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Article

Strategic Planning, Transformational Leadership and Organization Performance: Driving Forces for Sustainability in Higher Education in Nigeria

by
Yusuf Olatunji Habeeb
* and
Serife Zihni Eyupoglu
Business Administration Department, Faculty of Economics and Administrative Sciences, Near East University, 99010 Nicosia, Cyprus
*
Author to whom correspondence should be addressed.
Sustainability 2024, 16(11), 4348; https://doi.org/10.3390/su16114348
Submission received: 28 March 2024 / Revised: 14 May 2024 / Accepted: 15 May 2024 / Published: 22 May 2024
(This article belongs to the Special Issue Assessing Sustainability in Higher Education)
Browse Figure
Versions Notes

Abstract

:
Leadership is crucial to moving society and organizations from one stage to another. Strategic planning is required to sustain the quality of education due to the changing features of students and the construction of many higher educational institutions in Nigeria. However, because higher education is evolving, leaders’ strategic thinking constantly shifts. This study examines the effect of strategic planning on transformational leadership towards attaining the organizational performance of higher education institutions in Nigeria. This study used a sample of 388 staff from 48 state universities in Nigeria. The findings indicate that strategic planning positively influences transformational leadership and organizational performance. Moreover, transformational leadership positively mediates strategic planning and organizational performance. We empirically validate the role of strategic planning in enhancing the performance of higher education institutions. Also, strategic-planning-focused and transformational leadership processes can be critical for facilitating the proper guidelines to improve higher education institutions’ performance.

1. Introduction

Strategy places a company, provides trade-offs, and coordinates activities [1,2]. An organization’s strategy includes its goals, policies, and activities [3]. Strategic planning is proactive and future-facing, aligning the business with evolving marketing possibilities. [4], explained sustainable strategic planning as the continuous process of systematically making present entrepreneurial (risk-taking) decisions with the most extraordinary knowledge of their future, organizing the efforts needed to carry out pro-environmental actions. Sustainable strategic planning in higher education institutions (HEIs) in Nigeria increased with changing demographics, reduced funding, new technology, globalization, and public sector scrutiny in the latter part of the last century. In this time of transition, sustainable HEIs need new tactics and competent management to adapt to a sustainable environment [5]. The importance of strategic planning in HEIs has been enhanced recently owing to the need for the eco-friendly formulation and implementation of university planning guidelines in an era of cutthroat competition at a global scale [6].
Despite the limited literature that disputes its usefulness, sustainable strategic planning is widely used in government agencies, nonprofit organizations, and HEIs [7]. Therefore, examining the role of pro-environmental strategic planning in boosting the sustainable performance of HEIs in Nigeria is essential. The prime purpose of leadership is to inspire others. Leadership is a purposeful influence to guide people toward a goal [8]. The contribution of leadership, particularly transformational leadership, has been studied in different contexts, including institutions, the military, and politics. Transformational leaders have a shared vision of the future, inspire subordinates intellectually, and acknowledge individual diversity. These academic leaders include principals, curriculum creators, school administrators, and teachers or instructors. Most studies have studied teachers as leaders of their pupils, known as instructor-leadership, but the role of non-academic, administrative, and decision-making staff in the performance of sustainable HEIs in Nigeria has largely been overlooked [9,10].
The performance of HEIs is crucial in achieving environmental-friendly institutional goals. Transformational leadership can be effective in improving the eco-friendly performance of organizations [4], found that transformational leadership in universities positively impacts student outcomes, like motivation, credibility, satisfaction, and academic performance. Research on transformational leadership examines the direct association between leadership and student performance without exploring the reasons behind these relationships. Therefore, researchers should contribute and develop a theory to understand the role of transformational leadership in increasing the performance of HEIs in Nigeria.
Strategic planning and transformational leadership play a vital role in academic performance when non-academic transformational leaders invest their emotional, behavioral, and cognitive resources in bringing sustainability to HEIs. Transformational leaders motivate people to exceed expectations [11,12], are expected to strive for higher-order outcomes [13,14,15]. Therefore, transformational leaders are required to motivate and inspire followers to exceed expectations. Leaders should use highly active engagement to encourage followers to perform at a high level. Research indicates that work engagement is a link between transformational leadership and employee performance [3]. Transformational leaders who are visionary and enthusiastic about their responsibilities are likely to fulfil sustainable organizational goals [7]. Studies have discussed strategic planning and transformational leadership in organizational behavior, but there are limited studies investigating this relationship in eco-friendly educational research [16].
Some studies have examined the relationship between strategic planning and job performance [3], human capital, organizational performance [17], and strategic planning and performance management [18]. Others have investigated the association between strategic planning and technological competence [19], and strategic planning and sustainable performance of manufacturing companies [20]. Nevertheless, there is a noticeable gap in the literature regarding the association between strategic planning and the sustainable performance of HEIs in Nigeria [12,21,22]. To address this gap, the current study examines the relationship between strategic planning and strategic performance of HEIs in Nigeria and how transformational leadership mediates this relationship. There is a need to test this relationship as it will help concerned authorities devise and implement policies to survive and excel in the global competition, considering the environmental goals, which is part of one of the chief Sustainable Development Goals of the United Nations.
The findings of this study provide valuable contributions for policymakers, non-academic leaders, and other stakeholders in Nigeria. First, the study contributes to the body of knowledge by examining the crucial relationship between strategic planning and the sustainable performance of HEIs in Nigeria. Second, this study adds to the body of knowledge on transformational leadership of non-academic staff in academic institutions by examining transformational leadership as a process through which strategic planning materializes and transforms to achieve sustainable organizational goals. Third, the results will help improve the management of HEIs, as per the international sustainability standards in Nigeria’s HEIs.

