Industrial machinery fleets in Ethiopia are increasingly being adopted to enhance productivity and efficiency in various sectors such as agriculture, manufacturing, and construction. A mixed-methods approach was employed, comprising surveys, interviews, and field observations. Data were collected from 500 randomly selected enterprises in three major regions: Amhara, Oromia, and Tigray. A logistic regression model was used to estimate the probability of adoption based on several independent variables. The quasi-experimental design revealed that factors such as cost-effectiveness and technological sophistication significantly influenced adoption rates. Enterprises with higher initial investment capacities were more likely to adopt machinery fleets (odds ratio = 1.25, CI: 1.08-1.46). The study provided insights into the determinants of industrial machinery fleet adoption in Ethiopia and validated the use of a quasi-experimental design for such evaluations. Policy makers should consider subsidies or incentives to support smaller enterprises in adopting these systems, thereby promoting broader economic development.
Amare et al. (Tue,) studied this question.