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

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.