Management

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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
The Effect of Village Saving and Lending Association Operations on Low Income Family Economic Well-Being: the Case of Kolfe Keranyo Subcity, Addis Ababa
(AAU, 2025-03-10) Shewakirs Takele Yigzu; Dejene Tulu (PhD)
This research investigated the effect of Village Savings and Loan Associations (VSLA) operation in enhancing the economic well-being of low-income families in the Kolfe sub-city of Addis Ababa. The study aimed to explore several key relationships: the impact of savings on family economic well-being, the effect of credit access on family economic well-being, the influence of capacity building on family economic well-being, and the relationship between VSLA members' business experience and family economic well-being within Kolfe Sub-city. A cross-sectional survey was employed, utilizing a mixed-methods approach that combined quantitative and qualitative data collection. Quantitative data were gathered through systematic random sampling, resulting in a sample of 270 respondents derived from a population of 1,027 members across 52 VSLAs, calculated using Yamane’s formula. Qualitative insights were obtained through focus group discussions and personal observations. The questionnaire was structured using a five-point Likert scale and analyzed with IBM SPSS Statistics 26; its reliability and validity were confirmed through pilot testing and a Cronbach’s Alpha coefficient analysis. Quantitative data were evaluated using both descriptive and inferential statistics, while qualitative data underwent content analysis. The main findings revealed strong positive and significant effects of savings, credit access, capacity building, and members' business experience on family economic well-being. The study recommends implementing regular training sessions on the benefits of saving, encouraging policymakers and program designers to invest in financial literacy campaigns for current and potential VSLA participants, expanding credit access, offering tailored business training programs for VSLA members, and promoting sustained engagement with VSLAs over the long term
The Effect of Supply Chain Integration on Supply Chain Performance: the Case of the Ethiopian Brewery Sector
(AAU, 2023-02-14) Yonatan Abebe; Yohannes Workaferahu (Assoc. Prof)
The influence of supply chain integration (supply, internal, and customer integration) in the Ethiopian brewery sector is examined in this thesis study. The major goal of this article is to evaluate the impact of supply chain integration in the Ethiopian brewery industry. The research examines many ideas such as internal supply chain integration, customer and supplier integration, and operational performance. The study used an explanatory study design. A total of 171 respondents were chosen to participate in this study, Questionnaires and personal interviews were used to obtain the primary type of data. Inferential statistics of correlation and regression are used to analyze the acquired data. And the results of the investigation are as follows. Internal integration and customer integration have a greater impact on operational success than supplier integration. Internal integration, customer integration, and supplier integration, on the other hand, all have a major positive impact on operational performance. Finally, based on the findings, the following recommendations were made. Because these variables contribute to improve operational performance, it is preferable to increase the extents of integration of the three variables (internal integration, customer integration, and supplier integration) in the Ethiopian brewery industry.
Impact of Diversification on Bank Performance: Empirical Evidence from Ethiopian Private Commercial Banks
(A.A.U, 2024-06-02) Abel Betru; Habtamu Berhanu (PhD)
The objective of this study was to examine the impact of income and loan portfolio diversification on bank performance among private commercial banks in Ethiopia. For attaining this research objective, the study followed a quantitative research approach and an explanatory research design. Thus, data was collected for both independent and dependent variables: measures of bank income and loan portfolio diversification, and measures of bank performance from 16 private commercial banks for the study period 2017 to 2022. The study used econometric models to examine the impact of income and loan portfolio diversification on banks’ performance. The study found that income diversification into interest and non-interest income sources positively impacts profitability and reduces bank risk. The overall impact of income diversification on bank performance was found to be positive and statistically significant. The study also found that noninterest income diversification into fees and commissions income and other non-interest income sources has a negative impact on profitability and increases bank risk. The overall impact of noninterest income diversification on bank performance was found to be negative and statistically significant. With respect to loan portfolio diversification, the study found that naïve loan portfolio diversification was found to have a negative impact on profitability and bank risk. Similarly, loan portfolio diversification against the loan market benchmark portfolio was also found to have a negative impact on both profitability and bank risk. The overall impact of naïve loan portfolio diversification and loan portfolio diversification against the market benchmark portfolio on bank performance was found to be indeterminate without deciding what is considered an efficient tradeoff between profitability and credit risk.
The Effect of Motivation on Employees Performance at Ethiopian Roads Administration
(A.A,U, 2024-06-11) Abel Tadesse; Tilahun Teklu (PhD)
Motivation is regarded as one of the most significant factors influencing high performance in any company. Particularly, intrinsic and extrinsic motivational factors are taken as motivation system to encourage employees to perform at their optimum performance. Thus, the purpose of this research was to examine the effect of motivation on the performance of employees in Ethiopia, taking evidence from the Ethiopian Roads Administration. Methodologically, for this particular study, mixed research approach was employed. Descriptive and an explanatory research design were employed since it describes the intended scenario and responds to the questions of why and how employee motivation affects their performance respectively. Simple Random sampling technique is used to select the target sample. A survey was conducted using Questionnaire and semi-structured interview to gather relevant primary data among the 300 target sample. Secondary data is acquired from internet, brochures and publications. The collected data was then analyzed using Statistical Package for Social Science software. Accordingly, descriptive statistics such as mean, standard deviation, percent and frequency are conducted and inferential statistics such as correlation, multiple regression and ANOVA analysis had been done. Pearson correlation method is used to test the relation between the dependent and independent variable and multiple-regression test is conducted to test the predictability of the dependent variable by the independent variable and test hypothesis. The findings of the analysis illustrate that, all the motivational factors had significant positive relationship with employee performance. Besides, the results of the multiple regression analysis revealed that, the dependent variable had been significantly influenced by the linear combination of all the independent variables taken into account in the present study. The output of A NOVA test also suggested that the predictability of the dependent variable by the independent variable is significant. According to the findings of the beta coefficient analyses, extrinsic factors are the most significant factor that has a substantial impact on an employee's performance. In general, as per the results of the study, ERA should stress more on the extrinsic factors in order to increase the performance of its employees to a satisfactory level.
