Abstract
It has been a c knowledged that small and medium ente r prises (SMEs) play essential for cont r ibuting economic growth. Previous findings indicated that networking among SMEs with business partners becom es a determinant factor for improving growth. The coordination c apability among channel members in distribution channel for instance , suppliers, manufacturers, distributors, retailers, financial institutions , as w ell as other relevant agencies , brings competiti veness , which in turn enhances performance. As information sharing and coordination innovation possess a significant ly positive influence in improving firm performance among the channel members , a few emp i rical evidences have been found on the effect of information and coordination innovation in lending on the relationship performance between SMEs and financial institutions (bankings) that led to SMEs’ growth. By using structural equation model (SEM) for 103 samples of respondents , it was found that relati onship performance led to the growth of SMEs in Indonesia , which in turn contribut ed to economic growth.
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