Nexus between Strategic Innovation, Human Capital and Competitive Advantage in Emerging Economies: Evidence from hospitality industry in Ethiopia

Nexus between Strategic Innovation, Human Capital and Competitive Advantage in Emerging Economies: Evidence from hospitality industry in Ethiopia | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Nexus between Strategic Innovation, Human Capital and Competitive Advantage in Emerging Economies: Evidence from hospitality industry in Ethiopia Tafese Niguse This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6377999/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study's main goal was to examine how strategic innovation, human capital, and competitive advantage relate to one another within the Ethiopian hospitality sector. In light of the study's goals and nature, a quantitative method was taken after an explanatory research design. 384 samples were surveyed using a structured questionnaire to gather data, and multivariate analysis—more especially, structural equation modeling (SEM) with path analysis—as well as other descriptive statistics like means and confirmatory factor analysis were used for analysis. The study's conclusions showed that strategic innovation has a major and beneficial role in the Ethiopian hospitality sector's ability to gain a competitive edge. The findings also showed a favorable and statistically significant correlation between human capital and strategic innovation. Additionally, the study showed that, via the mediation of human capital, strategic innovation affects competitive advantage both directly and indirectly. In the end, the study found that human capital directly influences competitive advantage based on route analysis results, confirming the idea that human capital significantly improves competitive advantage. Strategic innovation human capital competitive advantage Hospitality industry Ethiopia Figures Figure 1 Figure 2 Figure 3 Introduction It is widely acknowledged that throughout the previous 10 years, the global economy has shifted to a service-based sector. The service industry creates the bulk of a nation's GDP and offers great employment opportunities in both developed and emerging countries (Abebe & Gemeda, 2020 ). The service business, which has attracted a lot of interest in innovation research, is one of the sectors in the global economy that has grown the fastest in recent years. At a time when it is essential to the global economy and the success of many countries, the concept of strategic innovation is gaining traction (Alajeeb & Al Najjar, 2022 ). Strategic innovation has been defined in the literature as the creation of new business models in the service sector with the aim of enhancing existing technology and service systems to create new value propositions. This approach may lead to better market offerings that are specific to the business or sector (Alkharabsheh et al., 2022; Alnoor, 2020 : AlQershi et al., 2020 ). Strategic innovation lowers transaction costs, enabling businesses to function more effectively and distribute resources more wisely (Canhoto et a., (2021, Al-Surmi,2020). It also improves customer service and keeps a consistent customer base, which eventually leads to a larger market share and sustained company success. The government's attempts to modernize and commercialize several industries have led to significant developments in Ethiopia's hotel industry in recent years. In this context of strategic innovation, Ethiopian hotels are introducing a range of innovative services via the use of information technology. This tactical approach helps hotels enhance their value offers by giving customers a variety of options outside of traditional accommodation. Virtual tours, smartphone check-ins, customized booking experiences, and enhanced customer support through digital platforms are examples of innovations that are becoming increasingly widespread. This strategic focus on innovation not only increases guest satisfaction but also ensures long-term survival and growth by enabling hotels to more successfully compete in a rapidly evolving industry. Diverse viewpoints on the connection between competitive advantage, human capital, and strategic innovation are presented by the literature. In fact, Abebe & Gemeda ( 2020 ) contended that strategic innovation had little bearing on the research participants' competitive advantage in Indonesia. Strategic innovation does not improve competitive advantage, according to (Canhoto et al., ( 2021 ). It But new research by Chen et al., ( 2021 ), Datiko, ( 2024 ), Chi et al., ( 2020 ), Chtourou Ben Amar & Ben Romdhane, ( 2020 ), Fakunmoju et al., ( 2020 ), Distanont, ( 2020 ), Gebremichael & Tekle, 2020 ) and Fathi, et al., ( 2021 ) has shown that investing in strategic innovations has a direct and indirect positive impact on developing human capital and competitive advantage. According to Faulks et al., ( 2021 ) there is a favorable correlation between strategic innovation and human capital in the hotel industry. According to Al-Surmi & Duan (2020), competitive advantage and human capital are directly impacted by strategic innovation in the banking industry. According to Arokodare & Asikhia ( 2020 ) and Fergnani, ( 2022 ) and Jayanagara & Chen, ( 2023 ), strategic innovation has a favorable impact on competitive advantage and human capital. The researcher was originally inspired to do this study since the majority of earlier research focused on the connection between competitive advantage, human capital, and strategic innovation, especially in the banking sector. This sector, for example, has been the primary topic of studies by Alnoor ( 2020 ), Gede et al., ( 2020 ), Haarhaus & Liening, ( 2020 ), Ghonim et al.m (2022), Ijomah et al., ( 2024 ), Haseeb et al., ( 2019 ) and Hartani, (2021). However, the purpose of this study is to investigate the fundamental causes within the framework of the hospitality sector. It has been shown that the hotel industry requires distinct and intricate methods to strategic design and delivery (Ateş et al., 2020 , Järvenpää et al., 2020 ). Arokodare & Asikhia ( 2020 ) and Jirakraisiri et al., ( 2021 ) looked at the connection between strategic innovation and competitive advantage in the hotel sector, however they left out the crucial factor of human capital. The paucity of study on strategic innovation and its connection to human capital and competitive advantage in Ethiopia's hospitality sector, as in other developing nations, was another research need that inspired the researcher. This study is thus especially pertinent since, despite growing requests from academics for in-depth research in this field, there is a dearth of scholarly work on strategic innovation. Because of this, less is known about the advantages and disadvantages of investing in innovation in less developed nations. By employing quantitative data to examine the link between strategic innovation, human capital, and competitive advantage in the tourist sector, the study findings add to the body of knowledge already available on strategic innovation. This is a fresh addition that advances our knowledge of how innovation is adopted in the hospitality sector. up order to fill up these gaps, this study examines strategic innovation as a precursor to human capital and competitive advantage in the Ethiopian environment, with a focus on Hawassa city. Given these gaps in knowledge, the project aims to address the following primary research questions: What is the effect of strategic innovation on human capital in hotels of Ethiopia? What is the effect of strategic innovation on competitive advantage in hotels of Ethiopia? What is the effect of human capital on competitive advantage in hotels of Ethiopia? Literature review and theoretical framework Strategic innovation A general definition of innovation is the development and uptake of novel goods, processes, or methods (Liu & Fan, (2022), Marvel & Lumpkin, ( 2007 ). Olaleye (2020) cites the OECD's (2005) definitions, which state that innovation is the introduction of a new or substantially improved product (good or service), method, or marketing strategy into business operations. According to scholars, innovation should be evaluated based on its ability to provide value for customers rather than merely creating something new (Muazu & Abdulmalik, 2021 ; Nguza-Mduba & Mutambara, 2021 ). Strategic innovation in the service sector mostly refers to changes made to the characteristics of the service. According to Pashutan & Harandi, (2022), strategic innovation is the process of modifying a company's product or service by utilizing new or current technology. Put differently, the business offers services that are different from what clients have experienced in the past (Bekata & Kero, 2024 ). Likewise, strategic innovation refers to a business's capacity to collect data from its clients, recognize the importance of that data, and use that data to the development and improvement of a new delivery system (Pei et al., 2020 ).Some scholars contend that market-driven and externally oriented strategic innovation can lead to a differentiation of an organization's output for its customers (Alajeeb & Al Najjar, 2022 ). Sachitra ( 2020 ) investigated the connections among competitive advantage, human capital development, and strategic innovation in Ethiopia's hospitality sector (Olaleye et al., 2020 ). The researchers came to the conclusion that strategic innovation determines a company's ability to gain a competitive edge. According to Sarwar et al., ( 2024 ) strategic innovation has a favorable and significant impact on the quality of service delivery, which in turn improves human capital. Customer demands are likely to be satisfied by successful strategic innovation focused on human capital (AlQershi et al., 2020 ) According to a study on the connection between market orientation, innovation, and firm performance in Albanian businesses, companies that are dedicated to learning and comprehending the value of innovation are better able to monitor and address the needs of their clients, which leads to increased human capital and improved market performance (Semke & Tiberius, ( 2020 ). According to Shao ( 2019 ), strategic innovation has a beneficial impact on consumers' evaluations of service performance by influencing the quality of services delivered to them via innovative ways. According to Sibhato ( 2018 ) and Sorama & Joensuu-Salo ( 2023 ), strategic innovation improves competitive advantage and human capital, which is in line with the aforementioned research (Rayas, 2021 ). Similar to this, strategic innovation enables businesses to more effectively and directly create value for workers—regardless of location—through new interfaces, self-help, and new processes in conjunction with new service delivery systems, all of which will benefit human capital (Alkharabsheh et al., 2022; Tarsakoo & Charoensukmongkol, 2020 ; Termezi, 2020 ; Timothy, 2022 ). Human capital, according to Varadarajan ( 2020 ) and Wahyuni ( 2024 ) is the sum of an individual's abilities, knowledge, experience, and qualities that support their capacity to carry out tasks and generate economic value. This is closely related to strategic innovation. Human capital has a favorable relationship with new goods and services (Marvel & Lumpkin, 2007 ). In light of the above mentioned material, the following theory was proposed: H1: Strategic innovation has a significant positive effect on human capital. Strategic innovation is crucial for businesses to acquire and maintain a competitive edge, according to (Wang et al., 2023 ). According to studies, offering clients knowledge-intensive goods or services may enhance an organization's value and image and provide it a competitive edge (Yoonet al., 2020 ). Strategic innovation indirectly impacted competitive advantage through human capital, according to (Nawi et al., 2020 ). Strategic innovation improves service quality, which directly affects competitive advantage, according to Varadarajan ( 2020 ). Boulding et al. (1993) also looked at a positive correlation between consumers' desire to repurchase and service quality, which is based on the degree of strategic innovation. Other scholars have demonstrated that service quality positively contributes to the willingness to recommend others (Ateş et al., 2020 ). Additionally, Abebe & Gemeda ( 2020 ) and Shao ( 2019 ) found a strong positive correlation between competitive advantage and strategic innovation in the banking industry. But according to Al Hebsi & Al-Shami ( 2022 ) and Alnoor ( 2020 ), strategic innovation has no bearing on competitive advantage. Following a discussion of the connections between competitive advantage and strategic innovation, the research postulated that: H2: Strategic innovation has a significant positive effect on competitive advantage. Human Capital A contemporary approach to quality in corporate settings is customers' human capital, which promotes genuine employee trust (Sibhato, 2018 ). In terms of human capital, academics have described it as Human capital represents the specialized skills and expertise of employees that allow organizations to innovate and outperform competitors, thereby securing a significant competitive advantage (AlQershi, 2021 ). Human capital is the collective skills, knowledge, experience, and attributes possessed by individuals that contribute to their ability to perform work and create economic value. Human capital, according to AlQershiet al., ( 2020 ), is the capacity to stimulate innovation and organizational performance through a trained and informed staff, resulting in higher productivity and a competitive edge. Human capital affects how employees feel about their workplaces (Alajeeb & Al Najjar, 2022 , AlQershi, 2021 ) and Abbasi et al. (2018) discuss how employees feel about the company overall. Chi & George (2020) define human capital as the evaluation of an employee's performance in terms of quality and benefits, as well as the expense and effort made. Human capital, according to Alnoor, ( 2020 ) is people's assessments of their jobs and level of satisfaction, which has a direct bearing on the efficacy and performance of organizations. All things considered, human capital is the sum of people's abilities, experience, and knowledge that make them capable of doing their jobs (Distanont, 2020 ; Gede et al., 2020 ; Siskos et al., 1998). Previous empirical research indicates that an organization's competitive edge is significantly influenced by its human capital. According to research by Liu et al., ( 2022 ), human capital significantly improves competitive advantage. In support of these conclusions, Sachitra ( 2020 ) pointed out that investments in people benefit the company more efficiently and that higher levels of human capital result in higher levels of competitive advantage. Ta and Yang (2018) also confirmed that human capital in the tourism industry has a