The study aims to explore two mechanisms of sensing the market – through building customer orientation and sensing market needs through innovativeness and focus on execution of marketing decisions through flexible marketing decisions. Based on a sample of 290 emerging market firms. We test performance effects of the combination of market sensing and marketing flexibility in the first step of SEM analysis, and additionally explore possible configurations of these factors leading to superior performance outcomes and their absence using fsQCA analysis. The mechanism of MA effect is evaluated through the lens of both subjective and objective market performance, as well as competitive situation on the market. Finally, following the research on emerging markets, the role of dysfunctional competition is evaluated not just as a control variable in the first step, but also as moderator that leads to various managerial motivations.