Management

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Effect of Inflation on the Profitability of Commercial Banks in Ethiopia
(A.A.U, 2025-05-03) Adeba Negassa; Alem Hagos(PhD)
Ethiopia has seen steadily climbing inflation in the past few years, with profound effects on many sectors of the economy, including the banking sector. Yet the exact impact of this recent, double-digit inflation on Ethiopian commercial banks’ profitability remains open for further evaluation. For this purpose, using panel data from 2010 to 2022, this study analyses both macroeconomic and bank-specific factors that affect Ethiopian commercial banks’ profitability - with particular attention to inflation. The study employed a panel data regression method. The panel data estimates show that the profitability of commercial banks (as determined by return on assets) is positively and statistically significantly impacted by inflation. The findings of the study emphasize the necessity for commercial banks in Ethiopia to diversify their revenue streams, keep an eye on the policy and real interest rates, and prioritize efficiency and competitiveness. To stabilize the inflationary pressure in the economy, the paper also recommends that the National Bank of Ethiopia keep implementing the required timely macroeconomic measures and properly manage its interest rate policy.
The Impact of Organizational Culture on Employee Productivity the Case of Bank of Abyssinia
(AAU, 2025-01-20) Beza Yonas; Aberra Legesse (PhD)
This study investigates the impact of organizational culture on employee productivity at the Bank of Abyssinia. A descriptive survey and explanatory research design, employing a quantitative approach, were used. The study sampled 149 employees from 10 branches, chosen through purposive and simple stratified random sampling techniques. Data were collected using questionnaire. The quantitative data was analyzed through descriptive and inferential analysis. The descriptive tools namely percentage, frequency, mean and standard deviation were used. To look for patterns and relationship between the dependent variable and independent variables, inferential (correlation and regression) analysis were employed. The qualitative data collected through open-ended questions was analyzed through narrative analysis. The research focused on six specific aspects of organizational culture: leadership style, work environment, reward and recognition, communication practices, training and development, and work-life balance, each assessed for its influence on employee productivity. The study examines the impact of key aspects of organizational factors on employee productivity at the Bank of Abyssinia. The findings reveal that while employees generally perceive leadership as supportive, areas such as decision-making, feedback, and managerial guidance require improvement. The work environment is seen as conducive to productivity, but workplace setup and collaboration mechanisms need enhancement. Recognition is valued, yet misalignment between rewards and performance affects motivation, necessitating more transparent reward systems. Communication practices contribute to job clarity, though managerial communication and feedback effectiveness require refinement. Training and development programs are moderately effective, but improvements in practical application and managerial support are needed. Work-life balance is acknowledged as beneficial, yet inadequate institutional support highlights the need for structured policies. Statistical analysis indicates that reward and recognition, work-life balance, and leadership style are the most significant predictors of productivity. Addressing these key areas will enhance employee productivity, Several recommendations were made, including improving decision-making processes, enhancing training programs, revising reward structures, and fostering a supportive work-life balance. The study also suggested that further research explore the long-term impact of organizational culture interventions and the interactions between various cultural elements on employee performance
Exploring Key Determinants of Financial Technology Adoption Under the National Bank of Ethiopia
(AAU, 2025-06-23) Meseret Aklilu; Zelalem G/ Tsadik (PhD)
This research employs a quantitative methodological approach to examine the key factors influencing the adoption of NBE-endorsed financial technology (FT) in Ethiopia. The study targets 107 officials working at the Addis Ababa branch of the National Bank of Ethiopia (NBE), utilizing structured questionnaires to gather primary data. The collected data were analyzed using statistical tools such as descriptive statistics, correlation analysis, and multiple regression analysis, all conducted with SPSS version 26. The findings reveal that several factors—namely ease of use, infrastructure quality, security measures, and user trust have a significant and positive effect on FT adoption rates among financial sector stakeholders. The regression analysis indicates a strong model with a correlation coefficient of 0.825 and an R-squared value of 0.681, suggesting that approximately 68.1% of the variance in FT adoption can be explained by these variables. The study emphasizes the importance of enhancing technological infrastructure, ensuring security, and building user trust to accelerate adoption, especially in rural and underserved areas. The results provide valuable insights for policymakers, financial institutions, and technology providers aiming to foster financial inclusion and digital transformation within Ethiopia’s banking and financial sectors. Recommendations include targeted investments in infrastructure, security protocols, and awareness campaigns to promote widespread acceptance and usage of financial technology solutions. Future research could expand the sample size and incorporate longitudinal data to better understand trends over time.
