The Impact of Market Sensing Capability on Export Performance: The Mediating Role of Export Market Exploration

Abstract

With an emphasis on the mediating function of export market investigation, This study looks at the connection between export performance and market sensing skills. Using information from 60 Indonesian furniture manufacturers, the study employs partial least squares structural equation modeling (PLS-SEM) to investigate the suggested relationships. The findings show that, through greater export market exploration, market sensing competence favorably improves both directly and indirectly exported performance. Specifically, market sensing competence has a strong favorable effect on export market exploration (β = 0.651, p < 0.001) and export performance (β = 0.504, p < 0.001). Additionally, export performance is positively impacted by export market exploration (β = 0.357, p < 0.01), and it partially mediates the association between export performance and market sensing ability (indirect effect: β = 0.232, p < 0.01). These results contribute to our comprehension of flexible capacities in global commerce by elucidating the mechanisms through which firms leverage market intelligence to improve their export competitiveness. The study highlights the importance of developing strong market sensing capabilities and actively exploring new export markets as key strategies for improving export performance in increasingly volatile global markets.

Keywords: Market Sensing Capability, Export Market Exploration, Export Performance, International Business.