Abstract
Entrepreneurial orientation is carried out to improve management's ability to deal with market changes. This study examines a new concept of network chain capability that is capable of mediating the relationship between entrepreneurial orientation and marketing performance of goods in tourism market. The study also verifies the architectural marketing capabilities and organizational commitment to improve network chain capabilities that have an impact on marketing performance of goods in tourism market. In this study, 6 hypotheses are developed and tested with data collected from 185 respondents in the handicraft industry focused on tourism market. Data are analyzed using AMOS 22.0 statistical software which successfully tested 6 hypotheses with significant results. The study proves that network chain capability is declared feasible as a mediating variable. Managerially, network chain capabilities can be practiced as a marketing tool to improve performance.
Highlights
The era of industrial revolution 4.0 has changed the business competition map from energy to partnerships or synergies among companies
The results have shown that the entrepreneurship orientation (EO) has significant effect on the network chain capability (NCC) with Estimate of 0.83 and Critical Ratio (C.R) value of 4.411
This showed that the network chain capability (NCC) is able to act as mediating variable in relationship between entrepreneurship orientation, organizational commitment, architectural marketing capability and the marketing performance of goods in tourism market
Summary
The era of industrial revolution 4.0 has changed the business competition map from energy to partnerships or synergies among companies. Companies that are able to create a business network are firmly bound in a network chain so that they would be able to exist and have sustainable excellence. The results of the research by Lee and Tsai (2005) does not identify any significant relationship between entrepreneurial orientation and company performance. Madsen (2007) states that there is a significant relationship between entrepreneurial orientation and organizational performance of business or network relations. Exploring the networks needs the internal support as commitment can play influential role in achieving organizational performance. It enables the organization to predict the recruitment and planning of human resources Based on this description, this study aims to analyze the role of chain networks for improving the sustainable business performance, and investigate the effect of organizational commitment capabilities in increasing business networks
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