Unveiling the Nexus: the crucial role of competitive advantage in bridging entrepreneurial marketing practices and sustainable firm performance in small and medium enterprises

Abstract Studies about entrepreneurial marketing linked with competitive advantage and sustainability in SMEs are limited in the existing literature. This study therefore aimed to investigate the relationship between entrepreneurial marketing dimensions, focusing on the mediating role of competitive advantage, in ensuring the sustainability of firm performance. Descriptive research design combined with explanatory research to examine the relationships; and stratified sampling with simple random sampling techniques to select the enterprises were used. Data from 387 SMEs in Oromia, Ethiopia were collected and analyzed using structural equation modeling (SEM). The findings indicated significant connections among entrepreneurial marketing practices, competitive advantage, and sustainability of firm performance, with competitive advantage partially mediating the relationships. The finding also underlined SMEs that are entrepreneurial, strategic, and socially responsible are best positioned for long-term success. Practical implications suggested aligning marketing practices with overall strategies, optimizing resource usage, and enhancing innovation to improve competitive advantage and sustain firm performance. From a social perspective, embracing sustainable practices could positively impact, employment, environmental responsibility, economic stability, and consumer perception. The study offers valuable insights for academia, policymakers, and practitioners.