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Network capability, relational capability and Indonesian manufacturing SME performance: an empirical analysis of the mediating role of product innovation


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Fig. 1

Empirical research model
Empirical research model

Hypothesis test results

HypothesisResult*Explanation
H1: Knowledge sharing → Product Innovationβ= 0.247; p= 0.005Hypothesis accepted
H2: Network capability → Product Innovationβ= 0.202; p= 0.018Hypothesis accepted
H3: Network capability → Business Performanceβ= 0.232; p= 0.008Hypothesis accepted
H4: Relational capability → Product Innovationβ= 0.433; p< 0.001Hypothesis accepted
H5: Relational capability → Business Performanceβ= 0.520; p< 0.001Hypothesis accepted
H6: Product innovation → Business Performanceβ= 0.040; p= 0.342Hypothesis rejected

Discriminant validity

Relational capabilityKnowledge sharingProduct innovationNetwork capabilityBusiness performance
Relational capability(0.820)0.6810.7340.6440.695
Knowledge sharing0.681(0.798)0.6520.5770.515
Product innovation0.7340.652(0.800)0.6010.563
Network capability0.6440.5770.601(0.803)0.578
Business performance0.6950.5150.5630.578(0.893)

Reliability and validity test results

Factor loadingAveCronbach's AlphaComposite reliability
Knowledge sharing0.6360.8060.874
KS10.790
KS20.812
KS30.803
KS40.873
KS50.729
Network capability0.6440.8140.878
NC10.734
NC20.763
NC30.855
NC40.852
Relational capability0.6720.8760.911
RC10.881
RC20.875
RC30.839
RC40.791
RC50.701
Product innovation0.6400.8580.899
INN10.777
INN20.812
INN30.803
INN40.873
INN50.729
Business performance0.7970.8730.922
BP10.909
BP20.865
BP30.904

Respondent characteristics

Respondent characteristicsFrequencyPercentage
Sex
Male3333%
Female6767%
Age
<30 years old00%
30–40 years old4040%
>40 years old6060%
Education
Elementary school1111%
Junior high school4242%
Senior high school4747%
Marital status
Married9999%
Unmarried11%
Company age
< 1 year00%
2–3 years11%
4–5 years4343%
More than 5 years3939%
Income
<Rp. 5 million44%
Rp. 6–10 million3838%
Rp. 11–15 million2121%
Rp. 15 million3737%
Number of employees
<106464%
10–5055%
>50
eISSN:
2543-912X
Sprache:
Englisch
Zeitrahmen der Veröffentlichung:
4 Hefte pro Jahr
Fachgebiete der Zeitschrift:
Wirtschaftswissenschaften, Betriebswirtschaft, Branchen, Transport, Logistik, Luftfahrt, Schifffahrt, Technik, Maschinenbau, Fertigung, Verfahrenstechnik