Management Specialized in Innovation Management and Entrepreneurship
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Item The Determinants of Frugal Innovation Success of the Subsistence’s Entrepreneurships in Ethiopia: Evidence from Addis Ababa(A.A.U., 2019-11) Mikealay, Desta; Workneh, Kassa (PhD)More recently, studies show that entrepreneurship and innovation are a means to reach the unmet needs of the poor majority at the bottom of the primed. However, addressing the problem of the poor in the developing nations or making up the base of the pyramid, especially the informal sector as an engine for growth is not easy. This is also an existing fact in Ethiopia. Hence, this thesis is initiated to investigate the determinants of subsistence’s entrepreneurships from using and selling out of frugal innovations as well as to look into its relative influence on the entrepreneurial performance success of the subsistence’s operators. The study aims to widen the knowledge about the situation of frugal innovation at the base of the primed (BOP) in the country. While, policy makers and academicians may also use the findings of the research to influence policy debates and to use them as a reference for further study. The objective of this study is to assess the determinants of subsistence entrepreneurship in using and selling out of frugal innovation in Addis Ababa, Ethiopia. The study used a survey method using a questionnaire to collect data from a sample of 385 subsistence’s operators. The study used the descriptive, correlation and regression analysis techniques to analyse the data. The finding shows that all factors are significant determinants except firm size. Whereas, the institutional voids and firm age are found with a negative effect for using and selling out of frugal innovations. As per the finding of this study the entrepreneurial capability, enabling environmental actors and the social weak ties were found as most important determinants of subsistence’s entrepreneurships for using and selling out of frugal innovations in Addis Ababa. More specifically, the entrepreneurial capability was found as a most important determinant of frugal innovations with that on average a one percent increase in the overall capability of the entrepreneur leads to an increase in applying and selling out of frugal innovations by 37 percent. Besides, it has found that frugal innovation not only positively but also highly drives the entrepreneurial performance success of the subsistence’s entrepreneurship in Addis Ababa. The findings of this study can be inputs to the policy makers that target to enhance the capacity and sustainability of micro-and small enterprises which focus on innovation.Item Financial Innovation Towards Profitability of Micro Finance Institutions in Ethiopia(Addis Ababa University, 2019-06) Zerihun, Necho; Yohannes, Workaferahu (PhD)The robust financial innovation has unreserved role in boosting profitability of MFIs. Since sufficient researches had not been conducted on the subject this study was carried out to fill the gaps. In effect, inferential design and more quantitative & qualitative methods were used. Accordingly, the explanatory variables have explained the profitability of MFIs by 65% (i.e. R2). The percentage change of credit innovation changes the percentage of profitability. Moreover, major innovative credit products were extended by MFIs in Ethiopia. The percentage change in total deposit changes percentage of profitability and statistically significant. Therefore, the credit and saving product innovations are strongly, positively and significantly affects the profitability of MFIs. The MFIs have mobilized various deposits as deposit product innovations that increased profitability status. Institutional innovation credited to equity capital and the equity capital affect profitability of MFIs. The percentage change in equity capital changes the percentage of profitability of MFIs and statistically significant. Accordingly, the study approved that institutional innovation of MFIs is practically and statistically affects their profitability. Although institutional innovation determines profitability of MFIs, in most of Ethiopian MFIs institutional innovation that secure their profitability was not practiced. The percentage change increased in operational expense decrease the percentage change of profitability of MFIs and statistically significant. To this end, newly created or improved financial process innovation decreases operational expenses of MFIs that in return increases the profitability of MFIs. In abstract, the credit product innovation, saving product innovation, financial process innovation, and institutional innovation are strongly and significantly affect the profitability of MFIs in Ethiopia. Accordingly, the financial innovation practices of MFIs in Ethiopia needs due attentions.Item The Effect of Corporate Entrepreneurship on Firm Performance: The Role of Environmental Uncertainty as Moderator variable in the Case of Ethiopian Microfinance Sector(Addis Ababa University, 2019-06) Yitbarek, Mezemer; Ethiopia, Legesse (PhD)Corporate entrepreneurship is one interesting area of research in business strategy and entrepreneurship disciplines in the last few decades, as it is influential concept in successful business performance. Although a number of related researches have been conducted in different parts of the world, only limited were in Ethiopia. This research, thus, aims to address this gap by taking 34 study populations from Microfinance Institutions operating within the territory of Ethiopia. The sampling technique is used census method. By using SPSS V20 statistical tool descriptive, correlation and regression techniques were used to analyze the relationship between the independent variable CE and dependent variable FP. Both direct CE–Performance relationship and interaction effects of environmental uncertainty (EUC) as moderator variable was examined in this relationship. Moderated hierarchical regression has been applied to see how Corporate entrepreneurship (CE) as independent variable and environmental uncertainty (EUC) as moderator influence Microfinance Institutions’ performance. From the analyses it is confirmed that corporate entrepreneurship has positive and statistically significant (p<0.01) effect on