Assessment On The Challenges Of Project Execution In Investment Projects Of Ethiopian Leather Products Industry Development
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Date
2019-06
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Addis Ababa University
Abstract
In Ethiopia, the government has planned to attract many investment projects in manufacturing industry sector to meet the growth plans. Currently, there are 17 new and expansion leather products manufacturing investment projects which are under different phases of investments. Though these projects are initiated to meet the growth and transformation plans portioned for the sector, the lagged performances of these investment projects are contributing to inefficient growth plan of the sector. This study aimed to assess the internal and external challenges during project execution that have contributed to the lagged performances of investment projects. The research design used for this study was descriptive study to focus on the existing internal and external situations that have been negatively affecting the investment projects of leather products industry. A well-structured questionnaire was used to collect data, so that 52 questionnaires were distributed for the census survey of study population of 7 selected projects and 47 surveys were returned from respondents which accounts to 90% response rate. The data have been analyzed using descriptive statistics on SPSS in ways that enable to answer the research questions and achieve the research objectives. Both the internal and external challenges of project execution in Ethiopian leather products manufacturing industry development found to be moderate challenges. Based on the assessment results, the first top three internal challenges of project execution in the leather products manufacturing investment projects are: internal financial resources; practical project execution capability; and people readiness (project staffing). The first top three external challenges of project execution in the leather products manufacturing investment projects are: supply issues; loan issues; and government support issues. By making a comparison between the results of internal and external challenges based on the overall mean and relative importance indexes (RII) that is 3.13 and 0.626 respectively for internal challenges; and 2.71 and 0.542 respectively for external challenges. Therefore, the success of project execution in Ethiopian leather products manufacturing industry development projects have been challenged by external challenges than internal challenges within the project undertaking companies.
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Keywords
Challenges, Investment, Leather Products Manufacturing, Project Execution