Effects of Leadership Styles and Strategic Agility on organizational performance with Mediating Role of Employee Engagement: A Systematic Review and Meta-Analysis of Ethiopian State-Owned Enterprises

Abstract

This is a systematic review and meta-analysis study, which summarized and analyzed empirical data on the correlation of leadership, strategic agility, employee engagement, and performance of state-owned enterprises (SOEs) in Ethiopia. In accordance with the PRISMA guidelines, the identification, screening, and synthesis of the relevant studies published between 2015 and 2024 allowed obtaining the combined sample of n = 658 respondents representing the most important areas of the SOE industry, i. e., energy, telecommunications, transport, banking, and municipal services. Random effects meta-analysis was used to provide estimates of the pooled effect sizes and to test how employee engagement mediates the effect. The results showed a strong positive value of leadership on engagement of employees (r = 0.56) and moderate value of strategic agility on engagement (r = 0.49). The relationship between employee engagement and organizational performance (r = 0.61) demonstrated that it was the core as the psychological and behavioural channel between leadership and agility and performance outcomes. The heterogeneity analysis showed that these relationships were moderated by the type of sector and leadership style, and funnel plot evaluation implied the absence of publication bias. The findings contribute to a holistic approach to a combination of leadership theory, dynamic capabilities, and engagement models in the Ethiopian context of the public sector. The research concludes that to achieve sustainable SOE performance based on engagement-focused leadership development and agility-building practices as opposed to structural reforms are necessary. The results can be used in the literature of management studies in the public sector and evidence-based guidance to policymakers and practitioners in need to improve the quality of services, efficiency, and value to the population among the emerging economy SOEs.