Horn of African Journal of Business and Economics (HAJBE)

Organisational Leadership Style and Its Impact on the Process of Strategic Public Relations in Tanzanian Commercial Banks

Prudence Pastory Rwehabura — 2023-12-31

This paper assessed the impact of organisational leadership style on the process of strategic public relations in the context of selected commercial banks in Dar es Salaam, Tanzania. The assessed banks were the National Bank of Commerce (NBC), National Micro-Finance Bank (NMB Plc), and CRDB Bank Plc. The paper sought to contribute to strategic communication literature that indicates that public relations personnel cannot realise the process of strategic public relations without commitment and support of the top leaders and related leadership style. Guided by the interpretivism research philosophy, the study qualitatively and purposively gathered data from 12 participants: three chief executive officers, three public relations personnel, three human resource directors, and three marketing directors. The study found that some leadership style behaviours of the top leaders and majority of the line managers in the banks hinder the process of strategic public relations whose four steps are research and analysis of the communication opportunity or problem, planning and management of strategic communication programmes, implementation of the communication strategy, and evaluation of strategic communication efforts. The paper concludes that in the context of commercial banks in Tanzania, both the top leaders and the public relations personnel should play their roles effectively to foster public relations value.

Predicting the Effect of Intellectual Capital, Social Capital, and Resource Efficiency on Entrepreneurship Competiveness

Mekonnen Bogale — 2023-12-31

The aim of this explanatory study is to predict how social capital, intellectual capital, and resource efficiency would affect entrepreneurship competitiveness. Five-year available data from two sources were used (2015-2019). Data for resource efficiency, social capital, and intellectual capital were obtained from the Global Sustainable Competitive Index, which has been organized by SolAbility Sustainable Intelligence. Data for entrepreneurial competitiveness were taken from the Global Entrepreneurship Index. 71 countries were ultimately chosen after the two data sources were aligned to identify those with data adequate for the study from both sources. Researchers further classified the targeted countries as Low-Middle income (37 countries) and High Income (34 countries) to check their performance differences. This means that low, lower-middle, and upper-middle are all included in one category because the performance gap among them is insignificant and are referred to as low-middle income for the sake of this study. Inferential statistics model were used to analysis the data. Independent-t-test model was used to compare the performance of study variables between categorized countries. To explain the hypothesized influence of the predictors on entrepreneurship competitiveness, multiple linear regressions model (OLS) was used. Assumptions tests were checked before running the model. The finding of independent-t-test shows that there is statistically significant performance difference between the high income and low-middle income countries in terms of entrepreneurship competitiveness, social capital, and intellectual capital. Regression analysis result shows that the independent variables predict 58.6 % of the variance in the outcome variable. From the three predictors, social capital and intellectual capital have their own statically significant influence on entrepreneurship competitiveness. Thus, working on these variables up to the standard application can bring incremental competitive capacity for entrepreneurship. The researchers believe that the study is of significant importance to policymakers, program developers, entrepreneurs, researchers since it provides useful insight on how the predictors influence entrepreneurship competitiveness.

Socio-economic Impacts of Internal Displacement on Displaced and Host Households

Nuradis Nesru Muzemil — 2023-12-31

Internal displacement has been shown to have a detrimental effect on displaced households in the literature. However, little research has been done on how internal displacement affects host households in Ethiopia. This study attempted to examine the socio-economic impacts of internal displacement on both displaced and host households. Primary data were gathered from 613 randomly selected households. Propensity score matching method was employed to measure the socio-economic impact of internal displacement on both groups of households. Sensitivity analysis was checked using Rosenbaum bounds and the Mentel-Henzel procedures. The results revealed that internal displacement had a negative impact on socioeconomic situations of both displaced and host households. Specifically, the findings indicate that 74.63% and 23.37 % decrease in annual income of displaced and host households, respectively. In addition, unemployment rate increased by 37.17% and 4.08%, respectively, between displaced and host households due to internal displacement. Furthermore, household consumption, production, access to education, and health care were negatively and significantly affected by internal displacement. Therefore, the government should pay particular attention to return the displaced household to their community of origin and compensate for destroyed properties. In addition, the government should restore basic services provision and create work opportunities for both groups of households as a long-term solution.

