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RESEARCH PRODUCT

Export Barriers and its Impact on Export Competitiveness of Leather Footwear Manufacturing Firms in Ethiopia

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Master thesis Business Administration- University of Agder, 2015 Purpose: the purpose of this research was to identify the export barriers that affect the export competitiveness of the Ethiopian leather footwear-manufacturing firms, with a special emphasis on the SMEs. SMEs occupy a prominent position in the development agenda of many developing countries like Ethiopia. Hence, this study investigated the export barriers of SMEs in ELFMFs. Research Methodology: A survey of 15 manufacturing firms was conducted in Ethiopian, Addis Ababa. Out of 100 sampled respondents, 61 properly answered and returned the questionnaire to the researcher. Interview was also conducted with top managers and owners. The survey data was analyzed using factor analysis, MDS and cluster analysis techniques. The factor analysis identified 10 conceptually linked components. In addition, their impact on the export competitiveness of the export firms was analyze using the factor loadings, factor score coefficient results and the measurement of decision rules adopted by Vichea (2005). Besides, MDS in combination with cluster analysis were used. Findings: The significant barriers have had different perceived export barriers intensity on the export competitiveness of the firms. The result shows that government policy, human resource, product adaption, marketing knowledge and information, financial, exogenous export, competition, logistics and product adaption barriers were significant whereas the environmental barrier was partially supported. In the MDS analysis, based on the perceived export barriers intensity four clusters of firms were formulated. Cluster I, II, III and IV firms were named as competition barriers, logistics barriers, product quality barriers and financial barriers respectively. Keywords: Addis Ababa, Developing countries, Export barriers, Export Competitiveness, Ethiopia, SMEs