PhD Research Proposal (concept note)

The Influence of Leadership Styles on Knowledge Management Practices in Addis Ababa

Public Service: Pathways to Organizational Efficiency and Innovation

Applicant Name: Dawit Shiferaw Sori

Ethiopian Civil Service University

College of leadership and Governance

Department of leadership

October, 2024
 Table of Contents
Background of the Study.......................................................................................1
Statement of the Problem......................................................................................3
Research Objectives.............................................................................................5
General Objective:............................................................................................5
Specific Objectives:...........................................................................................5
Research Questions..............................................................................................5
Significance of the Study.......................................................................................6
Conceptual Framework........................................................................................6
Theoretical Framework........................................................................................6
Methodology.......................................................................................................7
Research Design...............................................................................................7
Population and Sampling...................................................................................7
Data Collection Methods....................................................................................7
Data Analysis...................................................................................................8
Ethical Considerations:......................................................................................8
References..........................................................................................................9
Background of the Study
Leadership plays a pivotal role in shaping the operational effectiveness and innovative capacity
of any organization, including public sector institutions. Over the past two decades, the concept
of Knowledge Management (KM) has gained traction as a vital resource for enhancing
organizational learning, innovation, and decision-making (Nonaka & Takeuchi, 1995). KM refers
to the processes involved in capturing, storing, sharing, and effectively using knowledge within
an organization to improve outcomes. The public sector, in particular, stands to benefit
significantly from effective KM practices, as these organizations are tasked with large-scale
service delivery and policy formulation (Wiig, 2002). However, the ability to successfully
manage knowledge depends on the leadership style that guides the organization.

Addis Ababa, as the capital of Ethiopia and its largest urban center, faces unique challenges in
public service provision. The Addis Ababa Public Service City Administration is responsible for
delivering essential services to a rapidly growing population while navigating complex socio-
political dynamics. In such an environment, effective leadership becomes crucial in managing
institutional knowledge to address challenges, improve service delivery, and promote innovation.
However, public sector institutions in Addis Ababa are often constrained by bureaucratic
leadership styles that inhibit innovation and limit knowledge sharing across departments
(Kidane, 2015).

Research shows that leadership styles have a direct impact on KM practices. Transformational
leadership, for instance, has been linked to increased organizational learning and knowledge
sharing, as it fosters a culture of trust, collaboration, and innovation (Bass, 1990). In contrast,
transactional leadership, which focuses on performance and rewards, may encourage short-term
goal achievement but could fail to promote an environment conducive to the free exchange of
knowledge (Burns, 1978). Meanwhile, participative leadership involves engaging employees in
decision-making processes, which is believed to enhance knowledge sharing by creating a more
inclusive and collaborative organizational culture (Yukl, 2013).

Despite the theoretical linkages between leadership styles and KM, public sector organizations in
developing countries, including Ethiopia, often lack systematic approaches to leveraging
leadership for effective knowledge management (Mengesha & Common, 2007). Addis Ababa's
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public administration suffers from challenges such as inadequate knowledge-sharing
mechanisms, ineffective leadership, and a lack of coordination among departments (Berhanu &
Wondimu, 2020). These challenges hinder the administration's ability to innovate, adapt to
changing needs, and enhance service delivery.

Furthermore, Ethiopia’s public service sector operates within a highly centralized governance
structure, which may not always promote the autonomy needed for knowledge management.
This top-down approach, combined with a lack of accountability, often leads to poor
communication channels and fragmented KM practices, affecting the quality of decision-making
(Teshome, 2021). In Addis Ababa, such challenges are particularly acute given the city’s role as
both a political and economic hub. The need for coordinated knowledge management is critical
to address these pressing demands.

The literature on leadership and KM within the public sector of developing countries is still
underdeveloped, particularly in African contexts. Although several studies have highlighted the
importance of leadership in private sector KM, fewer empirical studies have focused on the
public sector, where the stakes are higher due to the need for transparent, efficient, and equitable
service delivery (Liebowitz & Chen, 2003). In Ethiopia, research on KM in public administration
remains limited, and there is a substantial gap in understanding the relationship between
leadership styles and KM practices within the Addis Ababa Public Service City Administration.

This research seeks to fill that gap by examining how different leadership styles—
transformational, transactional, and participative—affect KM practices in Addis Ababa’s public
sector. Understanding this relationship will not only contribute to academic knowledge but will
also have practical implications for improving public service delivery in Addis Ababa. By
proposing a strategic framework that aligns leadership styles with effective KM processes, this
study aims to enhance the city’s capacity for innovation, adaptability, and efficient service
provision.