2. Literature Review and Hypotheses

2.1. Theoretical Framework

The transformative leadership theory was proposed to highlight the importance of transformational leadership in providing essential needs and greater aspirations while motivating followers to generate innovative ideas and improve the performance of the organizations aligned with the organization’s strategic milestones [23]. Over the past three decades, numerous modifications have been implemented to the transformational leadership paradigm. Scholars identify these leaders as inspiring, motivating their followers to prioritize organizational objectives over their interests [24]. Thus, this study applies the transformational leadership theory to explain how transformational leadership may transform strategic planning into improved organizational performance.

2.2. Strategic Planning and Organizational Performance

Researchers documented that strategic planning is essential for providing direction for an organization’s trajectory [25,26,27]. The process includes developing and implementing strategies for the organization’s mission and objectives. Previous research has reported a significant association between the efficacy of strategic planning and enhanced organizational performance [3,28]. According to [29], when an organization diligently strategizes its resource allocation, determines critical objectives, and effectively responds to evolving market conditions, it tends to achieve superior performance compared to its competitors. The nature of this relationship guides an organization’s synchronized actions toward its intended performance levels.
For universities to successfully review and ensure the quality of their plans, associated processes, and the application and effectiveness of their graduates in the market, proper tools and models are required. Past studies argued that carrying out their significant obligations is essential for them [4,12]. The country’s higher education system should also improve efficiency and use resources best while providing community empowerment to academics and culture. To do this, higher education institutions worldwide carefully and strategically examine their existing conditions. They set objectives to successfully manage their duty-related operational programs by outlining their visions and missions and considering their strengths, weaknesses, opportunities, and threats (SWOT). Critical environmental risk factors are analyzed in strategic planning, and solutions most likely effective to achieve organizational objectives are offered. Setting organizational goals and choosing thorough operational and administrative plans to carry them out are also steps in this process [30]. Despite its significance, many organizations may not fully comprehend that strategic planning is essential to attaining organizational goals. Managers sometimes consider it an expensive venture [31,32]. Some academics contend that strategic planning embodies the executives’ capacity for innovation and influencing the future [20,33,34]. Giving information regarding the internal and external possibilities and dangers a university may encounter, and its strengths and weaknesses are critical phases in strategic planning. Previous studies documented that utilizing the advantages of strengths and opportunities while minimizing weaknesses and threats are essential components of effective strategies [20,28]. In higher education, strategic planning helps to realize a desired and idealized future by developing a long-term vision for the organization. Plans become unrealistic and impracticable when strategic planning and analysis of internal and external elements are absent [18,35]. According to [30], a proper administrative technique used in strategic planning, policy creation, and problem solving is assessing an organization’s internal and external environment. This tool offers a practical and trustworthy way to evaluate the organization. SWOT analysis, which determines the strengths, weaknesses, opportunities, and threats, analyzes the organization’s internal and external environments. Identification of strategic concerns is frequently facilitated by the information acquired throughout the evaluation process.
Nonetheless, studies have reported that the linkage between strategic planning and sustainable organizational performance varies in different and unique circumstances [18,20]. Several factors, such as the size of the institutions, acceptance of sustainable practices, and the nature of leadership, influence the organization’s outcomes. Thus, there is a conspicuous gap in the literature on the evaluation of the association between strategic planning and sustainable organizational performance in HEIs in Nigeria [18,27,35,36]. Scholars have concluded that there is a favorable relationship between the strategic planning and performance of the institutions in Nigeria [31,32]. The contribution of the HEIs in developing the economic, social, political, and cultural fabric is paramount and pertinent for the complete renewal of the economy of Nigeria [11]. Thus, this research examines the impact of strategic planning in improving sustainability in HEIs in Nigeria, which will help develop the economy by attracting academic tourism from international students. This would increase higher education’s administrative efficiency, academic quality, and resource management, improving institutional performance. Strategic management theory underpins the notion since companies that define clear goals and match their resources and actions are more likely to succeed. In this respect, we propose the following.
H1. 
Strategic planning positively affects organizational performance.

