Department of Business Management

Permanent URI for this collectionhttps://repository.mu.edu.et/handle/123456789/117

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End date: 2025

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    Analysis of Ethiopian government Project funding from China: Challenges and Opportunities
    (Mekelle University, 2025-12-28) ZHANG ZHONGGANG
    This thesis explores the impacts, challenges, and opportunities of Chinese-funded Ethiopian government projects from 2018 to 2025. These projects have been instrumental in advancing Ethiopia’s infrastructure development, particularly in transport corridors such as the Addis Ababa–Djibouti railway, energy transmission networks, and industrial parks. Serving as a cornerstone for Ethiopia’s industrialization and enhanced regional connectivity, these endeavors have generated significant socio-economic benefits including job creation, technology and skills transfer, and industrial capacity improvements. Nonetheless, the implementation of these projects faces persistent challenges. Financial obstacles such as delayed fund disbursement, foreign exchange shortages, and currency volatility regularly disrupt project timelines and increase costs. Complicated regulatory environments marked by bureaucratic inefficiencies, inconsistent VAT refund systems, and weak contract enforcement exacerbate operational hurdles. Managerial challenges stem from the need to harmonize centralized Chinese corporate control with local adaptations like guanxi networks, crucial for navigating Ethiopia’s institutional landscape. Additionally, limited institutional capacity within Ethiopian bodies impedes consistent project oversight. Risk factors, including political instability and economic fluctuations, pose considerable threats to project sustainability and investor confidence. Despite these impediments, adaptive management practices, ongoing institutional reforms, and Ethiopia’s strategic alignment with China’s Belt and Road Initiative underscore the substantial potential for these projects to drive economic growth. The study recommends integrated policy reforms to streamline financial and regulatory processes, enhance managerial competencies, strengthen institutional capacity, and advance comprehensive risk management, ensuring that Chinese-funded projects become more efficient, transparent, and sustainable. These insights provide a valuable roadmap for Ethiopian policymakers, Chinese investors, and project managers committed to fostering lasting and mutually beneficial development cooperation.
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    Strategic Leadership in the Transformation from Traditional Bathroom Manufacture to Smart and Healthy Living Solution Provider: A Case Study of Bolina Group
    (Mekelle University, 2025-11-28) ZHENG WENQIN
    This study investigates the role of strategic leadership in guiding the transformation of Bolina Group from a traditional bathroom manufacturer to a provider of smart and healthy living solutions. It focuses on understanding how leadership practices influence organizational strategy, structure, processes, technological adoption, employee engagement, and overall performance during this transformation. A case study design was employed, collecting data through structured questionnaires distributed to 168 employees across key job categories, complemented by semi-structured interviews with management and technical staff. The study examined constructs including Transformational Leadership, Adaptive Leadership, Visionary/Entrepreneurial Leadership, Organizational Culture, Technological Readiness, Smart and Healthy Living Product Adoption, and Organizational Performance. Reliability tests using Cronbach’s Alpha confirmed that all measurement scales were internally consistent and suitable for analysis. Findings reveal that strategic leadership is a critical driver of organizational transformation. Transformational, adaptive, and visionary leadership practices significantly influence the adoption of smart and healthy living solutions, foster innovation, enhance employee engagement, and improve overall organizational performance. Additionally, a supportive organizational culture and strong technological readiness were identified as key enablers that amplify leadership effectiveness in driving change. The study concludes that effective strategic leadership, supported by an enabling organizational environment, is essential for navigating complex transformations and sustaining long-term competitiveness. Recommendations include strengthening leadership development, enhancing organizational culture, investing in technological readiness, and continuously monitoring transformation initiatives to ensure alignment with strategic objectives.
