STRATEGIC FLEXIBILITY AS A MODERATOR OF THE RELATIONSHIP BETWEEN MARKET ORIENTATION AND MARKETING PERFORMANCE OF CULINARY SMEs IN INDONESIA

Abstract

This empirical study investigates the influence of market orientation on marketing performance and explores the moderating role of strategic flexibility within the context of Indonesian small and medium enterprises (SMEs) culinary in Indonesia. Utilizing a quantitative research design, primary data were collected via a structured survey ad ministered between March 12th and April 12th, 2025. Respondents were selected using purposive sampling, focusing on SME managers or owners with a minimum of three years of operational experience. The sample used in this study consisted of 275 respondents. Data analysis employed Partial Least Squares Structural Equation Modelling (PLS-SEM), a robust method for predictive modelling and theory testing. The results indicate that market orientation significantly enhances marketing performance, underscoring the value of both proactive and responsive orientations in addressing customer needs and responding to market dynamics. Moreover, strategic flexibility was found to positively moderate the relationship between market orientation and marketing performance, suggesting that firms with higher adaptability can more effectively implement market-oriented strategies. These findings reinforce the contingency theory and the resource-based view by demonstrating that strategic alignment with a dynamic environment is essential for achieving sustained competitive advantage and superior marketing results. This research contributes to the strategic marketing and SMEs literature by providing empirical evidence on how market orientation and strategic flexibility jointly drive marketing performance in emerging market contexts.