Journal of Business and Administrative Studies

Assessing factors influencing the effectiveness of lease finance projects: The case of Development Bank of Ethiopia

Dawit Lema — 2024-07-01

The objective of this study is to identify and investigate factors that influence the effectiveness of lease finance projects at the Development Bank of Ethiopia (DBE). Building on previous research, seven key factors were identified that can affect project effectiveness, specifically within the context of investment and business projects. These factors include project specific factors, project planning-related factors, procurement and contract-related factors, project manager-related factors, project owners/clients-related factors, organizational related factors, and business environment-related factors. To achieve this objective, descriptive and explanatory research designs were employed. The research approach is quantitative, and survey based primary data is employed. The study primarily utilized self-administered questionnaires to gather information. A total of 112 out of 125 questionnaires were completed by DBE staff at the head office and four district offices in Addis Ababa. The collected data was analyzed using descriptive statistical techniques, specifically mean and standard deviations, and multiple linear regressions. The results of the regression analysis showed that the identified factors explained 87.2% of the variation in the effectiveness of project implementation in lease-financed projects at DBE, as indicated by the R² value. Furthermore, all factors examined in the study were found to be significant predictors of project implementation effectiveness. It was concluded that project-specific factors, such as project planning-related factors, procurement and contract-related factors, project manager-related factors, project owners/clients-related factors, organizational-related factors, and business environment-related factors significantly predict the effectiveness of project implementation in lease-financed projects at the Development Bank of Ethiopia. Based on these findings, the study recommends that DBE can enhance the effectiveness of lease financed projects by incorporating the identified factors into project implementation

The effect of budget formulation on the public sector effectiveness moderated by participative budgeting in Addis Ababa City Administration

Mehari Haileselassie — 2024-07-01

Budget formulation, the process of creating and developing a government's budget, plays a crucial role in determining the effectiveness of public sector organizations. The budget serves as a financial plan that allocates resources and guides the implementation of government policies and programs. The effectiveness of budget formulation can be influenced by various factors, including the moderating variable of participative budgeting. The study conducted in the Addis Ababa City Administration aimed to assess the effect of budget formulation on public sector effectiveness, with the moderating variable of participative budgeting. The research employed a pragmatic research paradigm and a mixed research approach, combining qualitative and quantitative data collection methods. Quantitative data were collected through a 7-point Likert scale questionnaire administered to employees working in selected public sectors. The research utilized a combination of probabilistic and non-probabilistic sampling methods. The population size of the study was 4580, and a sample of 368 employees was selected, with 346 questionnaires returned. Once the data was gathered, it was analyzed using SPSS version-26 and AMOS-23. The analysis focused on factors related to budget formulation, including strategic planning, budget preparation, the competence of human resources, and budget approval. The study also examined the influence of participative budgeting as a moderating variable on the effectiveness of public sectors. The findings of the study were presented using descriptive and explanatory research techniques, leading to a discussion of the results. The study revealed a direct and significant positive relationship between the independent variables (strategic planning, budget preparation, budget approval, competence of human resources) and the dependent variable (organizational effectiveness). Additionally, the study found a significant effect of the moderating variable, the participative budget. Based on the results, the study suggests that to achieve effectiveness in the public sector, the city administration's public sectors should consider strategic planning, participative budgeting, and the revision of the existing line-item budget system during budget formulation. These factors contribute to improving organizational effectiveness in the public sectors examined in the study.

The effect of risk management on the financial performance of insurance companies in Ethiopia

Wandosen Negese — 2024-07-01

This study examined the effect of risk management on financial performance of insurance companies in Ethiopia using the data of 16 insurance companies during the period of 2014-2019. We employed the two step systems GMM to handle the possible existence of endogeneity, heteroskedasticity, and autocorrelation problems. The results revealed that liquidity and solvency risks have adverse effects on both the short-run and long-run financial performance of Ethiopian insurance companies. However, while technical reserve risk and underwriting risk have a negative effect on the short-run performance, they have a positive effects on the long-run financial performance of insurance companies. The study also confirms a positive effects of reinsurance on both the short-run and long-run financial performance of Ethiopian insurance companies. This study finally recommends that Ethiopian insurance companies should pay greater attention to liquidity risk, solvency risk, technical reserve risk, underwriting risk and reinsurance risk.

The interplay between power and trust in stimulating voluntary deference: testing the “Slippery Slope Framework” of tax compliance among taxpayers in Addis Ababa City administration, Ethiopia

Lemessa Bayissa — 2024-07-01

This study examined the interplay between trust in and the power of the tax authority in shaping voluntary tax compliance. The study tested the “slippery slope framework” of tax compliance with survey data collected from taxpayers in Addis Ababa city administration. We hypothesized that the effect of cognition-based trust on voluntary tax compliance is moderated by the legitimate power of the tax authority. We further conjectured that coercive power encourages enforced tax compliance while cognition-based trust predicts voluntary tax compliance. The respondents of the study were selected based on convenient sampling, i.e., distributing the questionnaire to each of the three categories of taxpayers who visited the nine offices of the Addis Ababa City Administration Tax Authority as well as their commercial premises. The sample size of the study was 384. To test our theories, we used hierarchical regression and PROCESS MACRO analysis. As evidenced by our findings, the hypotheses were supported: coercive power significantly predicted enforced tax compliance, cognition-based trust (as opposed to affect-based trust) significantly predicted voluntary tax compliance, and, more importantly, legitimate power moderated the effect of cognition-based trust on voluntary tax compliance. The results fully support the proposition of the “slippery slope framework” replicating the empirical work testing the framework in the Western nations. We admit that some inherent limitations of a survey study may limit the generalizability of our findings to other settings.

Managing growth of product lifecycle at maturity level: a systematic literature review

Teshome Bekele — 2024-07-01

In the face of stable sales and market saturation, managing the expansion of the product lifecycle at a mature stage is essential for maintaining market relevance and profitability. Through the synthesis and analysis of 64 papers, from JSTOR, Science Direct, and Google Scholar data bases, this systematic literature review identified major themes and provided insights into growth management strategies, marketing tactics, challenges, and opportunities that managers confront in their quest to sustain competitiveness and profitability in mature markets. Product diversification, market segmentation, innovation management, cost-effective lifecycle planning, price strategies, market expansion, client retention, alliances, and collaboration are a few examples of important tactics. The difficulties include growing rivalry, market saturation, shrinking profit margins, and shifting consumer tastes. To maintain competition, there are nevertheless still chances to take advantage of economies of scale, brand equity, and customer loyalty. The review's insights deepen our understanding of how businesses may best manage opportunities and overcome obstacles to maximize product lifecycle management at maturity level. This review provides practical guidance for practitioners and identifies gaps for future research.