Effects of Digital Technology on Economic Growth of Selected Sub-Saharan African Countries

Elfenesh Muleta Beyene — 2023-12-31

The purpose of this study is to investigate the influence of digital technology on the economic growth of Sub-Saharan African countries, utilizing data from 33 sample countries between 2010 and 2020. A two-step system GMM (Generalized Method of Moments) model was employed for data analysis, considering various factors including investment levels, inflation rates, government expenditures, unemployment, foreign direct investment, and the influence of digital technology on economic growth. Short-term analysis reveals a significant positive correlation between digital technology and economic growth. Additionally, investment levels, inflation rates, and government consumption expenditures were found to positively predict short-term economic growth, while unemployment and foreign direct investment had adverse effects. Long-run model analyses also confirm the substantial positive influence of digital technology on economic growth in the region. The study underscores the necessity for investments in developing digital technology alongside clear policy frameworks. It suggests that augmenting human capital and infrastructure development will further amplify the positive effects of digital technology on economic growth in Sub-Saharan Africa. The findings highlight the pivotal role of digital technology in fostering economic growth in Sub-Saharan Africa, emphasizing the importance of strategic investments and policy initiatives to harness its potential.

Stakeholders’ Collaboration for Road Safety in Ethiopia

Getachew Tilahun — 2023-12-31

Effective collaboration among stakeholders of road safety is strongly recommended to ensure road safety system. This study aimed at identifying how road safety players collaborate to achieve the goal of reducing road traffic crashes (RTCs) and their impact in Ethiopia. The study employed qualitative research design, with FGDs and in-depth interviews as instruments of data collection. The data were collected from key road safety players working at the federal and regional levels, the academia, and the private sector, and thematically analyzed. Findings reveal that there is strong interest for road safety stakeholders to involve in and contribute their share to address the problem. Accordingly, Ethiopia has established a lead agency that exclusively coordinates the road safety works which is expected to collaboratively work with a number of multi-sector stakeholders. The country also launched National Road Safety Strategy which is designed based on the Safe Systems approach that call for collaboration among several stakeholders to prevent loss of lives, serious injuries and economic loss. In line with the Safe System approach, strong multi-disciplinary and multi-sector stakeholder engagement that stretches from the federal to regional and city administrations, and from government sectors to development partners, civic organizations, and private sectors can meaningfully reduce road traffic crashes and their devastating consequences. However, collaboration among the key stakeholders is by far less than the desired level and expected standards that implies the need of more efforts and commitment of all parties to improve it.

The Private Investment, And Economic Growth Nexuses in Ethiopia: Using Vector Autoregressive Approach

Abdisa Mirkena — 2023-12-31

Higher private capital boosts labor productivity, resulting in elevated wages and reduced interest rates. This, in turn, fosters increased work and incentivizes higher investments in private capital. Vector Autoregressive approach was employed to investigate the relationship between private investment, and economic growth. From the descriptive analyses, the trends of Ethiopian investment show that the investment rate in Ethiopia doubled from about 18% of the Gross Domestic Product in the second half of the 1990s to about 33% of the Gross Domestic Product in 2020. This due to the government's commitment to economic reforms, including the privatization of state-owned enterprises, has stimulated investor confidence, fostering a more conducive business environment. From econometric analysis, the Wald Test result revealed that Real Private Investment jointly has a relationship with Real growth rate. From the result of VAR Long Run Estimation, the impact of real public investment and real private investment on economic growth is found to be positive and statistically significant. From the result of the Granger Causality test, there exists a unidirectional causality from Real Private Investment to Real Gross Domestic Product. Recognizing that increased private investment contributes positively to economic growth, policymakers may prioritize initiatives that create an environment conducive to business investment. Overall, a strategic focus on encouraging and sustaining private sector participation will be integral to achieving robust and inclusive economic growth in Ethiopia.

Determinants of Informal Competition among Firms in Ethiopia

Abiy Serawitu — 2023-12-31

The study investigated the intensity of informal competition among firms in Ethiopia, using primary data sources from the 2015 World Bank Enterprise Surveys for Ethiopia (Ethiopia: Enterprise Survey 2015). The estimated linear probability model (LPM) revealed that the probability prevalence (intensity) of informal competition among firms in Ethiopia is about 38.5%. It indicated that informality is a key problem in Ethiopia. The study also found that the prevalence of the highest corruption, the burden of the tax rate, and credit access constraints were found to be positively and significantly affecting the informal competition of firms in Ethiopia. On the contrary, firm size is negatively and significantly affecting the informal competition of firms. Correspondingly, the study revealed that regular inspection and communication of tax officials with firms could not contribute to reducing the intensity of informality, even if most studies indicated that an increase in government enforcement of the tax code leads to reduced informality. As many studies indicated, the experience of top managers contributes a lot to reducing informality in an establishment; however, this study exhibited that it does not save firms from informality in Ethiopia. In a nutshell, more research should be conducted as to why tax inspections and the experience of top managers could not save firms from informality in Ethiopia.

