Mediation Effect of Customer Loyalty in Relationship Between Market Orientation, Entrepreneurial Orientation, and Firm Performance in Ethiopia

Abstract

This study focused on the mediating role of customer loyalty between market orientation, entrepreneurial orientation and Ethiopian hotel performance. It was aimed: To see effect of market orientation and entrepreneurial orientation on business performance, to see effect market orientation and entrepreneurial orientation on customer loyalty, and to find mediation effect of customer loyalty between market orientation, entrepreneurial orientation and business performance. Descriptive research design and non-probability, particularly convenience sampling was used. Structured questionnaire was used. For data analysis, percentage, mean, standard deviations were employed. Structural equation modeling by EFA and CFA was employed using SPSS and AMOS.23. The finding showed there is positive significant relationship between MO, CL, and FP. However, there is negative relationship between EO and FP. But, with the mediation of CL, the relationship between EO and FP was found.

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