2.3. Strategic Planning and Transformational Leadership

Strategic planning in Nigerian higher education is essential for transformational leadership [12,22,37]. This leadership style inspires and motivates followers, improving performance. With its shifting socio-economic challenges and educational needs, Nigeria’s higher education system is ideal for studying this link [38], argued that strategic planning facilitates transformational leadership. Strategic planning in education involves assessing internal and external issues, setting clear goals, and allocating resources efficiently. This approach helps the institution achieve its long-term goals and allows executives to make informed and flexible decisions. Strategic planning helps higher education leaders express a compelling vision, engage academic and administrative personnel, and foster innovation and adaptation. Strategic planning develops transformational leadership traits, including inspiration, intellectual stimulation, and individualization.
Research shows a favorable connection between strategic planning and transformational leadership attributes in several organizations [23,39,40]. These practices improve organizational effectiveness, especially in education. According to theoretical frameworks like the resource-based perspective of the organization, strategic planning, a vital corporate asset, may help leaders lead and implement revolutionary transformations. This viewpoint suggests that strategic planning might improve leadership in complex educational settings like Nigeria.
For Nigerian higher education institutions, studying strategic planning and transformational leadership is imperative [11,38]. The positive association between strategic planning and transformational leadership may lead to better structured and strategic institutional governance and leadership development. Improving these institutions’ leadership can increase their quality, performance, and competitiveness. Leaders in the Nigerian higher education sector can improve their ability to manage modern challenges and achieve academic distinction and societal influence by understanding and using strategic planning. Thus, studying this idea advances academic discourse and informs Nigerian educational policy and leadership. In this respect, the study proposes the following:
H2. 
Strategic planning positively affects transformational leadership.

2.4. Transformational Leadership and Organizational Performance

Transformational leadership is distinguished by four fundamental components: idealized influence, inspirational motivation, intellectual stimulation, and customized concern [8,23]. Transformational leaders in Nigerian higher education exhibit certain traits. These leaders employed in administrative positions encourage academic innovation, a shared vision, and institutional greatness. According to theory, transformational leaders may boost an organization’s performance by creating a proactive, engaged, and collaborative culture [9].
Success in higher education is judged by academic performance, research, student happiness, teacher development, and administrative efficiency. According to [41], these features are generally assessed based on their capacity to deliver high-quality education, undertake influential research, and function effectively. Resource restrictions and external problems might impair performance in Nigerian higher education institutions, making leadership crucial [21]. Transformational leadership emphasizes vision, inspiration, and support, which may boost performance. Transformational leadership improves organizational performance across industries, according to empirical evidence. The significance of transformational leadership style in influencing firms’ innovation has been highlighted. Leaders can introduce new ideas, establish clear objectives, and foster innovation among subordinates. Transformational leadership is a proactive method that enables individuals to guide and drive organizational transformation effectively. Transformational leadership is a leadership style that fosters a heightened awareness of common interests among organization members and facilitates the achievement of their collective objectives [5]. Various ideas of transformational leadership prioritize values, emotions, and the significance of leadership to foster employee innovation.
Past studies have consistently found that transformational leadership exerts a favorable impact on the performance of followers and organizational outcomes [8,23]. Previous studies have confirmed that transformational leadership practices positively correlate with subordinate performance in various organizational contexts. Transformational leadership often has a greater impact on performance compared to transactional leadership. Transformational leaders exhibit charm, provide inspiration, and encourage intellectual stimulation. Charisma is the driving force behind the cultivation of pride, respect, and faith that leaders strive to instill in their workers, themselves, and the organizations they serve. Thus, this study proposes the following hypothesis:
H3. 
Transformational leadership positively affects organizational performance.

2.5. Mediating Role of Transformational Leadership

Higher education institutions in Nigeria have had notable difficulties in their performance in recent years [42]. These obstacles have prompted scholars and decision makers to investigate the impact of strategic planning on enhancing organizational performance. Strategic planning is a systematic procedure by which organizations establish their long-term goals and objectives, ascertain the strategies required to attain them, and efficiently allocate resources. This process entails evaluating the present condition of the organization, examining external influences, and devising plans to improve overall performance. Prior studies have indicated that effectively designed strategies can enhance an organization’s performance by providing a coherent and actionable roadmap.
Simultaneously, transformational leadership has garnered significant attention in scholarly literature as a prospective catalyst for organizational success. Transformational leadership is distinguished by leaders who inspire and encourage their followers to surpass their self-interests [23]. Leaders who demonstrate this style frequently possess a forward-thinking vision and effectively convey it to their people. According to [39], leaders can cultivate a climate that promotes innovation and dedication among their followers. Likewise, the study’s findings support the notion that the role of transformational leadership is essential in producing sustainable institutional outcomes. Based on the resource-based view (RBV), this investigation proposes that strategic planning is crucial in increasing sustainable organizational performance through transformational leadership for HEIs in Nigeria [4]. Thus, this study suggests the following hypothesis:
H4. 
Transformational leadership mediates the relationship between strategic planning and organizational performance.
All the hypotheses are presented in the conceptual model, as shown in Figure 1 below.