The Impact of Customer Segmentation on the Performance of Banks: the Case of Awash Bank
(A.A.U, 2025-05-19) Mahlet Getachew; Tewdros Wuhib( Asst. Professor)
This study investigated the effect of customer segmentation strategies on the performance of banks, with a particular focus on Awash Bank. The general objective was to assess how various segmentation approaches beyond the traditional demographic methods impact customer satisfaction, loyalty, retention and overall performance. To achieve this, the research adopted a quantitative approach, employing a descriptive and explanatory research design. The study attempted to consider various dimensions of customer segmentation, ranging from behavioral, psychographic, demographic, geographical, and technological segmentation. From the findings of the data analysis, it is safe to conclude that behavioral segmentation has relatively the most impact on the performance of the Bank, followed in sequence by geographical, psychographic, and behavioral segmentation. Specifically, the unstandardized beta coefficients for these segments were found to be statistically significant, indicating that employment of those segmentation techniques has strong correspondence with improved bank performance. In contrast, demographic and technological segmentation have relatively limited impacted compared to other dimensions of segmentation signaling a more integrated customer segmentation approach which combines multiple dimensions of segmentation. The study revealed that customer segmentation approach which integrates the various dimensions of customer behaviors, preferences and choices has direct correlation with the performance of banks and banks well beyond demographic segmentation need to focus as well on behavioral, psychographic, and geographical segmentations as derivers of performance improvement. The approach would allow banks to tailor their products, services, and promotions more effectively, leading to better customer interaction, satisfaction, and overall growth. Banks also need to are investment in revisiting their customer segmentation approaches through ongoing data analysis so that they can better understand the evolving customer choice and behavioral tendencies to deliver their products and services in a more effective and productive manner. Keywords: Customer segmentation, commercial, bank performance, regression analysis
The Effect of Financial Technologies (Fintech) on Financial Inclusion of SMEs: Exploring the Mediating role Digital Financial Literacy and Moderating Effect of Perceived Regulatory Support
(A.A.U, 2025-01-30) Biruk Wubshet; Zelalem G/Tsadik (PhD)
With an emphasis on the moderating effect of perceived regulatory support (PRS) and the mediating role of digital financial literacy (DFL), this study examines the effects of financial technologies (FinTech) on the financial inclusion of small and medium-sized businesses (SMEs) in Addis Ababa Ethiopia. Structured questionnaires were used to gather data from 350 manufacturing SMEs in Addis Ababa as part of a quantitative research methodology. To examine the connections among FinTech adoption, financial inclusion, digital financial literacy, and perceived regulatory support, the study uses Partial Least Squares Structural Equation Modeling (PLS-SEM). According to the research, FinTech use greatly improves financial inclusion for SMEs, and the main factors influencing FinTech usage are perceived security, trust, and service quality. A key mediating factor that favorably affects the connection between FinTech adoption and financial inclusion is digital financial literacy. Though statistically significant, perceived regulatory support moderates this connection negatively, indicating that current regulatory frameworks could not adequately support financial inclusion generated by FinTech. The study concludes that harnessing the advantages of FinTech in advancing financial inclusion among SMEs requires raising digital financial literacy and creating a conducive regulatory framework. These findings have important ramifications for financial institutions, FinTech service providers, and politicians that want to improve financial inclusion in emerging nations. Keywords: Financial Inclusion, Financial Technologies, Digital Financial literacy, perceived regulatory support
