Investigating the Mediation of Powerful Entrepreneurial Networking in the Marketing Performance of Halal Smes in Indonesia Towards Achieving Sustainable Development Goals

Abstract

Objective: This study introduces and analyzes a framework for Powerful Entrepreneurial Networking (PEN) to connect Entrepreneurial Orientation (EO) and Marketing Performance (MP) of halal Small and Medium Enterprises (SMEs) in Indonesia. It explores the direct impact of EO and Resource Availability (RA) on marketing performance and examines the mediating role of PEN in these relationships. The study aligns these factors with the Sustainable Development Goals (SDGs), aiming to enhance the economic and social performance of halal SMEs. Theoretical Framework: The research integrates concepts of entrepreneurial orientation, resource availability, and business networks, positing that PEN acts as a mediator, enhancing the influence of EO and RA on marketing performance. This holistic approach underscores the role of both internal capabilities and external networks in achieving business success, particularly within the halal sector. Method: A quantitative research approach was used, applying Structural Equation Modeling with Partial Least Squares (SEM-PLS). Data were collected from 354 halal-certified SMEs in North Sumatra, Indonesia, through structured questionnaires, and SEM-PLS was used to validate the research model. Results and Discussion: The findings reveal that entrepreneurial orientation and resource availability significantly improve the marketing performance of halal SMEs. Furthermore, PEN mediates these effects, enabling SMEs to leverage their entrepreneurial orientation and resources effectively, which is crucial for achieving superior marketing outcomes and contributing to the SDGs. Research Implications: The study offers practical implications for halal SMEs, suggesting the need to focus on entrepreneurial orientation, resource management, and networking to drive sustainable growth and align with SDGs. Originality/Value: This research contributes to the understanding of how PEN mediates the relationship between EO and marketing performance, providing insights into enhancing the capabilities of halal SMEs in line with SDGs.