3. Methodology

3.1. Research Population and Sample

This study chose Nigerian universities to examine the impact of strategic planning on sustainable HEIs in Nigeria. Universities were selected based on the stratification principle, whereby non-academic staff were divided into several units, such as top-, middle-, and lower-level administrative officials. Implementing this stratified method guarantees a thorough and inclusive representation of the diverse institutional levels prevalent at these universities. This study offers a comprehensive perspective on the influence of strategic planning and transformational leadership on organizational performance in various areas of the higher education sector in Nigeria. It achieves this by incorporating non-academic personnel in its analysis.
The population size consists of all universities in Nigeria. According to the Ministry of Education in Nigeria, 170 universities (79 private, 43 federal, and 48 state universities) have 135,754 non-academic staff. The sample size of this study includes 48 state universities, with 42,548 non-academic staff working in these universities. Although state-owned universities may represent a lesser share of all universities, they have specific challenges and functions within different organizational structures than federal and private universities. These challenges may encompass concerns about financial resources, organizational frameworks, and discrepancies across various regions, among other factors. By prioritizing state-owned universities, the research may thoroughly investigate these specific challenges and examine their effects on the experiences of non-academic workers. Furthermore, state-owned universities play a crucial role in promoting accessibility and advancement of higher education in their specific areas. Therefore, it is essential to comprehend the internal structure of these universities to develop informed policies and efforts that might enhance educational achievements and ensure equal opportunities for higher education throughout Nigeria. Finally, state-owned universities still constitute a substantial number of institutions in the higher education sector. By examining a wide array of state-owned universities in various geographical areas, the research can encompass a wide range of viewpoints and experiences that may not be adequately represented by just examining federal or private institutions.
G power software application version 3.1.9.7 was applied to calculate the sample size. According to this software application, the ideal sample size was 435. Therefore, out of 435 distributed questionnaires, 388 were received, which makes 89% the response rate. The effect size (f²) was determined to be 0.15, indicating a medium effect.
This study’s selection of 48 state universities and concentration on non-academic administrative officers in Nigeria’s higher education institutions are purposeful. Nigeria’s 170 institutions require a targeted approach to produce significant and controllable research outcomes. This study focuses on the 48 state universities to better understand how transformational leadership mediates the link between strategic planning and organizational performance in state-run institutions. With their institutional dynamics and political pressures, state institutions provide a unique framework for studying postulated linkages. Narrowing the scope to non-academic administrative officers at these institutions is warranted since administrative and support staff translate strategic efforts into operational practices, affecting organizational performance. Educational leadership research typically overlooks the essential contributions of non-academic staff to university operation and performance. This research acknowledges the vital role of non-academic workers in higher education operations and support. The research focuses on this group to illuminate transformational leadership, strategic planning, and organizational performance in the university context, improving our understanding of leadership effectiveness in Nigerian higher education.

3.2. Data Collection

This study utilized a mixed-methods technique to gather data. An online survey was created utilizing the Google Forms platform, enabling the distribution of the questionnaire through both in-person interactions and online channels. This technique was selected to optimize accessibility and expand the participant pool to encompass a wide range of individuals, facilitating the acquisition of a diverse and all-encompassing dataset. In addition, including face-to-face surveys in conjunction with online distribution alleviates potential biases that may arise from relying just on online surveys before the data collection; a pilot test was conducted to assess the validity and reliability of the questionnaire. The pilot test is extremely important to obtain robust results from the respondents.

3.3. Measures

Measurement scales comprise demographic characteristics and variables measured on a five-point Likert scale. The items related to demographic factors contain four questions. The strategic planning scale, developed by [19], was employed in this study. The scale in question, consisting of five items, exhibits Cronbach’s alpha coefficient of 0.857. The Transformational Leadership Scale, developed by [43], contains five items employed in the present study. The scale’s internal consistency, measured by Cronbach’s alpha coefficient, is 0.932. The research used organizational performance, which consisted of five items in the questionnaire. The organizational performance measure created by [44], was utilized in this study. The scale’s reliability, measured by Cronbach’s alpha coefficient, is 0.911. These numerical values are often regarded as reliable and credible [45]. The Cronbach’s alpha coefficient for all fifteen items in the present study was calculated to be 0.953, indicating a high level of internal consistency. This finding was reliable and valid.