significant positive effect on competitive advantage. Continually keeping talented workers gives you a competitive edge (Kotler & Keller, 2013). According to Kandemir & Acur ( 2022 ), strategic approaches improve staff retention. Studying the link between human capital and competitive advantage, Kassa & Getnet Mirete, ( 2022 ), Lieberman, ( 2021 ), Borodako et al. ( 2023 ) and Lin & Shi, ( 2020 ) discovered a strong positive correlation between the two aspects. According to a different research, human capital and service quality had an impact on competitive advantage, but strategic innovation had a beneficial moderating effect Al Hebsi & Al-Shami ( 2022 ). The following hypothesis was put out in this study based on the supporting literature: H3: Human capital has a significant positive effect on competitive advantage. Competitive advantage The literature defines competitive advantage as an organization's capacity to continuously provide its clients with better value than its rivals (Bhatiasevi & Naglis, 2020 ). Additionally, it alludes to the company's dedication to preserving its market position by consistent product or service improvement (Al-Surmi & Duan, 2020). There are several ways to look at competitive advantage, including being the best option among alternatives (Alkharabsheh et al., 2022) being eager to suggest the company to others ((Bekata & Kero, 2024 ).), and helping out coworkers or stakeholders (AlQershi, 2021 ). According to this study, a company's competitive advantage is the distinct edge it has over its competitors, which enables it to provide customers with better value and increase sales or profits. Thus, following a discussion of the connections among competitive advantage, human capital, and strategic innovation, the study produced the conceptual framework shown in Fig. 1 Methods and Materials Research Approach and Design According to Creswell (2009), every research study requires a research strategy that is precisely tailored to the requirements of the issue being studied. This study employed a quantitative research technique to investigate the link between strategic innovation, human capital, and competitive advantage using the example of specific hotels. This method's main advantage is that working with numbers is easy; gathering, coding, summarizing, and analyzing data is all done with ease. Given the nature and goals of the study, this research employed both descriptive and explanatory research designs, using multivariate statistics to examine the relationship between service innovation, customer satisfaction, and loyalty. In fact, the study's goals and hypotheses, among other factors, determine whether a research design is appropriate. Sampling Procedure The size of the entire population, the permitted margin of error, the confidence range we anticipate in the data and the type of study all influence the sample size, according to Saunders et al. (2012). All employees of hotels in Hawassa City who provided any kind of service made up the study's population, and they were chosen as respondents using the population precision technique. The researcher used a precision rate and confidence table technique to calculate size since the number of hotel employees who subscribed at various hotels grows. The representative number of samples was calculated using Cochran's (2007) sample size determination formula, which is as follows: $$\:\:\:\text{n}=\frac{{z}^{2}.\text{p}\:.\:\:\text{q}}{{e}^{2}},\:\text{n}=\frac{1.96x1.96x0.5(1-0.5)}{0.05x0.05}\:\text{n}=384$$ In this case, n is the sample size that has to be determined; p is the percentage or existence of the study characteristics (p = 0.5, maximum variability); q = 1-p; e is the accepted margin of error (± 5% of accuracy); and z = 1.96 (95% of confidence level). Consequently, 384 respondents who were chosen by a systematic random sample procedure at hotels were included in the study. Methods of Data Collection Primary and secondary data were gathered from appropriate sources to aid in the achievement of the stated objectives. Primary data was collected from individual workers of hotels at Hawassa city using a self-administered schedule for this study. Furthermore, the schedule was created in English first and then translated into Amharic and Sidamic. The translation of the questionnaire familiarizes the respondent with the concept and facilitates understanding. The schedule questionnaire was distributed and collected during the last week of December 2024. Secondary data were collected from different journals and publications for assessing the existing findings on the Internet, books, and documents. Measurement of Instrument The questionnaire has been standardized and tailored to the study's topic, and it is founded on components that have been validated in other studies. The constructs include competitive advantage (9 items) taken from Fakunmoju et al. ( 2020 ), human capital (9 items) taken from Nawi et al. ( 2020 ), and strategic innovation (9 items) taken from Derrick and Kaplan (2017). A 5-point Likert scale, ranging from "strongly disagree" to "strongly agree," was used to score each questionnaire item. However, because of their low factor loadings, two items from the strategic innovation variable (SI3 and SI5) and one item from human capital (HC6) were eliminated from additional analysis. Based on the data gathered using just 25 items, the analysis portion was created. Data Processing and Analysis Editing the raw data to make sure it is accurate, consistent, and comprehensive for additional analysis is the standard first stage in the analysis process (Cooper & Emory, 1995). This indicates that any surveys deemed unfit for the subsequent data processing and analysis are those that are lacking, flawed, or inconsistent. Descriptive statistics and inferential analysis are therefore used to analyze the data after it has been edited, coded, and entered. To evaluate the study's premise and investigate how service innovation affects customer satisfaction and loyalty intention, factor analysis and a structural equation model with route analysis were employed. In order to ascertain the direct and indirect effects of the research variables, descriptive analysis was conducted using SPSS version 26, and structural equation model path analysis was conducted using SPSS AMOS 26. Results and discussions Response Rate There were 384 targeted questionnaires, and 368 of them were successfully returned. The other 16 surveys were excluded from analysis since they were deemed to have defective responses and were not returned by respondents. Consequently, 96 percent of respondents responded overall. Reliability analysis of the study Table 1 , Reliability of items under study constructs No Constructs Alpha values No of item 1 Strategic alignment .702 3 2 Strategic foresight .795 3 3 Consumer insight .806 3 4 Knowledge .705 3 5 Skill .792 3 6 Training .772 3 7 Cost .738 3 7 Focus .793 3 9 Differentiation .811 3 10 Total .768 27 Source: Survey result, 2024 The reliability analysis of the several constructs under investigation, as determined by Cronbach's Alpha values, is shown in Table 1 . There are three components in each construct, and the alpha values range from.702 to.811. Notably, Consumer Insight has the greatest reliability (.806), demonstrating the consistency and dependability of the items used to measure this construct. Strong dependability is also shown by the Strategic Foresight and Differentiation constructs, which have respective values of.795 and.811. At the lower end of the range, Strategic Alignment has an alpha score of.702, which indicates that it may use some more improvement to increase its dependability, even if it is still acceptable. The total alpha score of.768 for the 27 items combined indicates the scale's overall dependability and indicates that the structures as a whole retain a high degree of internal consistency. This overall dependability shows how well the items measure the intended ideas across all components. The results indicate that the items employed in these constructs are sufficiently dependable for additional study, guaranteeing that the measures will produce accurate results and offering a strong basis for future research. All things considered, these reliability scores strengthen the validity of the study's constructs and boost trust in the conclusions drawn from them. Data Adequacy Test Table 2 measurement of data for sample size adequacy Kaiser-Meyer-Olkin and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .886 Bartlett's Test of Sphericity Approx. Chi-Square 5159.170 Degree of freedom 351 Significance .000 Source: Survey result (2024) The findings of the Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy and Bartlett's Test of Sphericity, which are crucial for determining if factor analysis of the dataset is adequate, are shown in Table 2 . A high degree of sample adequacy is shown by the KMO value of.886, which implies that there are enough correlations between the items to support component analysis. KMO values around 1.0 indicate great sample adequacy, while values above.70 are often regarded as satisfactory. This robust KMO result suggests that the data are appropriate for additional analysis and that the sample size is sufficient. With 351 degrees of freedom and a significance level of.000, Bartlett's Test of Sphericity also produces an estimated Chi-Square score of 5159.170. There are strong correlations between the variables, as seen by the incredibly low p-value (far below the traditional cutoff of 0.05), which shows that the correlation matrix is not an identity matrix. This lends credence to the idea that component analysis is a legitimate method as the variables have a common variance. When taken as a whole, these findings confirm that the data satisfy the requirements for factor analysis, which boosts confidence in the findings of further studies. Total Variance Explained Analysis Table 3 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative % 1 6.520 32.241 32.236 6.520 31.241 32.236 3.10 22.4524 22.4524 2 1.40 9.793 42.026 1.40 9.790 42.025 2.20 15.493 36.943 3 1.30 9.090 52.121 1.30 9.091 52.121 1.97 14.167 52.121 4 .952 6.780 58.892 5 .878 6.222 65.115 6 .772 6.520 70.635 Extraction Method: Principal Component Analysis. Source: Authors The Total Variance Explained results, which are crucial for comprehending the data's underlying structure using Principal Component Analysis (PCA), are shown in Table 3 . The Initial Eigenvalues, Extraction Sums of Squared Loadings, and Rotation Sums of Squared Loadings are all included in the table. Prior to extraction, the Initial Eigenvalues show how much of the variation was explained by each component. With an eigenvalue of 6.520, the first component explains 32.241% of the variation. This high proportion indicates that a sizable amount of the dataset's information is captured by this component. After three components, the total percentage is 52.121%, with the second and third components accounting for 9.793% and 9.090% of the variation, respectively. This suggests that the first three components alone can explain more than half of the overall variation. The first three components continue to be the most significant after extraction, according to the Extraction Sums of Squared Loadings, with the first component still accounting for 31.241% of the variance, which is quite similar to its initial value. 9.790% and 9.091%, respectively, are retained by the second and third components. These three factors consistently account for 52.121% of the cumulative variation, which supports the notion that they are essential to comprehending the dataset.. The Rotation Sums of Squared Loadings show the variance distribution after rotation, which is often used to enhance interpretability. The first component now explains 22.4524% of the variance, while the second and third components also provide substantial contributions of 15.493% and 14.167%, cumulatively accounting for 52.121%. This distribution suggests that rotation has helped clarify the structure of the components, making them more interpretable. Enquiry for factor Confirmatory To ascertain if a set of observed variables properly reflects the number of underlying latent components that have been hypothesized, a statistical technique known as confirmatory factor analysis (CFA) is employed. By allowing them to confirm or refute preexisting theories about the relationships between the variables under study and the factors associated with them, it provides researchers with insight into the structure of the data. By assessing the goodness-of-fit between the suggested model and the observed data, CFA helps validate the theoretical ideas and ensures that the measurement model is appropriate for the research context. All covariance values were lower in Fig. 2 , which shows the CFA, suggesting that there was no multicollinearity between the components. Furthermore, every factor loading in Fig. 2 exceeds the acceptable threshold level of 0.5. Table 4 Covariances Covariance Approximation S.E. C.R. P Hy. Human Capital Strategic innovation .247 .028 8.821 *** H2 Human Capital Competitive advantage .308 .036 8.555 *** H3 Strategic innovation Competitive advantage .269 .035 7.685 *** H1 Source: Authors Table 4 presents the covariances among the variables of interest: Human Capital, Strategic Innovation, and Competitive Advantage. The table provides the approximation of covariances, standard errors (S.E.), critical ratios (C.R.), and significance levels (P) for each relationship, along with corresponding hypotheses (Hy). As indicated by the three asterisks (***), which generally indicate a p-value less than 0.001, the critical ratio of 8.821 indicates a strong statistical significance, supporting Hypothesis H2, which states that an increase in human capital is linked to greater strategic innovation within the organization. The covariance between strategic innovation and human capital is reported to be 0.247 with a standard error of 0.028. The correlation between competitive advantage and human capital is then reported to be 0.308 with a standard error of 0.036. The soundness of Hypothesis H3 is further supported by the critical ratio of 8.555, which once more shows a highly significant association. This research suggests that improved human capital has a favorable effect on competitive advantage, meaning that companies with more informed and experienced employees are more likely to succeed in the marketplace. Lastly, the covariance between Strategic Innovation and Competitive Advantage stands at 0.269, with a standard error of 0.035. The critical ratio of 7.685, likewise significant at the p < 0.001 level, supports Hypothesis H1. This study implies that strategic innovation is a fundamental driver of competitive advantage, implying that firms that innovate effectively are better positioned to surpass their competitors. Indices for Model Fit Analysis The indices used to