Title:
MARKET ORIENTATION AND SME COMPETITIVENESS IN PUBLIC PROCUREMENT: THE MODERATING ROLE OF STRATEGIC FLEXIBILITY

Authors:
Denis Clement Kawishe, France Shayo and Alban Mchopa, Tanzania

Abstract:
This study investigates the effects of customer orientation, competitor orientation, and functional coordination on the sustainable competitiveness of Tanzanian special group Small and Medium Enterprises (SMEs), while assessing the moderating role of strategic flexibility. Although market orientation is often conceptualized as a unified construct, this paper adopts a component-level approach to evaluate the distinct contributions of each dimension within a highly regulated procurement environment. Data from 393 SMEs owned by youth, women, and persons with disabilities were analyzed using PLS-SEM. Findings reveal that customer orientation and competitor orientation significantly enhance sustainable competitiveness, whereas functional coordination shows no significant effect. Moreover, strategic flexibility demonstrates a negative moderation on the competitor orientation competitiveness link and an insignificant effect on the customer orientation path, underscoring its complex role in regulated markets. These insights highlight the need for strategic interventions that strengthen adaptive capabilities alongside market-driven strategies. The study offers practical implications for SME policy, capacity building, and procurement reform in developing economies.