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All Journal Al-Kharaj: Journal of Islamic Economic and Business
Wulan Saraswati
Universitas Negeri Malang
Economics, Econometrics & Finance

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Marketing Agility, Market Sensing Capability, and Customer Orientation on SME Performance: The Mediating Role of Product-Service Adaptation Wulan Saraswati; Sudarmiatin; Puji Handayati; Naswan Suharsono
Al-Kharaj: Journal of Islamic Economic and Business Vol. 8 No. 3 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi
Publisher : LP2M IAIN Palopo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24256/kharaj.v8i3.12696

Abstract

This study aims to analyze the role of Product-Service Adaptation in mediating the effects of Marketing Agility, Market Sensing Capability, and Customer Orientation on the performance of MSMEs in Malang City. The research method employed a quantitative approach using purposive sampling of 108 SME owners or managers, and data analysis was conducted via Partial Least Squares (PLS)-based Structural Equation Modeling (SEM) using SmartPLS. The results indicate that Marketing Agility has a positive and significant effect on SME performance, while Market Sensing Capability and Customer Orientation have positive but insignificant effects on SME performance. Furthermore, Marketing Agility, Market Sensing Capability, and Customer Orientation were found to have a significant effect on Product-Service Adaptation, which in turn has a positive and significant effect on SME performance. Another key finding is that Product-Service Adaptation mediates the effects of Marketing Agility and Market Sensing Capability on SME performance but does not mediate the effect of Customer Orientation. Theoretically, this study strengthens the literature on dynamic capabilities by positioning Product-Service Adaptation as a mediating variable, while practically, it implies that MSME operators should not only rely on market sensing capability and customer orientation but also enhance marketing agility and product-service adaptation to further improve business performance.
Co-Authors Naswan Suharsono Puji Handayati Sudarmiatin