Factors Affecting Network Marketers’ Entrepreneurial Performance in Ethiopia

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Addis Ababa University


This research was conducted to examine the effect of personal (self-efficacy belief), behavioral (motivation and commitment of network marketer’s) and environmental factors (training and social cohesion that exist in NMOs) on the sales performance of network marketer’s in Ethiopia. In conducting the survey, a total of 425 questionnaires were distributed to three NMOs namely DXN, EDMARK & FOREVERLIVING in Addis Ababa to be filled by active members of NMOs. From the distributed questionnaires 362 complete and usable questionnaires were collected for comprehensive empirical analysis. Both descriptive and inferential statistics was used to find mean score and to test hypothesis and to investigate research problem, objectives and questions. The result from descriptive statistics indicates that most network marketers earn negligible commission from their NMB. It was mostly those who joined early and got a lot of experience, that benefit the most from the business. The result of correlation analysis indicated that there is positive and moderate correlation between dependent variable sales performance and independent variables; motivation of network marketers, network marketer’s specific self-efficacy belief, training provided by NMOs, network marketers commitment and social cohesion that exist among members of NMOs. From the regression analysis done it have been found that, social cohesion was the least important variable in predicting network marketer’s sales performance, while commitment was very important variable in predicting sales performance. Social cohesion among members of NMOs was found to be insignificant in predicting sales performance. While the rest; motivation, self-efficacy, training and commitment were found to be a significant predictor of network marketer’s sales performance. Motivation is important predictor of sales performance of network marketers and Ethiopian network marketers are extrinsically motivated hence, NMOs must target those individuals that are highly in need of financial success



motivation, social cohesion, self-efficacy belief