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    Human Resource Management Practice and Its Impact on Organizational Performance in Selected Chinese Construction Companies in Ethiopia
    (Mekelle University, 2025-12-28) ZHANG YANG
    This study investigates the impact of human resource management (HRM) practices on organizational performance in selected Chinese construction companies operating in Ethiopia. The research employs a mixed-methods approach, gathering quantitative data through questionnaires and qualitative insights via interviews from 15 key personnel across various managerial and technical roles. Findings reveal that fair recruitment processes and ongoing training programs, particularly those emphasizing safety and technical skills, are foundational to workforce effectiveness. Employee motivation and structured performance appraisal systems contribute significantly to retention and productivity. Cross-cultural adaptation strategies, including cultural sensitivity training and locally tailored HR policies, facilitate smoother integration of expatriate and local workers, although some language and cultural challenges persist. Technological integration through digital HR systems enhances recruitment, training delivery, and performance monitoring but faces limitations due to infrastructure constraints and digital literacy gaps. Organizational performance indicators such as project timely completion, budget adherence, quality standards, and safety compliance are positively associated with effective HR practices and employee wellbeing initiatives. The study concludes that adaptive HRM aligned with cultural contexts, combined with cross cultural competence and technology adoption, is essential for improving project outcomes and sustaining competitive advantage. Recommendations include developing targeted training, enhancing cross-cultural communication, investing in digital infrastructure, establishing conflict resolution mechanisms, and fostering employee wellbeing. Further research is suggested to explore longitudinal impacts, larger samples, and comparative analyses with other international firms. This research contributes practical insights to improve HRM in Chinese construction companies in Ethiopia, supporting their operational success and sustainable development within the local construction sector.
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    AN ASSESSMENT ON STRATEGIC MANAGEMENT PRACTICE ( THE CASE OF PEOPLE’S LIBERATION ARMY (PLA) HOSPITAL OF CHINA)
    (Mekelle University, 2025-11-28) Zhang Giang
    Strategic management is essential for organizational success, particularly in complex and highly structured institutions such as military hospitals. The People’s Liberation Army (PLA) Hospital of China operates under unique organizational and operational conditions, requiring effective strategy formulation, implementation, and evaluation to ensure efficient healthcare delivery and alignment with broader military objectives. This study aims to assess the strategic management practices adopted at the PLA Hospital, focusing on how strategies are formulated, implemented, evaluated, and controlled, as well as identifying the key challenges faced in the strategic management process. A descriptive research design was employed, using a mixed-methods approach with a primary focus on quantitative techniques. Data were collected from 98 hospital staff through structured questionnaires covering strategic planning, implementation, monitoring, and evaluation. A pilot study was conducted to ensure the reliability of the instrument. Quantitative data were analyzed using SPSS version 27, employing descriptive statistics to summarize trends and inferential statistics, including correlation and regression analyses, to examine the relationships between strategic management practices and organizational effectiveness. Findings indicate that the PLA Hospital demonstrates acceptable to good reliability in strategic management practices, with effective planning, implementation, and monitoring. Challenges identified include resource allocation constraints and coordination issues among staff. Addressing these challenges can further enhance operational efficiency and strategic alignment. The study recommends continuous evaluation, targeted staff training, and integrated strategic planning to strengthen hospital performance.
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    RISK AND OPPORTUNITIES of CHINESE CONSTRUCTION COMPANIES IN ETHIOPIA
    (Mekelle University, 2025-12-28) LIU ZHONGHUA
    This research investigates the risks and opportunities faced by Chinese construction companies operating in Ethiopia’s rapidly expanding infrastructure sector. The study adopted a qualitative case study approach complemented by questionnaire surveys and interviews with key informants, including project managers, company executives, government officials, and local contractors. A descriptive research design was applied to analyze the complex political, economic, operational, and socio-cultural environment in which these companies operate. The findings indicate that Ethiopia’s political and policy framework generally supports infrastructure development through government reforms and investment incentives. However, frequent regulatory changes and localized security concerns introduce operational uncertainties. Economic and financial challenges—such as inflation, foreign exchange restrictions, currency devaluation, and inconsistent tax and customs enforcement—significantly impact project costs, cash flow, and procurement processes. Operational difficulties primarily involve language barriers, skill gaps among the local workforce, complex labor laws, and site-specific security risks. Despite these challenges, Chinese firms are actively implementing workforce localization strategies through training programs and increased employment of Ethiopian laborers. Significant opportunities exist due to Ethiopia’s growing infrastructure demand, favorable government incentives, and bilateral cooperation under the Belt and Road Initiative, which provides access to financing and policy support. The research highlights the importance of continuous risk monitoring, proactive engagement with local stakeholders, and strengthened collaboration with local subcontractors and suppliers to ensure sustainable project success and socio-economic benefits. Additional recommendations include enhancing local contractor capacity, improving policy transparency, and promoting structured technology and skills transfer initiatives.
