Competitive Aggressiveness and Innovation Ecosystem Development in Kampala’s Industrial Sector

Abstract

This study evaluated the effect of competitive aggressiveness on innovation ecosystems in the industrial sector of Kampala, Uganda. It addressed limited evidence on whether bold competitive moves, aggressive opportunity pursuit, early product introduction, and disruptive pricing and marketing independently strengthen collaborative and institutional innovation arrangements. Guided by Entrepreneurial Orientation Theory, Innovation Ecosystem Theory, and Institutional Theory, the study adopted a pragmatic philosophy and an explanatory sequential mixed-methods design. The quantitative population comprised 1,450 industrial enterprises. A sample of 306 enterprises was selected, 261 questionnaires were returned, and five multivariate outliers were removed, leaving 256 valid cases. Twenty innovation ecosystem stakeholders participated in follow-up interviews. Quantitative data were analysed using SPSS and SmartPLS 4, while qualitative data were analysed thematically. Competitive aggressiveness positively and significantly predicted innovation ecosystems (β = 0.112, SE = 0.057, t = 1.971, p = 0.049), but its unique effect was negligible (f² = 0.007). The full model explained 59.1% of the variance in innovation ecosystems (R² = 0.591; adjusted R² = 0.578). Qualitative findings showed that firms viewed aggressive market positioning as necessary for survival, but tempered it to protect smaller suppliers, preserve value chains, and remain eligible for industry collaboration. The study concludes that competitive aggressiveness can support ecosystem development only when vigorous market action is balanced with ethical conduct, co-operation, and ecosystem sustainability.