Microfinance Institutions’ performance. Environmental uncertainty is also found to moderate highly the relationship between corporate entrepreneurship and performance but negatively against the hypothesized direction (p<0.01). Based on the findings, it is concluded that corporate entrepreneurship (CE) is a beneficial strategic posture for Microfinance Institutions in resources constrained environments to pursue it to be effective and competitive. Besides, though existence of environmental uncertainty is hypothesized to influence corporate entrepreneurship on performance positively on the basis of previous literatures and research results, in the case of Ethiopian microfinance sector, it is learned that existence of environmental uncertainty as moderator variable does negatively influence corporate entrepreneurship and firm performance. Thus, as the research result suggests that, to have corporate entrepreneurship a positive influence on performance of the Institution, existence of stable environment could be a mandatory and pre-request condition, which looks like a rational and acceptable argument.Item Challenges that Affect the Growth of Women Owned Small and Medium Enterprise: A Case Study of Arada Sub City(Addis Ababa University, 2019-06) Serkalem, Koru; Yohannes, Workaferahu (PhD)Small and Medium Enterprises (SMEs) are still an issue that is interesting to study because it is recognized that small businesses have a major role in employment and contribution to the gross domestic product. This study sets out to provide detailed information on the main factors that currently affect the growth of women owned small and medium enterprise which started out as small and eventually grew into medium and large scale industries. The study considered the total population of 65 respondents in Arada sub city. Both descriptive and econometric analysis was employed to determine factors influencing the growth of women manufacturing industries. The study found that only few numbers of women in the manufacturing industry have transformed their business from small to medium enterprises and no one transferred to large scale industries. The result from econometrics analysis confirmed that those enterprises who took loan from bank has positive and significant influence on transformation of women owned enterprise. The study further observes that years of experience in the industry and receiving related training plays an important role in the success and growth of women owned enterprise. Interestingly, the study did not find any evidence of gender related burden to affect the growth of women owned enterprise targeted in the study.Item Factors Affecting the Performance of Women Entrepreneurship:- The Case of Akaki Kality Sub City Women Owned Micro and Small Enterprises(Addis Ababa University, 2019-06) Zelalem, Belay; Ethiopia, Legesse (PhD)Entrepreneurship is increasingly recognized as an important driver of economic growth, productivity, innovation and employment, and it is widely accepted as a key aspect of economic dynamism. Transforming ideas into economic opportunities is the decisive issue of entrepreneurship. Micro and Small enterprises are driving force for economic growth, job creation and poverty reduction in developing countries. The research is conducted to attain the following specific objectives. Examine the relationship between family entrepreneurship and the performance of women owned micro and small enterprises, Examine the relationship between personal motivation and the performance of women owned micro and small enterprises’, Examine the relationship between social network and the performance of women owned micro and small enterprises’, Examine the relationship between access to infrastructure and the performance of women owned micro and small enterprises’. This study was conducted in Akaki kality sub city all districts with the purpose of analyzing factors affecting the performance of women entrepreneurship in women owned MSE. The research design is cross sectional type which employs descriptive and narration with quantitative approach. For achieving the objectives of this study, 217 questionnaires were distributed and 204 of them were successfully completed and analyzed using SPSS. The participants were selected using simple random sampling methods. The study findings identified that family entrepreneurship culture, membership in social network, personal motivation and access to infrastructure positively influence women performance in MSE.Item The Influence of Training and Development on Employees’ Performance: The Case of National Motors Corporation P.L.C(Addis Ababa University, 2018-04) Amanuel, Eshetu; Workneh, Kassa (PhD)The success of any organization depends very much on the quality of its human resource (employee) is an important asset to any service oriented organization. Training and development helps a great deal in the achievement of new technical knowledge and skills in the different aspects of the organization. The objective of the study was to assess the influence of training and development on employee performance in using National motors Corporation P.L.C. as a case study. The study used both primary and secondary sources of data. A quantitative research approach of the data collection was used and 155 questionnaires were distributed in which 144 of them returned. Stratify sampling method was used and employees was selected from head office, Kality and Akaki branches of the organization with a simple random sampling techniques. The questionnaires data was analyzed using descriptive research method, correlations, and multiple linear regression analysis used by Statistical Package for Social Sciences (SPSS IBM version 21) data analysis tool. The correlation analysis indicates all relationship between the independent variables (induction/orientation, job instruction, job rotation and lecture) and dependent variable (employee performance) are positively and significantly correlated. The result of the multiple linear regression indicates that the independent variables have accounted 73.3% of variance on the dependent variable. Based on the findings of the study, the researcher recommend that in order to enhance employee performance the organization should continue its training program so that it can build and strengthen employee’s competencies.