The Ethiopian Journal of Business and Economics

Determinants of Household Saving Behavior: The Case of Selected Towns in West Hararghe Zone, Oromia National Regional State, Ethiopia

Mahmud Abdurahman — 2026-07-04

The way in which a society develops its saving habit affects capital accumulation and, consequently, a nation's economic growth. Household saving in Ethiopia is very low, and this low level of saving restricts a country's rate of economic growth. The aim of this study was to investigate the determinants of household saving behavior in selected towns of West Hararghe Zone, Ethiopia. The study used cross-sectional data gathered from 395 randomly chosen sample households residing in West Hararghe Zone self-administered towns. Result of the tobit model showed that age of household head, family size, dependency ratio, educational level of household head, monthly household income, and form of institutions used for saving were significant determinants of household saving behavior. The study has emphasized the importance of awareness creation relating with saving, household income improvement, family size reduction, and enhancement on educational level of household heads to shape the behavior of household’s towards saving.

Good Governance and Organizational Performance in Public Sector Organizations: Evidence from Ethiopia's Amhara Regional State

Benegrew Walie Mengiste — 2026-07-04

Despite the widespread promotion of good governance as a mechanism for improving public sector effectiveness, evidence regarding its contribution to organizational performance and the challenges affecting its implementation remains limited in Ethiopia's public sector. This study examined the relationship between good governance practices and organizational performance in selected public sector organizations in the Amhara Regional State, and identified the governance principles most strongly emphasized and the major challenges affecting implementation. A mixed-methods approach analyzed quantitative data from 342 survey samples using SEM AMOS and Chi-square tests, alongside qualitative data from interviews and document analysis. Good governance significantly enhances organisational performance, with the principles of the rule of law, accountability, consensus-building, and participation being identified as preferred approaches to achieving this goal. However, significant challenges hinder effective governance, including weak legal frameworks, limited public participation, economic difficulties, and insufficient political will, which are exacerbated by corruption and crises. To enhance governance in the Amhara Region, recommendations include establishing a Good Governance Implementation Agency (GGIA), developing a Regional Ethical Leadership Development strategy, and fostering Public-Private Partnerships (PPPs). Future research should explore preferences for governance principles and conduct longitudinal studies on intervention effects.

Effects of Comprehensive Compensation Systems on Safety Compliance, Safety Participation, and Perceived Safety Outcomes in High-Risk Industries in Lagos State, Nigeria

Adewale A. Soneye — 2026-07-04

This study evaluates the association of comprehensive employee compensation systems with three key safety outcomes in high-risk industries operating in Lagos State, Nigeria. Nigeria, as a developing country characterized by weak regulatory enforcement, high economic volatility, and an underdeveloped health surveillance infrastructure, distinguishes itself from the developed countries, therefore making it contextually relevant for this study. The regulatory and economic conditions in Nigeria may influence the dynamics of the association between employee compensation and employee safety differently from those observed in industrialized countries, making context-specific evidence essential. The study is grounded in the Job Demands-Resources (JD-R) model, which conceptualizes employee compensation systems as critical job resources that buffer workplace demands. A cross-sectional research design is adopted in the study, with data collected using a structurally validated and reliable instrument (Cronbach's α = 0.82). A response rate of 62% was achieved. The data analysis method employed was ordinary least squares (OLS) regression with the HC3 robust standard error estimator. The results reveal that comprehensive employee compensation systems have a positive, statistically significant association with all three safety outcomes - safety compliance, safety participation, and perceived safety outcomes. However, the results revealed that comprehensive compensation systems have the strongest effect on perceived safety outcomes (R² = 0.298) and small to moderate effects on both safety compliance (R² = 0.118) and safety participation (R² = 0.127). The study concludes that compensation systems have a dual function: as a tool for employee remuneration and as a strategic safety intervention that can shape both behavioral and perceptual safety outcomes, but cautions that organizations should be mindful about adopting these recommendations as standalone solutions. This study makes three contributions to the body of knowledge, among them the application of a theoretical framework developed in an advanced-economy setting to an under-researched subject in a developing-economy context.

Analyzing the Mediating Role of Government Support using the Balanced Scorecard: Examining the Effect of Marketing and Technological Innovation on Firm Performance in Addis Ababa, Ethiopia

Fisseha Dejene Yadete — 2026-07-04

This study looks into how marketing and technology advancements affect SMEs' performance in Addis Ababa, Ethiopia, with an emphasis on how government support acts as a mediator. It attempts to fill in important knowledge gaps about the difficulties SMEs in developing nations face. Using a multi-stage cluster sampling technique for representativeness and a structured questionnaire to gather data from 431 SMEs, a quantitative approach was adopted. Confirmatory factor analysis (CFA) and exploratory factor analysis (EFA) were used in the data analysis, and structural equation modeling (SEM) in AMOS was the next step. The findings indicate that both marketing and technology innovation (β = 0.180 and 0.285, respectively) greatly improve firm performance. Both innovations' effects are amplified by government backing, which acts as a partial mediator and has a high direct impact (β = 0.318). In order to get the best results, SMEs in Addis Ababa should use government assistance programs, which offer crucial resources for firm expansion, in conjunction with technology and marketing innovations. The cross-sectional methodology of the study, which only uses data from owner-managers, restricts the ability to draw long-term causal conclusions. Employee participation in future studies may lessen bias and increase the validity of the results, giving them greater plausibility. Future research should expand to other regions and use longitudinal designs to investigate causal pathways for enhanced validity. Qualitative studies could clarify how government assistance fosters innovation and identifies obstacles for SMEs, while also exploring mediators like management skills and digital literacy.

Exploring the Demand of Ethnic Afar Consumers for Locally Produced Date Palm Fruit in Afar National Regional State, Ethiopia: Evidence and Implications for Ethnic Afar Agricultural Entrepreneurship and Business Development

Hussien Yimam — 2026-06-25

The objective of this study was to investigate the nature and dynamics of the demand of ethnic
Afar consumers for locally produced date palm fruit in Ayssaita district, Afar Regional State.
Qualitative approach was employed to generate data from 14 participants by combining
purposive and convenience sampling techniques. The study revealed that socio-cultural (culture,
sub-culture, and awareness), the product factors (Stocking of date, plastic packing, accessibility
of date, and quality of date), and the market factors (Traders from different market, consumers
from different localities, and market price) were affecting each other as well as the demand of
locally produced date palm fruit. The joint and separate effects of these factors made the demand
dynamic in nature, and the dominant factors also displaced one another over time. Furthermore,
the demand itself shapes the consumption of ethnic Afar consumers. Essentially, this signified the
demise of the “Particularists' (Euro-centric) model/frameworks to capture the dynamics of the
demand of ethnic Afar consumers and the rise of the systems thinking based empirical framework.
The study also indicated that the dynamics of the demand cultivate entrepreneurial spirit on the
side of date growers/agro-pastoralists and enables them to have their own involvement in the
date (and date related) business of the region.