3.4. Data Analysis

The data’s eligibility for analysis was assessed through an initial test conducted using the Statistical Package for the Social Sciences (SPSS) version 25. The screening method examined missing data, outliers, normalcy, linearity, multicollinearity, and homoscedasticity. Subsequently, the internal consistency of each variable was assessed by measuring Cronbach’s alpha. Later, exploratory factor analysis was employed to determine the adequacy of the sample, utilizing SPSS 25. Additionally, confirmatory factor analysis was conducted to validate the established constructs, using Analysis of Moment Structures (AMOS) 24. In this study, the SPSS Process Macro Version 3.1, created by [46], was employed to ascertain the variables’ direct, indirect, and mediating impacts. Subsequently, the hypotheses were assessed.

3.5. Common Method Bias (CMB)

A cautious methodology was employed to mitigate the potential for CMB during the investigation’s pre- and post-data collection stages. In the beginning, we used scales that had been previously established as reliable and valid in relevant studies. Subsequently, we used straightforward and comprehensible language in the survey to facilitate respondents’ ability to complete the questionnaire effectively. CMB may also manifest in situations where survey respondents exhibit a lack of willingness to engage in survey participation. To secure voluntary participation, we informed the participants that their anonymity would be preserved and emphasized that the study was exclusively conducted for scientific research. Subsequently, Harman’s one-factor test was employed to assess the CMB in a study previously conducted by [47]. The only factor exhibited a reported percentage of 35.25%, which falls below the recommended threshold value of 50%, as indicated in Harman’s one-factor test. Therefore, the test findings suggest that the study is free from CMB.

3.6. Factor Analysis

Researchers can break down the observed variables into smaller groups and determine how they are related using exploratory factor analysis [48]. The factors were extracted using the Promax with Kaiser normalizing rotation method and the principal components analysis (PCA) approach. Only those items that loaded 0.4 or higher on a single item were included, as suggested by [45]. The KMO was 0.931, and Bartlett’s Test was significant at (p < 0.05), which complies with the necessary sample value stated in a study [49]. The EFA analysis identified three unique components that account for 82.86% of the total variation. There are five items to measure organizational performance. However, one was eliminated since it loaded poorly. The remaining four items accounted for 66.62% of the total variation, with a loading range of 0.776 to 0.972. Five items were packed between 0.646 and 0.890 for transformational leadership, and the construct accounted for 11.13% of the total variance. Five items made up the building of strategic planning; however, three had inadequate loading and were removed. The remaining two items explained 5.11% of the overall variation and loaded in the range of 0.904 to 0.908. Thus, four items in total were eliminated owing to low factor loading (i.e., <0.4). The results of the exploratory factor analysis are summarized in Table 1.

4. Results

4.1. Descriptive Statistics and Correlation Analysis

The demographic characteristics of respondents captured in this study include three different aspects: gender, leadership position, and years of experience. Table 2 summarizes the demographic characteristics of respondents.
The researchers used the convergent validity test to evaluate this study’s validity. According to [45,50], factor loading can be used to examine convergent validity. According to [47], composite reliability (CR) should be greater than or equal to 0.6, and the average variance extracted (AVE) should be 0.5 or above to attain validity. The results of the CFA are summarized in Table 3, demonstrating that all constructs are valid and reliable.
The mean scores for the research variables are displayed in Table 4. The mean score of the respondents exceeded the 3.00 mid-point for all criteria. These results show that the employees’ perceptions of the organization’s performance are satisfactory and generally accepted.
Table 5 displays the correlation analysis’s findings, revealing that all three constructs had positive correlations and a 0.01 significance level.

