson, M., & Svärdsten, F. (2018). Strategic Management in the Public Sector: How Tools Enable and Constrain Strategy Making. International Public Management Journal, 21(5), 822–849. https://doi.org/10.1080/10967494.2018.1427161
Holm, C. G., Kringelum, L., & Anand, A. (2026). Creating effective strategy implementation: A systematic review of managerial and organizational levers. Review of Managerial Science, 20(2), 673–705. https://doi.org/10.1007/s11846-025-00880-3
Hordofa, D. F., & Ionaşcu, A. E. (2025). Moderating effects of board gender diversity and size on bank profitablity: Panel evidence from Ethiopia. Discover Sustainability, 6(1), 1259. https://doi.org/10.1007/s43621-025-01926-y
Hummel, K., & Jobst, D. (2024). An Overview of Corporate Sustainability Reporting Legislation in the European Union. Accounting in Europe, 21(3), 320–355. https://doi.org/10.1080/17449480.2024.2312145
Kant, S., Fisseha Dejene Yadete, & Chalchissa Amentie Kero. (2023). Meta Analysis Study of Marketing Innovation on SME Business Performance in Ethiopia. Radinka Journal Of Science And Systematic Literature Review, 1(1), 23–36. https://doi.org/10.56778/rjslr.v1i1.91
Men, F., Yaqub, R. M. S., Yan, R., Irfan, M., & Haider, A. (2023). The impact of top management support, perceived justice, supplier management, and sustainable supply chain management on moderating the role of supply chain agility. Frontiers in Environmental Science, 10, 1006029. https://doi.org/10.3389/fenvs.2022.1006029
Nefla, D., & Jellouli, S. (2025). Emerging technologies in finance: Challenges for a sustainable finance. Cogent Business & Management, 12(1), 2495191. https://doi.org/10.1080/23311975.2025.2495191
Ng, C., Wider, W., Yang, C., Jiang, L., Vasudevan, A., Bhandari, P., & Lee, H. P. T. (2024). Keys factor affecting employee performance in the banking sector: A Delphi study. Cogent Business & Management, 11(1), 2409942. https://doi.org/10.1080/23311975.2024.2409942
Oise, G. (2026). Artificial Intelligence for Smart City Reinvention: A Systematic Literature Review and Conceptual Framework. Radinka Journal Of Science And Systematic Literature Review, 4(1). https://doi.org/10.56778/rjslr.v4i1.645
Opoko Apendi, D. A., Li, K., Pea-Assounga, J. B. B., & Bambi, P. D. R. (2025). Investigating the impact of e-banking, employee job security, innovativeness, and productivity on organizational performance: Perspectives from South Africa. Sustainable Futures, 9, 100605. https://doi.org/10.1016/j.sftr.2025.100605
Ranczakowska, A. M., & Kuznetsova-Bogdanovitsh, K. (2025). The future is now: Pioneering transformative approaches in higher education within creative fields. European Journal of Cultural Management and Policy, 14, 13171. https://doi.org/10.3389/ejcmp.2024.13171
Setyawan, A. (2024). Tiktok Algorithm and Its Impact on Marketing Strategy. Radinka Journal Of Science And Systematic Literature Review, 2(3), 361–369. https://doi.org/10.56778/rjslr.v2i3.375
Tefera, F. T., & Abebe, S. (2024). Impact of strategic planning on the performance of commercial banks: The case of public commercial banks in Eastern Hararghe, Ethiopia. Cogent Business & Management, 11(1), 2336301. https://doi.org/10.1080/23311975.2024.2336301
Viera Trevisan, L., Leal Filho, W., & Ávila Pedrozo, E. (2024). Transformative organisational learning for sustainability in higher education: A literature review and an international multi-case study. Journal of Cleaner Production, 447, 141634. https://doi.org/10.1016/j.jclepro.2024.141634
Wako Jio, & Kero, C. A. (2024). Scientific Literature Review (SLR) of Agility Management on Organization Performance in Case of Ethiopia. Radinka Journal Of Science And Systematic Literature Review, 2(1), 226–234. https://doi.org/10.56778/rjslr.v2i1.200
Wang, S., Liu, Q., Dinçer, H., & Yüksel, S. (2020). Analysis of Innovation Performance for Retail Banking Industry With the Hybrid Fuzzy Decision-Making Approach. Sage Open, 10(2), 2158244020927425. https://doi.org/10.1177/2158244020927425
Xu, F., Kasperskaya, Y., & Sagarra, M. (2025). The impact of FinTech on bank performance: A systematic literature review. Digital Business, 5(2), 100131. https://doi.org/10.1016/j.digbus.2025.100131
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 RADINKA JOURNAL OF SCIENCE AND SYSTEMATIC LITERATURE REVIEW
This work is licensed under a Creative Commons Attribution 4.0 International License.
<a rel="license" href="http://creativecommons.org/licenses/by/4.0/"><img alt="Creative Commons License" style="border-width:0" src="https://i.creativecommons.org/l/by/4.0/88x31.png" /></a><br />This work is licensed under a <a rel="license" href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.
