Factors influencing management decisions of manufacturing companies in Ethiopia

Abstract

This study aims to investigate, factors affecting the management decisions of manufacturing companies, in Ethiopia. The study examined the effects of the accounting information system, managers’ level of education, managers’ experience, organizational size, environmental factors, corporate culture, pressure and stress, and risk management decisions. The study is descriptive and explorative. It included a sample of 140 manufacturing companies, engaged in wood and pulps production, non-metallic and chemicals, and its product in Ethiopia, and a questionnaire was distributed to them. The study revealed significant and positive relationship between accounting information systems, management experience, the management level of education, environmental factor, organizational culture, pressure and stress, risk and management decisions. Further, the risk factor showed a positive and insignificant effect on management decisions. The results also found that there was negative and insignificant degree of relationship between management decisions and organizational size.