evaluate the overall model fit in the structural equation modeling (SEM) study are compiled in Table 5 . Table 5 Measurements of goodness of model fit Types of measurements Criteria Value obtained Level of acceptance Chi-square CMIN 33.650 - Degree of freedom 18 - CMIN/DEF 1.869 0.5 Well fitted Absolute measurement of fit RMSEA .048 0.9 Well fitted IFI .989 > 0.9 Well fitted RFI .952 > 0.9 Well fitted TLI .977 > 0.9 Well fitted Parsimony fit measure PNFI .511 > 0.50 Fitted PCFI .615 > 0.50 Fitted Source: Authors A thorough summary of the model fit as determined by a number of statistical indicators is given by the findings listed in Table 5 of the measurement criteria. With 18 degrees of freedom and a chi-square statistic of 33.650, the CMIN/DEF ratio is 1.869, much below the cutoff of 3. This suggests that the model fits the data well. Furthermore, the p-value of 0.161, which is higher than 0.5, confirms that the model fit is adequate. These findings imply that the suggested model and the observed data are in good agreement, suggesting that the model accurately captures the underlying connections between the variables. The model's sufficiency is confirmed by further evaluation utilizing absolute and incremental fit indices. A well-fitting model is indicated by the reported Root Mean Square Error of Approximation (RMSEA) of 0.048, which is far lower than the generally recognized criterion of 0.08. Both the Incremental Fit Index (IFI) and the Comparative Fit Index (CFI) have incremental fit indices of 0.989, which is higher than the 0.9 minimum acceptability thresholds. Strong model fit is also shown by the Tucker-Lewis Index (TLI) at 0.977 and the Relative Fit Index (RFI) at 0.952. Finally both the Parsimonious Comparative Fit Index (PCFI) of 0.615 and the Parsimony Normed Fit Index (PNFI) of 0.511 above the 0.50 criterion indicating that the model is sufficiently parsimonious. All of these findings show that the model is reliable and effective in describing the connections between the variables in addition to being statistically significant. Validation Table 6 Validity Concern CR AVE MSV MaxR(H) SI HC CA SI 0.726 0.637 0.225 0.848 0.650 HC 0.7587 0.656 0.134 0.765 0.172 0.661 CA 0.790 0.600 0.273 0.796 0.382 0.191 0.683 Note: SI = strategic innovation; HC = Human capital; CA = Competitive advantage Source: Authors The validation findings in Table 6 show that convergence validity was achieved since the AVE for a company's competitive advantage exceeds 0.50, and discriminant legitimacy was preserved as the AVE square root is greater than all connected similar values of correlation. Furthermore, convergence validity is attained when the AVE for strategic innovation is greater than 0.50. Structural Equation Model Fig 3. Structural equation model Source: survey result, (2024) Regression Examination Analysis Table 7 presents the results of the regression analysis examining the relationships among the constructs of consumer insight, technology adoption, and competitive advantage. Table 7 Regression Examination Relative Approx. S.E. C.R. P Ass. Human capital <--- Strategic innovation .865 .145 7.585 *** H2 Competitive advantage <--- Human capital .329 .133 2.856 *** H3 Competitive advantage <--- Strategic innovation .958 .194 7.962 *** H1 Source: Authors The regression analysis's findings, which show the connections between competitive advantage, strategic innovation, and human capital, are shown in Table 7 . With a regression coefficient of 0.865, the impact of strategic innovation on human capital is the first connection to be looked at. The three asterisks (***) imply a very strong and statistically significant link, which is indicated by this high value, a standard error of 0.145, and a critical ratio (C.R.) of 7.585. This result is consistent with Hypothesis H2, which holds that strategic innovation significantly influences the development of human capital in businesses. Significant links pertaining to competitive advantage are also shown by the investigation. Hypothesis H3 is supported by the statistically significant (***) coefficient of 0.329, standard error of 0.133, and critical ratio of 2.856 obtained from the regression from human capital to competitive advantage. This suggests that increasing competitive advantage is positively impacted by expenditures in human capital. Furthermore, with a regression coefficient of 0.958, a standard error of 0.194, and a critical ratio of 7.962, the direct relationship between Strategic Innovation and Competitive Advantage is even more noticeable. This finding firmly backs up Hypothesis H1, demonstrating that gaining a competitive edge requires strategic innovation. When taken as a whole, these results illustrate the crucial connections between the three dimensions and the role that human capital and strategic innovation play in promoting competitive success. Mediating Role Analysis Table 8 Mediating role Analysis Influence Worth Path Influence Strategic innovation → Competitive advantage Direct Influence .40 Direct influence stated Strategic innovation → Human capital → Competitive advantage Indirect Influence .70*.72 = .502 Indirect Influence Ensued Whole influence .90 Partial mediation Source: Authors The role of human capital as a mediator in the relationship between strategic innovation and competitive advantage is clarified in Table 8 . The analysis distinguishes between direct and indirect affects. Competitive advantage is directly impacted by strategic innovation by 0.40. By demonstrating that strategic innovation positively affects competitive advantage without the requirement for any intermediary factors, this straightforward technique validates the significance of strategic innovation in enhancing organizational performance. However, the approach also examines indirect effects through human capital. The indirect effect (i.e., 0.70 for Strategic Innovation to Human Capital and 0.72 for Human Capital to Competitive Advantage) is 0.502 when the route coefficients are multiplied. This suggests that human capital has a significant impact on the overall impact of strategic innovation on competitive advantage. A substantial overall effect is shown by the total influence of 0.90, which combines the direct and indirect channels. The term "partial mediation" suggests that although human capital is important in amplifying the impact of strategic innovation on competitive advantage, direct influence is still rather high. This demonstrates how both dimensions play interrelated roles, highlighting the significance of both direct and mediated paths in comprehending the conversion of strategic innovation into competitive advantage. Discussion In this work, factor analysis was conducted prior to estimating the model's parameters. It was evident that prior to further analysis, the data required to be examined for sample size adequacy. This was accomplished using the Kaiser-Meyer-Olkin and Bartlett test of sphericity (KMO). The existence of concept validity was confirmed using principal component analysis and Varimax rotation. The items in the current study had an extraction value of factor loading more than 0.5, according to the results. After calculating eigenvalues and the total variance explained, the eigenvalue for 27 items was greater than 1. Of the total variance, 52.121 percent was explained by three factors. Previous studies showed that human capital and strategic innovation are related, and in these studies, strategic innovation had a significant and positive influence on human capital. Additionally, as previously shown by Abas and Mokhtar (2019b), the researchers found that strategic innovation has a statistically significant positive influence on human capital (AlQershi, 2021 ). The results of the study supported previous research by Abbas et al. (2019), which demonstrates that strategic innovation significantly and favorably affects human capital. Companies may continue their growth, get a competitive advantage in the market, and innovate consistently by investing in human resources. The hypothesis, which was created to examine the relationship between strategic innovation and human capital, states that it is positive but not statistically significant. The findings also suggested that the relationship between strategic innovation and competitive advantage may be positively mediated by human capital. The study found that human capital somewhat mediated the relationship between competitive advantage and strategic innovation. This is similar to the results of Sibhato ( 2018 ), who showed that human capital mediates the relationship between strategic innovation and competitive advantage in Ethiopia. However, this finding was different from that of Wang (2022) and Jirakraisiri et al. ( 2021 ), who discovered that the relationship between strategic innovation and competitive advantage is totally mediated by human capital. Last but not least, the path analysis result demonstrated that human capital directly affects competitive advantage, suggesting that "Human capital has a significant positive effect on Competitive advantage." This hypothesis showed that hospitality organizations get a competitive edge by improving and investing in their human resources. These findings are consistent with past research showing that competitive advantage is significantly influenced by human capital. Alnoor ( 2020 ), for instance, asserts that the human capital component positively affects competitive advantage. Additionally, it significantly and favorably affected CA and process innovation in small and medium-sized enterprises. The growth and competitive advantage of SMEs in Ethiopia were influenced both directly and indirectly by the human capital of owner-managers (Gebremichael & Tekle, 2020 ), and Tanzanian hospitality companies with managers who possess the necessary education outperform those with less qualified managers (Timothy, 2022 ). Conclusion The researcher looked at how human capital mediated the relationship between competitive advantage and strategic innovation in Ethiopian hospitality companies. The study's findings demonstrated that a company's ability to gain a competitive edge is positively and significantly impacted by its human capital. Furthermore, the findings showed that strategic innovation is essential to increasing competitive advantage through human capital in Ethiopia's hospitality sector. The results showed that the direct benefits of strategic innovation on competitive advantage were positively correlated. The study also shown that, human capital functions as a mediator between strategic innovation and competitive advantage in hospitality business in Ethiopia. The cornerstone to a hospitality company's competitive advantage in the market is human capital. Finally, the results of the structural equation model showed that competitive advantage is directly influenced by human capital, supporting the idea that "human capital has a significant positive effect on competitive advantage of hospitality business." This illustrates how strategic human capital gives the hospitality industry a competitive edge in emerging economies, particularly in Ethiopia. Additionally, this study showed that a company's competitive edge and human capital will both improve if it increases its strategic innovation. Therefore, implementing strategic innovation is a crucial step for companies looking to gain and preserve a competitive edge in the hospitality industry. In order to obtain a competitive advantage, concerned parties such as managers, owners, and staff of hospitality businesses must understand that investing in strategic innovation enables them to easily compete in the fast-paced business world of today and enhances human capital for the present and the future. MANAGERIAL IMPLICATION The investigation's conclusions suggest several significant management ramifications for organizations, especially Ethiopian hospitality enterprises looking to boost their competitiveness through strategic innovation. Managers should place a high premium on developing and implementing strategic innovation projects. Creating a culture that values creativity and experimentation may greatly increase an organization's human capital. In addition to giving workers the skills they need, investing in training initiatives and professional development opportunities will increase employee engagement and sense of ownership, two factors that are essential for promoting creativity. The report also emphasizes how crucial it is to see human capital as a link between competitive advantage and strategic innovation in the hospitality industry. Supervisors need to understand that merely putting new ideas into practice is insufficient; they also need to make sure that their staff members have the education and abilities needed to accept and carry out these changes. This entails establishing an atmosphere that encourages information exchange and ongoing learning so that staff members may work together productively and gain from their combined experience. Abbreviations SI: strategic innovation; HC: Human capital; CA: competitive advantage; SA: strategic alignment; SF: strategic foresight; CI: consumer insight; SK: skill; KN: Knowledge; TR: Training; CO: cost; FO: Focus; DEF: Differentiation; SEM: structural equation model Declarations Acknowledgment: For their time and valuable comments to improve this study, the authors want to thank reviewers in advance. Author contribution : Tafese Niguse undertakes present research independently. Funding: No financial support given by organization and I would like to ask full waiver. Consent for participation: During data collection, ethical consideration was undertake by the researchers Data availability: For this study, the data is available and provided by reasonable request. Competing interest: the author undertakes present study independently. Ethics declaration: Not applicable Consent to publish: I hereby grant permission for the publication of this work and confirm that it has not been submitted elsewhere for publication. Ethics Declaration: The university ethical committee has granted the ethical approval for this study by ref no. 02/05/2017EC. References Abebe, N. T., & Gemeda, A. M. (2020). Challenges and opportunities of growth of micro and small enterprises in Asella city, Ethiopia. International Journal of Business Marketing and Management (IJBMM), 5(8), 42-50. Al Hebsi, M. A. E., & Al-Shami, S. A. (2022). The Effects of Future Foresight Competency, AI Technology Competency, Learning Orientation on Innovation Culture and Airport Security Performance. Mathematical Statistician and Engineering Applications, 71(3s2), 2004-2014. Alajeeb, A. T., & Al Najjar, F. J. (2022). 