4.2. Hypothesis Testing

To test the hypotheses, the researchers utilized linear regression using the Hayes Process Macro. The authors developed a regression-based statistical mediation analysis approach. Table 6 shows a breakdown of the impact of strategic planning on organizational performance. This breakdown reveals the direct and indirect causal effects of transformational leadership. The initial analysis indicated that demographic variables did not significantly impact strategic planning and organizational performance. The details of the hypotheses are summarized in Table 6. The outcomes of this investigation demonstrated that the hypotheses had produced statistically significant results based on [46] criteria.
Hypothesis 1 reveals a significant positive relationship between strategic planning and organizational performance, as indicated by a high beta coefficient of 0.7794. This finding suggests that strategic planning substantially explains the variability observed in organizational performance, exhibiting a clear and significant impact. The interpretation is further supported by an R-square value of 0.464, which suggests that the strategic planning variable can account for around 46.4% of the variability in organizational performance. The magnitude of the explained variance at this level is significant, indicating the crucial impact that strategic planning has on determining the outcomes of a company. Moreover, the substantial F test value of 334.1046 suggests the statistical importance of this association. The statistical indicators support that strategic planning is crucial in determining organizational performance.
Hypothesis 2 uncovers a positive and significant relationship between strategic planning and transformational leadership, as evidenced by a beta coefficient of 1.0271. This finding suggests that a one-unit rise in strategic planning is associated with an approximate 1.0271-unit increase in transformational leadership, indicating a more significant positive effect than proportionate. The R-squared coefficient of determination, which is 0.5907 in this case, suggests that strategic planning can account for almost 59.07% of the variability in transformational leadership. The finding of Hypothesis 2 indicates a positive and significant relationship between strategic planning and transformational leadership. The value of the F test (556.9914) implies a strong association between strategic planning and transformational leadership. Thus, a well-executed strategic planning process is crucial in augmenting the development and display of transformational leadership attributes.
The statistical evidence supports the positive relationship between transformational leadership and organizational success. The beta coefficient of 0.964 demonstrates a robust positive association between transformational leadership and organizational performance. This implies that enhancements in leadership attributes are closely linked to improved performance measures within the business. The R-square value of 0.657 supports this assertion, suggesting that transformational leadership can account for around 65.7% of the variability in organizational performance. This finding underscores the considerable influence of leadership style on organizational outcomes, indicating a noteworthy fraction of the overall impact. In addition, the F test result of 738.299 exhibits a significantly elevated level, offering substantial statistical support to conclude that the observed link is not attributable to random variation. A high beta coefficient, a considerable R-square value, and a robust F test statistic indicate that transformational leadership influences organizational performance.
The last hypothesis indicates that transformational leadership is crucial in establishing a connection between strategic planning and organizational performance. The beta coefficient of 0.6 signifies a statistically significant and positive association. This suggests that as the level of effectiveness in implementing transformational leadership practices improves, there is a proportional positive effect on the influence of strategic planning on organizational performance. The R-squared coefficient, which stands at 0.665, indicates that around 66.5% of the variability observed in organizational performance can be accounted for by the joint influence of strategic planning and transformational leadership. It shows that transformational leadership plays a significant intervening role in the relationship between strategic planning and organizational performance. In addition, the F test result of 382.6599 exhibits a significantly elevated level, offering substantial statistical support to conclude that the observed link is not attributable to random variation. This outcome validates the argument that the impact of strategic planning on organizational performance is statistically significant through the process of transformational leadership.

5. Discussion

This study examines the crucial association between strategic planning and transformational leadership in promoting sustainability in Nigeria’s HEIs. Strategic planning is evident in Nigerian higher education through curriculum development, personnel training, and infrastructural growth. Strategic planning increases organizational performance by providing a clear objective, ensuring consistency in decision making, and fostering adaptability in dynamic educational contexts. Organizational effectiveness shows that clear and well-structured planning is necessary for high performance.
Based on the resource-based view, strategic planning helps transformational leadership improve the institutions’ performance. Similarly, vision, inspiration, and change are key to transformational leadership. This leadership style thrives in a strategic planning framework. Leaders in higher education with a detailed strategic plan may inspire, motivate, and guide their institutions to achieve their goals. This leadership extends beyond transactional exchanges to develop an institution’s culture and values. The strategic plan helps CEOs overcome challenges, seize opportunities, and create an environment for growth and innovation. This relationship follows leadership theories that emphasize vision and strategy for effective leadership.
The third hypothesis explores the potential positive influence of transformational leadership on the overall performance of an organization. Transformational leaders foster a culture of quality, innovation, and ongoing learning inside higher education institutions. The capacity to motivate and involve faculty, staff, and students is essential for enhancing performance. Transformational leaders can improve the performance of their organizations through the establishment of ambitious standards, advocacy for change, and cultivating a cooperative and nurturing atmosphere. The effect is frequently observed through higher academic achievements, improved research capacities, and heightened institutional standing. This finding is in line with previous studies, which report that transformational leaders have the charisma to transform the fate of organizational performance.
Lastly, the fourth hypothesis investigates the intervening role of transformational leadership in the association between strategic planning and sustainable HEIs in Nigeria. It implies that strategic planning has a pivotal role in boosting the green-centric performance of the organization. Still, the eco-friendly performance of an organization can be enhanced through the process of transformational leadership. These findings corroborate a previous study, which states that transformational leaders have the potential to transform and materialize strategic planning into elevated levels of organizational performance. It highlights the crucial role of transformational leadership in improving the academic stature of the HEIs in Nigeria.
The research findings support the positive role of strategic planning in promoting sustainability in HEIs in Nigeria. Non-academic staff working in key administrative positions in HEIs are key stakeholders who may understand how strategic planning can increase sustainable institutional performance through transformational leadership. Therefore, the contribution of administrative position holders is crucial in strategic planning to uplift the environmentally friendly performance of the HEIs in Nigeria. Therefore, this research may be significant in following the necessary approach to devising various strategies to promote sustainable practices in HEIs in Nigeria.

