Factors influencing company performance and global value chains participation: the case of textiles and apparel industries in Ethiopia in Eastern Industrial Zone (EIZ)

Abstract

This paper aims to identify the factors influencing companies’ performance of Textiles and Apparel Industries in Ethiopia, particularly, in the Eastern Industrial Zone. The researchers employed Maximum Likelihood with Robust (MLR) in Confirmatory Factor Analysis Model (CFA) for survey data gathered from the employees of the Textiles and Apparel industries operating in the Eastern Industrial Zone in Ethiopia which took place from 2020-2021. Main findings of this study indicate that (i) one-unit enhancement in Companies’ Performance yields a favorable impact on raw materials & financial situation; (ii) human capital experiences a rise in the expected units followed, (iii) competitive environment displaying an increase of the units as well, (iv) policies environment demonstrates an improvement, finally (v) organizational development exhibits growth of the expected units as well. This study has identified that these five endogenous latent variables are positively influenced by exogenous latent variable, Companies’ Performance because all have shown the results above the expectation. This study brings insight to investors how they boost their companies’ performance and develops the best strategies for the success of their companies.