The Effect of Service Quality on Customer Satisfaction: in the Case of Beteseb Academy Private Elementary Schools
(A.A.U, 2025-06-25) Abay Abera; Habtamu Endris (PhD)
Strategies for Increasing Ethiopia’s Tax-To-Gdp Ratio Equitably
(A.A.U, 2025-06-26) Brook Leulseged; Adem Kedir (PhD)
Despite sustained economic growth, Ethiopia’s tax-to-GDP ratio fell sharply from 12.7% in 2013 to 6.2% in 2024, exposing critical fiscal vulnerabilities. This study explores the disconnect between GDP growth and tax performance, with a focus on sectoral composition. The study aims to assess how growth in the industry and service sectors has influenced Ethiopia’s tax-to-GDP ratio, while identifying key tax instruments behind the decline and proposing reform strategies. Using 24 years of national accounts data, the study applies Isometric Log-Ratio (ILR) transformation to manage GDP’s compositional constraints. It also analyzes tax instruments—VAT, trade taxes, and business income tax—vis a vis GDP growth. Industry growth, particularly in construction, shows a negative association with tax performance (–1.49; p = 0.090), likely due to informality and tax-exempt public projects. Service sector expansion shows a modest positive effect (+4.94; p = 0.064), reflecting greater formalization. VAT contributed the largest revenue loss (–2.43 points), followed by trade taxes (–1.05) and business income tax (–0.72). Inflation above 30% has distorted compliance and expanded the VAT base artificially, creating a threshold inflation trap. The study recommends reducing exemptions, expanding e-invoicing, and tightening customs audits as quick wins, alongside equity-focused measures like simplifying presumptive taxes and enabling mobile SME registration. It also urges restructuring the Medium-Term Revenue Strategy around VAT reform, trade enforcement, and informal sector inclusion. Future research should double down on the subcomponents of the industrial sector vis-a-vis GDP growth rate.
Factors Influencing Customers' Purchasing Decisions in the Case of Addis Ababa Automobile Buyers
(AAU, 2025-03-14) Samuel Dagne; Meskerem Mitiku. (Asst. Prof)
Understanding consumer purchasing behavior is essential for businesses operating in the automotive sector, particularly in dynamic and evolving markets like Addis Ababa. This study examines the key factors influencing automobile purchasing decisions among consumers in Addis Ababa by analyzing variables such as brand image, broker influence, vehicle resale value, price and affordability, and operating costs. A descriptive and explanatory research design was employed to analyze both the characteristics of consumer behavior and the relationships among key factors. The study adopted a quantitative research methodology, utilizing structured questionnaires to collect primary data from 384 respondents selected through a convenience sampling technique. Secondary data were gathered from academic journals, market reports, and prior research studies. The collected data were analyzed using SPSS software, employing correlation and regression analyses to examine relationships between the variables and test hypotheses. The study’s findings reveal that brand image plays a significant role in shaping consumer preferences, with well-established brands fostering greater trust and perceived reliability. Price and affordability emerged as crucial determinants, as financial constraints and budget considerations heavily influence purchasing decisions. Additionally, brokers significantly impact the decision-making process by providing market information, negotiating deals, and influencing consumer perceptions sometimes leading to biases. Vehicle resale value was also found to be an important factor, as buyers consider the long-term financial implications of their purchase. Furthermore, operating costs, including fuel expenses and maintenance, influence consumer choices, with a preference for cost-efficient vehicles. The study highlights the unique economic and social dynamics affecting the automobile market in Addis Ababa and provides valuable insights for industry stakeholders, including automobile dealers, marketers, and policymakers. The findings contribute to the existing body of knowledge on consumer behavior and offer strategic recommendations to enhance transparency, market efficiency, and customer satisfaction in Ethiopia’s automotive industry
