Technology Adoption of Ethiopian Manufacturing firms: the Case of Textile and Leather Sector
No Thumbnail Available
Date
2015-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Technology adoption has emerged as an important determinant of competitiveness in
recent global trade. Gaining competitiveness in the quota free trade became a driving
force for the manufacturing firms to adopt technologies. However, there has not been
much research focused on technology adoption of manufacturing industries in Ethiopia.
The purpose of this study is to investigate the status and the effects of organizational and
environmental factors on the level of technology adoption.
A survey methodology was employed to collect data from 115 firms. A purposive
sampling technique was used to select firms those engaged in the manufacturing leather
and textile products. A combined quantitative and qualitative data analysis approach was
used as an analytical lens to interpret responses gathered from manufacturing enterprises.
The data was analyzed by both descriptive and inferential statistics.
The reasons, product and process quality improvement and productivity enhancement
are firm’s primary reason to adopt new manufacturing technology. Comparatively soft
technologies are better adopted by the firms than hard technologies. The results revealed
that the entire variable, except firm age, positively influences the technology adoption
level of a firm. The effect of firm size, certification, competition, employee technical skill,
financial resource and government support was significant. On the other hand, the results
indicated that the top management commitment and firm age did not have significant
effects on the technology adoption level. Recommendations are made for future research on
technology adoption within the broader spectrum of manufacturing enterprises Keywords: Technology adoption, organizational and environmental factors, manufacturing
enterprises
Description
Keywords
Technology adoption, Organizational and environmental factors, Manufacturing enterprises