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6377999","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":451568186,"identity":"ba4242cf-2952-45a2-b415-16eb72e3e870","order_by":0,"name":"Tafese Niguse","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAABCklEQVRIiWNgGAWjYFACxgcgkgfM/mBgAxJpPIBPAw8DswFcC+OMijQQ1UCUFjBg5jlzGMzAq8We/TDjwx8Vd2TkI9IfPpzZdt5ubfthoC01NtE4beFJZjbmOfOMx/BGjrHBx7bbydvOJAK1HEvLbcDpsPxj0oxth3kMZ+SwSc4EajE7ANTC2HAYtxb+x+w/f/4DaUl//pu37Vyy2fmHBLRIJLMx8DYc5pGXSDADev+AndkNQrbceMwszXPsMI8BzxtjyRkVyQlmN4C2JODxC3t/MuPHHzWH7eXb0x9++GBgZ292Pv3hgw81Nji1wIHBAQidCFaZQEg5CMhDDbUnRvEoGAWjYBSMLAAAreNkhmTqD/oAAAAASUVORK5CYII=","orcid":"","institution":"Bule Hora University","correspondingAuthor":true,"prefix":"","firstName":"Tafese","middleName":"","lastName":"Niguse","suffix":""}],"badges":[],"createdAt":"2025-04-04 17:23:16","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-6377999/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6377999/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":82162702,"identity":"fb2bcd56-7a82-4bd3-a860-255253133d88","added_by":"auto","created_at":"2025-05-07 08:48:03","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":22667,"visible":true,"origin":"","legend":"\u003cp\u003eConceptual Framework\u003c/p\u003e\n\u003cp\u003eSource: Researcher, (2025)\u003c/p\u003e","description":"","filename":"floatimage1.png","url":"https://assets-eu.researchsquare.com/files/rs-6377999/v1/d2ce6bb730e245a89a0aa0b4.png"},{"id":82163812,"identity":"dd455258-e365-490a-a5cb-cec948c1f657","added_by":"auto","created_at":"2025-05-07 08:56:04","extension":"png","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":76196,"visible":true,"origin":"","legend":"\u003cp\u003eConfirmatory factor analysis\u003c/p\u003e\n\u003cp\u003eSource: Authors, 2025\u003c/p\u003e","description":"","filename":"floatimage2.png","url":"https://assets-eu.researchsquare.com/files/rs-6377999/v1/b6c6350ccd04001f05911f61.png"},{"id":82164211,"identity":"b8d64309-f8f3-498d-b932-f6de2b505b9d","added_by":"auto","created_at":"2025-05-07 09:04:04","extension":"png","order_by":3,"title":"Figure 3","display":"","copyAsset":false,"role":"figure","size":78866,"visible":true,"origin":"","legend":"\u003cp\u003e\u003cstrong\u003eStructural equation model\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eSource: survey result, (2024)\u003c/p\u003e","description":"","filename":"floatimage3.png","url":"https://assets-eu.researchsquare.com/files/rs-6377999/v1/02f9c2dbe8a1a6d2867bbc97.png"},{"id":87501122,"identity":"d0b5de37-6ee9-414d-9cb6-6ddb58007541","added_by":"auto","created_at":"2025-07-24 13:53:29","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1166146,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6377999/v1/1c3bc09c-26a1-495b-ae10-69e2bacfbfe2.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Nexus between Strategic Innovation, Human Capital and Competitive Advantage in Emerging Economies: Evidence from hospitality industry in Ethiopia","fulltext":[{"header":"Introduction","content":"\u003cp\u003eIt is widely acknowledged that throughout the previous 10 years, the global economy has shifted to a service-based sector. The service industry creates the bulk of a nation's GDP and offers great employment opportunities in both developed and emerging countries (Abebe \u0026amp; Gemeda, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The service business, which has attracted a lot of interest in innovation research, is one of the sectors in the global economy that has grown the fastest in recent years. At a time when it is essential to the global economy and the success of many countries, the concept of strategic innovation is gaining traction (Alajeeb \u0026amp; Al Najjar, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eStrategic innovation has been defined in the literature as the creation of new business models in the service sector with the aim of enhancing existing technology and service systems to create new value propositions. This approach may lead to better market offerings that are specific to the business or sector (Alkharabsheh et al., 2022; Alnoor, \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e: AlQershi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Strategic innovation lowers transaction costs, enabling businesses to function more effectively and distribute resources more wisely (Canhoto et a., (2021, Al-Surmi,2020). It also improves customer service and keeps a consistent customer base, which eventually leads to a larger market share and sustained company success.\u003c/p\u003e \u003cp\u003eThe government's attempts to modernize and commercialize several industries have led to significant developments in Ethiopia's hotel industry in recent years. In this context of strategic innovation, Ethiopian hotels are introducing a range of innovative services via the use of information technology. This tactical approach helps hotels enhance their value offers by giving customers a variety of options outside of traditional accommodation. Virtual tours, smartphone check-ins, customized booking experiences, and enhanced customer support through digital platforms are examples of innovations that are becoming increasingly widespread. This strategic focus on innovation not only increases guest satisfaction but also ensures long-term survival and growth by enabling hotels to more successfully compete in a rapidly evolving industry.\u003c/p\u003e \u003cp\u003eDiverse viewpoints on the connection between competitive advantage, human capital, and strategic innovation are presented by the literature. In fact, Abebe \u0026amp; Gemeda (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) contended that strategic innovation had little bearing on the research participants' competitive advantage in Indonesia. Strategic innovation does not improve competitive advantage, according to (Canhoto et al., (\u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). It But new research by Chen et al., (\u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), Datiko, (\u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2024\u003c/span\u003e), Chi et al., (\u003cspan citationid=\"CR16\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Chtourou Ben Amar \u0026amp; Ben Romdhane, (\u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Fakunmoju et al., (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Distanont, (\u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Gebremichael \u0026amp; Tekle, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Fathi, et al., (\u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) has shown that investing in strategic innovations has a direct and indirect positive impact on developing human capital and competitive advantage. According to Faulks et al., (\u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) there is a favorable correlation between strategic innovation and human capital in the hotel industry. According to Al-Surmi \u0026amp; Duan (2020), competitive advantage and human capital are directly impacted by strategic innovation in the banking industry. According to Arokodare \u0026amp; Asikhia (\u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Fergnani, (\u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Jayanagara \u0026amp; Chen, (\u003cspan citationid=\"CR32\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), strategic innovation has a favorable impact on competitive advantage and human capital.\u003c/p\u003e \u003cp\u003eThe researcher was originally inspired to do this study since the majority of earlier research focused on the connection between competitive advantage, human capital, and strategic innovation, especially in the banking sector. This sector, for example, has been the primary topic of studies by Alnoor (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Gede et al., (\u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Haarhaus \u0026amp; Liening, (\u003cspan citationid=\"CR27\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), Ghonim et al.m (2022), Ijomah et al., (\u003cspan citationid=\"CR30\" class=\"CitationRef\"\u003e2024\u003c/span\u003e), Haseeb et al., (\u003cspan citationid=\"CR29\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) and Hartani, (2021). However, the purpose of this study is to investigate the fundamental causes within the framework of the hospitality sector. It has been shown that the hotel industry requires distinct and intricate methods to strategic design and delivery (Ateş et al., \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2020\u003c/span\u003e, J\u0026auml;rvenp\u0026auml;\u0026auml; et al., \u003cspan citationid=\"CR31\" class=\"CitationRef\"\u003e2020\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eArokodare \u0026amp; Asikhia (\u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Jirakraisiri et al., (\u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) looked at the connection between strategic innovation and competitive advantage in the hotel sector, however they left out the crucial factor of human capital. The paucity of study on strategic innovation and its connection to human capital and competitive advantage in Ethiopia's hospitality sector, as in other developing nations, was another research need that inspired the researcher. This study is thus especially pertinent since, despite growing requests from academics for in-depth research in this field, there is a dearth of scholarly work on strategic innovation.\u003c/p\u003e \u003cp\u003eBecause of this, less is known about the advantages and disadvantages of investing in innovation in less developed nations. By employing quantitative data to examine the link between strategic innovation, human capital, and competitive advantage in the tourist sector, the study findings add to the body of knowledge already available on strategic innovation. This is a fresh addition that advances our knowledge of how innovation is adopted in the hospitality sector. up order to fill up these gaps, this study examines strategic innovation as a precursor to human capital and competitive advantage in the Ethiopian environment, with a focus on Hawassa city. Given these gaps in knowledge, the project aims to address the following primary research questions:\u003c/p\u003e \u003cp\u003e \u003col\u003e \u003cspan\u003e \u003cli\u003e \u003cp\u003eWhat is the effect of strategic innovation on human capital in hotels of Ethiopia?\u003c/p\u003e \u003c/li\u003e \u003c/span\u003e \u003cspan\u003e \u003cli\u003e \u003cp\u003eWhat is the effect of strategic innovation on competitive advantage in hotels of Ethiopia?\u003c/p\u003e \u003c/li\u003e \u003c/span\u003e \u003cspan\u003e \u003cli\u003e \u003cp\u003eWhat is the effect of human capital on competitive advantage in hotels of Ethiopia?\u003c/p\u003e \u003c/li\u003e \u003c/span\u003e \u003c/ol\u003e \u003c/p\u003e"},{"header":"Literature review and theoretical framework","content":"\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e \u003ch2\u003eStrategic innovation\u003c/h2\u003e \u003cp\u003eA general definition of innovation is the development and uptake of novel goods, processes, or methods (Liu \u0026amp; Fan, (2022), Marvel \u0026amp; Lumpkin, (\u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2007\u003c/span\u003e). Olaleye (2020) cites the OECD's (2005) definitions, which state that innovation is the introduction of a new or substantially improved product (good or service), method, or marketing strategy into business operations. According to scholars, innovation should be evaluated based on its ability to provide value for customers rather than merely creating something new (Muazu \u0026amp; Abdulmalik, \u003cspan citationid=\"CR40\" class=\"CitationRef\"\u003e2021\u003c/span\u003e; Nguza-Mduba \u0026amp; Mutambara, \u003cspan citationid=\"CR42\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Strategic innovation in the service sector mostly refers to changes made to the characteristics of the service. According to Pashutan \u0026amp; Harandi, (2022), strategic innovation is the process of modifying a company's product or service by utilizing new or current technology. Put differently, the business offers services that are different from what clients have experienced in the past (Bekata \u0026amp; Kero, \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eLikewise, strategic innovation refers to a business's capacity to collect data from its clients, recognize the importance of that data, and use that data to the development and improvement of a new delivery system (Pei et al., \u003cspan citationid=\"CR45\" class=\"CitationRef\"\u003e2020\u003c/span\u003e).Some scholars contend that market-driven and externally oriented strategic innovation can lead to a differentiation of an organization's output for its customers (Alajeeb \u0026amp; Al Najjar, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Sachitra (\u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) investigated the connections among competitive advantage, human capital development, and strategic innovation in Ethiopia's hospitality sector (Olaleye et al., \u003cspan citationid=\"CR43\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). The researchers came to the conclusion that strategic innovation determines a company's ability to gain a competitive edge. According to Sarwar et al., (\u003cspan citationid=\"CR48\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) strategic innovation has a favorable and significant impact on the quality of service delivery, which in turn improves human capital. Customer demands are likely to be satisfied by successful strategic innovation focused on human capital (AlQershi et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e)\u003c/p\u003e \u003cp\u003eAccording to a study on the connection between market orientation, innovation, and firm performance in Albanian businesses, companies that are dedicated to learning and comprehending the value of innovation are better able to monitor and address the needs of their clients, which leads to increased human capital and improved market performance (Semke \u0026amp; Tiberius, (\u003cspan citationid=\"CR49\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). According to Shao (\u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2019\u003c/span\u003e), strategic innovation has a beneficial impact on consumers' evaluations of service performance by influencing the quality of services delivered to them via innovative ways. According to Sibhato (\u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2018\u003c/span\u003e) and Sorama \u0026amp; Joensuu-Salo (\u003cspan citationid=\"CR52\" class=\"CitationRef\"\u003e2023\u003c/span\u003e), strategic innovation improves competitive advantage and human capital, which is in line with the aforementioned research (Rayas, \u003cspan citationid=\"CR46\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Similar to this, strategic innovation enables businesses to more effectively and directly create value for workers\u0026mdash;regardless of location\u0026mdash;through new interfaces, self-help, and new processes in conjunction with new service delivery systems, all of which will benefit human capital (Alkharabsheh et al., 2022; Tarsakoo \u0026amp; Charoensukmongkol, \u003cspan citationid=\"CR53\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Termezi, \u003cspan citationid=\"CR54\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Timothy, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). Human capital, according to Varadarajan (\u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Wahyuni (\u003cspan citationid=\"CR57\" class=\"CitationRef\"\u003e2024\u003c/span\u003e) is the sum of an individual's abilities, knowledge, experience, and qualities that support their capacity to carry out tasks and generate economic value. This is closely related to strategic innovation. Human capital has a favorable relationship with new goods and services (Marvel \u0026amp; Lumpkin, \u003cspan citationid=\"CR39\" class=\"CitationRef\"\u003e2007\u003c/span\u003e). In light of the above mentioned material, the following theory was proposed:\u003c/p\u003e \u003cp\u003eH1: Strategic innovation has a significant positive effect on human capital.