FACTORS AFFECTING THE PERFORMANCE OF MANUFACTURING INDUSTRY OPERATION IN THE CASE OF FIRMS OPERATING IN OROMIA SPECIAL ZONE SURROUNDING FINFINE

Abstract

Manufacturing Industries are driving forces for economic growth, job creation and poverty reduction in developed and developing countries. Ethiopia is one of the countries to enhance manufacturing industry operation. But the growth of the manufacturing industry is not as agriculture. This study was conducted in Oromia Especial Zone Surrounding Finfine with the purpose of analyzing the factors that affects the performance of manufacturing industries operation. To achieve the objective of the study 168 questionnaires were distributed and 161 of them were successfully completed and analyzed using descriptive (percentage, mean, standard deviation) statistics of SPSS analysis. The participants were selected using simple random sampling method. In addition, face-to-face interview were conducted with six town administration government officials from each town 2 totally 12 officials were interviewed through semi-structured interview questions and data were analyzed statistically. The study identified environmental dynamism, Manufacturing technology, strategic flexibility and Lean manufacturing practices were the major factors that affects the performance of manufacturing industries’ operation, followed by inadequate infrastructure facilities. Hence, the study concludes that Manufacturing industries in the study area were affected by the above identified Factors. Based on the findings obtained from the study recommendation to respective government bodies and manufacturing industries owners/managers are forwarded. In addition further investigation suggested for interested researchers are forwarded. The study helps to create awareness to manufacturing industries owners and managers, and it will give chance for others who are interested to conduct further studies on manufacturing industries performance, and this may add some value to the existing body of knowledge related to the issue of manufacturing industries operation.