Effective Import Strategy in Dire Dawa:

Its Drivers, Moderators, and Outcomes

Abstract

The main objective of this study was to investigate the effective import strategy in Dire Dawa: its drivers, moderators, and outcomes. Importers with a number 94 participated in the current study. Mix of qualitative and quantitative research approach and descriptive and explanatory research design were employed. The data that collected through questionnaire encoded in to SPSS version 26. The analysis of the quantitative data through simple descriptive statistics and multiple regression and Structural Equation Modeling. The study identifies key drivers influencing import strategies among importers, including drive capabilities, entrepreneurial capability, identification capability, and market development capability. It highlights that while both product differentiation and low-cost competitive advantages impact these strategies, low-cost competitive advantage is particularly significant. Importers' financial performance encompassing sales turnover, operating profits, sales growth, return on investment, return on assets, and return on sales is affected by both competitive advantages. Importers should develop key capabilities drive, entrepreneurial skills, identification, and market development to enhance their import strategies. Emphasizing low-cost competitive advantage alongside product differentiation can improve financial performance. Staying aware of competitive intensity and environmental uncertainties is crucial for strategy adaptation. Investing in training, monitoring financial performance, and implementing strong risk management practices will help importers navigate challenges and enhance competitiveness. The study's originality and value lie in its exploration of key capabilities drive, entrepreneurial skills, identification, and market development that influence import strategies. By examining the roles of low-cost and product differentiation competitive advantages, it provides a nuanced understanding of their impact on financial performance. Additionally, identifying competitive intensity and environmental uncertainty as moderating factors offers fresh insights into import strategy formulation, filling a gap in the literature and providing practical guidance for importers navigating market challenges.