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Social network ties, proactive entrepreneurial behavior and successful retail business: a study on Indonesia small enterprises

Muhammad Dharma Tuah Putra Nasution (Department of Management, Universitas Pembangunan Panca Budi, Medan, Indonesia and Doctoral Program in Management Science, Universitas Sumatera Utara, Medan, Indonesia)
Endang Sulistya Rini (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)
Yeni Absah (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)
Beby Karina Fawzeea Sembiring (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia)

Journal of Research in Marketing and Entrepreneurship

ISSN: 1471-5201

Article publication date: 4 February 2022

Issue publication date: 27 June 2022

416

Abstract

Purpose

This study aims to examine the relationship between social network ties (SNT) and successful retail business (SRB), as well as the effect of the moderating variable of proactive entrepreneurial behavior (PEB).

Design/methodology/approach

The quantitative method with a cross-sectional design is used. A series of questionnaires are distributed and collected from a total of 101 retail business owners selected by a purposive sampling technique. Factor analysis and regression analysis are used to test the validity of the data and hypotheses.

Findings

The results establish that the higher the SNT, the higher the chance of a retail business to be successful. Interestingly, subsequent findings indicate that the role of PEB can strengthen the relationship between SNT and SRBs.

Originality/value

Business owners or entrepreneurs are considering both SNT and PEB in making business decisions. A new insight on the importance of intangible resources is revealed where it is rooted in resource-based and social capital theories.

Keywords

Citation

Nasution, M.D.T.P., Rini, E.S., Absah, Y. and Sembiring, B.K.F. (2022), "Social network ties, proactive entrepreneurial behavior and successful retail business: a study on Indonesia small enterprises", Journal of Research in Marketing and Entrepreneurship, Vol. 24 No. 1, pp. 141-160. https://doi.org/10.1108/JRME-07-2020-0095

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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