Journal of Business and Administrative Studies

Determinants of corporate investments decision making: Evidence from commercial banks in Ethiopia

Sofoniyas Mekonnen — 2024-04-25

This study aims to analyze institutional quality, macroeconomic, and firm-specific determinates of corporate investment decision-making. The paper uses the panel regression technique with data for the period of 2013 to 2022 for Ethiopian commercial banks. The positivism research paradigm and explanatory research design were used for this study. The data were collected from the yearly financial reports of the sampled commercial banks, the annual reports of the Ministry of Finance, and the World Bank data websites. Furthermore, a sample of sixty (16) commercial banks was selected from the total population of 30 commercial banks. The method of data analysis started by estimating the pooled OLS model and subsequently using the Breusch-Pagan Lagrangian Multiplier (LM) test to check the suitability of pooled OLS for this model; otherwise, the model will be tested with random effects and subsequently diagnosed using the Hausman test for the correlated random effects, which give hints on the suitability of either random or fixed effects for the model. The random effect model was found to be appropriate for this study objective based on the model test results. The regression result of the study indicated that institutional quality factors such as political stability and rule of law have a positive and statistically significant effect on commercial bank investment decisions. On the other hand, government effectiveness and regulatory quality have a negative and statistically significant effect on the investment decisions of commercial banks. Among the macroeconomic factors, inflation has a negative and statistically significant effect on the investment decisions of Ethiopian commercial banks. On top of these firm-specific variables, only bank size has a negative effect, and, if not at 5%, at 10%, it has a statistically significant effect on the investment decisions of commercial banks.

Mediation of competitive advantage among customer orientation and banking sector performance in Ethiopia

Berhanu Borji — 2024-04-25

This study investigated the function of competitive advantage in mediating the consequences of customer orientation on company performance. Few studies have looked at how customer orientation affects company performance using competitive advantage as a mediator in emerging economies, notably in sub-Saharan Africa. This study made an effort to do research to fill theoretical, evidence and knowledge void gaps. Quantitative data was gathered using a likert scale based questionnaire from the sampled 383 CBE consumers in the southern Ethiopian region of Dilla. Using the Statistical Evaluation Method (SEM) approach using SPSS and AMOS edition 26, the gathered data were examined for the association among the three hypothesized variables. The outcomes demonstrated that, via the mediation of competitive advantage, customer orientation has a favorable, considerable impact on performance of business. According to the findings of this study, commercial banks should employ customer orientation as a means of gaining a competitive edge. Additionally, it was suggested that future studies examine the consequences of customer orientation on competing companies.

Effect of employees’ dynamic capability on performance: The case of Ethiopian brewery industries

Tesfaye Tilahun — 2024-04-25

The study aimed to investigate the effect of Employees’ dynamic capability on performance with a special focus on Ethiopian brewery industries. Employees’ dynamic capability is measured based on the sensing, seizing and reconfiguring capabilities of the employee. To effectively measure the effect of the dynamic capability constructs on employees' performance in the brewery industries, the study used a purely quantitative methodology and the data collection instrument is a close-ended questionnaire. Accordingly, a total of 381 questionnaires were distributed and twenty of the responses were discarded due to incomplete response. Data analysis is done through quantitative techniques by using smartpls-SEM (Structural Equation Modeling and the validity and reliability of data is checked via both convergent and discriminant validity and reliability. Based on the evidence collected, the findings of the study revealed that both seizing and reconfiguring employee capabilities have a significant effect on the performance of the employees. However, the result also concluded that sensing capability doesn’t have a significant effect on the performance of employees unless additional leadership and managerial skills are added to the management staff. Based on the findings, the study recommended that managers have to work towards advancing seizing and reconfiguring capabilities to boost the performance of their employees, which in turn has a remarkable effect on the overall performance of the industry. However, if managers want to advance the employees performance through sensing capability, they have to work towards dynamic leadership and situational management.

Effect of knowledge management on organizational performance: The mediating role of organizational learning in Amhara region agricultural research institute

Girma Ayalew — 2024-04-25

This paper attempted to examine how knowledge management affects organizational performance and the mediation role of organizational learning with a focus on the Amhara Region Agricultural Research Institute. That is aiming to contribute and allow managers and technical researchers to concentrate on the study's main effects. The study employed an explanatory research design. From the survey method, 216 responses were collected and analyzed using the structural equation model (SEM). Using Amos 23.0 software, confirmatory factor analysis was utilized to test the measurement model, and structural equation modeling was employed to measure the conceptualized hypotheses. The direct and indirect effects of knowledge management on organizational performance were quantified through a quantitative approach. The results demonstrate that knowledge management has a direct effect that improves the Amhara Region Agricultural Research Institute in part through organizational learning and organizational learning has also a significant direct effect on organizational performance. From the extension bootstrapped value, organizational learning has also a positively significant partial complementary mediation effect in the connection between knowledge management and organizational performance. The study has also contributed additional empirical evidence of the importance of improving organizational performance through valuable knowledge. Thus, future studies in the Amhara Region Agricultural Research Institute should adopt a knowledge management strategy and broaden competency-based management through Information Technology, looking into other likely mediating and moderating factors

Determinants of non-Life insurance business development in Ethiopia

Birhanu Deressa — 2024-04-25

This study examines the macro-economic and firm-specific determinants of non-life insurance business development in Ethiopia by adopting quantitative research approach followed by the explanatory research design. The National Bank of Ethiopia and the insurance companies are the sources of data that covers 9 years from the period 2010 to 2019. Twelve insurance companies were selected based on the required data availability for the purpose of this study. Based on the Hausman fixed-random specification test, random effect regression model was employed. This study found that financial development, firm size, and premium growth strongly favor non-life insurance business in Ethiopia. Similarly, GDP growth and trade openness have insignificant and positive effects on non-life business development in Ethiopia. The study, however, confirmed that underwriting risk hinders the development of Ethiopian non-life insurance business. The study also revealed an insignificant negative effects of Leverage on Ethiopian non-life insurance business development. The study finally suggested the insurance companies should give due attention on underwriting and revisit their sources of finance as leverage hinders their business development.