This study examines the effect of the Market Monitoring System (MAMOS) Strategy on SME Business Performance, both directly and indirectly through Market Responsiveness. Specifically, it examines Market Responsiveness as a mediating mechanism that translates market monitoring capabilities into improved business performance. The study used a quantitative explanatory research design and survey data collected from 150 SME owners. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that MAMOS Strategy has a positive and significant effect on Market Responsiveness (β = 0.718) and Business Performance (β = 0.335). Furthermore, Market Responsiveness positively and significantly influences Business Performance (β = 0.386). The indirect effect of MAMOS Strategy on Business Performance through Market Responsiveness is 0.277, indicating partial mediation. These findings suggest that market monitoring capabilities contribute to improved SME performance not only through direct strategic benefits but also by strengthening firms’ ability to respond promptly to customer needs and competitive changes. The study implies that SMEs should integrate systematic market monitoring with responsive decision-making routines to translate market intelligence into timely adjustments in products, pricing, marketing strategies, and customer services.
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