The Impact of Strategic Leadership on Managerial Creativity: A Field Study of Commercial Banks Operating in Al-Kufra City

Abstract

This empirical study aims to investigate the impact of strategic leadership, across its dimensions (determining strategic direction, employee empowerment and human capital development, and optimal utilization of competencies and resources), on administrative creativity and its dimensions (innovation in service delivery and procedures, ability to solve administrative and operational problems, and organizational flexibility) among administrative and leadership staff at the four commercial bank branches operating in the city of Kufra (Al-Jumhouria Bank, Al-Wahda Bank, Shamal Africa Bank, and Commercial & Development Bank). To achieve the study objectives, the descriptive-analytical approach was adopted, utilizing a comprehensive census method targeting the entire study population consisting of branch managers, department heads, and administrative personnel in the region. A total of 58 valid questionnaires were analyzed using the Statistical Package for the Social Sciences (SPSS).

The results demonstrated a statistically significant impact (α≤0.05) of strategic leadership dimensions combined on administrative creativity; the strategic leadership model explained 54.2% of the variance in the level of administrative creativity across bank branches in Kufra. "Employee empowerment and human capital development" emerged as the most influential dimension driving creative behavior, followed by "determining strategic direction," and "optimal utilization of resources." Furthermore, empirical findings indicated a high level of "ability to solve administrative and operational problems" as a major dimension of creativity among local bank administrators, driven by their reliance on adaptation mechanisms to quickly manage emergency crises, such as liquidity shortages, telecommunication outages, and geographical isolation.

Based on these outcomes, the study recommends restructuring delegated authority to grant local branch leadership greater operational flexibility, establishing an incentive system that fosters a culture of initiative among employees, and upgrading technical infrastructure to overcome operational barriers and enhance banking service quality in the region.