The Effect of Entrepreneurial Orientation on Marketing Performance Mediated by Absorptive Capability and Networking Capability

Reni  Rupianti; Ananda Sabil  Hussein; Ferry  Firdaus

doi:10.54783/ijsoc.v4i2.475

Reni Rupianti Brawijaya University, Malang, Indonesia
Ananda Sabil Hussein Brawijaya University, Malang, Indonesia
Ferry Firdaus Brawijaya University, Malang, Indonesia

DOI: https://doi.org/10.54783/ijsoc.v4i2.475

Keywords: Marketing Performance, Entrepreneurial Orientation, Absortive Capability, Networking Capability.

Abstract

This research aimed to analyze the effect of entrepreneurial orientation, absorptive capability, and networking capability on marketing performance; examine the effect of entrepreneurial orientation on marketing performance mediated by absorptive capability and networking capability. The sample in this research was 140 SME owners of tempeh chips in the Sanan Industrial Center, Malang. The sampling technique in this research used purposive sampling. The data analysis technique used Partial Least Squares (PLS). The results showed that entrepreneurial orientation had a direct positive effect on marketing performance; entrepreneurial orientation had a direct positive effect on absorptive capability; entrepreneurial orientation had a direct positive effect on networking capability; absorptive capability had a direct positive relationship to marketing performance; networking capability had a direct positive impact on marketing performance; entrepreneurial orientation had a positive effect on marketing performance through absorptive capability; entrepreneurial orientation had a positive effect on marketing performance through networking capability. Absorptive capability and networking capability acted as partial mediating variables.

References

Anser, M. K., Yousaf, Z., Usman, M., Yousaf, S., Fatima, N., Hussain, H., & Waheed, J. (2021). Strategic business performance through network capability and structural flexibility. Management Decision, 59(2), 426–445. https://doi.org/10.1108/MD-06-2019-0741

Asemokha, A., Musona, J., Torkkeli, L., & Saarenketo, S. (2019). Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance. Journal of International Entrepreneurship, 17(3), 425–453. https://doi.org/10.1007/s10843-019-00254-3

Burvill, S. M., Jones-Evans, D., & Rowlands, H. (2018). Reconceptualising the principles of Penrose’s (1959) theory and the resource based view of the firm: The generation of a new conceptual framework. Journal of Small Business and Enterprise Development, 25(6), 930–959. https://doi.org/10.1108/JSBED-11-2017-0361

Covin, J. G., & Miller, D. (2014). International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions. Entrepreneurship: Theory and Practice, 38(1), 11–44. https://doi.org/10.1111/etap.12027

Cui, L., Fan, D., Guo, F., & Fan, Y. (2018). Explicating the relationship of entrepreneurial orientation and firm performance: Underlying mechanisms in the context of an emerging market. Industrial Marketing Management, 71(November), 27–40. https://doi.org/10.1016/j.indmarman.2017.11.003

Dahana, R. N., Indrawati, N. K., & Mugiono. (2021). Competitive Advantage To Mediate the Influence of Product Innovation and Entrepreneurial Orientation on Marketing Performance in Small and Medium Industry. Jurnal Aplikasi Manajemen, 19(2), 413–423. https://doi.org/10.21776/ub.jam.2021.019.02.17

Dhameria, V., Hidayat, A., Ghozali, I., Didiek, V., & Aryanto, W. (2021). Networking Capability , Entrepreneurial Marketing , Competitive Advantage , and Marketing Performance : A Case Study of Embroidery SMEs in Indonesia. 8(6), 319–326. https://doi.org/10.13106/jafeb.2021.vol8.no6.0319

Engidaw, A. E. (2022). Small businesses and their challenges during COVID-19 pandemic in developing countries: in the case of Ethiopia. Journal of Innovation and Entrepreneurship, 11(1), 1–14. https://doi.org/10.1186/s13731-021-00191-3

Grandinetti, R. (2016). Absorptive capacity and knowledge management in small and medium enterprises. Knowledge Management Research and Practice, 14(2), 159–168. https://doi.org/10.1057/kmrp.2016.2

Handayani, R., & Handoyo, R. D. (2020). With innovation, is the prospect performance of large-medium enterprises expected better? Journal of Economics, Business, & Accountancy Ventura, 22(3), 411–423. https://doi.org/10.14414/jebav.v22i3.2041

Hunt, S. D., Morgan, R. M., Hunt, S. D., & Morgan, R. M. (1995). Resource-Advan Theory of Competition : Dynamics , Path Dependencies , Dimensions Evolutionary. Journal of Marketing, 60(4), 107–114.

