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Research Proposal
Correlation among managerial factor and firm productivity

Table of Content
1 Background .......................................................................................................................... 3
2 Literature Review................................................................................................................. 4
2.1 Firm productivity .......................................................................................................... 4
2.2 Managerial factors and firm productivity ..................................................................... 6
2.2.1 Why management matter? ..................................................................................... 6
2.2.2 Empirical investigations ........................................................................................ 7
2.3 Theoretical models and hypotheses .............................................................................. 8
2.3.1 Theoretical model .................................................................................................. 8
2.3.2 Competition model .............................................................................................. 10
3 Research Methodology ...................................................................................................... 10
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3.1 Research philosophy ................................................................................................... 10
3.2 Research design .......................................................................................................... 11
4 Data Analysis ..................................................................................................................... 14
4.1 Methods of analysis .................................................................................................... 14
4.2 Work plan ................................................................................................................... 15
4.3 Expected results and possible limitations ................................................................... 16
5 Ethical consideration and Validity ..................................................................................... 17
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1 Background
Today the whole world has recognized the important part of productivity in welfare
improvement nationally. Industries or organizations everywhere consider the major growth in
economics as the outcome of the increases in productivity. On the contrary, the slow-down of
productivity improvement goes together with a weak growth, decline as well as stagnation.
Therefore, a lot of discussions have been made about productivity by politician, economist,
manager and the media in the history, even though the majorities do not seem to have full
understanding of either the meaning or measurement. Companies that have concerns about
achieving competitive advantages have to also pay growing attention to the measurement and
analysis of productivity in regards to organizations performance. Despite the fact that
productivity is the necessary element for competitive edge, it is also important to understand and
implement the suitable productivity measurement system as the essential management tool in
order to evaluate and monitor a firms performance. Consequently, productivity is the central
issue to business of organization, helping them to be survival and making profits. Thus,
according to the increasing needs for benefit to be resulted from productivity improvement, it is
necessary to make manager familiar with productivity and the measurements.
For daily activity, manager has many decisive actions in regards to capital, materials and
human resources with an aim to obtain the objectives of the firm. But the influence of each
action to the productivity must be seen and considered when productivity programme is planned
and implemented. A lot of time, energies as well as commitments are needed to manage
effectively productivity. To be sustainable and succeed in the world full of competition
nowadays, expectations for firms running in the Eritrean fishing industry are to have an increase
in the productivity.
Though this fact is accepted in businesses, implementation methods may have to deal with
some certain difficulties. Such methods that are done by managers to obtain productivity based
on appropriate management practices are unclear. Based on that, the research has objectives as
follows:
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To determine managerial factors affect firm productivity and the relationship among
them
To determine the impact extent of managerial factors on firm productivity
Conducting the literature as well as the empirical study helps to do so. In the research, there
are different concepts about productivity and the practices related to management raised by many
different professionals conduct productivity management and practitioners realize general
management. Using resources from research documents will be the basis for the analysis of the
existing management practice for those firms. The next step will be the conducting of the
empirical study for the analysis and determination of the total factor indexes for them. Moreover,
there might be the possible existence of the relationship between total factor productivity of
examined firms and elements of management practice analyzed. And conducting the statistical
analysis can examine that relationship. And finally, conclusions as well as recommendations are
drawn.
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2 Ethical consideration and Validity
Exploring and identifying the correlation among managerial factor and firm productivity is
the focus of the research. Talking about the managing organization of the firm or talking about
the actual productivity of the firm currently is a relatively difficult matter for respondent, firms
staff and managers. Consequently, to obtain the straight and impartial comment, ethical
consideration plays a highly key feature. It is necessary for researchers to examine in details to
create the questionnaire and method needed in order to gather data.
Content validity refers to the extent to which the content of the instruments or measurements
cover the topic under study (Ref.). An effort was done in the study to ensure that the
questionnaires consist of the representative sample of the research object. Constant discussions
with the supervisor of the study could ensure the questionnaire validity. The setup of the
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questionnaire was adjusted, some questions were eliminated, other questions expanded and some
others inserted, basing on comment and instruction of the study.

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