Abstract Introduction Ecotourism is an important driver of sustainable development, particularly in biodiversity-rich countries like Ethiopia. Problem The impact of market accessibility and innovation on the financial performance of ecotourism enterprises in Ethiopia remains unclear, particularly across urban and rural areas with infrastructure and digital disparities. Besides this, the relationship between market accessibility, innovation, and financial success in ecotourism enterprises remains underexplored. Purpose This study investigates the impact of market accessibility and innovation on the financial performance of ecotourism enterprises in Ethiopia. Method Using a mixed-methods approach, we collected primary data from 300 ecotourism operators across key regions and supplemented it with secondary data from industry reports. We used focus groups and key informant interviews to identify obstacles and geographical differences. Structural equation modeling (SEM) was applied to validate measurement models, while Hayes’ PROCESS Macro was used to assess moderation effects. Findings The study found that enterprises with better market access to transport hubs, digital marketing adoption, and partnerships with global agencies achieved higher financial returns. The analysis reveals that both market accessibility (MA) and innovation have significant positive direct effects on financial performance (FP), with MA exhibiting a stronger impact compared to innovation. Additionally, innovation significantly moderates the relationship between MA and FP, further enhancing its effect. A positive association exists between MA and FP, supported by robust statistical reliability, confirming the significance of these findings. Rural enterprises face significant barriers to market access and inadequate digital infrastructure, which limits their innovation-driven financial gains. Implications The study offers policy recommendations to strengthen market linkages, foster innovation, and promote equitable growth in Ethiopia’s ecotourism sector. Graphical Abstract
Eltamo et al. (Tue,) studied this question.