Journal of Business and Administrative Studies

Analyzing the major causes of rework in building construction projects at Addis Ababa, Ethiopia

2024-04-25T06:14:22+00:00

The objective of the study is to examine the major causes of rework in Addis Ababa Building construction projects. To achieve the stated objective, a qualitative approach with descriptive research design is used. The building contractors’ one, two and three were selected as the target population. To elicit the required data, a simple random sampling with proportional method is used. Among the distributed 118 questionnaires for the construction companies, 89 were collected. Based on the collected data, the result of the study revealed that human resource capability, project communication, project constructability, site management; and materials equipment are the major causes of rework in the Ethiopian building construction companies. Finally, the study mainly recommended for the three major participants (contractors, clients, and consultants) to develop a continuous means of communication and specifically for the contractors and consultants to have a rework event, cause and impact recording system which is going to be helpful towards reducing its occurrence. Finally, managerial implications and concluding remarks are forwarded.

The interaction effects of financial development on slack and performance nexus of African firms

2024-04-25T06:22:30+00:00

While the resource-based theory argued that financial slack derives firm performance, agency theory asserted that it harms firm performance. Moreover, the pecking order and corporate finance theories argued that the well-functioning financial system eliminate the agency problems and asymmetric information; and could shape the corporate governance of firms, thereby facilitate the proper use of firms' internal finance. But existing literature completely overlooked this issue. This study thus investigated the interaction effects of the banking sector and the stock market development on slack performance nexus by using African sample firms. The result confirmed that financial development eliminates the adverse effects of high available slack on firm performance but create an undesirable impact of low available slack on firm performance. Conversely, financial development weakens the favorable effect of high potential slack on firm performance but aggravate the adverse effects of low potential slack on firm performance.

The practices and challenges of tax audit: Case study on Finfinnee branch office of Oromia revenue authority

2024-04-25T06:25:58+00:00

The study was concerned with assessing practices and challenges of tax audit in Oromia. To achieve this objective, a sample of 112 taxpayers and 42 tax officials with a questionnaire survey were conducted at Finfinne Branch Office of Oromia Revenue Authority, in Addis Ababa, for the year 2021/2022. Both descriptive and quantitative methods of analysis were used. In addition, interviews were conducted with Deputy Head, Branch Manager, Tax Audit Director and Tax Audit Team Leaders of ORA and the Branch office. The findings revealed that the practices to achieve ultimate goals of tax audit was found at moderate level; Tax Auditors of the Office do not make sufficient efforts to create Taxpayers’ awareness; they usually focus on increasing the collection of government tax revenue, including detecting tax evasion and avoidance, and not proportionally focus on all types of tax audit techniques. The finding further indicated that, majority of tax audit cases were usually selected using the criteria of the annual profit declared by taxpayers and there is no well-established strategy that makes tax audit case selection efficient and effective. Overall, the practices of tax audit at Branch Office were poorly practised. Regarding the challenges of tax audit, factors related with culture of corruption, estimation of tax amount; consideration of illegal ways of doing business; and absences of reliable and up-to-date record keeping practices among taxpayers were identified as the most severe challenges. Thus, managers in the tax administration should exert their strategic effort on the essential factors. Moreover, policymakers need to develop and apply improved schemes on key recommendations of the study include developing and utilising risk-based tax audit, coordinating sector offices’ efforts, and maintaining public trust in the tax administration. Future research should extend on the risk-based tax audit strategy and to catch up on the other unexplained factors by this study.

Effect outsourcing strategy on institutional performance in Ethiopian private banks

2024-04-25T06:33:16+00:00

The purpose of the study was to examine outsourcing effect on institutional performance in Ethiopian private commercial banks Dire Dawa District. Explanatory survey research design was employed and using quantitative methods. Stratified random sampling technique was used to select the respondents. The usable sample of 116 were used giving a response rate of 85%. The primary data gathered in the form of self-administer questionnaires with a Likert typed-scale. Ordered logistics regression were employed to satisfy specific objectives of this study. The analysis indicated that three outsourcing dimensions (Innovation Driven Outsourcing; Quality Driven Outsourcing and Cost Driven Outsourcing) have significant effects on the other hand, focus on core competencies driven outsourcing wasn’t significantly influence on institutional performance of private commercial banks. Thus, management team within private commercial banks strategic outsourcing is one way by which firms may build and sustain their core competencies, which is vital for survival. Therefore, a firm needs to create a focus around its core competencies, which entails handing over the activities of low strategic value to specialists who can do them better through strategic outsourcing.

Management accounting in a military-business conglomerate: A critical realist perspective

2024-04-25T07:13:57+00:00

The study investigated the use and design of management accounting in a conglomerate business that produces both military and civilian products. Data were collected from interviews, video and document archives, and analyzed using a critical realist thematic approach with the assistance of MAXQDA software. The findings revealed that the organizational structure was largely symbolic, and budgeting and costing were not effectively utilized, with limited expression of plans in financial terms. Performance measurement was a combination of military, ideological, and business logic, with military discipline logic taking precedence over business efficiency and effectiveness in measuring performance. The focus was on output rather than process, with little considerations to financial performance measures. This suggests that management accounting is not a neutral tool for achieving organizational goals, but rather is used interchangeably with state ideology and military logic to balance ideological and political interests with business objective.