Effect of Strategic alignment and strategic foresight on competitive advantage with mediating role of human capital a case of medium and large firms in Ethiopia

The aim of present investigation was to examine mediation effect of human capital among Strategic alignment, strategic foresight as well as competitive advantage in Ethiopian medium and large manufacturing firms. The target population for this study comprised of medium and large manufacturing firms operating in Sidama Regional State, Ethiopia. 950 employees working in 20 medium and large manufacturing firms were included in this investigation. Structured questionnaires were used to ensure consistency in data collection from a sample of 282 respondents. A quantitative research approach was used to establish relationships between multiple constructs. Using AMOS software, the investigators used techniques like exploratory factor analysis (EFA) to find hidden connections between variables, the Kaiser–Meyer–Olkin (KMO) measure to check if the sample size was good for factor analysis and structural equation modeling (SEM) to investigate both direct and indirect effects. The results showed that competitive advantage and strategic alignment, as well as strategic foresight and competitive advantage, are significantly correlated. Human capital was also found to be an important mediator, improving the efficiency of both strategic alignment and strategic foresight in reaching competitive results. The findings emphasize how crucial it is to incorporate human capital development into strategic management procedures and how medium and large manufacturing firms must cultivate an aligned and forward-thinking culture. For managers and policymakers looking to improve medium as well as large manufacturing firms' strategic competencies in a changing landscape of business, this research adds to the understanding of how these constructs interact to affect competitive advantage. To gain the competitive advantage, managers of medium and large manufacturing firms of Ethiopia should focus on building human capital and improving strategic alignment and foresight.