The Dynamics of Internationalization of Ethiopian Leather Industry Development Institute (ELIDI)
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Date
2012-05
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Abstract
Nowadays there is a need for business enterprises to measure, analyze and improve performance
as they encounter increasing competition from an ever-changing business environment.
Performance is the valued productive output of a system in the form of goods and services and
performance measures are the lifeblood of organizations, since without them no decision can be
made, as it is the first step to control and improvement. Though the Government of Ethiopia is
promoting the leather footwear industry as a priority area and the sector has a huge potential for
developing an economy, its performance is unsatisfactory due to external and internal problems
that hinder its competitiveness. Thus, the aim of this study is to assess and evaluate performance
management practice of Ethiopian Leather Footwear Factories, identify critical problems and
propose a firm level total performance improvement method and suggest roles of stakeholders or
improvement directions towards the external problems. To undertake this research, primary and
secondary data are collected through a survey questionnaire, interviews (in the form of
discussion) and physical observation in the case factory, as well as referring previous research
works and case company records. To analyze and present the data, pie charts, bar graphs, and
diagrams are used. In addition, to see the performance gap of the case factory, benchmarking is
done. From the research, it is concluded that the leather shoe factories have both internal and
external problems resulting in low performance and competitiveness. To alleviate the internal or
firm level problems, a total performance improvement method called Total Performance
Scorecard (TPS) is proposed. In addition improvement directions are forwarded towards the
external or sector level problems. Regarding the proposed method, a performance measurement
framework/scorecards and its implementation guideline is developed for Anbessa S.C. TPS is a
combination and also an extension of the concepts BSC, TQM and Competence Management
which is being defined as a systematic process of continuous, gradual and routine improvement,
development and learning. The process focused on the solid increase of both the personal and
organizational performances. This method has an important aspect in maximizing the
involvement and loyalty of all involved persons, as well as encouraging individual and team
learning and creativity via its Personal Balanced Scorecard (PBSC).
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Competition Policy and Regulatory Economics