The Effect of CSR Practices on Organizational Performance of Five Star Hotels in Addis Ababa
(A.A.U, 2024-11-17) Shukuri Girma; Yohannes W (PhD)
This study aimed to investigate the effect of Corporate Social Responsibility (CSR) on organizational performance of Five Star Hotels in Addis Ababa. The study explores five CSR dimensions, namely: employees-oriented CSR practices, community-oriented CSR practices, environment-oriented CSR practices and ethical CSR practices. An explanatory survey design was used, while a questionnaire was used to gather primary data. The study covered samples of 135 employees which were selected based on stratified random sampling from four purposively selected Five Star Hotels in Addis Ababa, namely: Sheraton Addis, Hyatt Regency, Radisson Blu and Marriot Executive Apartments. The data collected was analyzed with descriptive statistical techniques (frequency distribution, mean and Standard Deviation) and inferential statistics (correlation and multiple linear regressions) using Statistical Package of Social Sciences Version 22. The findings revealed a generally positive orientation towards CSR among sampled hotels, with a strong focus on customer-oriented practices and moderate emphasis on employees, community, and ethical conduct. However, there were opportunities for improvement, particularly in environmental CSR practices. Significant challenges the hotel faced is limited financial resources, resistance from management, and regulatory hurdles, emphasizing the need for comprehensive strategies to address these barriers. Importantly, the study demonstrated that customer-oriented, employees-oriented, community-oriented, and ethical CSR practices positively influence organizational performance. Whereas environment-oriented CSR practices is slightly significant affecting the organizational performance of Five Star Hotels in Addis Ababa. These results underscore the importance of integrating CSR into hotel operations to improve stakeholder relations and achieve long-term sustainability goals. Moving forward, hotels should prioritize investments in staff training, communication of the business case for CSR, and the development of clear policies to enhance CSR implementation and maximize its positive impact on organizational performance and societal outcomes. Key Words: Organizational Performance, Corporate Social Responsibility (CSR), Five Star Hotel.
Effect of Corporate Social Responsibility Practice on Bank Profitability (In Case of Hibret Bank) Ethiopia
(A.A.U, 2025-01-14) Abebe Janka; Yohannes Workaferahu (PhD)
This study investigated the effect of Corporate Social Responsibility (CSR) practices on bank profitability, focusing on Hibret Bank. An explanatory research design was employed to explore the cause-and-effect relationship between CSR initiatives and profitability. The target population comprised 548 employees and management personnel involved in CSR activities at Hibret Bank, from which a sample of 231 participants was selected using stratified random sampling. Data were collected via questionnaires designed to assess CSR practices across four key dimensions: environmental responsibility, social responsibility, economic responsibility, and philanthropic activities. The reliability of the research instrument was tested using Cronbach’s alpha, while the relationship between CSR practices and profitability was analyzed using Pearson correlation and multiple linear regression. Data were analyzed with SPSS version 27.0. The findings provided valuable insights into the role of CSR practices in enhancing bank profitability. The study offered recommendations for Hibret Bank to strengthen its CSR strategies, particularly in environmental and social responsibility, to improve its profitability. Keywords: Corporate Social Responsibility, Environmental Responsibility, Social Responsibility, Economic Responsibility, Philanthropic Activities, Bank Profitability.
