Factors Affecting Technology Adoption in Improving Efficiency in Addis Ababa’s Textile Manufacturing Sector
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Date
2025-06-23
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A.A.U
Abstract
This study examines how technology uptake has impacted business performance in the Addis
Ababa textile manufacturing industry, threats and opportunities. Textile industry development is
at the center of Ethiopian economic growth and employment as fueled by emerging technologies
in automation and analytics. Effort is however hindered by low technology, low skills, and
infrastructural vulnerabilities. Adapting to these vulnerabilities necessitates strategic
governmental investment and employee skills enhancement. Motivated by vision that focuses on
augmenting productivity and competitiveness, the research is focused on key determinants in
technology such as automation, information technology, personnel training, and utilization of
data. The data were obtained through the administration of structured questionnaires by 187
textile companies randomly and systematically selected from a population of 350 companies to
ensure variability. Secondary data and primary responses were used as sources of information.
Descriptive analysis revealed moderate adoption levels with average scores of 3.22 for
automation, 3.31 for information systems, and 3.37 for supply chain integration. Interestingly, as
a fact, expenditures on training and skill development were over 3.90 of the mean, suggesting
concern at the high levels regarding appropriateness. Awareness of technological advantages
irrespective of it, views on competitiveness and effectiveness were unclear. Inferential statistics
produced high significant positive correlations: highly significant correlation (0.981) between
automation and IT system implementation, and significant correlations between data analytics
usage and IT systems (0.941), and between automation and data analytics usage (0.916).
Regression analysis produced 83.5% variance explanation in efficiency by independent variables,
with information systems technology explaining the most. The findings support technology
spending and business performance dependence on a planned technology and human resource
management foundation. Enterprise-level technology integration, improved training, and
stakeholder engagement in maximizing productivity are proposed solutions. Mid-level reduction
of stakeholder resistance, implementation complexity, and organizational long-term alignment are proposed solutions. Long-term effects of technology adoption and workers' attitudes would be a topic for future research to examine long-term development of Ethiopia's textile sector.