Application of XAI in Integrating Democratic and Servant Leadership to Enhance the Performance of Manufacturing Industries in Ethiopia

This study tests the conceptual model theorizing democratic leadership, servant leadership, learning organization, and performance of manufacturing industries using Structural Equation Modeling (SEM). The impact of democratic and servant leadership on learning organizations and the performance of manufacturing industries in Ethiopia is analyzed, and the role of learning organizations as a mediating variable is examined. Confirmatory Factor Analysis was performed, which includes a well-established Chi-square test, the Chi-square ratio to degrees of freedom, the goodness-of-fit index, the Tucker–Lewis index, the comparative fit index, the adjusted goodness-of-fit, and the root mean square error of approximation. Further, the performance of manufacturing industries has been assessed using XAI which helps in having a higher clarity on understanding the complexities in production. Based on linear regression, two methods SHAP and LIME have been used for precise predictions and forecast for future production plans in the manufacturing industry. This research contributes to the existing body of knowledge by dissecting the nuanced relationships between the two leadership styles and learning organization and further, their implications for an organization’s performance. The findings of the study would provide insights for policymakers and practitioners to improve the performance of manufacturing industries.