Exploring the Relationship of Networking Capabilities to Marketing Performance: A Study of Small Sized Business Firms in Central Java Indonesia

Entrepreneurial orientation is a determining factor for business success, entrepreneurial orientation has the characteristics of risk taking, proactive towards change and innovation to enhance the competitiveness of companies. For small and medium-sized companies, relationships and networks are important resources. Networks are considered an important variable for all types of companies, especially those related to the fact that the economic environment is becoming increasingly competitive. Networks enable companies to access resources, markets, information and technology. In addition, social networking is an important formation of the company and for the success and continuity of the company. This study examines the effect of entrepreneurial orientation, isolation mechanism, strategy quality as an independent variable, and network ability as an intervening variable on the marketing performance of batik Small and Medium Enterprises (SMEs.) in Central Java, Indonesia. This research was conducted on 160 owners and managers of batik SMEs. Data were collected with a ten-point Likert scale questionnaire consisting of statements about these variables. Data were analyzed with Structural Equation Modeling using AMOS. The research findings show the positive effect of entrepreneurial orientation and the quality of the strategy directly on the ability of the network, and, the ability of the network to marketing performance. The author discusses managerial implications and important future research from this finding