\u003c/p\u003e \u003cp\u003eStrategic innovation is crucial for businesses to acquire and maintain a competitive edge, according to (Wang et al., \u003cspan citationid=\"CR58\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). According to studies, offering clients knowledge-intensive goods or services may enhance an organization's value and image and provide it a competitive edge (Yoonet al., \u003cspan citationid=\"CR59\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Strategic innovation indirectly impacted competitive advantage through human capital, according to (Nawi et al., \u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Strategic innovation improves service quality, which directly affects competitive advantage, according to Varadarajan (\u003cspan citationid=\"CR56\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Boulding et al. (1993) also looked at a positive correlation between consumers' desire to repurchase and service quality, which is based on the degree of strategic innovation. Other scholars have demonstrated that service quality positively contributes to the willingness to recommend others (Ateş et al., \u003cspan citationid=\"CR10\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Additionally, Abebe \u0026amp; Gemeda (\u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) and Shao (\u003cspan citationid=\"CR50\" class=\"CitationRef\"\u003e2019\u003c/span\u003e) found a strong positive correlation between competitive advantage and strategic innovation in the banking industry. But according to Al Hebsi \u0026amp; Al-Shami (\u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2022\u003c/span\u003e) and Alnoor (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), strategic innovation has no bearing on competitive advantage. Following a discussion of the connections between competitive advantage and strategic innovation, the research postulated that:\u003c/p\u003e \u003cp\u003eH2: Strategic innovation has a significant positive effect on competitive advantage.\u003c/p\u003e \u003c/div\u003e\n\u003ch3\u003eHuman Capital\u003c/h3\u003e\n\u003cp\u003eA contemporary approach to quality in corporate settings is customers' human capital, which promotes genuine employee trust (Sibhato, \u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2018\u003c/span\u003e). In terms of human capital, academics have described it as Human capital represents the specialized skills and expertise of employees that allow organizations to innovate and outperform competitors, thereby securing a significant competitive advantage (AlQershi, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Human capital is the collective skills, knowledge, experience, and attributes possessed by individuals that contribute to their ability to perform work and create economic value. Human capital, according to AlQershiet al., (\u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), is the capacity to stimulate innovation and organizational performance through a trained and informed staff, resulting in higher productivity and a competitive edge. Human capital affects how employees feel about their workplaces (Alajeeb \u0026amp; Al Najjar, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2022\u003c/span\u003e, AlQershi, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2021\u003c/span\u003e) and Abbasi et al. (2018) discuss how employees feel about the company overall. Chi \u0026amp; George (2020) define human capital as the evaluation of an employee's performance in terms of quality and benefits, as well as the expense and effort made. Human capital, according to Alnoor, (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) is people's assessments of their jobs and level of satisfaction, which has a direct bearing on the efficacy and performance of organizations.\u003c/p\u003e \u003cp\u003eAll things considered, human capital is the sum of people's abilities, experience, and knowledge that make them capable of doing their jobs (Distanont, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Gede et al., \u003cspan citationid=\"CR25\" class=\"CitationRef\"\u003e2020\u003c/span\u003e; Siskos et al., 1998). Previous empirical research indicates that an organization's competitive edge is significantly influenced by its human capital. According to research by Liu et al., (\u003cspan citationid=\"CR38\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), human capital significantly improves competitive advantage. In support of these conclusions, Sachitra (\u003cspan citationid=\"CR47\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) pointed out that investments in people benefit the company more efficiently and that higher levels of human capital result in higher levels of competitive advantage. Ta and Yang (2018) also confirmed that human capital in the tourism industry has a significant positive effect on competitive advantage.\u003c/p\u003e \u003cp\u003eContinually keeping talented workers gives you a competitive edge (Kotler \u0026amp; Keller, 2013). According to Kandemir \u0026amp; Acur (\u003cspan citationid=\"CR34\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), strategic approaches improve staff retention. Studying the link between human capital and competitive advantage, Kassa \u0026amp; Getnet Mirete, (\u003cspan citationid=\"CR35\" class=\"CitationRef\"\u003e2022\u003c/span\u003e), Lieberman, (\u003cspan citationid=\"CR36\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), Borodako et al. (\u003cspan citationid=\"CR13\" class=\"CitationRef\"\u003e2023\u003c/span\u003e) and Lin \u0026amp; Shi, (\u003cspan citationid=\"CR37\" class=\"CitationRef\"\u003e2020\u003c/span\u003e) discovered a strong positive correlation between the two aspects. According to a different research, human capital and service quality had an impact on competitive advantage, but strategic innovation had a beneficial moderating effect Al Hebsi \u0026amp; Al-Shami (\u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). The following hypothesis was put out in this study based on the supporting literature:\u003c/p\u003e \u003cp\u003eH3: Human capital has a significant positive effect on competitive advantage.\u003c/p\u003e\n\u003ch3\u003eCompetitive advantage\u003c/h3\u003e\n\u003cp\u003eThe literature defines competitive advantage as an organization's capacity to continuously provide its clients with better value than its rivals (Bhatiasevi \u0026amp; Naglis, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Additionally, it alludes to the company's dedication to preserving its market position by consistent product or service improvement (Al-Surmi \u0026amp; Duan, 2020). There are several ways to look at competitive advantage, including being the best option among alternatives (Alkharabsheh et al., 2022) being eager to suggest the company to others ((Bekata \u0026amp; Kero, \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2024\u003c/span\u003e).), and helping out coworkers or stakeholders (AlQershi, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). According to this study, a company's competitive advantage is the distinct edge it has over its competitors, which enables it to provide customers with better value and increase sales or profits. Thus, following a discussion of the connections among competitive advantage, human capital, and strategic innovation, the study produced the conceptual framework shown in Fig.\u0026nbsp;\u003cspan refid=\"Fig1\" class=\"InternalRef\"\u003e1\u003c/span\u003e\u003c/p\u003e "},{"header":"Methods and Materials","content":"\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e \u003ch2\u003eResearch Approach and Design\u003c/h2\u003e \u003cp\u003eAccording to Creswell (2009), every research study requires a research strategy that is precisely tailored to the requirements of the issue being studied. This study employed a quantitative research technique to investigate the link between strategic innovation, human capital, and competitive advantage using the example of specific hotels. This method's main advantage is that working with numbers is easy; gathering, coding, summarizing, and analyzing data is all done with ease. Given the nature and goals of the study, this research employed both descriptive and explanatory research designs, using multivariate statistics to examine the relationship between service innovation, customer satisfaction, and loyalty. In fact, the study's goals and hypotheses, among other factors, determine whether a research design is appropriate.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003eSampling Procedure\u003c/h2\u003e \u003cp\u003eThe size of the entire population, the permitted margin of error, the confidence range we anticipate in the data and the type of study all influence the sample size, according to Saunders et al. (2012). All employees of hotels in Hawassa City who provided any kind of service made up the study's population, and they were chosen as respondents using the population precision technique. The researcher used a precision rate and confidence table technique to calculate size since the number of hotel employees who subscribed at various hotels grows. The representative number of samples was calculated using Cochran's (2007) sample size determination formula, which is as follows:\u003c/p\u003e\u003cdiv id=\"Equa\" class=\"Equation\"\u003e\u003cdiv format=\"TEX\" class=\"mathdisplay\" id=\"FileID_Equa\" name=\"EquationSource\"\u003e\n$$\\:\\:\\:\\text{n}=\\frac{{z}^{2}.\\text{p}\\:.\\:\\:\\text{q}}{{e}^{2}},\\:\\text{n}=\\frac{1.96x1.96x0.5(1-0.5)}{0.05x0.05}\\:\\text{n}=384$$\u003c/div\u003e\u003c/div\u003e\u003cp\u003e\u003c/p\u003e \u003cp\u003eIn this case, n is the sample size that has to be determined; p is the percentage or existence of the study characteristics (p = 0.5, maximum variability); q = 1-p; e is the accepted margin of error (± 5% of accuracy); and z = 1.96 (95% of confidence level). Consequently, 384 respondents who were chosen by a systematic random sample procedure at hotels were included in the study.\u003c/p\u003e \u003c/div\u003e\n\u003ch3\u003eMethods of Data Collection\u003c/h3\u003e\n\u003cp\u003ePrimary and secondary data were gathered from appropriate sources to aid in the achievement of the stated objectives. Primary data was collected from individual workers of hotels at Hawassa city using a self-administered schedule for this study. Furthermore, the schedule was created in English first and then translated into Amharic and Sidamic. The translation of the questionnaire familiarizes the respondent with the concept and facilitates understanding. The schedule questionnaire was distributed and collected during the last week of December 2024. Secondary data were collected from different journals and publications for assessing the existing findings on the Internet, books, and documents.\u003c/p\u003e\n\u003ch3\u003eMeasurement of Instrument\u003c/h3\u003e\n\u003cp\u003eThe questionnaire has been standardized and tailored to the study's topic, and it is founded on components that have been validated in other studies. The constructs include competitive advantage (9 items) taken from Fakunmoju et al. (\u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), human capital (9 items) taken from Nawi et al. (\u003cspan citationid=\"CR41\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), and strategic innovation (9 items) taken from Derrick and Kaplan (2017). A 5-point Likert scale, ranging from \"strongly disagree\" to \"strongly agree,\" was used to score each questionnaire item. However, because of their low factor loadings, two items from the strategic innovation variable (SI3 and SI5) and one item from human capital (HC6) were eliminated from additional analysis. Based on the data gathered using just 25 items, the analysis portion was created.\u003c/p\u003e \u003cdiv id=\"Sec11\" class=\"Section2\"\u003e \u003ch2\u003eData Processing and Analysis\u003c/h2\u003e \u003cp\u003eEditing the raw data to make sure it is accurate, consistent, and comprehensive for additional analysis is the standard first stage in the analysis process (Cooper \u0026amp; Emory, 1995). This indicates that any surveys deemed unfit for the subsequent data processing and analysis are those that are lacking, flawed, or inconsistent. Descriptive statistics and inferential analysis are therefore used to analyze the data after it has been edited, coded, and entered. To evaluate the study's premise and investigate how service innovation affects customer satisfaction and loyalty intention, factor analysis and a structural equation model with route analysis were employed. In order to ascertain the direct and indirect effects of the research variables, descriptive analysis was conducted using SPSS version 26, and structural equation model path analysis was conducted using SPSS AMOS 26.\u003c/p\u003e \u003c/div\u003e "},{"header":"Results and discussions","content":"\u003ch2\u003eResponse Rate\u003c/h2\u003e\u003cp\u003eThere were 384 targeted questionnaires, and 368 of them were successfully returned. The other 16 surveys were excluded from analysis since they were deemed to have defective responses and were not returned by respondents. Consequently, 96 percent of respondents responded overall.\u003c/p\u003e\u003ch2\u003eReliability analysis of the study\u003c/h2\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"char\" char=\".