Ownership and Organizational Performance: a Comparative Analysis of Private and State-Owned Banks,
(AAU, 2025-03-19) Mahlet Gashaw; Meskerem Ferede (PhD)
The purpose of this study was to compare the Organizational Performance of State owned and selected privately Owned Banks in Addis Ababa. The study employed explanatory research design in order to examine the effect of factors affecting organizational performance of state owned and privately owned banks and compare their organizational performance. The study also used mixed research approaches in order to organize the data needed to the research. Data was collected through survey questionnaires and interviews. Both primary and secondary methods of data collection were applied and questioner is used as a source of gathering the data. A total of 135 workers from each of the four banks i.e Bank of Abyssinia, Awash Bank, Zemen Bank, and Commercial Bank of Ethiopia were chosen. All samples were taken from the head of each banks based on their managerial roles, experiences and expertise knowledge. Both purposive and census samples were used in this study. The collected data was analyzed using descriptive and inferential statistics. The interview result showed that state owned banks had a greater performance compared to private owned banks. The reason for this are government support and access to government financial fund through National Bank. The findings of the regression analysis indicate that all the independent variables had positive effects on the dependent variable. The model summary table adjusted r-square value is 0.651 which means that 65.1. % of organizational performance of Banks was explained by the variation of the four independent variables and the other 34.9 % is due to other independent variables not included in the model and the random error. Finally, the researcher recommended to the top management of the bank to put an emphasis on effective asset management procedures, with a particular emphasis on conducting frequent evaluations of asset usage and putting performance-enhancing plans into action, and privately owned banks should improve their risk management procedures
The Effect of E - Banking Service Qualities on Customer Satisfaction: The Case of Awash Bank in Addis Ababa Districts
(AAU, 2025-03-01) Tizita Emana; Abera Legesse (PhD)
Nowadays, practically all Ethiopian banks are embracing e-banking service systems to improve service quality and customer happiness. Customers are currently reviewing banks based on their experience with digital banking service. As a result, banks must meet the e-banking service quality standards set by clients. This paper investigated "The effect of e-banking services'' Qualities on Customer satisfaction: The case of Awash Bank. The study used a conceptual model consisting of six dimensions of E-banking service quality: reliability, transaction efficiency, customer support, service security, ease of use, and performance. The study used a quantitative research approach and employed explanatory and descriptive research designs to determine the satisfaction of E-banking users. Primary data were collected using a 5-point Likert-scale questionnaire distributed to customers, and secondary data were used. The study distributed questionnaires to 399 customers of Awash Bank in its Addis Ababa branches; out of these, 300 questionnaires were collected and tested for reliability and validity before conducting a quantitative survey. The study used convenience sampling techniques. The study tested a hypothesis to determine whether the six E-banking service quality dimensions had a significant effect on customer satisfaction. The results of the study showed that all dimensions had a positive and significant effect on customer satisfaction, except service security and performance has a negative effect on customer satisfaction. Based on these findings, all proposed hypotheses for the six independent variables have been accepted, as the p-value for each variable is less than 0.05. Furthermore, the study conducted a regression analysis to determine the two most dominant e- banking service quality dimensions among the six dimensions. The analysis shows that ease of use was the most important dimension, followed by transaction efficiency. The study's findings are crucial because they can assist bank managers in identifying and focusing on the E-banking service quality attribute that customers value the most
The Effect of IFB Service Quality on Customer Satisfaction: Comparative Study Between Full-Fledged and Window Service IFB Operating Models, A Case of Awash Bank
(A.A.U, 2024-05-05) Natnael Abera; Desalegn Amlaku(PhD)
This study was conducted to identify effect of service quality of Interest free banking (IFB) operating model on satisfaction of IFB customers of Awash Bank. This effect is comparatively analyzed for customers of full-fledged windows and window-based branches. Service quality is indicated by 5 dimensions (Reliability, Assurance, Tangibility, Empathy and Responsiveness) from SERVQUAL model and compliance to Shariah Principles from CARTER model. Hence, the study has examined effect of reliability, assurance, tangibility, empathy, responsiveness and compliance to Shariah principles on customer satisfaction; comparatively for full-fledged windows and window-based branches. The study has targeted IFB customers of Awash Bank in branches in Addis Ababa and sampled 384 customers both from full-fledged branches and window-based branches. However, data was collected from 349 customers (107 customers from fully-fledged branches and 242 from window-based branches) and analyzed by using descriptive statistics and Structural Equation Model (SEM). As a procedure of SEM, this study has applied Exploratory Factor Analysis (EFA) and Conformity Factor Analysis (CFA). By applying SEM, this study identified that, on overall, reliability, assurance, tangibility, empathy, responsiveness and compliance to Shariah principles positively and significantly affects satisfaction of IFB customers of the bank. However, effect of tangibility is not significant. Further, this study identified that reliability and empathy positively and significantly affect satisfaction of IFB customers in both full-fledged branches and window-based branches. However, assurance and compliance to shariah principles significantly affect satisfaction of IFB customers in full-fledged windows. On the other hand, responsiveness significantly affects satisfaction of IFB customers in window-based branches. The difference of effect of service quality on customer satisfaction between the IFB operating models is significant for only compliance to shariah principles. Hence, IFB operating model of the bank moderates’ effect of compliance to shariah principles on customer satisfaction. Therefore, this study reveals that satisfaction of IFB customers of Awash Bank is positively affected by service quality in IFB services.
