Network Advantage: Mediating Effect on Business Performance (original) (raw)
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Relational capital and marketing performance: The mediating role of SMEs networking in Indonesia
Management Science Letters, 2020
The purpose of this research is to find a research gap solution between relational capital and marketing performance. This research uses small and medium enterprises (SMEs) networking as a mediating variable, and adds technology capability and new product development as an expansion of research. The research method uses Structural Equation Modeling to test hypotheses and uses WarpPLS 4.0 in data analysis. Simple random sampling is conducted to 170 respondents as owners or managers of SMEs in Indonesia. The findings of this study indicate that the SME networking is an appropriate mediating variable between relational capital and marketing performance since there is a significant effect of relational capital on SMEs networking directly and also a significant effect of SME networking to marketing performance, directly. However, there is no significant effects of technology capability to SMEs networking and also no significant influence from technology capability to new product development. Likewise, there is no significant influence of new product development to marketing performance. This research is very important for SMEs in Indonesia as a solution for facing problems in the future.
Purpose-The trend of increasing cooperation between companies in the form of strategic partnership is currently considered as a response to the rapid changes on business environment. However, there are still contradictions on both the business phenomenon and the research result. Therefore, the purpose of this research is to examine the mediating role of networks symbiosis capability in bridging the relationship of strategic alliance and business performance Methodology-The population of this research are tenun ikat businesses in the province of East Nusa Tenggara and Bali. The samples are 200 respondents in the Region of Sumba Timur, Kota Madya Kupang, Region of Gianyar and Klungkung. Data were collected with the use of questionnaires and analyzed using structural equation analysis with AMOS V.21. Findings-The results show that the strategic alliances built by ikat businesses have no impact on the improvement of business performance. However, the network symbiosis capability plays a significant mediating role in bridging the relationship between strategic alliances and business performance. Conclusion-Strategically, SMEs can improve business performance by developing the network symbiosis capability as a resource for their companies.
The Influence of Dimensions of Networking Capability in Small and Medium Enterprise Performance
2014
This study examined the influence of four dimensions of networking capability (NWC) namely internal communication, partner knowledge, relational skills, and coordination in SMEs performance. To attain this objective a cross sectional research design was used in which 291 SME owners / managers in three sectors of economy namely manufacturing, service and retail in Tanzania were interviewed. The results confirm positive influence of three dimensions of NWC (i.e. internal communication, partner knowledge and relational skills) in SME performance and negative influence of coordination in SME performance. These findings suggest that firms’ emphasis on relational skills set a context to identify appropriate partner with relevant resources and capabilities to complement resource needs of firms that subsequently build competitive advantage. Following debate on whether networking is beneficial or not this study ascertain that the benefits of networking are inclined on the ability of a firm t...
Journal of Management and Business
Small and medium enterprises in Indonesia are currently facing stiff competition because more and more competitors are emerging. To win the competition, local companies must pay attention to the strategies adopted so as to produce innovations that can be a strength for the organization itself. Factors that influence the creation of innovation it self include knowledge management and network capability. The purpose of this study is to investigate how knowledge management and network capability affect the creation of innovation. This research uses descriptive research. Data was collected through a survey by distributing questionnaires to 200 respondents and returning 170 respondents. The results of the study indicate that there is a positive influence between knowledge management on network capability and the creation of innovation, besides that network capability has a significant effect on the creation of innovation.
The existence of the network is very common in enterprises. Almost every enterprise has networks of different connections, including small and medium-sized enterprises (SMEs) in transition economies. In the past, most of the researches on the relationship between network and firm performance are based on the experience of developed economies, while the empirical researches on transition economies are relatively lacking. Thereby, this study employs the data of Vietnamese SMEs in 2013 to test the impact of network size on firm performance. The network data covers six aspects, including within-sector-network, across-sector-network, network with bank officials, network with politics and civil servants, other network and overall network. Finally, the research results indicate that in the SME networks, only the network scale with business people in other sectors has a statistically significant negative correlation with the profit margin of SMEs, and other networks have no effect on firm performance.
The Impact of Relational Capital on Competitiveness of the Organization
Network Intelligence Studies, 2014
Today organizations are becoming increasingly more aware of the importance of knowledge, as a consequence due to the changing environment and the ongoing process of globalization. Knowledge is the most valuable asset that an organization can have, because it is through him that opens horizons and make your way. Companies using knowledge as a key resource (the raw material from which the financial results are obtained arises and develops) are considered successful companies. The aim of the paper is to to see the impact of relational capital on competitiveness of the organization of SMEs that operating in the field of constructions. Considering this, it was developed a case study that utilises a pragmatic and unique, holistic and exploratory approach.
2021
The purpose of this study is to evaluate the internal and external factors, as well as strategies related to the effectiveness of network management, link with the development of SMEs Cluster. The research location in East Kalimantan Province, was divided into the three categories of clusters, including the Batik, Food and Handicraft, where 351 respondents were selected as using the cluster sampling design, and the data obtained was analysed using structural Equation Modeling. Therefore, the following hypothesis were established; (1) there are relationship between internal factor and the effectiveness of network management. (2), there are relationship between external factor and the effectiveness of network management, and (3), there are relationship between strategy and the effectiveness of network management. This research identified four strategies that ought to be properly implemented, in order to achieve effectiveness, consisting of community and bureaucratic orientation, accou...
Relational Capital and Performance: Empirical Evidence on the Services Sector of SMEs in Malaysia
International Journal of Academic Research in Accounting, Finance and Management Sciences
Many studies have examined the effect of relational capital on SMEs. However, most studies were done in SMEs, not specific by sectors or industries. Relational capital is expected to have a different impact on the services sector due to its unique characteristics. Moreover, for SMEs to achieve a competitive advantage, SMEs in the service sector need to utilize the knowledge sharing and resources they possess fully. Due to this lack, this study aims to examine the relationships between relational capital and the performance of service SMEs in Malaysia. The survey questionnaire distributed to the SME managers consists of demographic profiles of the respondents and firms' characteristics and items measuring relational capital, including customers, suppliers, distribution channels, the government, and financial institutions. This study revealed that relational capital measured by customers, suppliers, partners, distribution channels, and financial providers significantly influence SMEs' economic and financial performance. Therefore, the findings suggested that the owner or manager of SMEs in the service industry should invest in building and maintaining close relationships with the networks to continuously serve the nation and contribute to the economies.
RSF Conference Series: Business, Management and Social Sciences
Learning capability is an important aspect in sustaining a business, especially in a rapidly changing environment. SMEs in Klaten, Central Java, collaborate in an association to solve the same problem. The purpose of this research is to test and analyze the effect of relational ability on learning ability.The study was conducted on 100 food SMEs in Klaten, Central Java using a quantitative approach. The research instrument was a questionnaire to obtain data. The analytical tool used is WarpPLS. The research findings show that relational capability has a significant effect on learning capability.