Omni-channel distribution on inter-seller coordination in gaining competitive advantage among second-hand clothing sellers in Uganda

Abstract

This study examined the mediating role of Inter-Seller Coordination in the relationship between Omni-Channel Distribution and Competitive Advantage among second-hand clothing sellers in Uganda. The specific objectives were to examine the relationships between omni-channel distribution and competitive advantage, between omni-channel distribution and inter-seller coordination, between inter-seller coordination and competitive advantage, and to assess the mediating role of inter-seller coordination in this relationship. The study adopted a cross-sectional quantitative design, and data were collected from 350 respondents using self-administered questionnaires. Analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings revealed that Omni-Channel Distribution significantly enhanced Inter-Seller Coordination (β = 0.250, p = 0.000) and Competitive Advantage (β = 0.208, p = 0.000). However, Inter-Seller Coordination had a negative but significant effect on Competitive Advantage (β = -0.181, p = 0.001). This result confirms that while omni-channel distribution fosters coordination and market accessibility, excessive coordination may reduce differentiation and responsiveness among traders. The mediation results indicate that Inter-Seller Coordination partially mediates the relationship between omni-channel distribution and competitive advantage, suggesting that coordination influences the strength, but not the direction, of this relationship. The study concludes that omni-channel distribution is a vital strategic resource that enhances competitiveness through improved customer engagement, accessibility, and service integration. However, informal traders must maintain a balance between collaboration and market uniqueness to remain competitive. It is recommended that sellers integrate both online and physical distribution channels while strengthening branding, product quality, and customer service. Policymakers and trade associations should support digital literacy, provide affordable financing, and promote technological innovation to enhance the competitiveness and resilience of Uganda’s second-hand clothing sector.