Abstract

This paper aims to investigate the mediating effect of knowledge exploitability (KE) and organizational agility (OA) on the relationship between new market exploration (NME), development of marketing programs (DMP), and product diversity (PD) with a sustainable competitive advantage (SCA). Data were collected from 189 Batik SMEs in Indonesia and were analyzed using Structural Equation Modeling (SEM). The result shows that new market exploration and development of marketing programs significantly affect knowledge exploitability, product diversity significantly affects organizational agility, knowledge exploitability, and organizational agility significantly affect sustainable competitive advantage. Furthermore, knowledge exploitability and organizational agility are proven to mediate the correlation between new market exploration, development of marketing programs, and product diversity with a sustainable competitive advantage.