Factors affecting performance of manufacturing firm, in the case of Oromia Forest and Wild Life Enterprise, Jimma Branch

Abstract

The objective of this study was to identify factors that affect the performance of manufacturing industry in Oromia Forest and Wild Life Enterprise Jimma branch. Descriptive studies deign and mixed research approach (both qualitative and quantitative) was used to answer the research questions. Primary data have been collected through questionnaire and interview. To achieve the objective of the study 121 questionnaires were distributed and 114 of them were successfully completed and analyzed. To analyze the data a combination of descriptive form of data analysis and multiple regression analysis was used. Multiple regression analysis was performed to investigate the effect of each explanatory variable on firm manufacturing performance. The result shows that the 54% of the variances in the performance of firm manufacturing can be explained by the independent variables. The remaining variances on the dependent variable could be explained by other explanatory variables not included in this study. Accordingly strategic flexibility makes the strongest unique contribution of 37.9% to explain the performance of firm manufacturing. Among the expected factors; manufacturing technology, strategic flexibility and environmental dynamism have a positive effect on the performance of firm manufacturing, but resource constraint has a negative effect on the performance of firm manufacturing inOromia Forest and Wild Life Enterprise; the case of Jimma Branch. It is hoped that Oromia Forest and Wild Life Enterprise in Jimma branch should improve the performance of firm manufacturing by increasing human resource, financial resources and technological resources.