Impact of Government Education Expenditure on Economic Growth in Ethiopia

Emebet Ferede — 2023-12-31

A wide range of theoretical and empirical research has recognized the importance of investment on human capital as an engine for economic growth and development. No country has achieved long-term economic expansion without making large investments in human capital. As a result, over the past decades education has been given high priority in Ethiopia’s development strategy. However, despite the high priority given to the education sector and the increase in government education expenditure as a result, the country is experiencing low literacy rate which accounts 52% in 2021 indicating a very low performance as compared to developed countries and even Sub Saharan African countries average literacy rate which accounts 67.27% in 2021. Hence a study on how this government education expenditure is contributing to the economic performance of the country is important. The main objective of this study is to investigate the impact of government education expenditure on economic growth in Ethiopia. The study used explanatory research design and quantitative research approach. Secondary data from Ethiopian Ministry of Education, Ethiopian Ministry of Finance, World Development Indicators, and National Bank of Ethiopia covering the years from 1988 to 2022 G.C were used as data source. To study this relationship between dependent and independent variables Autoregressive Distributed Lag (ARDL) bounds test approach to co- integration was used. The findings of the study revealed a positive and statistically significant relationship between government education expenditure and economic growth in Ethiopia under the study period both in the long run and short run. Moreover, the control variables used in this study; export, official exchange rate and labor force participation rate were found to be statistically significant. However, the results related to gross fixed capital formation rate was found statistically insignificant for the selected lag length. This may be due to the sensitivity of tine series data to sample size and lag lengths or other reasons which requires further study. To check the robustness of the long run ARDL model, the Fully Modified Least Squares (FMOLS) and Canonical Co-integrating Regression (CCR) tests were made and the results of the two methods were consistent with the long run ARDL model for the variables government education expenditure, labor force participation rate, export and exchange rate in their log form. Based on the findings of this study, the researcher recommends that the government of Ethiopia should continue increasing the education expenditure in order to address the country’s increasing population growth but should also ensure that education expenditure is efficiently utilized to enhance the existing low literacy rate and the level of its contribution to the economic performance of the country through proper monitoring and evaluation.

Agricultural Commodity Price Volatility Models and Prediction Performance of GARCH Family Models

Elias Dessie — 2023-12-31

Agricultural product price volatility leads to future retail price uncertainties for producers and consumers. This paper examines modeling and forecasting price volatility of four widely produced, highly household consumed and traded agricultural commodities, namely Teff, Wheat, Barley and Maize at Debre Markos of Ethiopia using time series retail price data from September 2010-August 2022. We compare the performance of GARCH family models against different error distributions for each price return and AIC, BIC,log likelihood and significant p-value were applied to identify the best fit GARCH family models and the results showed that ARCH(1,1)GED for Teff and Barley and EGARCH(1,1)STD for Wheat and Maize are appropriate models. Moreover, based on the sign and magnitude of the parameters (coefficients of residuals) there is asymmetry in the news, in which bad news has larger effect on volatility than good news for two cereals price returns. Furthermore, the forecasting performance of the models are evaluated using the root mean square error and mean absolute errors and four weeks ahead prediction performance in MAE are 0.0082, 0.0066, 0.0065 and 0.0144 for Teff, Wheat, Barley and Maize return models respectively which reveals that they perform well. They can be concluded that GARCH(1,1)GED for Teff and Barley and EGARCH(1,1)STD for Wheat and Maize are more accurate price return volatility forecast for risk management. Therefore, consumers and producers are recommended to use these models for future price predictions.

