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

doi:10.61255/jeemba.v4i5.1728

Authors

Yosia Tutus Angriawan Jaya Diningrat Universitas Ciputra Surabaya, Indonesia
Thomas Stefanus Kaihatu Universitas Ciputra Surabaya, Indonesia
Denny Bernardus Universitas Ciputra Surabaya, Indonesia
Halek Mu'min INTI International University, Malaysia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1728

Keywords:

Market Sensing Capability, Value Co-Creation Capability, Digital Engagement Capability, Marketing Performance

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.

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