Factor Affecting Performance of Large and Medium Manufacturing Firms in Ethiopia
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Date
2020-05
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A.A.U
Abstract
The topic of performance on the large and medium manufacturing firm has been widely explored as an area of study. Many studies have tried to identify the effect of performance in the manufacturing firm. However with firm performance there have been many divergent finding due to different sectors exhibiting different behaviors and models that attempt to identify factor affecting performance of large and medium manufacturing firms. This research seeks to examine factors affecting performance of large and medium manufacturing firm in Ethiopia in the year 2013 to 2017. The objective of the study is to examine the various factors that affect the performance of large and medium manufacturing firms in Ethiopia. The researcher used secondary data from central statistical agency. The regression result shows that capacity utilization, labour productivity, export intensity, import intensity, Herfindahl index had statistically significant and positively relationship with the performance of large and medium manufacturing in Ethiopia at 5% of level of significance. The finding also shows firm size had statistically significance and negatively relationship with the performance of large and medium manufacturing firm in Ethiopia at 5% of level of significance. Based on the finding of the study, improving performance of firms specific factors such as export intensity, labour productivity, capacity utilization and import intensity leads to the improving the performance of large and medium manufacturing firm.
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Capacity utilization, Export intensity, Herfindahi index, Labour productivity