Abstract
<title>Abstract</title> <p> <bold>Background:</bold> Compared to alternative sectors, the manufacturing industry offers unparalleled avenues for capital accumulation, the exploitation of scale economies, and the centralization of technological innovation. <italic/> In Ethiopia, the beverage and food manufacturing industry has long played a central role in the country's industrial landscape. However, it is characterized by small firms, weak supply chain integration, limited technological progress, and low-value products, making it less competitive internationally. <bold>Objective:</bold> To evaluate the empirical effect of supply chain integration on sustainable competitive advantage among large-scale food and beverage manufacturing firms in Addis Ababa and Sheger cities, Ethiopia. <bold>Methodology:</bold> This explanatory study evaluates the relationship between supply chain integration (SCI) and sustainable competitive advantage (SCA) among food and beverage manufacturers located in Addis Ababa and Sheger, Ethiopia. We employed structural equation modelling (SEM) on survey data from a sample of 293 firms selected using purposive and stratified sampling techniques. The measurement model was validated through exploratory and confirmatory factor analyses using SPSS 27 and AMOS 23. <bold>Result:</bold> The data satisfied all prerequisite assumptions for factor analysis, yielding high KMO measures for SCA (0.900) and SCI (0.878), paired with significant Bartlett’s test results (p < 0.001). Additionally, the structural model exhibited excellent goodness-of-fit metrics, including a GFI of 0.965, a CFI of 0.996, and an RMSEA of 0.035. Empirical findings revealed that while supply chain integration exerts a positive direct impact on sustainable competitive advantage, this relationship is statistically negligible (β = 0.002, p = 0.973). Consequently, the proposed hypothesis was rejected. <bold>Conclusion</bold> : Despite the lack of statistical significance for this direct path, the study offers critical theoretical and managerial insights for stakeholders and policymakers aiming to bolster industrial competitiveness within Ethiopia’s manufacturing domain. </p>