Influence of Social-Economic Attributes and Saving Intentions on Saving Options

Hamis Mohamed Sinde — 2023-12-31

The study examines the association between saving intention and alternative media of saving, along with determining the influence of demographic and social economic attributes on the choice of media of saving, focusing on Tanzanian sub-urban area. The analysis considered five alternative media of saving famous in the country; saving in cash, mobile money, saving and Credit Cooperative Organizations (SACCOs), bank accounts, and purchase of real assets. The structured questionnaire was used to collect data from 22 wards of Mbeya city council, where 401 respondents were reached; out of which 285 respondents were found to have saving habit. For analysis, descriptive statistics and multinomial logit regression were employed. The results show SACCOs were the most preferred over other saving options, particularly by those with business development intention and recurring motives. Furthermore, the results of the multinomial model show that gender, age, education, and monthly income significantly influence the choice of SACCOs saving over cash saving, as well as real asset purchase over cash saving. The study has implications on financial inclusion initiatives to Tanzania and other developing countries with similar context. Also, it offers additional insight to the financial inclusion literature regarding individuals’ attributes that could influence their choice of one media of saving over other alternatives exposed to them.

Transformational Leadership effect on Organizational Performance with Mediation role of Employee Commitment in case of Public Sector in Oromia, Ethiopia

Kebede Asefa — 2023-12-31

Top management and academics have placed public sector employee’s commitment at the centre of their thinking because they believe it may be a major factor in an organization's success. Recent duties by many academics have revealed a positive relationship between a transformational leadership strategy and public sector performance. Therefore, the purpose of this study was to explore how Employee Commitment played a mediating role in the relationship between transformational leadership and public sector employee’s commitment. Purposive sampling was used to collect the data. Quantitative research approach and explanatory research design was used by the researchers. To check the internal reliability of study variables KMO test of reliability and data adequacy was used. Structural equation modeling (SEM) and confirmatory factor analysis (CFA) are used to analyze data from a sample of 338 elevated public sector employees working in the elevated public sectors in Ethiopia in order to test the framed hypothesis. After that, the mediation analysis was validated using the bootstrapping investigation. There is no doubt that the employee commitment of the leader partially mediates the effect of transformational leadership on organization performance in public sector. In an illustrative way, the current experiential research has added to our understanding of the unique mediation effects of employee commitment drive on the relationships between transformational leadership and organization performance in public sector in Ethiopia.

Logistics and Customs Digitalization Practices Assessment Using a Technology Acceptance Model

Matiwos Ensermu Jaleta — 2023-12-31

The importance of effective logistics services and customs operations is now recognized globally as a fundamental catalyst for development and is critical for national competitiveness. With the rapid advancement of digitalization, international trade actors around the world are increasingly adopting digital solutions to enable a digitally interconnected ecosystem and to exploit the potential of digitalization. This study applied quantitative approaches to evaluate and understand the status quo of digitalization practices of logistics services and customs operations using basic determinants from the technology acceptance model. A total of 622 responses were collected using subjective questionnaires from customs employees and logistics service providers. The main contribution is that although the determinants of the technology acceptance model are widely used tools, there is no coherent approach to use them to learn the digitalization practices of logistics services and customs operations. Therefore, this study seeks to better understand the trends in logistics and customs digitalization by analyzing the determinants of the technology acceptance model in terms of the simplicity of the technology to use, the importance of the usage, and the perception of user satisfaction. The study comprehensively analyzed and discussed factors of the acceptance model of technology and relevance. The result demonstrates that customs employees' technology usage practices are more positive than portfolios of logistics service providers perception. It serves to identify digitalization practices, enabling actors to determine and implement technologies that promote increased acceptance.

The Effects of Competitive Strategy and Knowledge-Based Views on The Performance of Medium Enterprises in Shagar City

Chalchissa Amentie Kero — 2023-12-31

The aim of this study was to identify of competitive strategy and the knowledge-based views on the performance of medium enterprises in Shagar City. The sample size of the study was a total of 315 leaders and non- managerial employees of firms found in Shagar city. The source of the data for the study was both secondary and primary data in which the primary data was collected through questionnaires which was developed in English language. To analysis the collected data multiple regressions was used. As the multiple regression result of the study shows, that there is significant and moderate relationship between competitive strategy, knowledge management capacity and performance of the firm. In competitive strategy (marketing differentiation and cost leadership) are the most determinants of firm performance. In addition, in knowledge management capacity, knowledge creation and knowledge sharing are the most determinants of firm performance. Therefore, it is advisable for small and medium firms more focusing on marketing differentiation and cost leadership, knowledge creation and knowledge sharing among staffs that can contribute for the superior performance of the firm.

