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All Journal Journal of Economics, Entrepreneurship, Management Business and Accounting
Yosia Tutus Angriawan Jaya Diningrat
Universitas Ciputra Surabaya, Indonesia
Economics, Econometrics & Finance

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Market Sensing, Health Consciousness Alignment, and Marketing Performance: A Moderated Mediation Model Yosia Tutus Angriawan Jaya Diningrat; Thomas Stefanus Kaihatu; Denny Bernardus; Halek Mu'min
Journal of Economics, Entrepreneurship, Management Business and Accounting Vol 4 No 5 (2026): Volume 4, Issue 5, September 2026
Publisher : CV. Sakura Digital Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61255/jeemba.v4i5.1728

Abstract

Purpose – Market sensing capability shows inconsistent effects on marketing performance across prior SME studies, including Indonesia's herbal medicine sector, where firms hold rich biodiversity-based knowledge yet underperform commercially. This study tests value co-creation capability as the mediator reconciling these conflicting findings, with digital engagement capability as a boundary condition. Design/methodology/approach – Data from 300 herbal SME owners and managers in East Java were analyzed with PLS-SEM in SmartPLS 4, complemented by CTA-PLS, the cross-validated predictive ability test (CVPAT), importance-performance map analysis, and necessary condition analysis (NCA). Finding/Results – Market sensing capability and health consciousness alignment significantly strengthened value co-creation capability (β = 0.420, 0.344; p < .001), which significantly predicted marketing performance (β = 0.483, p < .001) and complementarily (partially) mediated market sensing capability's effect on marketing performance while fully mediating health consciousness alignment's effect. Digital engagement capability had no direct effect but significantly strengthened the co-creation-to-performance path (β = 0.090, p = .003). CVPAT confirmed predictive superiority over a naive benchmark throughout and over a linear benchmark for marketing performance and the overall model; NCA identified value co-creation capability as the strongest necessity condition. Originality/Value – The findings offer one plausible explanation for a documented contradiction in the SME literature, consistent with value co-creation capability, rather than an unstable sensing effect, accounting for divergent prior results in this sample, and giving herbal SME managers an evidence-based investment priority.
Co-Authors Denny Bernardus Halek Mu&#039;min Thomas Stefanus Kaihatu