Market Accessibility, Innovation, and Financial Success: A Comparative Study of Ecotourism Enterprises in Ethiopia

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Abstract

Introduction: Ecotourism is an important driver of sustainable development, particularly in biodiversity-rich countries like Ethiopia. However, the relationship between market accessibility, innovation, and financial success in ecotourism enterprises remains underexplored. Purpose: This study examines how market accessibility and innovation influence the economic viability of ecotourism enterprises in Ethiopia. Method: Using a mixed-methods approach, we collected primary data from 300 ecotourism operators across key regions and supplemented it with secondary data from industry reports. We used focus groups and key informant interviews to identify obstacles and geographical differences. Structural Equation Modeling (SEM) was applied to validate measurement models, while Hayes' PROCESS Macro was used to assess moderation effects. Findings: Enterprises with better market access—through proximity to transport hubs, digital marketing adoption, and partnerships with global agencies—achieved higher financial returns. The analysis reveals that both Market Accessibility (MA) and Innovation have significant positive direct effects on Financial Performance (FP), with MA exhibiting a stronger impact (b = 0.5895, p < .001) compared to Innovation (b = 0.2591, p < .001). Innovation significantly moderates the relationship between MA and FP, enhancing its effect. A positive association (0.237) exists between MA and FP, supported by robust statistical reliability (critical ratios = -2.398, p = 0.0016), confirming the significance of these findings. The rural enterprises face significant market access and digital infrastructure barriers, limiting their innovation-driven financial gains. Implications: The study provides policy recommendations to enhance market linkages, promote innovation, and ensure equitable growth in Ethiopia’s ecotourism sector. Contribution: This research bridges the gap between sustainability and profitability in green entrepreneurship within developing economies.

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