College of Business and Economics

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    Risk Identification and Management in Infrastructure Engineering Projects in Ethiopia
    (Mekelle University, 2025-12-28) Yao Tun
    This research proposal, submitted to Mekelle University, College of Business and Economics, Department of Management, explores risk identification and management in infrastructure engineering projects in Ethiopia. Infrastructure development is central to Ethiopia’s economic growth, yet projects such as roads, railways, and hydropower dams often face cost overruns, schedule delays, and compromised quality. A critical underlying cause is the absence of a systematic and context-sensitive risk management framework that incorporates both traditional risks (technical, financial, operational) and non-traditional risks (social security, community disputes). The study employs a mixed-methods design. Quantitative data are collected through structured questionnaires using a 5-point Likert scale, enabling statistical analysis and ranking of risks via the Relative Importance Index (RII). Qualitative insights are gathered through semi-structured interviews with project managers, engineers, contractors, and government officials in Addis Ababa, Oromia, and Amhara. Reliability is tested using Cronbach’s Alpha, while thematic analysis is applied to interview data. Findings highlight inflation, material shortages, community disputes, and theft of equipment as the most critical risks. Current practices are fragmented and often informal, with limited attention to social security risks. Barriers include insufficient data, budget constraints, skill gaps, and weak regulatory enforcement. The study contributes theoretically by extending conventional frameworks to include overlooked social risks, and practically by offering evidence-based recommendations for managers, policymakers, and investors. The proposed framework enhances resilience and efficiency in Ethiopian infrastructure delivery.
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    Supply Chain Management Practices in the Construction Sector in E thiopia: Implications for Project Performance (The Case of CBE Headquarters Building)
    (Mekelle University, 2025-12) Zhao Yunfeng
    Supply Chain Management (SCM) plays a vital role in construction project performance, particularly in large and complex projects that rely on diverse materials, specialized equipment, and synchronized coordination among multiple stakeholders. Despite the expansion of Ethiopia's construction industry, significant challenges persist in procurement, logistics, supplier management, and foreign exchange- dependent importation of materials. Employing a mixed-methods case study design, this research draws on project documentation, survey responses, and interviews with practitioners, alongside a review of global and regional SCM literature, to investigate how procurement planning, supplier relationships, logistics coordination, risk management, and information flow affect time, cost, and quality performance. The CBE Headquarters Project, which experienced a three-year delay primarily due to supply chain constraints, provides the instrumental case context for this analysis. The findings highlight critical SCM challenges including foreign currency shortages, lengthy customs procedures, import dependency for major materials, and limited use of digital SCM tools. The study proposes practical recommendations aimed at strengthening procurement planning, enhancing supplier integration, improving logistics systems, and adopting digital SCM platforms to boostm project performance in Ethiopia's construction industry.
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    Assessing Project Monitoring and Evaluation Practices in Chinese Road Construction Companies Operating in Ethiopia:
    (Mekelle University, 2025-12-28) Li Yan
    This study investigates the monitoring and evaluation (M&E) practices of Chinese road construction companies operating in Ethiopia. With Chinese contractors playing a central role in the country’s road infrastructure development under initiatives such as the Belt and Road Initiative, effective M&E is crucial for ensuring project quality, timely completion, and resource efficiency. The research focuses on understanding the frameworks, methodologies, challenges, and impacts of M&E within these cross-cultural and resource-constrained contexts. Data were collected through 15 structured questionnaires administered to project managers, engineers, and M&E specialists, alongside five in-depth interviews with key informants, including senior project leaders and government officials. The analysis revealed that while formal M&E systems exist, their implementation is often inconsistent, and technological adoption is limited. Progress reports and site inspections dominate current practices, whereas digital tools for real-time monitoring remain underutilized. Several challenges affect M&E effectiveness, including resource constraints, limited skilled personnel, cultural and communication barriers, and political and administrative complexities. These challenges result in delayed reporting, reduced data accuracy, and diminished integration of M&E findings into strategic decision-making. Despite these issues, effective M&E contributes positively to operational decisions, risk mitigation, quality control, and accountability on project sites. The study recommends increased investment in digital monitoring tools and associated training, strengthened stakeholder engagement, development of sector-specific M&E frameworks aligned with local contexts, institutionalized capacity-building initiatives, and supportive policy interventions by Ethiopian authorities. Implementing these measures is expected to enhance the effectiveness of M&E systems, improve project outcomes, and foster sustainable development in Ethiopia’s road construction sector.