Hussein, A. S. (2019). Entrepreneurial Market Orientation and Marketing Performance: An Evidence From Malang Soybean Cracker Industry. Jurnal Sosial Humaniora, 0(01), 10. https://doi.org/10.12962/j24433527.v0i01.5764

Jiang, X., Yang, Y., Pei, Y. L., & Wang, G. (2016). Entrepreneurial Orientation, Strategic Alliances, and Firm Performance: Inside the Black Box. Long Range Planning, 49(1), 103–116. https://doi.org/10.1016/j.lrp.2014.09.003

Jiménez-Barrionuevo, M. A. M., Molina, L. M., & García-Morales, V. J. (2019). Combined influence of absorptive capacity and corporate entrepreneurship on performance. Sustainability (Switzerland), 11(11). https://doi.org/10.3390/su11113034

Kabue, L. W., & Kilika, J. M. (2016). Firm Resources, Core Competencies and Sustainable Competitive Advantage: An Integrative Theoretical Framework. Journal of Management and Strategy, 7(1), 98–108. https://doi.org/10.5430/jms.v7n1p98

Kapoor, M., & Aggarwal, V. (2020). Tracing the economics behind dynamic capabilities theory. International Journal of Innovation Science, 12(2), 187–201. https://doi.org/10.1108/IJIS-05-2019-0050

Karami, M., & Tang, J. (2019). Entrepreneurial orientation and SME international performance: The mediating role of networking capability and experiential learning. International Small Business Journal: Researching Entrepreneurship, 37(2), 105–124. https://doi.org/10.1177/0266242618807275

Kemenkraf. (2019). Laporan Outlook Kementrian Pariwisata Dan Ekonomi Kreatif. https://s3-kemenparekraf.s3.ap-southeast-1.amazonaws.com/Buku_Outlook_Pariwisata_dan_Ekonomi_Kreatif_2021_6768c3fcf0.pdf

Khouroh, U., Fatimah, A., & Handayani, K. (2019). Keunggulan Bersaing Berkelanjutan Ekonomi Kreatif (Y. Haqi (ed.); First Edit). UWAIS Inspirasi Indonesia.

Kollmann, T., & Stöckmann, C. (2014). Filling the entrepreneurial orientation-performance gap: The mediating effects of exploratory and exploitative innovations. Entrepreneurship: Theory and Practice, 38(5), 1001–1026. https://doi.org/10.1111/j.1540-6520.2012.00530.x

Liu, X., Zhao, X., & Zhao, H. (2018). Absorptive capacity and business performance: The mediating effects of innovation and mass customization. Industrial Management and Data Systems, 118(9), 1787–1803. https://doi.org/10.1108/IMDS-09-2017-0416

Lumpkin, G. T., & Dess, G. G. (1996). the Entrepreneurial Clarifying It Construct and Linking Orientation. Academy of Management Review, 21(1), 135–172.

Makhloufi, L., Laghouag, A. A., Sahli, A. A., & Belaid, F. (2021). Impact of entrepreneurial orientation on innovation capability: The mediating role of absorptive capability and organizational learning capabilities. Sustainability (Switzerland), 13(10). https://doi.org/10.3390/su13105399

Medase, K., & Barasa, L. (2019). Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria. European Journal of Innovation Management, 22(5), 790–820. https://doi.org/10.1108/EJIM-09-2018-0194

Mitrega, M., Ramos, C., Forkman, S., & Henneberg, S. C. (2012). Networking Capability, Networking outcomes, and Company Performance: A Nomological Model Including Moderation Effects. Industrial Marketing Management, 41(5), 739–751.

