Effect of Organization Readiness on Competitive Advantage With Mediating Effect of Human Capital

Abstract

This study examines the relationship between organizational readiness and competitive advantage, with a particular emphasis on the function that human capital plays as a mediator in Ethiopian small and medium-sized businesses (SMEs). For SMEs looking to improve their market positioning, knowing the elements that lead to competitive advantage has become more and more important as Ethiopia's economic environment changes. Using a standardized questionnaire given to a representative sample of SMEs from a variety of industries, the study takes a quantitative approach. The results show that competitive advantage is highly influenced by organizational readiness, and that human capital plays a crucial mediating role in this connection. To be more precise, prepared companies that make investments in training, skill development, and employee engagement are better able to use their resources to gain a competitive edge.