Determinants of Policy Implementation Performance: The Case of Lease Financing Policy of The Development Bank Of Ethiopia
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Date
2024-12-17
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AAU
Abstract
The main purpose of this study is to identify determinants of policy implementation performance
in the case of DBE’s Lease Financing policy. Some of the necessary questions addressed by the
study are; evaluating the performance of lease financing policy, examining whether determinants
of policy implementation identified by Winter's "Integrated Implementation Model," affects the
implementation of DBE’s lease financing policy, investigating sector specific (Bank specific)
factors that affects lease financing policy implementation performance and identifying the
implementation approach that describes the implementation process of the Bank. The study was
carried out in two Addis Ababa districts of DBE & their respective 13 branch offices. The study
used quantitative research method. The study has 92 respondents. The data of the study render on
survey method and a questionnaire was used to gather the necessary information from the
research participants. Simple random sampling method was applied on the study to draw the
study respondents. Finally, the data was presented by using the descriptive statics method of
frequency and percentage. Based on the above mentioned methodology and design, the study
findings indicated that all five factors from Winter's "Integrated Implementation Model,"
particularly the Commitment and Leadership Skill of the management and employee skills & will,
influenced the implementation of the lease financing policy. Furthermore, the study identified
employee compliance to policy & procedure as a sector-specific factor affecting implementation
performance of the Bank. It also found that the structured nature of the policy and standard
operating procedures limited street level bureaucrats’ discretionary power to modify policy goals
to their interest. Secondary data suggested that the effectiveness of lease financing policy
implementation varied with different leadership styles. Applying Matland’s “Ambiguity-Conflict
Model,” the study concluded that the DBE’s lease financing policy is characterized by low
ambiguity and conflict, aligning with traditional top-down implementation models. Consequently,
it's recommended that policy implementation models be tailored to the specific type of policy and
sector conditions that may influence execution