The Effect of Market Orientation and Competitive Advantage on Retail Industry Marketing Performance with Trust as a Mediation Variable

Purpose: This study aims to analyze the influence of market orientation and competitive advantage on marketing performance in the retail industry in the digital transformation era, with trust as a mediating variable. This study's novelty lies in exploring trust as an intervening variable, providing a deeper understanding of its role in improving marketing performance. Method: This study uses a quantitative approach with Structural Equation Modeling analysis using SmartPLS 4 software. Primary data were collected from management and employees in the retail sector, with a conceptual framework linking market orientation, competitive advantage, trust, and marketing performance. The sample involved employees involved in retail operations, thus providing relevant insights into the industry dynamics. Result: The results of the study indicate that market orientation and competitive advantage have a significant effect on marketing performance. In addition, both variables also have a significant effect on trust. Trust, in turn, has a significant positive effect on marketing performance. Trust also mediates the relationship between market orientation and marketing performance and between competitive advantage and marketing performance. This finding confirms the important role of trust as a mediating variable in strengthening the influence of market orientation and competitive advantage on marketing performance. Further research is recommended to explore other moderating or mediating variables, such as digital literacy or organizational culture. Expanding the study to different industries can also provide a broader perspective on market orientation, competitive advantage, and trust dynamics.