Financial Institutions, economic contraction, banking profitability, competitiveness, Namibia

Multiple financial institutions are struggling to survive in the current business environment, due to the challenges that arose due to outbreak of COVID 19 and subsequent economic contraction in Namibia. The outbreak of war in Ukraine where Russia is attacking Ukraine has made the business operating environment more challenging in Namibia. The contemporary economic challenges require different types of leadership that are able to accurately assess the business environment, and then initiate innovative and creative approaches to addressing them. This research was motivated by the need to explore a leadership style that would be able to help banks to cope with the harsh business environment and also to suggest innovative approaches and strategies that could lead to profitability and competitiveness of the banking sector in Namibia. The study employed a quantitative research approach to analyse the relationship between leadership style and bank profitability and competitiveness. Four branches were selected in Namibia from two regions, to take part in the study, with a population of 164 employees and management. A sample size that represented more than 60% of the population was selected utilizing, using a stratified sampling method. The data analyses were done using Kruskal Wallis Test and the Mann-Whitney Test, as well as the Analysis of Variance (ANOVA) and regression analysis. The findings of the study demonstrated that bank profitability and competitiveness in Namibia was linked to leadership styles such as transformational leadership and authentic leadership. The study also noted that organizational style can improve by embracing transformational and authentic leadership style. The study recommended that financial institutions must invest more in developing leadership styles that can lead to more productivity and profitability.

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