Khouroh, Umu ORCID: https://orcid.org/0000-0001-8543-9044, Sudiro, Achmad, Rahayu, Mintarti and Indrawati, Nur Khusniyah (2020) The mediating effect of entrepreneurial marketing in the relationship between environmental turbulence and dynamic capability with sustainable competitive advantage: An empirical study in Indonesian MSMEs. Management Science Letters, 10 (3). pp. 709-720. ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)

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Abstract

The aim of this study was to examine the role of entrepreneurial marketing as a mediating variable in the relationship between environmental turbulence and dynamic capability with sustainable competitive advantage.
This study involved 130 craft industries in Malang Regency, Malang City, and Batu City, East Java, Indonesia. Application of loading factor followed by SEM-PLS developed a model showing how environmental turbulence and dynamic capability influence on entrepreneurial marketing which consequently leads to differentiation and performance improvement which are the established indicators of sustainable competitive advantage for the firms. The model was empirically validated using model fit indices and was found satisfactory. The findings show that environmental turbulence did not have any significant relationship with a sustainable competitive advantage. Dynamic capability had a significant relationship with a sustainable competitive advantage. Entrepreneurial Marketing mediates the relationship between environmental dynamic capabilities with sustainable competitive advantage. The analysis shows that highly dynamic capability and entrepreneurial marketing tends to highly sustainable competitive advantage. It indicated that dynamic capability and entrepreneurial marketing offer systematic model for supporting Micro, Small, and Medium Enterprises (MSMEs) to build a well-maintained environment and sustainable competitive advantage.

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