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The specific purpose of this study are conducting an empirical testing and analyzing the role of knowledge exploitability at relationship between marketing adaptation strategy and organizational agility that could improve sustainable competitive advantage. The novelty of this research is the addition of the concept of knowledge exploitability that mediates the relationship between marketing adaptation strategy and organizational agility and marketing performance.  The object of this study consists of SMEs. The research research unit consists of managers or staff authorized by the board of directors. Target population of research include SMEs in 7 cities / regencies in Indonesian amounting to 1201 MSMEs (Table 3.1). The questionnaire were applied to MSME in 7 cities / regencies in Indonesian from June until October 2018. The sampling method uses purposive sampling and has a target 150 respondents to comply with the AMOS program. Data were collected from the questionnaires in which processed through statistics and SEM.  This research finding shows that marketing adaptation strategy (new market exploration, development of marketing program, product diversity) can improve organizational agility, new market exploration can improve knowledge exploitability and also knowledge exploitability and organizational agility can improve sustainable competitive advantage.

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The mediating effect of knowledge exploitability and organizational agility on the relationship between marketing adaptation strategy and sustainable competitive advantage