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    Assessment of Corporate Social Responsibility Practices: The Case of Mesebo Cement Factory, Mekelle City, Tigray, Ethiopia
    (Mekelle University, 2025-10-25) Rigbe Abrha Desta
    At present, corporate social responsibility is growing in importance in business practices. It is a business model that encourages businesses to operate in ways that enhance society and the environment while still being accountable to their stakeholders and the public. As a consequence of fast-growing socio-economic and political development and awareness, communities increasingly demand corporate accountability. The search for answers to these questions led to the development of the concept of corporate social responsibility. Corporate social responsibility can be defined as a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. This study assessed the extent and dimensions of CSR practices at Mesebo Cement Factory and their alignment with Carroll’s CSR framework. Corporate social responsibility contains four components/domains that were developed by Carroll in the form of pyramid these include: legal, ethical, economic, and philanthropic domains. The study used corporate social responsibility model adopted after detailed review of theories and empirical studies. The research design is mainly descriptive survey. Data for each of the major four domains were collected through sets of questions asked to respondents to rank their perception. To enhance the credibility of the data collected triangulation method of research approach is applied. The Sample survey was conducted with 200 respondents applying probability sampling design and simple random technique from both internal (122 employee respondents) and external (78 respondents) from nearby community members. The survey was also accompanied by an interview with key informants and in-depth interview as well as document analysis. Finally, the data gathered through a questionnaire from the survey were analyzed through mean scores, frequencies, percentages, and ranking using SPSS software version 20. The descriptive statistics results were presented in the form of Tables and figures. The finding of the study shows that the company mainly works on good employees handling, the economic domain of corporate social responsibility and from the philanthropic aspect it participates in sport and it supports in education buildings, indicating that the company works within the legal framework. However, majority of the results indicate that the company is not working on environmental protection, health care, infrastructure, and ethical aspects of corporate social responsibility. The results imply that the management of Mesobo Cement Factory need to comply with and further implement Corporate Social Responsibility strategy alignment, stakeholder communication and activities that ensure corporate sustainability. From the findings, the study gives a general remark that corporate social responsibility is not well practiced by the Company. Therefore, the major findings suggest that such organizations need to understand and consider the advantages of engaging in corporate social responsibility for their growth on sustainable basis.
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    CHALLENGES AND OPPORTUNITIES OF SAVING MOBILIZATION IN MICROFINANCE INSTITUTIONS (A CASE OF DEDEBIT CREDIT AND SAVING INSTITUTION, TIGRAY, ETHIOPIA)
    (Mekelle University, 2025-10-25) Teklay Gebremedhin Gebretsadikan
    Savings mobilization is a critical function for the sustainability and outreach of Microfinance Institutions (MFIs) in developing economies, and this study aims to assess the major challenges and opportunities in this area, using Dedebit Credit and Saving Institution (DECSI) in Tigray, Ethiopia, as a case study. Employing a descriptive research design, primary data were collected from a sample of DECSI employees using structured questionnaires, supplemented by secondary data. The analysis identified significant internal operational weaknesses, with the absence of remarkable remuneration identified as a "very strong" barrier; other strong internal operational weaknesses included manual financial systems, time-consuming procedures, lack of modern advertisement, and absence of overtime fees. Externally, peace and political instability posed a "very strong" challenge, alongside competition from other financial institutions, poor saving culture, and underdeveloped infrastructure. While staff commitment and the potential for quality service delivery were identified positively as opportunities, factors such as staff incentives, stakeholder cooperation, and product diversification were found to be underutilized. The study concludes that DECSI's savings mobilization efforts are hindered by a combination of critical internal operational weaknesses and external environmental factors. Consequently, it is recommended that DECSI invest in a modern Management Information System (MIS), introduce technology-driven channels (e.g., mobile banking), improve working conditions and remuneration to retain skilled staff, and develop more diversified savings products.
