Mediation of Competitive Advantage among Customer Orientation and Banking Sector Performance in Ethiopia

Abstract

This study investigated the function of competitive advantage in mediating the consequences of customer orientation on company performance. Few studies have looked at how customer orientation affects company performance using competitive advantage as a mediator in emerging economies, notably in sub-Saharan Africa. This study made an effort to do research
to fill theoretical, evidence and knowledge void gaps. Quantitative data was gathered using a likert scale based questionnaire from the sampled 383 CBE consumers in the southern Ethiopian region of Dilla. Using the Statistical Evaluation Method (SEM) approach using SPSS and AMOS edition 26, the gathered data were examined for the association among the three hypothesized variables. The outcomes demonstrated that, via the mediation of competitive advantage, customer orientation has a favorable, considerable impact on performance of business. According to the findings of this study, commercial banks should employ customer orientation as a means of gaining a competitive edge. Additionally, it was suggested that future studies examine the consequences of customer orientation on competing companies.