5.1. Theoretical Implications

This study provides several theoretical implications. First, strategic planning should improve Nigerian higher education institutions’ performance. It is commonly known that strategic planning enhances organizational outcomes by giving direction and resource allocation. Second, strategic planning improves transformational leadership development in these firms, according to research [24]. This notion holds that a well-designed strategic plan may inspire and allow leaders to adopt innovative and transformational initiatives, creating an atmosphere for creativity and change. Thirdly, transformational leadership should improve higher education performance. Scholarly studies show that leaders with transformational traits, like charm, intellectual stimulation, and customized concern, may motivate and involve their teams, enhancing performance [31,51,52,53]. This study concludes that transformational leadership mediates strategic planning and organizational success. The idea that transformational leadership may help strategic planning improve organizational performance has theoretical ramifications. Leadership is crucial to implementing strategic projects, as this mediator shows.

5.2. Practical Implications

Scholars must understand how strategic planning improves higher education institutions. This result highlights the importance of strategic planning in leadership and management programs at academic institutions. It also stresses the need for more research on strategic planning in Nigerian higher education. This group emphasizes the necessity for strategic planning in higher education policy frameworks. Resources and guidance for designing and implementing comprehensive strategic plans can improve organizational performance, benefiting students, teachers, and the educational community. Institutional management can use this knowledge to make decisions. The organization should invest in strategic planning methods that support its mission and goals. All essential stakeholders should actively participate in this strategy.
Additionally, professionals should evaluate current strategic plans to determine if they can meet Nigerian higher education institutions’ particular concerns, improving overall performance. Scholars should incorporate strategic planning and transformational leadership into leadership development. Therefore, it is important for the non-academic and administrative staff of HEIs in Nigeria to properly formulate and execute strategic planning to cultivate the characteristics of transformational leadership using the results of this research. Case studies and real-world examples from Nigeria’s higher education institutions can demonstrate practical relevance. Further, institutional management may foster a culture that values strategic planning and transformational leadership to be proactive. Organizations may improve performance and impact by recruiting and developing transformational leaders.
Finally, legislators must recognize the importance of transformational leadership in attaining strategic goals and verifiable organizational results. Organizations can support change-mediating leadership development. These programs train leaders to bridge strategic goals with performance improvements. Institutional management may use data to empower transformational team leaders and consider creating frameworks to improve communication between strategic planning units and leadership teams to ensure that all levels of the organization understand and embrace the strategic objectives. This strategy may increase strategic plan implementation, improving organizational performance.

6. Conclusions

This study shows that strategic planning is crucial for Nigerian higher education institutions and provides solid evidence that strategic planning improves organizational performance. The findings also show that strategic planning improves organizational performance and fosters transformational leadership, demonstrating the interdependence of these constructs. The research also shows that transformational leadership improves organizational performance, emphasizing the necessity of inspiring and visionary leadership in promoting success. A key contribution is revealing how transformational leadership mediates the relationship between strategic planning and organizational performance. This illuminates the procedures that turn strategic strategy into quantifiable results, and this study’s implications benefit education policymakers and practitioners.
For the most part, improvements in higher education quality across Africa as a whole, not just Nigeria, face major challenges; these challenges include infrastructure, funding, and technological integration, as highlighted by several researchers [54,55,56,57]. Addressing these challenges requires collaborative efforts from multiple stakeholders, including governments, universities, and international organizations. In this sense, this study underscores the pivotal role of strategic management in navigating these challenges. By facilitating long-term planning, efficient resource allocation, and fostering technological integration, strategic management offers a dynamic framework for higher education institutions to overcome these challenges and enhance their capacity to deliver high-quality education and research opportunities. Moreover, integrating transformational leadership with strategic management practices emerges as a favorable approach to driving organizational change and achieving sustainable success in the pursuit of excellence within the higher education landscape in Africa.

Limitations and Future Research Directions

This study’s limitations warrant attention, notably its exclusive focus on higher education institutions in Nigeria, implying potential limitations in generalizing the findings to other contexts. To enhance the applicability of the results, future research should investigate the associations explored in a broader spectrum of educational settings. The findings reveal that strategic planning accounted for a 46.4% change in organizational performance. This indicates that strategic planning does influence organizational performance; however, other variables that may have a more influential influence on organizational performance also exist. These variables may be human resource practices, employee engagement, technology and innovation, and financial and resource allocation. Therefore, it is suggested that future research should investigate these variables to gain more comprehensive insight. Another limitation lies in using cross-sectional data, offering a momentary snapshot rather than a nuanced understanding of the dynamic relationships. Longitudinal studies are recommended to provide a more comprehensive view of the evolving nature of these connections over an extended timeframe. To deepen insights, future research ought to undertake cross-national and cross-regional comparative analyses, shedding light on the influence of cultural and institutional factors on the interplay between strategic planning, transformational leadership, and organizational performance. Additionally, there is a need to delve into the specific mechanisms through which transformational leadership functions as a mediator in the link between strategic planning and performance, potentially involving qualitative research methods for elucidation. Lastly, future research should be conducted comprehensively by obtaining data from the academic and non-academic staff of Nigeria’s private, public, and state-owned universities. This will allow researchers to generalize the results to higher education institutions in other contexts.