\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab1\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 1\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003e, Reliability of items under study constructs\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eNo\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eConstructs\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eAlpha values\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eNo of item\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eStrategic alignment\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.702\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eStrategic foresight\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.795\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eConsumer insight\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.806\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e4\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eKnowledge\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.705\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e5\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSkill\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.792\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e6\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eTraining\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.772\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e7\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCost\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.738\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e7\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eFocus\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.793\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e9\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eDifferentiation\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.811\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e10\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eTotal\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.768\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"char\" char=\".\" colname=\"c4\"\u003e \u003cp\u003e27\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"4\"\u003eSource: Survey result, 2024\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe reliability analysis of the several constructs under investigation, as determined by Cronbach's Alpha values, is shown in Table\u0026nbsp;\u003cspan refid=\"Tab1\" class=\"InternalRef\"\u003e1\u003c/span\u003e. There are three components in each construct, and the alpha values range from.702 to.811. Notably, Consumer Insight has the greatest reliability (.806), demonstrating the consistency and dependability of the items used to measure this construct. Strong dependability is also shown by the Strategic Foresight and Differentiation constructs, which have respective values of.795 and.811. At the lower end of the range, Strategic Alignment has an alpha score of.702, which indicates that it may use some more improvement to increase its dependability, even if it is still acceptable.\u003c/p\u003e\u003cp\u003eThe total alpha score of.768 for the 27 items combined indicates the scale's overall dependability and indicates that the structures as a whole retain a high degree of internal consistency. This overall dependability shows how well the items measure the intended ideas across all components. The results indicate that the items employed in these constructs are sufficiently dependable for additional study, guaranteeing that the measures will produce accurate results and offering a strong basis for future research. All things considered, these reliability scores strengthen the validity of the study's constructs and boost trust in the conclusions drawn from them.\u003c/p\u003e\u003ch2\u003eData Adequacy Test\u003c/h2\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab2\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 2\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003emeasurement of data for sample size adequacy\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"3\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c3\" namest=\"c1\"\u003e \u003cp\u003eKaiser-Meyer-Olkin and Bartlett's Test\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colspan=\"2\" nameend=\"c2\" namest=\"c1\"\u003e \u003cp\u003eKaiser-Meyer-Olkin Measure of Sampling Adequacy.\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.886\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eBartlett's Test of Sphericity\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eApprox. Chi-Square\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e5159.170\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eDegree of freedom\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e351\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eSignificance\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.000\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"3\"\u003eSource: Survey result (2024)\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe findings of the Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy and Bartlett's Test of Sphericity, which are crucial for determining if factor analysis of the dataset is adequate, are shown in Table\u0026nbsp;\u003cspan refid=\"Tab2\" class=\"InternalRef\"\u003e2\u003c/span\u003e. A high degree of sample adequacy is shown by the KMO value of.886, which implies that there are enough correlations between the items to support component analysis. KMO values around 1.0 indicate great sample adequacy, while values above.70 are often regarded as satisfactory. This robust KMO result suggests that the data are appropriate for additional analysis and that the sample size is sufficient.\u003c/p\u003e\u003cp\u003eWith 351 degrees of freedom and a significance level of.000, Bartlett's Test of Sphericity also produces an estimated Chi-Square score of 5159.170. There are strong correlations between the variables, as seen by the incredibly low p-value (far below the traditional cutoff of 0.05), which shows that the correlation matrix is not an identity matrix. This lends credence to the idea that component analysis is a legitimate method as the variables have a common variance. When taken as a whole, these findings confirm that the data satisfy the requirements for factor analysis, which boosts confidence in the findings of further studies.\u003c/p\u003e\u003ch2\u003eTotal Variance Explained Analysis\u003c/h2\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c9\" colnum=\"9\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c10\" colnum=\"10\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab3\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 3\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eTotal Variance Explained\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"10\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eComponent\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c4\" namest=\"c2\"\u003e \u003cp\u003eInitial Eigenvalues\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c7\" namest=\"c5\"\u003e \u003cp\u003eExtraction Sums of Squared Loadings\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c10\" namest=\"c8\"\u003e \u003cp\u003eRotation Sums of Squared Loadings\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eTotal\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e% of Variance\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eCumulative %\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eTotal\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003e% of Variance\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eCumulative %\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e \u003cp\u003eTotal\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c9\"\u003e \u003cp\u003e% of Variance\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c10\"\u003e \u003cp\u003eCumulative %\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e6.520\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e32.241\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e32.236\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e6.520\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e31.241\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e32.236\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e3.10\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003e22.4524\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e \u003cp\u003e22.4524\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e2\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.40\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e9.793\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e42.026\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1.40\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e9.790\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e42.025\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e2.20\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003e15.493\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e \u003cp\u003e36.943\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e1.30\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e9.090\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e52.121\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e1.30\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e9.091\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e52.121\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e1.97\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e \u003cp\u003e14.167\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e \u003cp\u003e52.121\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e4\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e.952\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e6.780\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e58.892\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e5\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e.878\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e6.222\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e65.115\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e6\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e.772\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e6.520\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e70.635\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c9\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c10\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colspan=\"10\" nameend=\"c10\" namest=\"c1\"\u003e \u003cp\u003eExtraction Method: Principal Component Analysis.\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"10\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe Total Variance Explained results, which are crucial for comprehending the data's underlying structure using Principal Component Analysis (PCA), are shown in Table\u0026nbsp;\u003cspan refid=\"Tab3\" class=\"InternalRef\"\u003e3\u003c/span\u003e. The Initial Eigenvalues, Extraction Sums of Squared Loadings, and Rotation Sums of Squared Loadings are all included in the table. Prior to extraction, the Initial Eigenvalues show how much of the variation was explained by each component. With an eigenvalue of 6.520, the first component explains 32.241% of the variation. This high proportion indicates that a sizable amount of the dataset's information is captured by this component. After three components, the total percentage is 52.121%, with the second and third components accounting for 9.793% and 9.090% of the variation, respectively. This suggests that the first three components alone can explain more than half of the overall variation.\u003c/p\u003e\u003cp\u003eThe first three components continue to be the most significant after extraction, according to the Extraction Sums of Squared Loadings, with the first component still accounting for 31.241% of the variance, which is quite similar to its initial value. 9.790% and 9.091%, respectively, are retained by the second and third components. These three factors consistently account for 52.121% of the cumulative variation, which supports the notion that they are essential to comprehending the dataset..\u003c/p\u003e\u003cp\u003eThe Rotation Sums of Squared Loadings show the variance distribution after rotation, which is often used to enhance interpretability. The first component now explains 22.4524% of the variance, while the second and third components also provide substantial contributions of 15.493% and 14.167%, cumulatively accounting for 52.121%. This distribution suggests that rotation has helped clarify the structure of the components, making them more interpretable.\u003c/p\u003e\u003ch2\u003eEnquiry for factor Confirmatory\u003c/h2\u003e\u003cp\u003eTo ascertain if a set of observed variables properly reflects the number of underlying latent components that have been hypothesized, a statistical technique known as confirmatory factor analysis (CFA) is employed. By allowing them to confirm or refute preexisting theories about the relationships between the variables under study and the factors associated with them, it provides researchers with insight into the structure of the data. By assessing the goodness-of-fit between the suggested model and the observed data, CFA helps validate the theoretical ideas and ensures that the measurement model is appropriate for the research context. All covariance values were lower in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e, which shows the CFA, suggesting that there was no multicollinearity between the components. Furthermore, every factor loading in Fig.\u0026nbsp;\u003cspan refid=\"Fig2\" class=\"InternalRef\"\u003e2\u003c/span\u003e exceeds the acceptable threshold level of 0.5.\u003c/p\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab4\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 4\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eCovariances\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"8\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c3\" namest=\"c1\"\u003e \u003cp\u003eCovariance\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eApproximation\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eS.E.\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eC.R.\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eP\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e \u003cp\u003eHy.