Effect of Intervention on Pastoralists' Development in some District

Tamiru Gabusho — 2023-12-31

The purpose of this study was to evaluate the effects of particular development stakeholders on the livelihoods of pastoralists in a few districts in the West Hararge zone of Ethiopia's Oromia region. In order to conduct this investigation, 160 samples of primary data were surveyed, and the econometric model's logistic regression likelihood estimation was employed. Spearman's rank analysis was used to determine how development stakeholders ranked their engagement with government in the areas of education, productive safety net, cooperative Oromia promotion, Busa Gonofa government institution, pastoral development government sector, and water sector and care Ethiopia NGOs sectors, in order. The applied econometric logistic regression, shows from government and NGOs; were founded significantly a significant at a statistical significance level of five percent: Islamic Relief, Water sanitation and hygiene, Farm Africa, and rural road development from the government sector. Accordingly, the research findings indicate that the education sector for pastoralist development strength needs to be treated as such smoothly with some moderation to achieve its target with full rate, while government office responsible for the water sector needs to give priority to reaching its primary target at area than selected sectors also for Care Ethiopia NGOs sector needs urgent improvement.

Adoption of Climate Smart Agricultural Practices by Smallholder Farmers in Western Oromia

Mijena Leta — 2023-12-31

The study employed multi-stage random sampling technique to select representative sample farm households. Adoption of climate smart agricultural (CSA) practices is a recommended pathway as a means of adaptation to climate change and attaining sustainable productivity. However, the uptake of these practices by smallholder farmers is minimal. Factors determining farmers’ adoption decision of climate smart agricultural practices were examined using household and plot level survey data collected in Gimbi and Diga distrcits. Multivariate Probit (MVP) model is applied to assess adoption decisions by farm households facing a decision of multiple CSA practices with a particular focus on the adoption of minimum tillage, crop residue and intercropping which can be adopted in various combinations. Results show that, though farmers have got the same exposure to CSA practices through on-farm demonstrations, their level of uptake of the CSA practices varies depending mostly on their level of education, resource endowment and access to markets. In general, the study results show that adoption of CSA practices enable farmers to increase productivity and reducing the risk of crop failure, as well as by reducing the adverse impacts of climate change by increase farmers' capacity to the adaptation and mitigation to climate change. In general, results of this study show that adoption of CSA practices are highly household-specific where different targeting and support mechanisms might need to be in place to enable farmers see the long-term benefits of these practices. Thus, the main message from the study is that technical change for farm-level improvement in agricultural production through adoption of feasible technologies or new farming practices requires farmer’s understanding their farming system, changes on their environment, persistent struggle to the unanticipated change, interventions by governments and non-governments organizations are the factors that govern agricultural production, value chains and natural resource management.

Moderating Effects of Gender on Mobile Money Services Adoption in Ethiopia

Bisrat Getnet — 2023-12-31

The major objective of the study was to identify the moderating effect of users’ gender in their intention to continue the usage of mobile money services in Ethiopia; particularly in Adama City and Adama District. A cross-sectional quantitative research approach was used. The research design for this study was explanatory or cause-effect research design. The sampling unit for the study is individuals who were users of mobile money services delivered as M-Birr and Hello-Cash. The sample size, 406 mobile payment services users, was conveniently and purposively selected from M-Birr and Hello-Cash mobile money system users. SEM was used to test the proposed study model. In view of that, the study results show that gender has a significant moderating effect on the relationship between perceived usefulness and continuous usage of mobile payment services. Similarly, gender significantly moderates the relationship between perceived ease of use and intention to continue the usage of mobile money services. The study also found that perceived usefulness is a more important factor for male users in predicting their intention to use m-money, while perceived ease of use is a stronger factor in influencing female’s intention to use mobile money than that of male users. The study is novel that it has not only identified the moderating effect of users’ gender on adoption of mobile money, but also it has identified that perceived usefulness is more important for male users than female users in predicting their intentions to use mobile money services. On the other hand, the study has found that perceived ease of use is more important for female than male in affecting the intention to use the services. The study methodology is also unique as it has applied both Maximum Likelihood Estimation (MLE) and Multi-Group Analysis (MGA) using two techniques: chi-square-based comparison between constrained and unconstrained models of different groups, and pairwise tests of path coefficients comparison of the predetermined groups.