The mediating role of organizational climate in the relationship between strategic leadership and institutional performance

This study examined the mediating role of organizational climate in the relationship between strategic leadership and institutional performance within the Public Electricity Corporation of Yemen. Employing a quantitative descriptive research design, data were collected using a structured questionnaire. Statistical analyses were conducted utilizing SPSS version 28 and SmartPLS version 4, with Structural Equation Modeling (SEM) applied to analyze the data. The study population comprised all employees of the General Administration at the Public Electricity Corporation. A stratified random sample of 269 employees was selected for participation. The study yielded several significant findings, most notably that the overall level of strategic leadership practice across its various dimensions was moderate within the organization. The results demonstrated a statistically significant direct effect of strategic leadership on institutional performance. Furthermore, the findings indicated a significant indirect effect of strategic leadership on institutional performance, mediated by organizational climate as an intervening variable. Based on these findings, the study offers several recommendations. Foremost among these is the need to strengthen strategic leadership approaches and practices within the Public Electricity Corporation in order to foster a positive organizational climate and enhance institutional performance. The study also recommends that the Corporation invest in human capital development, reform its incentive and participation systems, and improve customer satisfaction strategies. Additionally, it is essential to align strategic leadership initiatives with organizational climate enhancement efforts and to implement a comprehensive performance improvement plan to drive institutional effectiveness.