| dc.description.abstract | Purpose – This study aims to examine an empirical evidence of the relationship between relational
capital, network competence and market entry capabilities on marketing performance in small- and
medium-sized enterprises’ (SMEs’) furniture export orientation in Central Java, Indonesia.
Design/methodology/approach – This study uses a quantitative research approach to investigate
the relationship between relational capital, network competence, market entry capabilities and
marketing performance. To achieve the research objectives, data were collected from managers or
owners of furniture export orientation in Central Java, Indonesia. Using structural equation modeling,
and after a series of exploratory and confirmatory factor analyzed, the authors tested an integrated
model of the relationship between relational capital, network competence, market entry capabilities and
marketing performance.
Findings – The result of this study indicates that relational capital has a positive significant effect on
marketing performance. Relational capital has an insignificant effect on market entry capabilities.
Network competence has a positive effect on market entry capabilities. Market entry capabilities have a
positive effect on marketing performance. Other results also show that market entry capabilities can
mediate the influence of network competence and marketing performance.
Research limitations/implications – The limitation of this research indicates that respondents in
this research are very varied, if it is seen from their background into furniture business development,
whereas many respondents do not have enough understanding of the questionnaire distributed. This
research is only developed at the SMEs’ furniture area, so it cannot be generalized at the other
organizational area. The influencing of relational capital result in market entry capability has not
suitable with theory built. It is because inaccurate dimension market entry capability has been applied
in this research. For future research, it is suggested to look for alternative dimension of market entry
capability.
Practical implications – Based on the analysis results and discussion, it can be formulated that
managerial implication explains the following steps: first, a company should focus on long-period
relationship development. Focus on long-period relationship development will increase customer
loyalty and company performance. Moreover, the customer has long-term relationship with
organization, although instability condition because of the belief in long-period relationship and strong
commitment to each other. The evidence from this study suggests that’s the organization needs to
develop the long-term relationship with customer. Second, networking competency is important in
market entry capability. Relationship can change anytime; therefore, the company has to have a strong
competency of network developing. This competency helps company to enhance strong relationship.
The strong network relationship helps company face easier ways in market entry capability.
Originality/value – The results of this research indicate that the role played by relational capital to
increase market entry capability is not as good as the role played by network capability on market entry
capability. In the international market context, the role of resource-based view is better than that of transaction cost economy in influencing market entry capability. Other results also show that market
entry capabilities can mediate the influence of network competence and marketing performance | en_US |
