Thesis Open Access

FACTORS AFFECTING TECHNOLOGY TRANSFER BETWEEN DOMESTIC AND FOREIGN OWNED TEXTILE COMPANIES IN ETHIOPIA

EYERUSALEM SEARE ABRHA; Dr. Zeleke Ewnetu

In textile sector, which is one of the priority areas in Ethiopian manufacturing sector, technology transfer is a backbone for the competitiveness of domestic companies in the international market. Presently, the contribution of the sector to GDP of the country is very low due to different reasons, including the poor technology and knowledge transfer between domestic and FDI firms in the country. This study attempts to assess the status of technology transfer between domestic and foreign owned textile companies, the capacity of the domestic textile companies to absorb new and improved technologies and analyze the factors affecting technology transfer. Primary and secondary data were collected using questionnaire, structured interview and document review methods in 56 textile companies located around Addis Ababa and the data was analyzed using simple descriptive statistics and binary logistic regression model. The current status of technology transfer between domestic and foreign owned textile companies and the absorptive capacity of domestic companies is found weak. The regression results show that the predictors access to financial capital, periodic reinvestment rate and skill of employees have a significant effect on technology transfer between foreign and domestic textile companies in Ethiopia. It is recommended that financial institutions may loosen their financial and credit laws and provide finance to business enterprises easily, and domestic companies are also recommended to strengthen their internal financial capacity by maximizing their rate of reinvestment

Presented on 18 10 2018
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