The Effect of Market Orientation on Marketing Performance Through Competitive Advantage as a Mediating Variable (In Sidoarjo Regency MSMEs)

Objective: This study examines the effect of market orientation on marketing
performance, with competitive advantage as a mediating variable, in the context of
MSMEs in Sidoarjo Regency. Given the increasingly competitive business
environment, MSMEs must leverage their resources and capabilities to achieve a
sustainable competitive advantage and enhance marketing performance. Method: A
quantitative research approach was employed, utilizing a survey questionnaire
distributed to MSMEs in Sidoarjo Regency. The study applied a purposive sampling
technique to select relevant respondents. Data analysis was conducted using Partial
Least Squares (PLS) to assess both the measurement and structural models. Results:
The findings indicate that market orientation has a significant and positive impact on
marketing performance. Additionally, competitive advantage serves as a mediating
factor, reinforcing the relationship between market orientation and marketing
performance. The results highlight that MSMEs adopting market-oriented strategies
can enhance their competitive advantage, ultimately leading to improved marketing
performance. Novelty: This study contributes to the existing literature by providing
empirical evidence on the mediating role of competitive advantage in the relationship
between market orientation and marketing performance within the MSME sector in
Sidoarjo Regency. The findings offer practical insights for MSME practitioners to
strengthen their competitive strategies through market orientation