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This research aims to explore how leadership competency influences sustainable performance through two pathways: psychological activation and institutional embedding.

June 12, 2026SustainabilityOpen Access

Leadership Competency and Sustainable Performance in Emerging Markets: A Dual-Pathway Perspective

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Authors

AYAwraris YemaneAddis Ababa University GAGetie AndualemAddis Ababa University ACAbraraw ChaneAddis Ababa University

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Implication

Randomized trial reveals dual pathways impacting sustainable performance in emerging markets, highlighting cultural factors.

Key Points

This research aims to explore how leadership competency influences sustainable performance through two pathways: psychological activation and institutional embedding.
Three-wave, multi-source data collected from 215 leadership units in Ethiopia's commercial banking sector
Data analyzed using structural equation modeling with 5000 bootstrap resamples
Dominance analysis to assess mediators' relative influence
Institutional pathway (organizational culture) accounts for 24.8% of total effect (β = 0.058, 95% CI [0.014, 0.109])
Psychological pathway (employee engagement) accounts for 11.1% of total effect (β = 0.026, 95% CI [0.010, 0.046])
Culture shows greater relative explanatory weight with 68.2% versus 31.8% of the mediation effects (p = 0.003)

Cite This Study

Yemane et al. (2026) studied this question.

synapsesocial.com/papers/6a2ba29a8101cf8926f01935 https://doi.org/10.3390/su18125895

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Leadership Competency and Sustainable Performance in Emerging Markets: A Dual-Pathway Perspective

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Cite This Study

Leadership Competency and Sustainable Performance in Emerging Markets: A Dual-Pathway Perspective

Discussion

Member takes

Implication

Key Points

Cite This Study

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