Moreover, the research is timely, given the Ethiopian government’s ongoing public sector reform
efforts aimed at decentralizing governance and improving service delivery at the local level
(Mengesha & Common, 2007). By exploring the intersections of leadership and KM, this study
will provide insights into how leadership reform can drive the institutional changes needed to
make KM an integral part of Addis Ababa's public service culture.
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Statement of the Problem
In today’s knowledge-based economy, effective knowledge management (KM) has emerged as a
critical factor for organizational success, particularly in public sector institutions that deal with
large-scale service delivery and complex decision-making processes. However, many public
sector organizations in developing countries, including Ethiopia, struggle with weak KM
practices, which contribute to inefficiencies, poor service delivery, and a lack of innovation.
Addis Ababa, Ethiopia's capital and largest urban center, is no exception. The Addis Ababa
Public Service City Administration, tasked with managing services for a population of over 5
million people (World Population Review, 2024), faces challenges in harnessing institutional
knowledge to improve service delivery, streamline decision-making processes, and promote
innovation.

One key factor influencing the effectiveness of KM in organizations is leadership style. Research
has shown that leadership plays a crucial role in creating a culture of knowledge sharing,
collaboration, and continuous learning (Davenport & Prusak, 1998). However, in Addis Ababa’s
public sector, leadership styles are often characterized by rigid hierarchies and centralized
decision-making processes, which inhibit the flow of knowledge across departments and
discourage innovation (Berhanu & Wondimu, 2020). A report by the Ethiopian Civil Service
University (2020) highlighted that 70% of public sector employees in Addis Ababa believe that
their organization lacks effective KM practices, with leadership cited as a major barrier to
knowledge sharing.

The absence of a supportive leadership framework is particularly problematic in the context of

Addis Ababa's public service, where rapid urbanization and socio-economic changes have placed
increasing demands on public sector institutions to be more responsive, efficient, and innovative.
Public services such as health, education, and infrastructure management are heavily reliant on
timely and accurate information, yet the lack of integrated KM systems hampers the ability of the
City Administration to respond to emerging challenges. For example, a 2019 performance audit
by the Addis Ababa City Administration’s Office of the Auditor General found that ineffective
KM practices contributed to delays in the execution of over 30% of planned infrastructure
projects, resulting in significant cost overruns and public dissatisfaction (Office of the Auditor
General, 2019).

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Leadership styles—whether transformational, transactional, or participative—are closely tied to
an organization's KM capabilities. Transformational leadership, for instance, fosters a culture of
innovation and learning by motivating employees to think creatively and share knowledge across
the organization (Bass, 1985). In contrast, transactional leadership, which is often more focused
on performance-based rewards, may limit the scope of KM activities by discouraging the open
exchange of ideas (Burns, 1978). Participative leadership, which involves employees in decision-
making, has been shown to facilitate knowledge sharing by creating a more inclusive
organizational environment (Yukl, 2013). However, in Addis Ababa’s public sector, the
prevalence of transactional and authoritarian leadership styles has resulted in siloed operations,
where knowledge is often hoarded within departments rather than being shared for the greater
organizational good (Kidane, 2015).

The lack of a knowledge-driven leadership culture has significant implications for the efficiency
and innovation capacity of Addis Ababa’s public sector. For instance, a study by Teshome (2021)
found that departments within the Addis Ababa Public Service City Administration often fail to
leverage existing knowledge and expertise when addressing recurrent problems, leading to
duplicated efforts and inconsistent service delivery. Moreover, the absence of effective KM
practices contributes to a loss of institutional memory, as valuable knowledge is not captured or
shared when employees leave or transfer departments. This creates a cycle of inefficiency, where
lessons learned from past projects are not applied to future initiatives, further hindering the City
Administration’s ability to innovate and improve service delivery.

In this context, there is a pressing need to investigate how different leadership styles impact KM
practices within Addis Ababa’s public service. Understanding this relationship is crucial for
developing strategies that can align leadership with KM to enhance organizational efficiency,
promote innovation, and ultimately improve service delivery. Without this understanding, efforts
to reform the public sector may continue to be undermined by weak knowledge management
practices and ineffective leadership. This research aims to fill this gap by assessing the impact of
transformational, transactional, and participative leadership styles on KM practices in the Addis
Ababa Public Service City Administration and proposing a strategic framework to improve KM
and organizational performance.

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Research Objectives
General Objective:
To examine the impact of leadership styles on organizational knowledge management practices
within the Addis Ababa Public Service City Administration.

Specific Objectives:
1. To analyze the influence of leadership styles on knowledge creation and sharing
practices.
2. To assess the role of leadership in fostering a knowledge-sharing culture within the public
sector.
3. To identify the key leadership challenges that hinder effective knowledge management
practices.
4. To propose a strategic framework for aligning leadership styles with knowledge
management processes to enhance public service efficiency.

Research Questions
The research will address the following questions:

1. How do different leadership styles (transformational, transactional, and participative)

influence KM practices within Addis Ababa's public service?
2. What are the key challenges and facilitators of knowledge management as perceived by
leaders and employees?
3. How does leadership style impact the ability of the public service to innovate and
improve service delivery through KM?
4. What strategic framework can be developed to align leadership styles with effective KM
practices in the Addis Ababa public sector?

