UNRAVELING THE LINK: HOW LEADERSHIP STYLES SHAPE ORGANIZATIONAL PERFORMANCE IN ETHIOPIAN PRIVATE HIGHER EDUCATION

Abstract

This study examines the critical link among various approaches of leadership and organizational performance in Ethiopian private colleges/universities, employing an explanatory research design with a quantitative approach. Data were collected from 301 employees using structured questionnaires and analyzed through multiple linear regression to determine the predictive relationships among leadership approaches and institutional performance metrics. The findings reveal that leadership styles significantly influence organizational performance, with transformational leadership demonstrating the strongest positive impact by fostering employee motivation, innovation, and shared institutional vision. Transactional leadership also contributes positively through its structured reward systems and performance accountability mechanisms. Conversely, laissez-faire leadership exhibits a detrimental effect, correlating with reduced productivity and institutional inefficiencies due to its passive supervisory approach. These results underscore the strategic importance of leadership development in Ethiopia's evolving higher education sector, suggesting that institutions prioritizing transformational and transactional leadership practices are better positioned to enhance college/ university performance. Therefore, the researcher provides recommendations for university administrators seeking to optimize leadership strategies in resource-constrained educational environments while contributing empirical evidence to the broader discourse on leadership effectiveness in developing contexts.