| Abstract: | The objective of this study is to identify and investigate factors that influence the effectiveness
of lease finance projects at the Development Bank of Ethiopia (DBE). Building on previous
research, seven key factors were identified that can affect project effectiveness, specifically
within the context of investment and business projects. These factors include project specific
factors, project planning-related factors, procurement and contract-related factors, project
manager-related factors, project owners/clients-related factors, organizational related
factors, and business environment-related factors. To achieve this objective, descriptive and
explanatory research designs were employed. The research approach is quantitative, and
survey based primary data is employed. The study primarily utilized self-administered
questionnaires to gather information. A total of 112 out of 125 questionnaires were
completed by DBE staff at the head office and four district offices in Addis Ababa. The
collected data was analyzed using descriptive statistical techniques, specifically mean and
standard deviations, and multiple linear regressions. The results of the regression analysis
showed that the identified factors explained 87.2% of the variation in the effectiveness of
project implementation in lease-financed projects at DBE, as indicated by the R² value.
Furthermore, all factors examined in the study were found to be significant predictors of
project implementation effectiveness. It was concluded that project-specific factors, such as
project planning-related factors, procurement and contract-related factors, project manager-
related factors, project owners/clients-related factors, organizational-related factors, and
business environment-related factors significantly predict the effectiveness of project
implementation in lease-financed projects at the Development Bank of Ethiopia. Based on
these findings, the study recommends that DBE can enhance the effectiveness of lease
financed projects by incorporating the identified factors into project implementation. |
