College of Business and Economics

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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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    China's Project Management Practices and Challenges in Ethiopia's Infrastructure Construction Projects
    (Mekelle University, 2025-12-28) Zhang Jilong
    China’s emergence as Ethiopia's leading infrastructure partner, largely through the Belt and Ro ad Initiative (BRI) and state-backed investments, has transformed the Ethiopian landscape with large-scale projects like railways, industrial parks, and roads. China's substantial engagement Ethiopia's infrastructure sector has been a key driver of Ethiopia's rapid development, but it a lso presents a unique context for project management within the country. The general objective of the study is to critically examine and assess the unique project management (PM) practices employed by Chinese firms in Ethiopian infrastructure construction projects and the associated significant challenges encountered during implementation in reference to the ten knowledge areas categorized by PMBOK. Adopting a descriptive, mixed-methods approach, the study analyzed quantitative data from 67 purposively selected respondents using SPSS and Excel, alongside qualitative insights from semi-structured interviews with 12 key stakeholders (Chinese managers, Ethiopian government officials, and project engineers with direct experience related to project management) and extensive secondary document analysis. Then, the data is presented quantitatively using descriptive statistics with the help of table, figure, chart, frequency, percentage, mean score and standard deviation. The findings of the study indicate that that Chinese firms usually employ a "China Speed" PM methodologies and practices characterized by rapid mobilization, high resource intensity, and centralized decision-making, enabling them to meet aggressive deadlines. However, these practices face considerable challenges, particularly in the local opera ting environment. The primary constraints on project success of Chinese companies stem from the "Land-Finance-Bureaucracy" nexus of external friction inherent in Ethiopia's unstable operational environment. The most critical constraints include land acquisition (Right-of-Way) delay s, financial constraints (e.g., foreign exchange shortages and payment issues), and pervasive administrative and bureaucratic delays in securing essential permits, approvals and clearances. Beyond these systemic institutional challenges, projects are also vulnerable due to market and planning weaknesses, amplified by the Chinese firms' critical internal flaw of inaccurate initial cost estimates and a centralized "command-and-control" model lacks the maturity required for effective stakeholder management. And the study recommends that the Chinese companies shift from a "command and-control" system to a "collaboration-and-formalization" model to enhance PM maturity and the Ethiopian governments must improve project readiness and institutional governance to maximize local economic benefits and ensure sustainable project outcomes.
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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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    Strategic Risk Management Practice in International Construction Companies in Ethiopia
    (Mekelle University, 2025-12-19) Gu Mingjie
    Research Purpose: To analyze the strategic risk management practices of Ethiopian International Construction Company, identify its effective methods and shortcomings in risk identification, assessment, and response, and provide support for optimizing the risk management system, enhancing global construction market competitiveness, and strengthening risk resilience. Research Objective: To evaluate the strategic risks faced by multinational construction companies operating in Ethiopia, analyze their current strategic risk management strategies and processes, assess the effectiveness of existing risk management measures and implementation challenges, and develop a comprehensive strategic risk management framework tailored to Ethiopia's national conditions. Research methodology: The study employed an interpretive sequence mixed method, combining qualitative and quantitative approaches. During the quantitative phase, a Likert scale questionnaire was distributed via professional networks to 60-80 project management experts for data collection. In the qualitative phase, purposive snowball sampling was used to select 15-20 corporate executives and project managers for in-depth interviews and case studies, with data processing and thematic analysis conducted using SPSS and NVivo 12. Research Findings: The core risks identified are inflation risk, foreign exchange control risk, and policy change risk, all scoring above 4.5 in importance. Companies primarily mitigate these risks through measures such as securing long-term contracts for material reserves, collaborating with banks, and enhancing government communication. The adoption rate of government communication strategies reaches 80%. Effective risk management can reduce project cost overruns to 12%-18% and shorten construction delays by 4.5-6.3 months. Key implementation barriers include insufficient executive support, poor communication with local partners, and a shortage of risk management professionals. Conclusions and Recommendations: Multinational construction companies operating in Ethiopia face unique cross-border risks. While current risk management strategies have demonstrated partial effectiveness, their implementation remains constrained by internal and external factors due to the absence of localized end-to-end lifecycle frameworks. To address these challenges, enterprises should: (1) Establish country-specific risk profiles, (2) Build localized management teams, and (3) Develop diversified supply chains. Meanwhile, Ethiopian policymakers need to enhance policy transparency and streamline customs and foreign exchange procedures. Furthermore, industry associations should create risk knowledge-sharing platforms to foster multi stakeholder collaboration and strengthen sector-wide risk governance capabilities.
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    The Effect of Devaluation of Birr on Selected Chinese Companies
    (Mekelle University, 2025-12-28) XU LINHAI
    This study examines the effects of the Ethiopian Birr devaluation on the operational and financial performance of selected Chinese manufacturing and construction companies operating in Ethiopia between 2021 and 2025. Motivated by the significant currency volatility following Ethiopia’s exchange rate liberalization, the research aims to analyze how depreciation Birr impacts imported input costs, profit margins, pricing strategies, export volumes, and strategic risk management practices. Through a mixed-methods approach combining quantitative data from structured questionnaires with qualitative insights from interviews of 15 Chinese firms, the study captures both measurable economic effects and managerial responses to currency fluctuations. Findings reveal that firms with high import dependency experienced severe increases in input costs leading to significant profit margin compression, while firms with moderate or low import reliance reported milder impacts. Most companies adjusted their selling prices upward, although pricing strategies were moderated by competitive pressures and regulatory constraints. Export volume responses to devaluation were heterogeneous, consistent with the J-curve effect, with some firms reporting modest gains and others facing volume declines due to infrastructural and contractual limitations. Risk management practices, including formal currency hedging, supply chain diversification, and operational efficiencies, were selectively adopted, with effectiveness influenced by firm size, resource availability, and institutional factors. External challenges such as foreign exchange shortages, bureaucratic delays, political risks, and infrastructural deficits amplified firms’ vulnerability and constrained its adaptive capacity. The study concludes that Birr devaluation poses significant financial challenges for Chinese firms, especially those highly reliant on imports, while export benefits remain uneven. Sustainable foreign direct investment growth requires both firm-level risk mitigation and macroeconomic reforms to improve forex market efficiency, regulatory transparency, political stability, and infrastructure. These findings contribute to understanding multinational enterprise behavior amid currency volatility in emerging economies and provide actionable insights for business strategy and policy formulation in the Ethiopian context
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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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