Impact of Strategic Leadership on Organizational Wellbeing with Moderating Effect of External Factors: Evidence from Sri Lanka Police

Abstract

This study examines the impact of strategic leadership on organizational well-being, with external factors acting as a moderating influence, using the Sri Lanka Police as a case study. Strategic leadership plays a crucial role in fostering organizational success, particularly in complex and dynamic environments. The research explores key dimensions of strategic leadership, including alignment, decision-making and interpretation, and their effects on financial, social and human resource well-being. Additionally, external factors such as political, regulatory, technological, social, and cultural changes, as well as global crises, were analyzed to determine their moderating effect on the relationship between leadership and well-being. The study employed a quantitative research methodology, utilizing structural equation modeling through AMOS software to analyze the relationships among variables. Factor analysis confirmed the validity of measurement items, leading to the refinement of the dataset. The findings indicate a significant positive relationship between strategic leadership and organizational well-being, particularly in terms of social and human resource well-being. However, financial well-being did not show a statistically significant relationship with strategic leadership. Among external factors, political instability was found to have a negative moderating effect, whereas technological and social changes enhanced the relationship between strategic leadership and organizational well-being. Based on these findings, the study recommends strengthening leadership development programs, implementing participatory leadership approaches, and establishing structured frameworks to address external changes. Policymakers and law enforcement agencies can utilize these insights to refine leadership models and enhance organizational resilience.

Keywords: Strategic Leadership, Organizational Well-being, Moderating influence, Structural Equation Modeling, Sri Lanka Police