Market Sensing Capability Practices and its Effect on Manufacturing Firms’ Competitiveness: Evidence from Ethiopia
DOI:
https://doi.org/10.20372/star.v13i2.07Keywords:
Competitiveness;, Market Sensing Capability, Market Information Scanning, Market Information Interpretation, Market Response, Manufacturing EnterprisesAbstract
This study examined Ethiopian manufacturing enterprises' competitiveness and market trend detection. An explanatory research design using a quantitative approach was used to investigate the causal relationships between the dependent variable (manufacturing firm competitiveness) and the independent variables (market sensing capabilities, which include market information scanning, interpretation, and response). To collect primary data, the Addis Ababa and Oromia Sheger municipal administrations, which are at the heart of Ethiopian industrialization, sent structured questionnaires to randomly selected manufacturing enterprises. The measurement and structural models were validated using SPSS v26 and AMOS v23. Significant factor loadings (ϲ>0.5) are present in both independent and outcome variables, matching reliability and validity requirements. Testing hypotheses with structural equation modeling and multiple regressions. Ethiopian manufacturing firms practice two of the three market sensing competence dimensions above average, while market reaction was poor. Marketing competence traits increased Ethiopian manufacturing firms' competitiveness, according to data research. Market information interpretation had the greatest favorable impact (β=0.397, p<0.01, t = 7.51), followed by scanning (β=.367, p<0.01, t = 10.48). Market response had the lowest positive impact (β=.246; p<0.01; t=6.47). Manufacturing enterprises in Ethiopia should practice all the above market sensing capabilities skills and focus on adapting to market changes to stay competitive.
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Accepted 2024-06-26
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