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    THE INFLUENCE OF SOCIAL MEDIA ADVERTISEMENT ON CONSUMERS’ PURCHASE INTENTION TOWARDS CASTLE BEER: A CASE STUDY OF CONSUMERS IN MAICHEW TOWN
    (Mekelle University, 2025-09-23) BRHANU TEKA
    This study investigates the influence of social media advertising on consumer purchase intention within the Ethiopian beer industry, using Castel Beer as a case study. The research was motivated by the sector's growing competitiveness and the critical role of social media for marketing, especially given Ethiopia's regulatory restrictions on alcohol advertising in traditional media. The general objective was to examine the effect of social media ad attributes on purchase intention. The specific objectives were to evaluate the impact of understandability, memorability, credibility, originality, and message appeal. A quantitative, cross-sectional explanatory research design was employed, utilizing a structured questionnaire distributed to 365 purposively selected Castel Beer consumers in Maichew town. Data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis with SPSS version 27. The findings reveal that all five advertising attributes have a statistically significant positive effect on purchase intention. The regression model explained 67.9% of the variance in purchase intention. Message appeal (β = 0.394) and understandability (β = 0.379) were the most potent predictors. The study concludes that effective social media ads in this context must be clear, engaging, memorable, credible, and original. It is recommended that Castel Beer and other breweries prioritize message clarity and creative appeal in their social media strategies. Future research should expand to other regions and include potential consumers to enhance generalizability. .
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    Cost-Effectiveness Analysis of Fertilizer Input on Sorghum Productivity in Tahtay Adyabo, northwester Tigrai
    (Mekelle University, 2025-09-23) Surafeal Gerezghir
    This study evaluates the cost-effectiveness of various fertilizer inputs on sorghum productivity in Sheraro, Northwestern Tigray. Sorghum (Sorghum bicolor) plays a vital role in Ethiopian agriculture, serving as a staple food and a key source of income for many households. Utilizing a mixed-methods approach, this research examines the impact of different types of fertilizers organic, inorganic, and blended on yield outcomes, economic viability, and soil health. Key findings indicate that nitrogen-based fertilizers are predominantly used among farmers, yet a significant interest in organic options is emerging. The economic analysis reveals that integrated nutrient management practices can enhance productivity while promoting sustainability. This study provides practical recommendations for farmers, aiming to improve their fertilizer use efficiency and inform agricultural policy decisions. By addressing the gaps in knowledge regarding fertilizer effectiveness and its economic implications, this research contributes to the ongoing efforts to enhance agricultural productivity and food security in Ethiopia.
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    The Impact of Foreign Direct Investment on Poverty Reduction in Ethiopia: A Cointegrated VAR Approach
    (Mekelle University, 2025-08-23) Shishay Tsehaye
    This study investigates the impact of Foreign Direct Investment on poverty reduction in Ethiopia over the period 1990 to 2023, employing a Cointegrated Vector Autoregressive model. The primary objective is to examine both the long-run and short-run dynamics between Foreign Direct Investment inflows and poverty, proxied by real Gross Domestic Product per capita, while controlling for trade openness, government expenditure, inflation, infrastructure development, and education expenditure. The research uses annual secondary data sourced from the World Bank, the United Nations Conference on Trade and Development, the National Bank of Ethiopia, and the Ethiopian Investment Commission. Stationarity was tested using the Augmented Dickey-Fuller and Phillips-Perron methods, followed by optimal lag selection based on the Akaike Information Criterion, the Schwarz Bayesian Criterion, and the Hannan-Quinn Criterion. Johansen cointegration analysis confirmed the existence of two long-run equilibrium relationships among the variables, leading to the estimation of a Vector Error Correction Model. The empirical findings reveal a positive and statistically significant long-run effect of Foreign Direct Investment on real Gross Domestic Product per capita, indicating that sustained Foreign Direct Investment inflows contribute to improved living standards and poverty reduction. Infrastructure and education spending were also found to enhance the poverty-reducing effects of Foreign Direct Investment, while inflation exerted a negative impact. Short-run effects of Foreign Direct Investment on poverty reduction were positive but smaller in magnitude, with the error correction term indicating a thirty-seven percent annual adjustment toward long-run equilibrium. Granger causality tests confirmed unidirectional causality from Foreign Direct Investment to poverty reduction. Variance decomposition and impulse response functions further underscored the importance of Foreign Direct Investment in explaining changes in living standards over time. The study concludes that Foreign Direct Investment plays a significant role in poverty reduction in Ethiopia when supported by investments in infrastructure and human capital, alongside macroeconomic stability. Policy recommendations include strengthening the investment climate, targeting Foreign Direct Investment toward labor-intensive and pro-poor sectors, expanding infrastructure, improving education and vocational training, and ensuring macroeconomic stability. These findings provide both academic and policy relevance, offering evidence-based guidance for maximizing the developmental benefits of Foreign Direct Investment in Ethiopia.