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    ASSESSMENT OF EMPLOYEE WELLBEING AND ITS EFFECTS ON WORKFORCE PRODUCTIVITY IN CHINESE CONSTRUCTION COMPANIES OPERATING IN ETHIOPIA
    (Mekelle University, 2025-12-28) PENG MENGYUAN
    This study investigates the impact of employee wellbeing on workforce productivity in Chinese construction companies operating in Ethiopia. Employee wellbeing, encompassing physical health, mental health, safety, and organizational support, is a critical factor influencing performance, engagement, and overall project outcomes in the construction sector. Given the cross-cultural and high-risk work environment in Ethiopia, workers face unique challenges related to fatigue, stress, and communication barriers between Chinese expatriates and local Ethiopian employees. The research employed a mixed-methods approach, combining quantitative data collected from 15 employee questionnaires with qualitative insights from five in-depth interviews with supervisors and managers. The study examined four key dimensions: employee wellbeing, workforce productivity, cross-cultural work environment, and occupational health and safety. Quantitative results were analyzed using descriptive statistics, while qualitative data were interpreted through thematic analysis, enabling triangulation and a comprehensive understanding of the relationships among variables. Findings reveal a strong positive relationship between employee wellbeing and workforce productivity. Employees experiencing higher levels of physical and mental wellbeing report increased efficiency, better task completion, and improved quality of work. Fatigue, stress, and cross-cultural misunderstandings were identified as significant barriers to productivity. Moreover, effective safety practices, organizational support, leadership engagement, and culturally sensitive management practices were found to enhance both wellbeing and productivity. The study concludes that improving employee wellbeing through integrated health, safety, and cross-cultural strategies is essential for maximizing productivity in Chinese construction firms in Ethiopia. Recommendations include implementing mental and physical health programs, fostering cross-cultural communication, strengthening occupational safety measures, and promoting supportive leadership practices. The research contributes to a deeper understanding of workforce management in multinational construction projects, providing practical insights for companies, policymakers, and scholars aiming to enhance labor productivity, project efficiency, and sustainable construction outcomes in Ethiopia.
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    Strategic Risk Management and Competitiveness Enhancement Positioning of Chinese Construction Firms in Ethiopia’s Infrastructure Sector
    (Mekelle University, 2025-12-28) LEI FEI
    This study investigates the strategic risks confronting Chinese construction firms operating within Ethiopia’s rapidly expanding infrastructure sector and critically evaluates their current risk management practices in relation to enhancing competitiveness. Ethiopia’s infrastructure development landscape presents a complex set of challenges characterized by political instability, legal ambiguities, financial volatility, socio-cultural tensions, and operational difficulties. These multidimensional risks collectively threaten project timeliness, cost control, quality delivery, and the overall sustainability of construction firms. The research findings reveal that while Chinese firms possess significant technical and financial strengths, their risk management approaches are predominantly reactive and focused on operational risks. There is a notable lack of integrated, proactive, and strategic risk frameworks that holistically address the interconnected political, legal, financial, social, and operational risk dimensions inherent in the Ethiopian context. Firms with more comprehensive and structured risk management systems report superior project outcomes, fewer delays and cost overruns, stronger client relationships, and improved reputation within the market. The study highlights the critical importance of tailoring risk management strategies to Ethiopia’s unique local environment. Effective risk mitigation hinges on enhanced stakeholder engagement, collaboration with government authorities, legal clarity, and cultural sensitivity. To strengthen competitiveness, Chinese firms must incorporate enterprise-wide risk frameworks, improve partnership building with local entities, bolster legal and financial risk controls, and invest in employee training and localization, and leverage emerging technologies for risk monitoring and predictive analytics. Overall, this research provides valuable insights for Chinese construction companies seeking to improve their resilience, operational effectiveness, and market position in Ethiopia’s infrastructure sector while contributing to the broader academic discourse on international construction risk management in developing countries.
