Factors Affecting the Export Performance of Firms Operating in Bole Lemi Industrial Parks in Ethiopia

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Date

2021-08

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A.A.U

Abstract

The main purpose of this study was to examine factors affecting export performance of firms operating in Bole Lemi industrial park developments. In this study the descriptive and explanatory research design method has been used.The study adopted a stratified random sampling technique to select the sample size. Both primary and secondary data sources were used. The study employed both descriptive and inferential analysis methods to arrive at the conclusion. Accordingly, the study has tried to assess the role of Labor Supply, Financing, Technology, Management, Raw Material, Marketing, Government Regulation and Incentive and Infrastructural variables in connection with the export performance of firms operating in Bole Lemi Industrial Park. Accordingly, based on the descriptive result of this study, there is lack of skilledmanpower howevertrainable labor was sufficient., The findings of the study shows that that there is a technological advancement challenge in the park, as well as a lack of finance to acquire new technology because it requires huge investment, as well as the lack of skills and capability to handle new technology. Concerning management factor management’s exposure for foreign trade was found low.The poor quality of locally produced raw material, unreasonable price of locally produced raw material, and high dependency on imported raw materials were found to be the major challenges in raw material supplies of the park. Based on the regression result, these variables explain 38.1% variability on the dependent variable (Export Performance). This study would like to recommendconducive working environment should be created to retain and motivate the existing skilled labor force.The companies of the park should play a crucial role in facilitating technological learning, innovation and catch-up process.The Park should focus on building upon the management’s commitment for exporting to achieve superior performance in foreign markets.

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Keywords

Legal Formation of Firm, Financing, Technology, Management, Raw material, Marketing

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