Beyond Collaboration: The Impact of Partner Knowledge, Relational Skills, and Internal Communication on SME’s Performance
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Apr 30, 2025
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Abstract
This study aims to analyze the influence of network capabilities consisting of Partner Knowledge, Relational Skills, and Internal Communication on SME’s performance. Partner Knowledge plays a role in forming information exchange routines that support business processes, while Relational Skill refers to the organization's ability to build strong relationships to obtain reliable market information. Meanwhile, Internal Communication functions as a routine interaction mechanism that improves collaborative competence and accelerates organizational performance. This study uses a quantitative approach with a survey method involving SME actors as respondents. The data collected were analyzed using regression analysis techniques to test the relationship between the variables studied. The results of the study indicate that the three network capabilities contribute significantly to improving SME’s performance, both individually and simultaneously. This finding confirms that effective network capability management can improve competitiveness, operational efficiency, and innovation in SME Performance.
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References
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Solano Acosta, A., Herrero Crespo, Á., & Collado Agudo, J. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27(6). https://doi.org/10.1016/j.ibusrev.2018.04.004
Usman, M., Ahmad, M. I., & Burgoyne, J. (2019). Individual and organizational learning from inter-firm knowledge sharing: A framework integrating inter-firm and intra-firm knowledge sharing and learning. Canadian Journal of Administrative Sciences, 36(4). https://doi.org/10.1002/cjas.1517
Walter, A., Auer, M., & Ritter, T. (2006). The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of Business Venturing, 21(4). https://doi.org/10.1016/j.jbusvent.2005.02.005
Xiao, J., & Bao, Y. (2022). Partners’ knowledge utilization and exploratory innovation: the moderating effect of competitive and collaborative relationships. International Journal of Operations and Production Management, 42(9). https://doi.org/10.1108/IJOPM-08-2021-0517
Zacca, R., Dayan, M., & Ahrens, T. (2015). Impact of network capability on small business performance. Management Decision, 53(1), 2–23. https://doi.org/10.1108/MD-11-2013-0587
Andonov, A., Dimitrov, G. P., & Totev, V. (2021). Impact of E-commerce on Business Performance. TEM Journal, 10(4). https://doi.org/10.18421/TEM104-09
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
Bulińska-Stangrecka, H., & Bagieńska, A. (2020). Intangible resources for an organization’s sustainability potential. Entrepreneurship and Sustainability Issues, 8(1). https://doi.org/10.9770/jesi.2020.8.1(50)
de Almeida, J. M. G., Gohr, C. F., Morioka, S. N., & Medeiros da Nóbrega, B. (2021). Towards an integrative framework of collaborative capabilities for sustainability: A systematic review and research agenda. In Journal of Cleaner Production (Vol. 279). https://doi.org/10.1016/j.jclepro.2020.123789
Dwianika, A., & Gunawan, J. (2020). SME’S Green Entrepreneurial Intellectual Capital. International Journal of Business, Economics and Law, 23(1).
Ferreira, J., & Coelho, A. (2020). Dynamic capabilities, innovation and branding capabilities and their impact on competitive advantage and SME’s performance in Portugal: the moderating effects of entrepreneurial orientation. International Journal of Innovation Science, 12(3). https://doi.org/10.1108/IJIS-10-2018-0108
Jacob, G. H., Frese, M., Krauss, S. I., & Friedrich, C. (2019). On the importance of a motivational agency variable: Being a formal business in developing countries is only helpful for growth if business owners show a high degree of personal initiative. Journal of Applied Psychology, 104(9). https://doi.org/10.1037/apl0000398
Johan, A., Zulganef, Z., & Pratminingsih, S. A. (2023). The Drivers of Business Performance: Does Sales Force Strategy and Network Capability Matter? JBTI : Jurnal Bisnis : Teori Dan Implementasi, 14(1). https://doi.org/10.18196/jbti.v14i1.17019
Johan, A., Sriwardani, S., Hidayat, M., & Satriawan, B. (2025). Menilai Peran Tekanan Institutional Terhadap Eco-Innovation Serta Dampaknya Pada Kinerja Bisnis UMKM. Jurnal Darma Agung, 32(6), 584-596.
Johan, A., Sondari, T., & Satrio, N. (2024). Assess The Role of Marketing Intelligence and Network Capabilities in Product Innovation. Jurnal Focus Manajemen UPMI, 1(01), 1-13.
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). https://doi.org/10.1177/0266242618807275
Rehman, S. U., Elrehail, H., Nair, K., Bhatti, A., & Taamneh, A. M. (2023). MCS package and entrepreneurial competency influence on business performance: the moderating role of business strategy. European Journal of Management and Business Economics, 32(1), 1–23. https://doi.org/10.1108/EJMBE-04-2020-0088
Rialti, R., Marzi, G., Caputo, A., & Mayah, K. A. (2020). Achieving strategic flexibility in the era of big data: The importance of knowledge management and ambidexterity. Management Decision, 58(8). https://doi.org/10.1108/MD-09-2019-1237
Sarwar, Z., Khan, M. A., Yang, Z., Khan, A., Haseeb, M., & Sarwar, A. (2021). An Investigation of Entrepreneurial SMEs’ Network Capability and Social Capital to Accomplish Innovativeness: A Dynamic Capability Perspective. SAGE Open, 11(3). https://doi.org/10.1177/21582440211036089
Surjono, W. (2025). Regression and Correlation Analysis in Assessing Factors Influencing Customer Satisfaction in the Healthcare Sector. International Journal of Management Science and Information Technology, 5(1), 1-10.
Surjono, W. (2024). The Relationship Between Influencer Engagement in Improving Marketing Performance Through Instagram Social Media as Mediating Variable. Almana: Jurnal Manajemen Dan Bisnis, 8(3), 589-598.
Solano Acosta, A., Herrero Crespo, Á., & Collado Agudo, J. (2018). Effect of market orientation, network capability and entrepreneurial orientation on international performance of small and medium enterprises (SMEs). International Business Review, 27(6). https://doi.org/10.1016/j.ibusrev.2018.04.004
Usman, M., Ahmad, M. I., & Burgoyne, J. (2019). Individual and organizational learning from inter-firm knowledge sharing: A framework integrating inter-firm and intra-firm knowledge sharing and learning. Canadian Journal of Administrative Sciences, 36(4). https://doi.org/10.1002/cjas.1517
Walter, A., Auer, M., & Ritter, T. (2006). The impact of network capabilities and entrepreneurial orientation on university spin-off performance. Journal of Business Venturing, 21(4). https://doi.org/10.1016/j.jbusvent.2005.02.005
Xiao, J., & Bao, Y. (2022). Partners’ knowledge utilization and exploratory innovation: the moderating effect of competitive and collaborative relationships. International Journal of Operations and Production Management, 42(9). https://doi.org/10.1108/IJOPM-08-2021-0517
Zacca, R., Dayan, M., & Ahrens, T. (2015). Impact of network capability on small business performance. Management Decision, 53(1), 2–23. https://doi.org/10.1108/MD-11-2013-0587