Abstract:
The industrial strategic development plan of Ethiopia gives great emphasis to improve export-led leather products to join the international market in a large scale. It also promotes capital saving and labour-intensive industrial development policy using coordinated approach of supply chain management to encourage the production of value-added products. As a result, there is a need for those leather footwear business industries to measure, analyse and improve performance. As they encounter increasing competition from an ever-changing business environment and the performance measurement system is unsatisfactory due to missing of integrated Performance measurement and improvement system that hinders its competitiveness. Thus, the aim of this study is to improve performance measurement methods for Ethiopian leather Share Company (case study peacock shoes Share Company)
To achieve the objective, an overview trend of existing performance measurement and improvement system in leather footwear companies, Primary and secondary data were collected using questionnaire developed from a set of key performance indicators in to seven perspectives. Each has a minimum of 4 up to a maximum of 8 indicators to evaluate business performances of footwear industries and the extent utilization of crucial financial and nonfinancial performance measures. The data analysis tools include descriptive statistics, correlation and regression analysis, graphs and tabulation with the help of SPSS 20 for Window.
The study has identified and showed the relationship between financial and nonfinancial performance measures and integrated using equations of each indicator in every perspective. Multiple linear regression and mathematical equations were used to identify which performance metric to improve first from the alternatives. At the end, the study proposed an improved performance measurement method for the case company and based on the results and conclusions, recommendations were done.