Networking capability as an effort for SMEs to internationalize

Abstract

Networking capability is used as a supporting variable in SMEs' internationalization efforts. This is because SMEs find it difficult if they are alone to face increasingly fierce competition and are also faced with uncertain economic conditions. This study uses a quantitative approach, with SMEs owners as respondents. A total of 185 respondents are SMEs owners in the East Java region of Indonesia. Simple linear regression analysis is used, to measure validity, and reliability, followed by hypothesis testing. The results show that there is a positive and significant relationship between networking capability and internationalization. SMEs should be able to establish good and profitable cooperation with the government, suppliers, capital owners, and the community to reduce their limitations.