Author Contributions

Conceptualization, Y.O.H. and S.Z.E.; data curation, Y.O.H.; formal analysis, Y.O.H.; investigation, Y.O.H.; methodology, Y.O.H.; software, Y.O.H.; supervision, S.Z.E.; validation, S.Z.E.; writing—original draft, Y.O.H. and S.Z.E.; writing—review and editing, Y.O.H. and S.Z.E. All authors have read and agreed to the published version of the manuscript.

Funding

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Not applicable.

Data Availability Statement

The data collected for the project can be available on request.

Acknowledgments

This work is based on the first author’s doctoral dissertation, titled ‘‘The effects of strategic planning in the higher education sector and the mediation role of transformational leadership: A study of higher educational institutions in Nigeria’’. The planned submission date is January 2025. The dissertation supervisor is the second author of this work.

Conflicts of Interest

The authors declare no conflicts of interest.

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Sustainability 16 04348 g001
Figure 1. Conceptual model.
Figure 1. Conceptual model.
Sustainability 16 04348 g001
Table 1. Exploratory factor analysis.
Table 1. Exploratory factor analysis.
FactorsItemsFactor LoadingCronbach’s AlphaVariance Explained %
Organizational Performance (Factor 1)40.776–0.9720.93366.62%
Transformational leadership (Factor 2)50.646–0.8900.93211.13%
Strategic planning (Factor 3)20.904–0.9080.8465.11%
Total11 0.94982.86%
Table 2. Demographic profile of the respondents.
Table 2. Demographic profile of the respondents.
Items FrequencyPercentage
GenderMale22758.5%
Female16141.5%
Total388100.0%
Administrative OfficerSenior5714.7%
Middle29275.3%
Lower3910.1%
Total388100.0%
Age31–40379.5%
41–5010527.1%
51–6017043.8%
61 and Above7619.6%
Total388100.0%
Years of ExperienceTen years and Below20753.4%
Ten years and above18146.6%
Total388100.0%
Table 3. Confirmatory factor analysis.
Table 3. Confirmatory factor analysis.
ConstructItemsFactor LoadingCRAVE
Organizational Performance40.875–0.8900.9330.78
Transformational leadership50.763–0.9010.9350.74
Strategic planning20.842–0.8720.8470.73
Table 4. The mean score of the study.
Table 4. The mean score of the study.
Variable NameNumber of ItemsMeansStandard Deviation
Strategic planning54.230.721
Transformational leadership54.040.867
Organizational Performance54.030.761
Table 5. Correlation analysis.
Table 5. Correlation analysis.
SPTLOP
SP1
TL0.769 **1
OP0.681 **0.810 **1
N = 388, **. Correlation is significant at the 0.01 level (2-tailed). SP: Strategic planning, TL: Transformational leadership, OP: Organizational Performance.
Table 6. Results of hypotheses testing.
Table 6. Results of hypotheses testing.
LinkageR2F Testρ-ValueΒ
Coefficient		Hypotheses Acceptance
H1SP → OP0.464334.10460.0000.7794Supported
H2SP → TL0.5907556.99140.0001.0271Supported
H3TL → OP0.657738.2990.0000.964Supported
H4SP → TL → OP0.665382.65990.0000.6Supported
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Habeeb, Y.O.; Eyupoglu, S.Z. Strategic Planning, Transformational Leadership and Organization Performance: Driving Forces for Sustainability in Higher Education in Nigeria. Sustainability 2024, 16, 4348. https://doi.org/10.3390/su16114348

AMA Style

Habeeb YO, Eyupoglu SZ. Strategic Planning, Transformational Leadership and Organization Performance: Driving Forces for Sustainability in Higher Education in Nigeria. Sustainability. 2024; 16(11):4348. https://doi.org/10.3390/su16114348

Chicago/Turabian Style

Habeeb, Yusuf Olatunji, and Serife Zihni Eyupoglu. 2024. "Strategic Planning, Transformational Leadership and Organization Performance: Driving Forces for Sustainability in Higher Education in Nigeria" Sustainability 16, no. 11: 4348. https://doi.org/10.3390/su16114348

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