Mediating role of competitive strategy in the relationship between promotional mix strategy and sustainable organizational performance in Ethiopian private banks

Abstract This study investigates the Mediating role of Competitive Strategy in relationship among Promotional Mix Strategy and sustainable organizational performance in Ethiopian Private Bank. This study was relied on Dynamic capability theory and Resource Based Value theory, as its theoretical foundations to provide a comprehensive framework for analyzing internal resources, external industry forces, and organizational adaptability. The study employed explanatory research design with quantitative research approach to test hypothesized relationship among promotional mix strategy, competitive strategy and sustainable organizational performance. For this study, 383 employees was selected as study sample by applying a (Kothari 2004) formula from the population of 147,367 employees. The researcher used simple random sampling to select respondents from total population. To execute a simultaneous analysis of observed variables and latent structures, their relations, to estimate hypothetical constructs and their direct and indirect effect on the corresponding outcomes, Covariance-based structural equation model (CB-SEM) was used. The finding of this study reveals that promotional mix strategy has a positive significant effect on sustainable performance of the private Banks in Ethiopia. Similarly, there is positive significant association among promotional mix strategy and competitive strategy. Competitive strategy also positively influences sustainable organizational performance. Moreover, Competitive strategy was found Partial mediate promotional mix strategy as well as private bank performance. The significance of mediation of tested by bootstrapping with 95% confidence interval. This study contributes by advancing the understanding of the promotional mix strategy, competitive strategy in banking sector, by offering methodological accuracy to sustain sustainable organizational performance in Ethiopia. Practically, it recommends that to achieve sustainable organizational performance using promotional mix strategy properly mixing with competitive strategy in banking sector is vital to develop framework for sustainable private bank performance in Ethiopia.