\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eHuman Capital\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;--\u0026gt;\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStrategic innovation\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.247\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.028\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e8.821\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e\u003cb\u003eH2\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eHuman Capital\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;--\u0026gt;\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eCompetitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.308\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.036\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e8.555\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e\u003cb\u003eH3\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eStrategic innovation\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;--\u0026gt;\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eCompetitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.269\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.035\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e7.685\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e\u003cb\u003eH1\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"8\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab4\" class=\"InternalRef\"\u003e4\u003c/span\u003e presents the covariances among the variables of interest: Human Capital, Strategic Innovation, and Competitive Advantage. The table provides the approximation of covariances, standard errors (S.E.), critical ratios (C.R.), and significance levels (P) for each relationship, along with corresponding hypotheses (Hy). As indicated by the three asterisks (***), which generally indicate a p-value less than 0.001, the critical ratio of 8.821 indicates a strong statistical significance, supporting Hypothesis H2, which states that an increase in human capital is linked to greater strategic innovation within the organization. The covariance between strategic innovation and human capital is reported to be 0.247 with a standard error of 0.028.\u003c/p\u003e\u003cp\u003eThe correlation between competitive advantage and human capital is then reported to be 0.308 with a standard error of 0.036. The soundness of Hypothesis H3 is further supported by the critical ratio of 8.555, which once more shows a highly significant association. This research suggests that improved human capital has a favorable effect on competitive advantage, meaning that companies with more informed and experienced employees are more likely to succeed in the marketplace. Lastly, the covariance between Strategic Innovation and Competitive Advantage stands at 0.269, with a standard error of 0.035. The critical ratio of 7.685, likewise significant at the p \u0026lt; 0.001 level, supports Hypothesis H1. This study implies that strategic innovation is a fundamental driver of competitive advantage, implying that firms that innovate effectively are better positioned to surpass their competitors.\u003c/p\u003e\u003ch2\u003eIndices for Model Fit Analysis\u003c/h2\u003e\u003cp\u003eThe indices used to evaluate the overall model fit in the structural equation modeling (SEM) study are compiled in Table\u0026nbsp;\u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e.\u003c/p\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab5\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 5\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eMeasurements of goodness of model fit\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"5\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTypes of measurements\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCriteria\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eValue obtained\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eLevel of acceptance\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"3\" rowspan=\"4\"\u003e \u003cp\u003eChi-square\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCMIN\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e33.650\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eDegree of freedom\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e18\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e-\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCMIN/DEF\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e1.869\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt; 3\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eP value\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.161\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.5\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAbsolute measurement of fit\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eRMSEA\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.048\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026lt; 0.08\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"3\" rowspan=\"4\"\u003e \u003cp\u003eIncremental fit instruments\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCFI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.989\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.9\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eIFI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.989\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.9\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eRFI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.952\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.9\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eTLI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.977\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.9\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eWell fitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\" morerows=\"1\" rowspan=\"2\"\u003e \u003cp\u003eParsimony fit measure\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePNFI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.511\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.50\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eFitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003ePCFI\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.615\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e\u0026gt; 0.50\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eFitted\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"5\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eA thorough summary of the model fit as determined by a number of statistical indicators is given by the findings listed in Table \u003cspan refid=\"Tab5\" class=\"InternalRef\"\u003e5\u003c/span\u003e of the measurement criteria. With 18 degrees of freedom and a chi-square statistic of 33.650, the CMIN/DEF ratio is 1.869, much below the cutoff of 3. This suggests that the model fits the data well. Furthermore, the p-value of 0.161, which is higher than 0.5, confirms that the model fit is adequate. These findings imply that the suggested model and the observed data are in good agreement, suggesting that the model accurately captures the underlying connections between the variables.\u003c/p\u003e\u003cp\u003eThe model's sufficiency is confirmed by further evaluation utilizing absolute and incremental fit indices. A well-fitting model is indicated by the reported Root Mean Square Error of Approximation (RMSEA) of 0.048, which is far lower than the generally recognized criterion of 0.08. Both the Incremental Fit Index (IFI) and the Comparative Fit Index (CFI) have incremental fit indices of 0.989, which is higher than the 0.9 minimum acceptability thresholds. Strong model fit is also shown by the Tucker-Lewis Index (TLI) at 0.977 and the Relative Fit Index (RFI) at 0.952. Finally both the Parsimonious Comparative Fit Index (PCFI) of 0.615 and the Parsimony Normed Fit Index (PNFI) of 0.511 above the 0.50 criterion indicating that the model is sufficiently parsimonious. All of these findings show that the model is reliable and effective in describing the connections between the variables in addition to being statistically significant.\u003c/p\u003e\u003ch2\u003eValidation\u003c/h2\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab6\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 6\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eValidity Concern\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"8\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eCR\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eAVE\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eMSV\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eMaxR(H)\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eSI\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eHC\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e \u003cp\u003eCA\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eSI\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.726\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.637\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.225\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.848\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e\u003cb\u003e0.650\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eHC\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.7587\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.656\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.134\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.765\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.172\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u003cb\u003e0.661\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e\u0026nbsp;\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eCA\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0.790\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0.600\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e0.273\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e0.796\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e0.382\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e0.191\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003e\u003cb\u003e0.683\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"8\"\u003eNote: SI = strategic innovation; HC = Human capital; CA = Competitive advantage\u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd colspan=\"8\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe validation findings in Table\u0026nbsp;\u003cspan refid=\"Tab6\" class=\"InternalRef\"\u003e6\u003c/span\u003e show that convergence validity was achieved since the AVE for a company's competitive advantage exceeds 0.50, and discriminant legitimacy was preserved as the AVE square root is greater than all connected similar values of correlation. Furthermore, convergence validity is attained when the AVE for strategic innovation is greater than 0.50.\u003c/p\u003e\u003ch2\u003eStructural Equation Model\u003c/h2\u003e\u003cp\u003eFig 3. Structural equation model\u003c/p\u003e\u003cp\u003eSource: survey result, (2024)\u003c/p\u003e\u003ch2\u003eRegression Examination Analysis\u003c/h2\u003e\u003cp\u003eTable\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e presents the results of the regression analysis examining the relationships among the constructs of consumer insight, technology adoption, and competitive advantage.\u003c/p\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c8\" colnum=\"8\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab7\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 7\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eRegression Examination\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"8\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colspan=\"3\" nameend=\"c3\" namest=\"c1\"\u003e \u003cp\u003eRelative\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eApprox.\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003eS.E.\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c6\"\u003e \u003cp\u003eC.R.\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003eP\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c8\"\u003e \u003cp\u003eAss.\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eHuman capital\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;---\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStrategic innovation\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.865\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.145\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e7.585\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003eH2\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCompetitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;---\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eHuman capital\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.329\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.133\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e2.856\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003eH3\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCompetitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u0026lt;---\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStrategic innovation\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e.958\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e.194\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c6\"\u003e \u003cp\u003e7.962\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e***\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c8\"\u003e \u003cp\u003eH1\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"8\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe regression analysis's findings, which show the connections between competitive advantage, strategic innovation, and human capital, are shown in Table\u0026nbsp;\u003cspan refid=\"Tab7\" class=\"InternalRef\"\u003e7\u003c/span\u003e. With a regression coefficient of 0.865, the impact of strategic innovation on human capital is the first connection to be looked at. The three asterisks (***) imply a very strong and statistically significant link, which is indicated by this high value, a standard error of 0.145, and a critical ratio (C.R.) of 7.585. This result is consistent with Hypothesis H2, which holds that strategic innovation significantly influences the development of human capital in businesses.\u003c/p\u003e\u003cp\u003eSignificant links pertaining to competitive advantage are also shown by the investigation. Hypothesis H3 is supported by the statistically significant (***) coefficient of 0.329, standard error of 0.133, and critical ratio of 2.856 obtained from the regression from human capital to competitive advantage. This suggests that increasing competitive advantage is positively impacted by expenditures in human capital. Furthermore, with a regression coefficient of 0.958, a standard error of 0.194, and a critical ratio of 7.962, the direct relationship between Strategic Innovation and Competitive Advantage is even more noticeable. This finding firmly backs up Hypothesis H1, demonstrating that gaining a competitive edge requires strategic innovation. When taken as a whole, these results illustrate the crucial connections between the three dimensions and the role that human capital and strategic innovation play in promoting competitive success.