Strategic leadership, organisational learning, perceived environmental uncertainty and firm competitiveness among manufacturing firms in Uganda

Abstract

In the current volatile business landscape, the significance of firm competitiveness has escalated significantly, as it directly impacts a firm's ability to expand, thrive, and survive. The cessation of operations of 101 manufacturing firms in Uganda from 2018 to 2020 was attributed to their inadequate competitiveness. Application of strategic leadership (SL) to improve firm competitiveness (FC) has been widely studied but its impact has yielded contrasting results in different contexts. Little is known about low- income countries like Uganda as most studies are from middle-income and developed world. Besides, there is scanty literature on the interactive effects. The overarching aim of the present investigation was to scrutinize the mediating and moderating functions of organizational learning (OL) and perceived environmental uncertainty (PEU) on the relationship between SL and FC. The study was guided by eight objectives; To examine the effect of SL, OL, and PEU on FC; SL on OL; the mediating effect of OL on the relationship between SL and FC; the moderating effect of PEU on the relationship between SL and OL; the moderating effect of PEU on the relationship between SL and FC; the moderated mediation impact of PEU on the indirect relationship between SL and FC via OL. The investigation was directed by the Porter’s five forces model, Transformational leadership theory, and Organizational Learning Theories. Pragmatism research paradigm together with exploratory design was employed to obtain and analyse data. The allocation of samples was accomplished through the utilization of a multistage sampling method. Questionnaires were used to collect quantitative data while interview guide was used to collect qualitative data. From a population of 1324 manufacturing firms, a sample of 461 was determined. The study employed quantitative data analysis techniques to produce both descriptive and inferential statistics that align with the research objectives and hypotheses. The analysis of qualitative data involved the application of content analysis. The Cronbach alpha coefficient was employed to ascertain the internal consistency and reliability of the research instruments, whereas exploratory factor analysis was utilized to evaluate the construct validity. The study employed hierarchical and multiple regression models utilizing the Hayes Process Macro model 8 to analyze data and test hypotheses. The results indicate that SL (β = .526, p .000, R 2 =.233), OL (β = .340, p .000, R 2 =.281), and PEU (β = .109, p .000, R 2 =.289) have significant impact on FC. The study further noted that SL has a significant effect on OL (β = .142, p .000, R 2 =.106). The results indicate that the connection between SL and FC is partially mediated by OL (β = .5257, SE = .0327, CI = .0135, .1400). The study revealed that PEU has an antagonistic conditional effect on the relationship between SL and OL (β=.4415, SE = .0518 P=.000, CI = .3397, .5432), the relationship between SL and FC (β=.2437, SE = .0807, P=.000, CI = .0851, .4022). Further, it was discovered that the PEU played a moderating role in the indirect relationship between SL and FC via OL (0.05, CI= 0.02, 0.09). The present study contributes novel insights into the role of OL in facilitating the impact of SL on FC. Furthermore, the models of moderation and moderated mediation offer novel insights in the literature and theory, indicating that the PEU plays a moderating role in the direct associations between SL and FC. Consequently, the outcomes of this study will hold importance for various stakeholders, by aiding in the development and execution of policies that encourages application of SL, OL which would improve on the level of competitiveness of the manufacturing firms in Uganda. The present study suggests that forthcoming investigations may adopt a longitudinal perspective and diversify their focus to encompass additional sectors.