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    Developing an Adaptive Risk Management Framework for International EPC Projects: A Mixed-Methods Study of CGGC’s Belt and Road Initiatives
    (Mekelle University, 2025-12-28) Duan Congkun
    This study examines the risk management practices of China Gezhouba Group Corporation (CGGC) in international Engineering, Procurement, and Construction (EPC) projects, with a particular focus on projects under the Belt and Road Initiative (BRI) in Angola, Pakistan, and Argentina. The research investigates the effectiveness of risk identification, assessment, mitigation, monitoring, and dispute resolution mechanisms, aiming to identify gaps and propose actionable improvements. Findings indicate that while CGGC has established foundational risk management procedures, their application is inconsistent across departments and project sites. Technical, financial, and security risks are most frequently identified, whereas social and environmental risks are often underreported or detected late. Risk identification remains heavily project manager–driven, and quantitative risk assessment tools such as probability–impact scoring and Monte Carlo simulations are rarely applied. Risk mitigation strategies vary in consistency and effectiveness, with digital tools and cross-functional coordination underutilized. Monitoring and reporting systems rely primarily on periodic reports and inspections, resulting in delayed responses to fast changing political and security risks. Dispute resolution is predominantly informal, limiting opportunities for institutional learning and systematic documentation. Based on these findings, the study proposes several recommendations to strengthen CGGC’s risk management capabilities. Key measures include standardizing multi-department risk identification, implementing quantitative assessment tools, adopting systematic mitigation protocols, enhancing digital monitoring and real-time reporting, formalizing dispute resolution procedures, and building a knowledge base for lessons learned. The study also introduces an adaptive CGGC–BRI Integrated Risk Management Framework structured around five pillars: Predictive Risk Intelligence, Integrated Data Systems, Cross-Country Knowledge Transfer, Multistakeholder Engagement Protocols, and Continuous Monitoring and Adaptive Response. The proposed framework aligns with ISO 31000, COSO ERM, and established EPC risk management literature, offering a cohesive and proactive approach to managing technical, financial, social, and security risks in complex international projects. Adoption of this framework is expected to enhance CGGC’s resilience, improve project performance, and reduce the likelihood of cost overruns, delays, and disputes in future overseas operations.
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    Cash Flow Management Practices and Strategies a Case Study of Selected Chinese Companies Operating In Ethiopia
    (Mekelle University, 2025-12-28) Cai Renjin
    This thesis investigates cash flow management practices and strategies among Chinese companies operating in Ethiopia, with particular focus on the manufacturing, construction, and infrastructure sectors where Chinese investment plays a critical role. The study adopts a descriptive research design and employs a census approach, covering 15 selected Chinese companies that are actively operating in Ethiopia. Data were collected from 45 respondents, comprising financial managers, accountants, and operational staff, using structured questionnaires, interviews, and document review. The findings indicate that Chinese firms in Ethiopia face significant cash flow challenges arising mainly from external factors, including delayed value-added tax refunds and government payments, foreign currency shortages, exchange rate volatility, and infrastructural inefficiencies. Internally, operational inefficiencies, delayed receivables, and supply chain disruptions further intensify liquidity fluctuations. These challenges disrupt operational continuity, increase financing costs, constrain investment capacity, and strain relationships with suppliers and employees, ultimately affecting firm sustainability. Despite these constraints, Chinese companies adopt various coping strategies, such as maintaining liquidity reserves, negotiating flexible payment terms, relying on internal financing, hedging foreign exchange risks, and utilizing technology to enhance cash flow forecasting and control. Effective coordination between headquarters and local management is also found to be essential in adapting corporate financial policies to Ethiopia’s financial and regulatory environment. The study concludes that while Chinese companies benefit from strong financial capacity and operational experience, they must continuously adapt to Ethiopia’s complex financial and regulatory landscape. Accordingly, the study recommends improving cash flow forecasting practices, strengthening stakeholder engagement, diversifying funding sources, optimizing internal operational efficiency, managing foreign exchange risks, and enhancing financial and policy frameworks to support sustainable foreign investment in Ethiopia.
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    THE ROLE OF MICRO CREDIT UTILIZATION ON ECONOMIC EMPOWERMENT OF SELF-EMPLOYED WOMEN; THE CASE OF ADI HAKI SUB CITY OF MEKELLE CITY
    (Mekelle University, 2025-06-28) Hiluf Tadese
    Microfinance empowers women by putting capital in their hands and allowing them to earn an independent income and contribute financially to their households and communities. Despite this micro credit utilization have major challenges and its role is questionable. Descriptive research design with mixed approaches was employed. The study used primary data collected through questionnaires distributed to self-employed women of Adi haki sub city. The descriptive analysis reveals that credit adequacy, interest rate, rigidity of repayment schedule and post credit service were important challenges of micro credit utilization by self-employed women. Also, the study find plays a greatest role in empowering self-employed women by increasing their income level, saving habit, right over assets and decision-making involvement. Therefore, this study recommends for enhancing micro credit utilization, micro finance institutions should introduce scalable loan products with progressive increases based on repayment history and business growth and should adopt flexible repayment plans aligned with cash flows borrowers as rigidity of repayment schedule is a major challenge of micro credit utilization by self-employed women. The study also recommends post credit service including skills training, market linkages, and financial literacy should be provided by micro finance institutions, other non-governmental organizations and the government bodies timely and properly.