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    THE IMPACTS OF URBAN AGRICULTURE ON POVERTY REDUCTION IN AKSUM TOWN, CENTRAL ZONE OF TIGRAY, NORTHERN ETHIOPIA
    (Mekelle University, 2025-10-25) ATSBEHA GEBRESLASIE
    This study examines the impacts of urban agriculture on poverty reduction in Aksum Town, located in the Central Zone of Tigray, Northern Ethiopia. As urban poverty continues to challenge local livelihoods, urban agriculture has emerged as a potential strategy for enhancing household income, food security, and employment. The study employed, methods, approaches, incorporating quantitative data from a sample of 300 households drawn from three kebeles. Descriptive statistics and Propensity Score Matching (PSM) were used to evaluate the socio-economic benefits associated with urban farming. The findings indicate that households engaged in urban agriculture experience significantly higher income levels, better food availability, and improved resilience compared to non-participating households. Key urban farming activities include vegetable cultivation, poultry rearing, fruit tree planting, and small-scale livestock production. These activities not only supplement household food consumption but also generate marketable surplus, creating additional income streams. Moreover, urban agriculture contributes to urban dwellers employment in the town. The study concludes that urban agriculture serves as a viable poverty reduction strategy in Aksum town by improving livelihoods, promoting food self-sufficiency, and strengthening social and economic stability. It recommends that local authorities and development partners integrate urban agriculture into urban planning and provide technical and financial support to enhance its effectiveness and sustainability.
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    The effect of Leadership Styles on Organizational Performance in Tanqua Milash Wereda, Centeral Zone, Tigray, Ethiopia
    (Mekelle University, 2025-06-28) Gebreslassie Hailemariam
    This study investigates the effect of leadership styles on organizational performance in Tanqua Milash Wereda, a newly established administrative unit in Tigray, Ethiopia. Given its nascent stage and challenges like resource constraints, political interference, and workforce shortages, effective leadership is crucial for service delivery and sustainable development. The research used a combination of methods to gather information, collecting numerical data from 215 structured questionnaires and personal insights from 18 semi-structured interviews, while looking at six types of leadership: autocratic, transactional, transformational, democratic, charismatic, and laissezfaire. Key findings indicate a predominant reliance on autocratic leadership, with 77.4% of respondents reporting exclusion from decision-making. This leadership style strongly correlated with poor organizational performance, evidenced by critically low employee motivation (78.3% negative perception) and minimal recognition of staff contributions (82.1% negative perception). Transformational and democratic styles, while linked to higher performance in literature, were largely absent in practice. Qualitative data further highlighted systemic barriers including inadequate leadership training, bureaucratic inefficiencies, and political interventions hindering good governance. The study contributes empirical evidence on leadership dynamics in newly formed Ethiopian weredas, addressing a significant research gap. It highlights the serious problems caused by strict control in areas with limited resources and suggests practical solutions like leadership training programs, reforms for involving people in decision-making, and changes in policies to reduce political interference. Ultimately, this research emphasizes the need for a systemic shift toward adaptive leadership approaches to enhance organizational effectiveness, employee satisfaction, and public service delivery in Tanqua Milash Wereda, offering a framework for similar developing contexts.