Firm-Level Determinants of Export Performance of Ethiopian Textile and Garment factories (A survey on Selected Textile and garment factories)
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Date
2018-06
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Addis Ababa University
Abstract
To survive and thrive in today’s globalized world, export business is becoming the quest of the time for countries. Especially for countries like Ethiopia, exporting has become an issue of “to be or not to be”. One way to beat such a challenge is to engage in export operations. The under performance of the GTP1 laid down by the government coupled with severe shortage of foreign currency have become a serious problem. One of the reasons identified is low export performance of Textile sector. Despite the provision of all round incentives, preferential market accesses and opportunities, the export performance of the sector at firm level continues to decline. Hence, external factors kept constant, identifying what and how firm-level internal and controllable factors determine the export performance of a firm was the objective of the researcher. Three constructs of management characteristic, firm characteristics and export market strategy capabilities have been framed up to see their impact on export sales growth. The research used deductive research approach and non-probability sampling technique in an descriptive research method. The study was designed with cross-sectional study of both primary and secondary data through a survey of online questionnaire to 100 respondents from 10 factories. Descriptive statistics and multiple linear regression analysis by SPSS revealed that both firm characteristics and export marketing strategy capability of firms are significant to predict the export sales growth while Management characteristics remain to be insignificant. Accordingly, managers and policy makers are recommended to focus their effort to improve internal firm-level factors.
Description
A Thesis Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of Masters of Arts in Executive MBA
Keywords
Export performance, Export sales, Export sales growth