Exploring Competitive Advantage as a Mediator between Entrepreneurial Orientation and Organizational Innovation: An Analytical Study of the Perspectives of Private Hospital Administrators and Managers in Erbil Governorate: Exploring Competitive Advantage as a Mediator between Entrepreneurial Orientation and Organizational Innovation

Ahmed Fathulla Ahmad

doi:10.63841/iue32666

Authors

Ahmed Fathulla Ahmad Department of Business Administration, Erbil Polytechnic University, Erbil 44001, Kurdistan Region, IRAQ Author https://orcid.org/0000-0001-8927-7644

DOI:

https://doi.org/10.63841/iue32666

Keywords:

Entrepreneurial Orientation, Organizational Innovation, Competitive Advantage, Healthcare Innovation, Strategic Management, Innovation Drivers.

Abstract

This study investigates the mediating role of competitive advantage (CA) in the relationship between entrepreneurial orientation (EO) and organizational innovation (OI) within private hospitals in Erbil, Kurdistan Region of Iraq. Entrepreneurial orientation—defined by innovativeness, proactiveness, and risk-taking—has been recognized as a critical driver of organizational innovation, yet the mechanisms underlying this link remain underexplored. To address this gap, a quantitative, cross-sectional survey was conducted with 329 administrators and managers from private hospitals. Data were analyzed using Structural Equation Modeling (SEM) with AMOS software. The findings revealed that EO exerts a significant direct influence on OI (β = 0.45, p < 0.001). Moreover, CA emerged as a crucial mediator, with EO positively affecting CA (β = 0.52), which in turn enhanced OI (β = 0.58). The indirect effect of EO on OI through CA was 0.30, yielding a strong total effect of 0.75. Model fit indices (CFI = 0.92, TLI = 0.91, RMSEA = 0.05, SRMR = 0.04) confirmed the robustness of the structural model. The results underscore those hospitals with strong entrepreneurial orientation are more likely to innovate when leveraging competitive advantages such as cost efficiency, service differentiation, and advanced technologies. This highlights CA as a strategic mechanism that amplifies the innovation potential of EO. Practically, the study recommends cultivating an entrepreneurial culture and investing in competitive strengths to sustain innovation in healthcare services. Future research should employ longitudinal designs and explore moderating variables such as leadership style and organizational culture.

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Author Biography

Ahmed Fathulla Ahmad, Department of Business Administration, Erbil Polytechnic University, Erbil 44001, Kurdistan Region, IRAQ

Dr. Ahmad F Ahmad is a [Lecturer] at the Department of Business Administration. College of Technical Administration, Erbil Polytechnic University. He got the B.Sc. degree in agriculture, the M.Sc. degree in public administration, and the Ph.D. degree in Business Administration. His research interests are in leadership, supply chain management, Strategic Management, Organizational Innovation; Dr. Ahmad is a member of [6] Society, has published [11 ] papers, and participated in [21 ] international and national workshops and conferences.

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Exploring Competitive Advantage as a Mediator between Entrepreneurial Orientation and Organizational Innovation: An Analytical Study of the Perspectives of Private Hospital Administrators and Managers in Erbil Governorate