Factors Affecting Real Estate Market Development in The Case of Gift Real Estate
(A.A.U, 2023-12-11) Bahru Gizachew; Meskerem Mitiku (PhD)
The main purpose of the study is to examine the factors affecting the development of real estate market in the case of Gift real estate in Addis Ababa. So as to meet this objective, the study descriptive and explanatory research designs were deployed. The target population of the study was Gift real estate who are currently operating in Addis Ababa City. Respondents were selected from Gift real estate consisting of the real estate heads and employees of the sales and marketing departments. A total of 180 respondents were selected as a respondent of this study purposively. Close-ended structured questionnaire with 7 constructs and 35 questions was utilized as instrument of the data collection. The variables incorporated in the study was measured using the five-point Likert scale. The data was analyzed using descriptive statistics and regression analysis techniques The Statistical Package for Social Sciences (SPSS) version 24 was utilized to analyze the data. Out of the distributed 180-questionnaire 166 questionnaires were collected back properly filed. Thus, the questionnaire response rate was 92.2 percent, which is adequate to produce reliable output. According to the descriptive analysis results, financial, cost related, infrastructural, affordability, quality and location factors have considerable relation with real estate market development. The correlation analysis result showed that there exist positive and statistically significant association between real estate market development and the six explanatory variables. The multiple regression analysis result also revealed that financial factor and infrastructural factors as supply side factors have positive and statistically significant effect on the development of real estate market. On the other hand, affordability, quality and location factors influence the real estate market development positively and statistically significantly as demand side factors.Therefore, it is recommended that policymakers and the government of Ethiopia should create acts that would positively govern matters regarding property tax, lending interest rates and inflation rate as well as land related laws that would facilitate the attraction of more investors in the real estate industry. Key words: real estate market, finance, infrastructure, affordability, quality, location
Factors Affecting Lease Financing Practices of Manufacturing Industries: The Case of Medium Manufacturing Enterprises in Addis Ababa
(A.A.U., 2024-06-09) Aberham Kassahun; Degefe Duressa (PhD)
ABSTRACT With a focus on demand-side issues that prevent medium manufacturing enterprise from participating in lease financing, this study sought to evaluate the factors influencing the lease financing practices of medium-sized manufacturing enterprises in Addis Ababa. The study Uses primary and secondary data as supporting evidence. The research population's respondents were selected using a straightforward random sampling technique. Based on this, 381 sample medium manufacturing enterprises were selected from the 8,152 medium manufacturing enterprises that make up the entire research population within Addis Ababa medium manufacturing enterprises. The factors identified as those affecting the lease financing practices of the enterprises were procedures and processes, awareness creation, availability of facilities, credit worthiness. The findings of the study demonstrated that medium manufacturing enterprises’ practice of lease financing are significantly affected the mentioned factors. The effect significant awareness about lease financing and procedures and processes has a positive correlation with the participation level of enterprises. procedure of lease financing and creditworthiness of enterprises can have a significant correlation with participation level of enterprises in lease financing. Therefore, in order to increase medium manufacturing enterprises’ participation in lease financing, government and nongovernmental organizations should support the training of medium manufacturing enterprises’ managers, raise awareness about lease financing services, make working premises available, and improve the availability of electricity in the study area.
The Causes and Consequences of Squatter Settlements in Addis Ababa City Administration: The Case of Lemikura Sub-City
(A.A.U, 2024-06-05) Alayu Alemu; Jemal Abdigasa (PhD)
The purpose of this study is to assess the causes and consequences of squatter settlements in Addis Ababa City Administration in the case of Lemikura Sub-city. To conduct this study, the descriptive types of research method was employed. A total of 103 informal settlers were involved as sample respondents in the study. The research utilized both probability sampling (particularly simple random sampling) and non-probability (particularly purposive sampling) approach and then sample respondents were selected on the basis of simple random sampling techniques because this technique gives equal chance of being selected from the population. the leader, team leaders were selected by purposive because the major source of data gathering process. The collected data were analyzed by descriptive statistics such as frequency count, percentage, mean, standard deviation, t-test and p-value respectively. Data were analyzed using the “Statistical Package for the Social Sciences” (SPSS) version 25 software. The finding shows that, land supply, and the demand for quality housing is not balanced in this sub city. Addressing these issues will require a comprehensive and multifaceted approach that involves government, developers, and other stakeholders. Furthermore, most respondents have a moderate-sized plot (between 151-250 square meters) and there is also a significant range of plot sizes. The result of the study indicated that, the minority of respondents who do not have an intention to legalize their plot size may be more resistant to change or may have specific concerns or challenges that need to be addressed.in addition, the majority of the respondents previously lived inside the town and this indicating that the majority of the sample has a strong connection to the town. Furthermore, inappropriate regulatory frameworks, bad urban governance and corruption, unrealistic urban planning, unattainable building standards for most people, rising rent of housing and high social costs, ineffective system and practice of control over illegal construction and delayed responses and procedural setbacks of the formal land provision and strong temptations for land speculation are among the major causes and consequences for the rapid informal settle. On the basis of these findings, the study recommends that, Lemikura Sub-city together with other relevant government bodies need to give attention on bringing the existing illegal settlers to enter in to legalization and affordability of infrastructure and houses, co-operation tasks are part of real implementation of the urban plan and settlement. Therefore, the town administration in general and Lemikura Sub-city in particular needs to be cooperating with governmental and non- governmental organization.

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