Structural Model Showing the Influence of Customer Orientation and Competitor Orientation on Sustainable Competitiveness with the Moderating Role of Strategic Flexibility

This study investigates the influence of Customer Orientation (CU) and Competitor Orientation (CO) on Sustainable Competitiveness (SC) among special group SMEs engaged in public procurement, while examining the moderating role of Strategic Flexibility (SF). Data was collected from 393 SMEs registered with the Public Procurement Regulatory Authority (PPRA) in Tanzania, using structured questionnaires. Analysis was done through Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that both customer orientation and competitor orientation have significant positive effects on sustainable competitiveness. Strategic flexibility negatively moderates the relationship between competitor orientation and sustainable competitiveness, while its moderating effect on the customer orientation path was not significant. The model explains 55% of the variance in sustainable competitiveness, highlighting the important role of market orientation strategies in enhancing long-term competitiveness in public procurement contexts. The findings provide valuable insights for policymakers and SME leaders aiming to strengthen the performance of special group enterprises in dynamic procurement environments.