Governance and Institutional Frameworks in Ethiopian Integrated Agro-Industrial Parks: Enhancing Innovation Ecosystems and Multi Stakeholder Coordination for Global Market Competitiveness

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Abstract

This study explores the relationship between institutional frameworks, innovation ecosystems, and stakeholder coordination, focusing on their collective impact on enhancing global competitiveness within Integrated Agro-Industrial Parks (IAIPs) in Ethiopia. A mixed-methods approach, combining qualitative thematic analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM), and SWOT analysis, was used to examine governance structures and their effects on innovation and competitiveness. The findings reveal that strong governance and institutional frameworks foster stakeholder coordination and innovation ecosystems, but the connection between these factors and global competitiveness remains weak. Key challenges include misaligned innovation processes and limited private sector participation. The SWOT analysis highlights strengths such as climate-smart practices and infrastructure, while identifying weaknesses like quality issues, traceability gaps, and seasonal supply constraints. The study concludes that adaptive governance frameworks, aligned innovation processes, and policy adjustments are essential to improving Ethiopia’s global competitiveness. Public-private partnerships, the use of digital agriculture tools, and improved traceability systems are critical in enhancing IAIPs' effectiveness in the global market. The promotion of inclusive decision-making, sustainable practices, and resilient supply chains is also vital to maximizing IAIPs' potential in global competitiveness.

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