The Effect of Achieving Competitive Excellence (ACE) Tool on Passenger Air Transport Service Performance: The Case of Ethiopian Airlines Ground Services (GRH)
(A.A.U, 2024-05-15) Hailu Abebe; Abera Legesse (PhD)
ACE (Achieving Competitive Excellence) is a company-wide strategy. It is an approach to relentlessly improving the value of service that we deliver to our esteemed customers. ACE provides direction for prioritizing strategies, creates procedures for converting plans into actions, and sets up systems for collecting feedback on performance and areas for development (Roth 2010). Since 2007, ETAG (Ethiopian Aviation Group) has been using ACE as a functional tool. The goal of this study is to explain the effect of ACE on passenger air transport service performances in the instance of Ethiopian Airlines Group Ground Handling Division utilizing ACE as an operating system. To determine the explanatory or independent variables and dependent variables, a thorough literature review was conducted on the performance of the passenger air transport service and the ACE operating system. As independent variables, the four ACE constructs—process improvement tools, waste elimination tools, decision-making tools, and problem-solving tools—are taken into consideration. The performance of the passenger air transport service was the dependent variable. The study employed descriptive analysis, namely percentage, mean, and standard deviation, to characterize the variables. Meanwhile, inferential analysis, specifically correlation and regression analysis, was carried out to ascertain the impact of ACE on the performance of the passenger air transport service. Data was gathered for the study using questionnaires and interviews furthermore a purposive sampling interview with five operational management team members of the passenger air transport service section yielded 279 completed and returned questioners, or a 93% response rate, out of a total of 300 questioners distributed to be filled out by passenger service operational employees from the boarding gate, check-in, and baggage service sections furthermore descriptive analytic techniques were employed. Based on the data, tests for multicollinearity and reliability were also carried out. In terms of the research findings, the study concluded that there was a statistically significant positive relationship. Keywords: ACE (Achieving Competitive Excellence), ACE Operating system, passenger air transport service
Determinants of Policyholders' Retention on General Insurance in Ethiopia: The Case of Selected Insurance Companies in Addis Ababa City
(A.A.U, 2024-06-01) Gizachew Alazar; Yitbarek Takele (PhD)
The main objective of this study was to identify the determinants of policyholders' retention of general insurance in Ethiopia, focusing on selected insurance companies in Addis Ababa. The research targeted policyholders of selected companies as the population, examining prompt claims handling, good underwriting practice, competition, technological advancement, and insurance benefit knowledge as independent variables influencing policyholder retention, the dependent variable. An explanatory research design was adopted, utilizing primary data to predict cause-effect relationships. Data were collected through a questionnaire based on a five-point Likert scale, administered to policyholders from six insurance companies selected via mixed sampling. Out of a target population of 299,015, a sample of 422 respondents was chosen, and 386 questionnaires were returned. Pearson correlation and multiple linear regression analysis were conducted using SPSS version 20 to examine the relationship between the independent variables and policyholder retention. The results indicated that variables namely prompt claims handling, good underwriting practice, market competition, technological advancement, and insurance benefits knowledge significantly affect policyholder retention. Based on the findings, it is recommended that insurance companies prioritize improving claims handling processes, good handwriting practice, market competition, and insurance benefits knowledge significantly to enhance policyholder retention.
Evaluating the Influence of Direct Marketing on Sales Performance: The Case of Puratos Ethiopia Food Industry S.C.
