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

Randy Kurniawan (Bina Nusantara University, Jakarta, Indonesia)
Dyah Budiastuti (Management Department, BINUS Business School, Bina Nusantara University, Jakarta, Indonesia)
Mohammad Hamsal (Management Department, BINUS Business School, Bina Nusantara University, Jakarta, Indonesia)
Wibowo Kosasih (Management Department, BINUS Business School, Bina Nusantara University, Jakarta, Indonesia)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 3 September 2020

Issue publication date: 12 October 2021

1609

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.

Keywords

Acknowledgements

The authors would like to thank reviewers and the editor-in-chief, who have enhanced the quality of the paper. The authors would also like to thank Editage (www.editage.com) for English language editing.

Citation

Kurniawan, R., Budiastuti, D., Hamsal, M. and Kosasih, W. (2021), "Networking capability and firm performance: the mediating role of market orientation and business process agility", Journal of Business & Industrial Marketing, Vol. 36 No. 9, pp. 1646-1664. https://doi.org/10.1108/JBIM-01-2020-0023

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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