Effects of market orientation on sustainable competitive advantage in Ethiopia's manufacturing industry

Abstract

The manufacturing industry is essential for the growth of the economy, with the food and beverage subsector representing a major contributor to Ethiopia's industrial growth. To evaluate the relationship between market orientation and sustainable competitive advantage, this explanatory study surveyed 293 high- and mid-level managers from food and beverage manufacturing firms in Addis Ababa and Shaggar, Ethiopia. Participants were determined through a combination of stratified and purposive sampling techniques. SEM (AMOS 23) was applied, while EFA and CFA were applied using SPSS 27. The KMO values for sustainable competitive advantage (0.900) and market orientation (0.820), together with a p < 0.001 value, confirmed the suitability of the data for further analysis. The structural model demonstrated strong goodness-of-fit indices, including RMR = 0.020, GFI = 0.956, AGFI = 0.928, NFI = 0.981, IFI = 0.992, TLI = 0.989, CFI = 0.992, and RMSEA = 0.048. The findings revealed that market orientation exerts a significant positive influence on sustainable competitive advantage, emphasizing its strategic importance in improving the long-term competitiveness of Ethiopia's food and beverage manufacturing firms. The study contributes to market orientation and competitive advantage literature and provides practical suggestions for policymakers and industry practitioners.