Comparative Analysis Of Institutional Competence Of Floriculture Export Companies In The Case Of Foreign Owned And Locally Owned Firms In Ethiopia

Two decades have elapsed since flower began to be produced in Ethiopia for commercialrnpurpose. The report of some studies shows that locally owned floriculture firms exit from thernsector. However, foreign owned firms assumed dominance in this industry. Therefore, thernobjective of this project is to examine institutional competitiveness between local owned firmsrnand foreign owned firms by assessing their investment capability, production capability, linkagerncapabilities and marketing capability.rnIn order to achieve this quantitative and qualitative data was collected, in which tenrnmanagers or owners of flowers firms answered the questions on questionnaires as well as keyrninformants from EHPEA were interviewed as per the questions on semi-structuredrnquestionnaires. Moreover, export volume and value of each flower firm was collected fromrnEthiopia custom office.rnQuestionnaires were prepared for flower firms to collect quantitative and qualitativerndata focused on firm’s investment capability, production capability, and linkage capability andrnmarketing capability.rnThe result of the project showed that foreign owned firms are more competitive thanrnlocally owned firm in terms of investment capability.rnSimilarly, the result of this project showed that locally owned firms are less competitivernthan foreign firms regarding production capabilities.rnThe result also indicated that foreign firms that more competitive than locally ownedrnfirms in terms of linkage capabilities.rnMoreover, the result reveals that foreign owned firms are more competitive than locallyrnowned firms regarding marketing capabilities.rnThis implies that foreign owned firms are more competitive than locally owned firms onrnmajor four capability indicators.rnThe finding of this project is used to make recommendation for locally owned firms tornimprove their competitive related to investment, production and product, linkage and marketingrnixrncapabilities such as establishing managerial strategies related to set up their own marketingrndepartment to acquire and utilize their own marketing information build their financingrncapabilities such as establishing managerial strategies related to set up their own marketingrndepartment, to acquire and utilize their own marketing information build their financingrncapabilities to get access to foreign and other local financing institutions, build relationship withrnforeign firms to get knowledge spillover, hire consultants and industry experienced managersrnfrom abroad.

Get Full Work

Report copyright infringement or plagiarism