Networking capability and firm performance: the mediating role of market orientation and business process agility

Abstract

Purpose This study aims to examine the effect of networking capability through market orientation and business process agility on the firm performance of medium and large telecommunication technology providers in Indonesia. Design/methodology/approach Research data was collected from the executive management of telecommunication technology providers in Indonesia via a questionnaire survey to obtain 150 valid questionnaires for analysis. This study analysed the overall model fit and hypotheses through confirmatory factor analysis and structural equation modelling. Findings The results reveal that networking capability has a positive and significant effect on market orientation. However, networking capability does not have a significant direct effect on business process agility. The results also indicate that market orientation does not have a significant direct effect on firm performance but through the mediating role of business process agility. Practical implications The findings provide a practical foundation for the organisation’s networking capability to be framed by market orientation and business process agility to enhance firm performance. Originality/value The results indicate that market orientation mediates the relationship between networking capability and business process agility. The findings also reveal that business process agility mediates the relationship between market orientation and firm performance. This study also reconceptualises market orientation to embody the inter-partner coordination dimension and reconceptualise business process agility to embody business partner switching capability.

The role of multi-stakeholders in market orientation and sustainable performance

“…Some studies have tangentially investigated the relationship between stakeholders, MO or marketing capabilities, especially when evaluating customer engagement and employee satisfaction (i.e. Cruz-Ros et al, 2010;Griffith et al, 2010;Costa et al, 2018;Kurniawan et al, 2020). Therefore, a gap that this study intends to fill is in the expansion of the scarce studies in the literature that assess the relationship between MO, multi-stakeholders and ESG performance, or even how these joint competences and demands from various stakeholders can lead to better and more sustainable corporate performance (Antolin-L opes et al, 2016;Esty and Cort, 2017).…”

“…There is also a scarcity of research and models discussing ESG performance, both in terms of marketing background (Kurniawan et al, 2020) and stakeholder management (Eweje et al, 2021), even though interconnection of their activities is a reality in practical terms. This research, therefore, aims to analyze the relationship between MO and SO in organizational performance, with a focus on ESG performance results.…”

“…MO is a strategic proposition that considers the organization's immersion in relationship with others in the environment but that mainly verifies the possibility of internal development in order to achieve a superior advantage (Kurniawan et al, 2020). Due to environmental changes, which are characterized by competition intensity and diversity and by innovation, strategies have been developed that are based more on organizational capabilities than on serving markets (Costa et al, 2018;Teixeira-Filho et al, 2020;Kohli and Haenlein, 2021).…”

“…Empirical and theoretical studies carried out in the last decade (Jaworski and Kohli, 1993;Shoham et al, 2005;Griffith et al, 2010;Mohiuddin Babu et al, 2019;Kurniawan et al, 2020) conceptualized and defined the measurement of constructs related to MO, and they proved that when an organization adopts such an orientation, the result is a superior business performance.…”

130119069_diah Novi Anggraeni

“…(Godoy-Bejarano, Ruiz-Pava, & Téllez-Fallad, 29 July 2020)Kinerja perusahaan telah menjadi sebuah kajian ilmiah manajemen strategis karena tujuan utama dari disiplin ini adalah untuk mencapai peningkatan kinerja (Venkatraman dan Ramanujam, 1986) perusahaan dengan environmental performance yang sempurna akan menjadi suatu good news bagi para investor. (Venkatraman and Ramanujam, 1986) (Budiastuti, Hamsal, Kosasih, & Kurniawan, 15 June 2020). Kinerja perusahaan melalui intens dan mediasi.…”