CRITICAL SUCCESS FACTORS FOR PROJECTS FINANCED BY DEVELOPMENT BANK OF ETHIOPIA

Abstract

The present work attempts to identify critical success factors that have an impact on the successes of projects financed by Development Bank of Ethiopia. Several literatures have been reviewed and 34 variables have been identified to develop the conceptual framework of the study. The study employed a descriptive and explanatory research design. The study used a quantitative research approach where a stratified sampling technique is used to gather information from selected directorate staff in the Bank. A total of 81 questionnaires were distributed to directors, team managers, engineers, and loan officers who work at various levels in the bank's headquarters. Secondary data was used to contextualize and discuss the theoretical aspect of the study. Whereas Principal Component Analysis (PCA) statistical estimation technique, as well as its related data testing tools (Bartlett's test of sphericity and the Kaiser-Meyer-Olkin (KMO)), were used. The exploratory factor analysis was demonstrated and eight major principal components (dimensions) of CSFs were extracted for this particular project work, these are already labeled as project-related factors, procurement and contract, project management related factors, organizational Related Factors, project owner related factors, contractor and supplier-related factors, and project manager related factors and business & work environment-related factors. According to the research findings, external and work environment factors are the most important, followed by project manager-related factors, and contractor-related factors are the least important in order of importance. Hence, the bank should allocate adequate resources to identify more critical success factor since each critical success factors while contributing to project success they influence other input parameters (success factors) as well.