Technology Adoption of Ethiopian Manufacturing firms: the Case of Textile and Leather Sector

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Addis Ababa University


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



Technology adoption, Organizational and environmental factors, Manufacturing enterprises