Munyanyi, W., & Pooe, D. (2019). The influence of absorptive capacity and networking capabilities on small and medium enterprises. The Southern African Journal of Entrepreneurship and Small Business Management, 11(1), 1–10. https://doi.org/10.4102/sajesbm.v11i1.231

Nuryakin, N. (2020). Exploring SMEs Marketing Performance Through Networking Capacity and Relational Capability. Asia Pacific Management and Business Application, 009(02), 137–150. https://doi.org/10.21776/ub.apmba.2020.009.02.5

Pisicchio, A. C., & Toaldo, A. M. M. (2021). Integrated marketing communication in hospitality SMEs: analyzing the antecedent role of innovation orientation and the effect on market performance. Journal of Marketing Communications, 27(7), 742–761. https://doi.org/10.1080/13527266.2020.1759121

Puspaningrum, A. (2020). Market Orientation, Competitive Advantage and Marketing Performance of Small Medium Enterprises (SMEs). Journal of Economics, Business, & Accountancy Ventura, 23(1), 19. https://doi.org/10.14414/jebav.v23i1.1847

Sadiku-Dushi, N., Dana, L. P., & Ramadani, V. (2019). Entrepreneurial marketing dimensions and SMEs performance. Journal of Business Research, 100(March), 86–99. https://doi.org/10.1016/j.jbusres.2019.03.025

Sanyal, S., Hisam, M. W., & Baawain, A. M. S. (2020). Entrepreneurial orientation, network competence and human capital: The internationalization of SMEs in Oman. Journal of Asian Finance, Economics and Business, 7(8), 473–483. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.473

Sari, L. F. (2013). Pengaruh Orientasi Pasar Dan Kreativitas Terhadap Kinerja Pemasaran Pedagang Pakaian Jadi Di Pasar Kliwon Kabupaten Kudus. Management Analysis Journal, 2(1), 110–116.

Setiawan, S. (2018). Prospects and Competitiveness in Creative Economy: Evidence from Indonesia. International Journal of Research in Business and Social Science (2147- 4478), 7(2), 47–56. https://doi.org/10.20525/ijrbs.v7i2.888

Siswanto, E., Kusumajanto, D. D., Ap, A. H., & Murdiono, A. (2020). E-marketing Untuk IKM Sanan Kota Malang. Jurnal Graha Pengabdian, 2, 103–113.

Solano, A., Herrero, Á., & Collado, J. (2018). E ff ect of market orientation , network capability and entrepreneurial orientation on international performance of small and medium enterprises ( SMEs ). International Business Review, June 2017, 0–1. https://doi.org/10.1016/j.ibusrev.2018.04.004

Srećković, M. (2018). The performance effect of network and managerial capabilities of entrepreneurial firms. Small Business Economics, 50(4), 807–824. https://doi.org/10.1007/s11187-017-9896-0

Sugiyono. (2018). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.

Sumiati, & Indrawati, N. K. (2017). Effect of strategic management dimensions on corporate entrepreneurship intensity at smes of tempe chips in malang. International Journal of Economic Research, 14(10), 297–303.

Tzokas, N., Kim, Y. A., Akbar, H., & Al-Dajani, H. (2015). Absorptive capacity and performance: The role of customer relationship and technological capabilities in high-tech SMEs. Industrial Marketing Management, 47, 134–142. https://doi.org/10.1016/j.indmarman.2015.02.033

Wang, Z., Wang, N., & Liang, H. (2014). Knowledge sharing, intellectual capital and firm performance. Management Decision, 52(2), 230–258. https://doi.org/10.1108/MD-02-2013-0064

Wu, I. L., & Chen, J. L. (2014). Knowledge management driven firm performance: The roles of business process capabilities and organizational learning. Journal of Knowledge Management, 18(6), 1141–1164. https://doi.org/10.1108/JKM-05-2014-0192

Zahra, S. A., & George, G. (2002). Institutional Knowledge at Singapore Management University Absorptive Capacity: A Review Reconceptualization and Extension. Academy of Management Review, 27(2), 185–203.