Roles of Transparency and Trust in the Relationship between Privatization and Customers’ Satisfaction in Ethiopia: Results of Structural Equation Modelling

As a part of public sector reform, privatization has been actively experienced since three decades across the globe. This study examines the relationship between privatization of public organizations and customers’ satisfaction in Ethiopia with the mediating role of transparency and trust. The structural equation modelling was applied to 315 samples taken from privatized services and manufacturing sectors. The results established that transparency alone fails to be a mediator, but trust plays the role of a partial mediator into the relationship between privatization and customers satisfaction. Combined together, the model results into a partial mediation of both transparency and trust.