(A.A,U, 2025-01-10) Oumer Shukerala; Meskerem Mitiku (PhD)
This study examines the influence of direct marketing tools on sales performance at PURATOS Ethiopia Food Industry S.C., a subsidiary of the global PURATOS Group. In an increasingly competitive business environment, direct marketing has emerged as a critical strategy for fostering customer engagement and driving sales growth. The research addresses five key questions: (1) the direct marketing tools used by PURATOS Ethiopia, (2) customer responses to these approaches, (3) the impact of direct marketing on sales performance, (4) challenges in implementing direct marketing, and (5) customer satisfaction with marketing communications. A mixed-methods approach was employed, utilizing surveys to gather data from customers and employees. The findings reveal that PURATOS Ethiopia employs a variety of direct marketing tools, including personalized communications and targeted campaigns, which are moderately effective in engaging customers. Customers appreciate the diversity of marketing methods, with a mean score of 3.52, but indicate room for improvement in communication clarity (mean of 2.98) and personalization (mean of 3.17). Direct marketing positively influences purchasing behavior, with a grand mean of 3.27, and significantly impacts customer loyalty (mean of 3.36) and brand preference over competitors (mean of 3.62). However, challenges such as customer comprehension of marketing messages (mean of 3.59) and limited personalization (mean of 2.40) were identified. Regression analysis confirms a strong positive relationship between direct marketing tools and sales performance, explaining 57.5% of the variance in sales outcomes. Employees highlighted the need for innovative approaches to enhance adaptability and personalization in marketing strategies. In conclusion, direct marketing tools have a significant positive impact on PURATOS Ethiopia’s sales performance, but improvements in communication effectiveness and personalization are needed to maximize customer satisfaction and loyalty. Recommendations include simplifying marketing messages, tailoring strategies to specific customer needs, and exploring new marketing channels to address existing challenges. These insights provide valuable guidance for PURATOS Ethiopia and other businesses in the Ethiopian food industry seeking to optimize their direct marketing efforts.
The Effect of Digital Marketing on Customer Engagement in the Telecommunication Sector of Ethiopia
(A.A.U, 2025-01-06) Temesgen Tilahun; Tilahun Teklu (PhD)
As digital marketing strategies continue to evolve, companies such as Ethio telecom and Safaricom Ethiopia utilize platforms like social media, mobile applications, and email marketing to enhance customer interaction, loyalty, and brand support. This study examines the effect of digital marketing adoption on customer engagement. This is especially true in the service- oriented industry like telecom industry. The study used both primary and secondary sources of data. The study gathered primary data through a structured questionnaire designed based on relevant literature to ensure it captured meaningful insights from participants. Random sampling method was used, and respondents were selected accordingly. 388 questionnaire was distributed to customers of both telecoms of which totally 376 questionnaire was collected which accounts 96.91%. The data has been analyzed using explanatory research design with quantitative research approach and the analysis employed regression and correlation techniques, conducted using STATA software version 13 to examine relationships within the data. And then explanatory variables except traffic the rest have positive and significant effect on customer engagement by showing 53.31% variation on the dependent variable. Meanwhile On average the overall aggregate mean score of the variables become 4.00 which shows that nearly the respondents were agreed. The relationship between factors of customer engagement i.e. social media presence, contents sharing rate, customer feedback score, retargeting campaign success, open rate and traffic had positive strong, moderate and weak relationship with customer engagement based on their STATA outcomes at 1% level of significance. In light of the study’s findings, the researcher suggests Ethiotelcom, Safaricom, and policy makers take this explanatory variable into account when formulating telecom related programs and policies in Ethiopia.