\u003c/p\u003e\u003ch2\u003eMediating Role Analysis\u003c/h2\u003e\u003cdiv class=\"gridtable\"\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e\u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e\u003ctable float=\"Yes\" id=\"Tab8\" border=\"1\"\u003e\u003ccaption language=\"En\"\u003e \u003cdiv class=\"CaptionNumber\"\u003eTable 8\u003c/div\u003e \u003cdiv class=\"CaptionContent\"\u003e \u003cp\u003eMediating role Analysis\u003c/p\u003e \u003c/div\u003e \u003c/caption\u003e\u003ccolgroup cols=\"4\"\u003e\u003c/colgroup\u003e\u003cthead\u003e\u003ctr\u003e\u003cth align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/th\u003e\u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eInfluence\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eWorth\u003c/p\u003e \u003c/th\u003e\u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003ePath Influence\u003c/p\u003e \u003c/th\u003e\u003c/tr\u003e\u003c/thead\u003e\u003ctbody\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eStrategic innovation → Competitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eDirect Influence\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.40\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eDirect influence stated\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eStrategic innovation → Human capital → Competitive advantage\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eIndirect Influence\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.70*.72 = .502\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003eIndirect Influence Ensued\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003ctr\u003e\u003ctd align=\"left\" colname=\"c1\"\u003e\u0026nbsp;\u003c/td\u003e\u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eWhole influence\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e.90\u003c/p\u003e \u003c/td\u003e\u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003ePartial mediation\u003c/p\u003e \u003c/td\u003e\u003c/tr\u003e\u003c/tbody\u003e\u003ctfoot\u003e\u003ctr\u003e\u003ctd colspan=\"4\"\u003eSource: Authors\u003c/td\u003e\u003c/tr\u003e\u003c/tfoot\u003e\u003c/table\u003e\u003c/div\u003e\u003cp\u003eThe role of human capital as a mediator in the relationship between strategic innovation and competitive advantage is clarified in Table\u0026nbsp;\u003cspan refid=\"Tab8\" class=\"InternalRef\"\u003e8\u003c/span\u003e. The analysis distinguishes between direct and indirect affects. Competitive advantage is directly impacted by strategic innovation by 0.40. By demonstrating that strategic innovation positively affects competitive advantage without the requirement for any intermediary factors, this straightforward technique validates the significance of strategic innovation in enhancing organizational performance. However, the approach also examines indirect effects through human capital. The indirect effect (i.e., 0.70 for Strategic Innovation to Human Capital and 0.72 for Human Capital to Competitive Advantage) is 0.502 when the route coefficients are multiplied. This suggests that human capital has a significant impact on the overall impact of strategic innovation on competitive advantage.\u003c/p\u003e\u003cp\u003eA substantial overall effect is shown by the total influence of 0.90, which combines the direct and indirect channels. The term \"partial mediation\" suggests that although human capital is important in amplifying the impact of strategic innovation on competitive advantage, direct influence is still rather high. This demonstrates how both dimensions play interrelated roles, highlighting the significance of both direct and mediated paths in comprehending the conversion of strategic innovation into competitive advantage.\u003c/p\u003e"},{"header":"Discussion","content":"\u003cp\u003eIn this work, factor analysis was conducted prior to estimating the model's parameters. It was evident that prior to further analysis, the data required to be examined for sample size adequacy. This was accomplished using the Kaiser-Meyer-Olkin and Bartlett test of sphericity (KMO). The existence of concept validity was confirmed using principal component analysis and Varimax rotation. The items in the current study had an extraction value of factor loading more than 0.5, according to the results. After calculating eigenvalues and the total variance explained, the eigenvalue for 27 items was greater than 1.\u003c/p\u003e \u003cp\u003eOf the total variance, 52.121 percent was explained by three factors. Previous studies showed that human capital and strategic innovation are related, and in these studies, strategic innovation had a significant and positive influence on human capital. Additionally, as previously shown by Abas and Mokhtar (2019b), the researchers found that strategic innovation has a statistically significant positive influence on human capital (AlQershi, \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). The results of the study supported previous research by Abbas et al. (2019), which demonstrates that strategic innovation significantly and favorably affects human capital. Companies may continue their growth, get a competitive advantage in the market, and innovate consistently by investing in human resources.\u003c/p\u003e \u003cp\u003eThe hypothesis, which was created to examine the relationship between strategic innovation and human capital, states that it is positive but not statistically significant. The findings also suggested that the relationship between strategic innovation and competitive advantage may be positively mediated by human capital. The study found that human capital somewhat mediated the relationship between competitive advantage and strategic innovation. This is similar to the results of Sibhato (\u003cspan citationid=\"CR51\" class=\"CitationRef\"\u003e2018\u003c/span\u003e), who showed that human capital mediates the relationship between strategic innovation and competitive advantage in Ethiopia. However, this finding was different from that of Wang (2022) and Jirakraisiri et al. (\u003cspan citationid=\"CR33\" class=\"CitationRef\"\u003e2021\u003c/span\u003e), who discovered that the relationship between strategic innovation and competitive advantage is totally mediated by human capital.\u003c/p\u003e \u003cp\u003eLast but not least, the path analysis result demonstrated that human capital directly affects competitive advantage, suggesting that \"Human capital has a significant positive effect on Competitive advantage.\" This hypothesis showed that hospitality organizations get a competitive edge by improving and investing in their human resources. These findings are consistent with past research showing that competitive advantage is significantly influenced by human capital. Alnoor (\u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), for instance, asserts that the human capital component positively affects competitive advantage. Additionally, it significantly and favorably affected CA and process innovation in small and medium-sized enterprises. The growth and competitive advantage of SMEs in Ethiopia were influenced both directly and indirectly by the human capital of owner-managers (Gebremichael \u0026amp; Tekle, \u003cspan citationid=\"CR24\" class=\"CitationRef\"\u003e2020\u003c/span\u003e), and Tanzanian hospitality companies with managers who possess the necessary education outperform those with less qualified managers (Timothy, \u003cspan citationid=\"CR55\" class=\"CitationRef\"\u003e2022\u003c/span\u003e).\u003c/p\u003e"},{"header":"Conclusion","content":"\u003cp\u003eThe researcher looked at how human capital mediated the relationship between competitive advantage and strategic innovation in Ethiopian hospitality companies. The study's findings demonstrated that a company's ability to gain a competitive edge is positively and significantly impacted by its human capital. Furthermore, the findings showed that strategic innovation is essential to increasing competitive advantage through human capital in Ethiopia's hospitality sector. The results showed that the direct benefits of strategic innovation on competitive advantage were positively correlated. The study also shown that, human capital functions as a mediator between strategic innovation and competitive advantage in hospitality business in Ethiopia. The cornerstone to a hospitality company's competitive advantage in the market is human capital.\u003c/p\u003e \u003cp\u003eFinally, the results of the structural equation model showed that competitive advantage is directly influenced by human capital, supporting the idea that \"human capital has a significant positive effect on competitive advantage of hospitality business.\" This illustrates how strategic human capital gives the hospitality industry a competitive edge in emerging economies, particularly in Ethiopia. Additionally, this study showed that a company's competitive edge and human capital will both improve if it increases its strategic innovation. Therefore, implementing strategic innovation is a crucial step for companies looking to gain and preserve a competitive edge in the hospitality industry. In order to obtain a competitive advantage, concerned parties such as managers, owners, and staff of hospitality businesses must understand that investing in strategic innovation enables them to easily compete in the fast-paced business world of today and enhances human capital for the present and the future.\u003c/p\u003e \u003cdiv id=\"Sec25\" class=\"Section2\"\u003e \u003ch2\u003eMANAGERIAL IMPLICATION\u003c/h2\u003e \u003cp\u003eThe investigation's conclusions suggest several significant management ramifications for organizations, especially Ethiopian hospitality enterprises looking to boost their competitiveness through strategic innovation. Managers should place a high premium on developing and implementing strategic innovation projects. Creating a culture that values creativity and experimentation may greatly increase an organization's human capital. In addition to giving workers the skills they need, investing in training initiatives and professional development opportunities will increase employee engagement and sense of ownership, two factors that are essential for promoting creativity. The report also emphasizes how crucial it is to see human capital as a link between competitive advantage and strategic innovation in the hospitality industry. Supervisors need to understand that merely putting new ideas into practice is insufficient; they also need to make sure that their staff members have the education and abilities needed to accept and carry out these changes. This entails establishing an atmosphere that encourages information exchange and ongoing learning so that staff members may work together productively and gain from their combined experience.\u003c/p\u003e \u003c/div\u003e"},{"header":"Abbreviations","content":"\u003cp\u003eSI: strategic innovation; HC: Human capital; CA: competitive advantage; SA:\u003cbr\u003e\u0026nbsp;strategic alignment; SF: strategic foresight; CI: consumer insight; SK: skill; KN: Knowledge;\u003cbr\u003e\u0026nbsp;TR: Training; CO: cost; FO: Focus; DEF: Differentiation; SEM: structural equation model\u003cbr\u003e\u0026nbsp;\u003c/p\u003e"},{"header":"Declarations","content":"\u003cul type=\"disc\"\u003e\n \u003cli\u003e\u003cem\u003eAcknowledgment:\u0026nbsp;\u003c/em\u003e For their time and valuable comments to improve this study, the authors want to thank reviewers in advance.\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eAuthor contribution\u003c/em\u003e\u003cstrong\u003e:\u0026nbsp;\u003c/strong\u003eTafese Niguse undertakes present research independently.\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eFunding:\u0026nbsp;\u003c/em\u003e\u003cstrong\u003e\u0026nbsp;\u003c/strong\u003eNo financial support given by organization and I would like to ask full waiver.\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eConsent for participation:\u003c/em\u003e During data collection, ethical consideration was undertake by the researchers\u0026nbsp;\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eData availability:\u003c/em\u003e For this study, the data is available and provided by reasonable request.\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eCompeting interest: the author undertakes present study independently.\u003c/em\u003e\u003c/li\u003e\n \u003cli\u003eEthics declaration: Not applicable\u0026nbsp;\u003c/li\u003e\n \u003cli\u003eConsent to publish: I hereby grant permission for the publication of this work and confirm that it has not been submitted elsewhere for publication.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cul\u003e\n \u003cli\u003e\u003cem\u003eEthics Declaration:\u0026nbsp;\u003c/em\u003eThe university ethical committee has granted the ethical approval for this study by ref no. 02/05/2017EC.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003e\u003cstrong\u003e\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\n\u003cli\u003eAbebe, N. 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In Corporate Foresight and Innovation Management (pp. 9-21). Routledge.\u003c/li\u003e\n\u003c/ol\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Strategic innovation, human capital, competitive advantage, Hospitality industry, Ethiopia","lastPublishedDoi":"10.21203/rs.3.rs-6377999/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6377999/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study's main goal was to examine how strategic innovation, human capital, and competitive advantage relate to one another within the Ethiopian hospitality sector. In light of the study's goals and nature, a quantitative method was taken after an explanatory research design. 384 samples were surveyed using a structured questionnaire to gather data, and multivariate analysis\u0026mdash;more especially, structural equation modeling (SEM) with path analysis\u0026mdash;as well as other descriptive statistics like means and confirmatory factor analysis were used for analysis. The study's conclusions showed that strategic innovation has a major and beneficial role in the Ethiopian hospitality sector's ability to gain a competitive edge. The findings also showed a favorable and statistically significant correlation between human capital and strategic innovation. Additionally, the study showed that, via the mediation of human capital, strategic innovation affects competitive advantage both directly and indirectly. In the end, the study found that human capital directly influences competitive advantage based on route analysis results, confirming the idea that human capital significantly improves competitive advantage.\u003c/p\u003e","manuscriptTitle":"Nexus between Strategic Innovation, Human Capital and Competitive Advantage in Emerging Economies: Evidence from hospitality industry in Ethiopia","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-05-07 08:47:59","doi":"10.21203/rs.3.rs-6377999/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"ad79a8a3-8cda-4e13-a4ed-90c3687e751e","owner":[],"postedDate":"May 7th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2025-07-24T13:53:14+00:00","versionOfRecord":[],"versionCreatedAt":"2025-05-07 08:47:59","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6377999","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6377999","identity":"rs-6377999","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}