Determinants Of Export Performance Of The Textile And Garment Companies In Ethiopia

The objective of this study was to examine the determinants of export performance of textile and garment companies in Ethiopia with regard to export market knowledge, management competence, technology, product quality, infrastructure and policy and regulation. A quantitative research design and explanatory research approaches were used. Primary data sources through questionnaire were used. Statistical Package for the Social Sciences (SPSS) version 20 was used to analyze the data. The study had 81.6% response rate. To achieve the objectives a conceptual model was formulated by reviewing previous related literatures, hypotheses were developed and tested. The variation explained by the regression of all the predictor variables on export performance was 96.4%. It can be said that there is a relatively good fit between the model and data. Correlation between the independent and dependent variables indicates a degree of less multi-collinearity. According to the findings, management competence, export market knowledge, technology, policy and regulation and product quality have positive and significant effect on export performance. Even though infrastructure also has positive relation on export performance, its effect was not statistically significant. Export performance was mainly influenced by management competence followed by export market knowledge, technology, policy and regulation, and product quality. Infrastructure did not show a statistically significant effect. Therefore, textile and garment export companies could benefit from considering management competence as main targets for their better export performance, they could also benefit from scaling up the knowledge of employees with regard to export market, and equipped with state-of-the-art technologies, relaxed policy and regulation and product quality to have competitive advantages and manage needs of their customers in the international market