The Effect of Leadership Style on Employee Commitment in Organization: a Case Study of Motor and Engineering Company of Ethiopia (MOENCO)
(A.A.U, 2025-01-16) Yeabsira Azale; Tewodros Wuhib (Assistant Professor)
This research aimed to examine how different leadership approaches affect employee dedication at the Motor and Engineering Company of Ethiopia (MOENCO). The investigation focused on five leadership styles and sought to answer key questions: Which leadership style is prevalent at MOENCO according to its employees? What is the extent of employee commitment to MOENCO? How does the perceived leadership style influence employee commitment at MOENCO? Data was gathered from the head office in Addis Ababa using simple random sampling. Out of 589 employees, 310 were selected to receive questionnaires. Of these, 305 were returned, with five rejected due to incomplete information, leaving three hundred responses for analysis. The study employed an explanatory research design, utilizing the Statistical Package for Social Sciences (SPSS) for data analysis. Correlation and linear regression were used to assess the relationship between leadership styles and organizational commitment. The findings revealed that all leadership styles significantly contribute to organizational commitment. However, the democratic leadership style showed the strongest correlation (0.684) with employee commitment, explaining 46.9% of the variance in the model. All leadership styles demonstrated a positive correlation with employee commitment. The study concluded that leadership style indeed affects organizational commitment. It recommended that managers should enhance their behavior to improve organizational commitment. Furthermore, it suggested that MOENCO should invest in creating a better work environment for all employees, potentially leading to sustained competitive advantages as the human aspect of an organization is not easily replicated by competitors.
Effect of Strategic Plan Implementation on the Sustainable Business Development of Small and Medium Enterprises in Addis Ababa Manufacturing Firms
(A.A.U, 2024-01-15) Abigia Getachew; Yohannes Workaferahu (PhD)
Ethiopian SMEs, including those in food-related manufacturing and -based manufacturing, have an impact on sustainably increasing the economy by creating jobs, improving livelihood, and reducing imports. The purpose of this research is to study The Effect of Strategic Plan Implementation on the Sustainable Business Development of Small and Medium Enterprises in Addis Ababa Manufacturing Firm. The study came up with four questions. To address how goal setting, financial capability, Value proposition or Strategy for driving Competitive Advantage and business knowledge affect sustainability of business. Which are further drawn to hypothesis to test the questions. Both descriptive and inferential statistics were used. The target population composed of 102 willing manufacturing SME business owners which are selected in non-probability convenience sampling method. The study was distributed through paper and mostly using google forms, again both Amharic and English version was used after conducting the Cronbach alpha test, to make questions understandable by business owners. After doing the analysis its found that the model is fit. And strategic plan implementation has a positive effect on sustainable development. The research findings can empower stakeholders, employees, owners of SMEs, government, policy makers, SME-related institutes such as national and international NGOs, and other stakeholders who require data on the specific area or are on the value chain of the business, to make informed decisions that contribute to the growth and sustainable success of the SME businesses. Keywords - Sustainable Business, Strategic Planning, SMEs.
Analysis of Road Traffic Congestion and Its Economic Impact on Addis Ababa City (The Case of Kolfe Sub-City: Asrasement-Compressive Road)
(AAU, 2025-03-26) Abdulfeta Bahiru Fereg; Asres A. (PhD)
Traffic congestion is a critical problem in fast-urbanizing cities such as Addis Ababa, whose infrastructure cannot keep up with the increasing demands of traffic. This research takes into account the degree of congestion on the Asrasament-Compressive Road, which is an outlet corridor connecting city and suburban areas and experiences more stress in comparison with the central arterials. The study followed a quantitative methodology. Data collection was based primarily on an integration of field measurements and observations, manual traffic counts, and questionnaires. Subsequently, data were examined by descriptive statistics and an approach adopted from the Texas Transport Institute and World Bank 2013 which computes the economic cost in Egypt. The study measures congestion levels by travel time method and estimates economic costs. Peak hours for severe delays are in the morning (8:15–8:30 AM) and afternoon (4:15–4:30 PM) with daily total delays being 67,833 vehicle-minutes (1,130.55 hours) and 508,033 person- minutes (8,467.21 hours). Direct and indirect annual economic costs are 274.2 million Ethiopian Birr, dominated by travel time delays. The findings highlight the unique stresses on outlet corridors, and it is essential to have specific

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