Impact of Market Orientation on Sustainable Competitiveness of Special Group SMEs in Public Procurement: The Moderating Role of Strategic Flexibility.

Kawishe, Denis Clement (2025) Impact of Market Orientation on Sustainable Competitiveness of Special Group SMEs in Public Procurement: The Moderating Role of Strategic Flexibility. Doctoral thesis, The Open University of Tanzania.

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Abstract

This study investigated the impact of market orientation on the sustainable competitiveness of special group Small and Medium Enterprises (SMEs) in public procurement, focusing on the moderating role of strategic flexibility. Grounded in the Market Orientation Theory and Dynamic Capability Theory, it explored how market- driven behaviors and adaptive capabilities enhance competitiveness within regulated procurement systems. An explanatory and quantitative research design was adopted, using a census sampling technique targeting all special group SMEs registered with the Public Procurement Regulatory Authority (PPRA). Data were collected through structured questionnaires from 503 firms, with 393 valid responses. Analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4 software. Findings showed that customer orientation and competitor orientation significantly enhance sustainable competitiveness, while functional coordination had no significant effect. Strategic flexibility significantly moderated the relationship between competitor orientation and sustainable competitiveness and strengthened the interaction between customer orientation and competitiveness. The study concludes that market orientation is a key driver of sustainable competitiveness among special group SMEs, depending on their ability to adapt strategies and resources through strategic flexibility. It recommends strengthening customer and competitor-oriented practices and enhancing capacity- building on flexibility, resource management, and inter-functional collaboration. Keywords: Market Orientation, Strategic Flexibility, Sustainable Competitiveness, Special Group SMEs, Public Procurement

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