Innovation Value Chain for Ethiopian Leather Industries
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Date
2018-10
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Addis Ababa University
Abstract
This study examined innovation in the value chain of Ethiopian leather industries. It furthermore
addressed the multifaceted challenges and barriers for knowledge management (knowledge
acquiring, knowledge conversion and knowledge diffusion) across the value chain of Ethiopian
leather industries. The Ethiopian leather sector is a priority sector which has a lack of human power
in both pre-slaughter and post-slaughter techniques or process which affects the whole value chains
of the leather industries. Given this reality livestock (raw hide, raw skin) and finished leather
products are less compute in global market and the leather industries are not more profitable as
compare with other priority sectors. Different value chain models have been developed to optimize
the flow of material with in industries. Among others, porter’s VC model which focused on
primary and supportive activities for material flow. The researcher used both primary and
secondary data and analyzed using SPSS software. Furthermore, this study used factor loading as
in put for confirmative factor analysis using AMOS software to checked up either all innovation
value chain factors are conformed or not to propose innovation value chain structural models based
on CFA fit indices. The major findings were the selected evaluation factors, KA (knowledge
acquiring evaluation factors), KC (knowledge conversion factors) and KD (knowledge diffusion
factors) are confirmed to proposed innovation value chain structural model which recommended
for Ethiopian leather industries. Finally, it can also use for other industries with same adjustment.
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Keywords
Innovation, value chain, knowledge management, leather industries