Corporate Governance and Employee Commitment in Industrial Parks in Ethiopia: Evidence from Bole-Lemi and Hawassa Cities

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Paulos Kussa Bunaro, Sapna Chauhan

Abstract

The purpose of this study was to determine the relationship between corporate governance and employee commitment in Bole-Lemi and Hawassa Industrial Parks, Ethiopia. To this end, the researcher adopted both descriptive and explanatory study designs with a quantitative research approach. For collection of the data, the survey questionnaires were administered to 384 randomly selected employee respondents who were currently working in Bole-Lemi and Hawassa Industrial parks. Before descriptive and inferential analyses, the reliability of the instruments and normality of data were established. In this regard, the instruments were confirmed to be reliable based on alpha Cronbach's coefficients greater than 7; and also the data were normal in distribution as of the results of kurtosis and Skewness. Among the data analysis methods, the researcher employed descriptive statistics such as mean, and standard deviation while using inferential statistics such as correlation, regression, and independent t-test. The results indicated that the perceived employee commitment is at a moderate level. The respondents also rated that corporate governance in their respective institutions is at a moderate level. The results of the mean comparison between female and male employees' commitment indicate that there is a statistically significant gender difference; and also assert that female employees' commitments are better than those of males. The results showed that corporate governance has a statistically significant effect on employee commitment in the study area. The study highlights the contribution of the results in such a way that by knowing their level of corporate governance leaders can improve their motivation and employee commitment. Secondly, the administration of the institution can take necessary measures to improve employee commitment. Thirdly, this may help the policymakers, institutional administrators, and the larger social endeavour. Lastly, this study suggests a longitudinal research design for exploring the relationship between corporate governance and employee commitment further.

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How to Cite
Paulos Kussa Bunaro, Sapna Chauhan. (2024). Corporate Governance and Employee Commitment in Industrial Parks in Ethiopia: Evidence from Bole-Lemi and Hawassa Cities. European Economic Letters (EEL), 14(4), 2104–2118. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/2377
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