Significance of the Study

This study will contribute both theoretically and practically to the fields of leadership and
Knowledge Management, particularly in the context of public administration in developing
cities. The findings will provide valuable insights into how leadership can be leveraged to

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improve KM practices, leading to enhanced service delivery and innovation in the public sector.
The research will also provide a strategic framework for policymakers and public sector leaders
in Addis Ababa to improve leadership practices that support knowledge sharing and utilization,
ultimately benefiting the city's socio-economic development. Furthermore, the study will
contribute to academic literature by addressing a gap in knowledge regarding leadership and KM
in African public service organizations.

Conceptual Framework
The conceptual framework for this study is based on the relationship between leadership styles
and KM practices. Leadership styles (transformational, transactional, and participative) are
considered the independent variables, while KM processes (knowledge creation, sharing, storage,
and application) are the dependent variables. The framework will explore how different
leadership approaches impact these KM processes and the overall performance of the Addis
Ababa public service.

Leadership Styles→Knowledge Management Practices→Organizational Performance

Theoretical Framework
This study will draw on two main theories: first, Transformational Leadership Theory (Bass,
1985): This theory posits that transformational leaders inspire and motivate employees to achieve
higher levels of performance and innovation by creating a vision and fostering a culture of trust
and knowledge sharing. Secondly, Knowledge-Based View of the Firm (Grant, 1996): This theory
emphasizes the importance of knowledge as a critical organizational resource. It suggests that
organizations must effectively manage and utilize their knowledge resources to achieve a
competitive advantage. In the public sector, effective KM practices are essential for enhancing
service delivery and decision-making.

These two theories provide a foundation for understanding how leadership influences KM
practices, particularly in public organizations, and how effective KM can lead to better
organizational outcomes.

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Methodology
Research Design
This study will employ a mixed-methods research design, integrating both quantitative and
qualitative approaches to provide a comprehensive understanding of the relationship between
leadership styles and organizational knowledge management (KM) practices in the Addis Ababa
Public Service City Administration. This approach allows for a robust analysis by leveraging the
strengths of both qualitative and quantitative data.

Population and Sampling

The target population for this research includes employees and leaders within the Addis Ababa
Public Service City Administration. To ensure diverse representation across various departments
and levels of leadership, a stratified random sampling technique will be utilized. Accordingly,
researcher will collect data from selected employees for the survey, representing different
departments, job roles, and leadership levels. Additionally, and leaders will be purposefully
selected for in-depth qualitative interviews to gain deeper insights into their experiences and
perceptions regarding leadership styles and KM practices.

Data Collection Methods

Data for this study will be collected through a combination of questionnaires, interviews, and
document analysis to ensure a comprehensive understanding of the relationship between
leadership styles and knowledge management practices in the Addis Ababa Public Service City
Administration. A structured questionnaire will be developed to gather quantitative data from
approximately 200 employees across various departments. The questionnaire will include
standardized measures assessing different leadership styles—transformational, transactional, and
participative—as well as organizational KM practices. The survey will be distributed
electronically to facilitate participation and maximize response rates. In addition to the survey,
semi-structured interviews will be conducted with 15 selected leaders to obtain qualitative
insights into their experiences and perceptions regarding KM. The interview guide will comprise
open-ended questions designed to explore how their leadership style influences knowledge
sharing and the challenges they encounter in promoting a knowledge-driven culture.
Furthermore, relevant organizational documents, including KM policy manuals, performance

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reports, and audits, will be analyzed to provide context and supplementary data on existing KM
practices within the administration.

Data Analysis
The analysis of the collected data will involve both quantitative and qualitative techniques to
ensure a holistic understanding of the research questions. The quantitative data gathered from the
questionnaires will be analyzed using statistical software such as SPSS or R, with descriptive
statistics employed to summarize demographic information and overall responses. To assess the
relationships between different leadership styles and KM practices, inferential statistics,
including multiple regression analysis, will be utilized. Concurrently, qualitative data from the
interviews will be analyzed using thematic analysis. This involves coding the interview
transcripts to identify recurring themes and patterns related to leadership styles and KM
practices, thereby providing depth and context to the quantitative findings. The integration of
both data types will allow for triangulation, enhancing the validity and reliability of the research
outcomes, ultimately leading to comprehensive conclusions and actionable recommendations.

Ethical Considerations:
The study will adhere to ethical guidelines, including obtaining informed consent from
participants, ensuring confidentiality, and minimizing any potential harm to participants.

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References
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vision. Organizational Dynamics, 18(3), 19-31.

Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the

vision. Organizational Dynamics, 18(3), 19-31.

Berhanu, T., & Wondimu, H. (2020). Knowledge management practices in the Ethiopian public
sector: Challenges and prospects. Journal of Public Administration, 6(1), 45-56.

Berhanu, T., & Wondimu, H. (2020). Knowledge management practices in the Ethiopian public
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Berhanu, T., & Wondimu, H. (2020). Knowledge management practices in the Ethiopian public
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Davenport, T. H., & Prusak, L. (1998). Working knowledge: How organizations manage what
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