Effect of Porter's Five Forces on Sustainable Competitive Advantage: The Mediating Role of Market Orientation Among Maldivian Guesthouse SMEs

The purpose of this conceptual paper is to examine the influence of Porter’s Five Forces on sustainable competitive advantage with the mediating role of market orientation among guesthouse SMEs in the Maldives. The study proposes Porter’s Five Forces dimensions, namely threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes and competitive rivalry, as determinants of market orientation and sustainable competitive advantage. Market orientation is proposed as the mediating variable, while sustainable competitive advantage is the dependent variable. This study adopts a conceptual research design based on an extensive review of theories and empirical literature relating to strategic management, market orientation and tourism competitiveness. Existing literature indicates that Porter’s Five Forces significantly influence organisational competitiveness and strategic positioning. However, previous studies mainly focused on direct relationships between competitive forces and organisational performance, with limited attention given to the mediating role of market orientation, particularly within tourism SMEs and small island economies. Furthermore, studies examining the combined relationship between Porter’s Five Forces, market orientation and sustainable competitive advantage within the Maldivian tourism industry remain limited. Therefore, this study contributes to the strategic management and tourism competitiveness literature by proposing an integrated conceptual framework relevant to guesthouse SMEs in the Maldives. The proposed study is also expected to provide useful implications for guesthouse owners, managers and tourism policymakers in improving competitiveness and strategic responsiveness within the tourism sector.