Relational capital and marketing performance: The mediating role of SMEs networking in Indonesia

Abstract

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.