Internationalization of Small Medium Industries (SMIs) in Indonesia, Modeling: The Role Degree of Internationalization as Mediating Variable on The Influence of Network Capital And Business Performance

Ginting, Ginta (2013) Internationalization of Small Medium Industries (SMIs) in Indonesia, Modeling: The Role Degree of Internationalization as Mediating Variable on The Influence of Network Capital And Business Performance. In: Brawijaya International Conference on Accounting and Business (BICAB) 2013, 30-31 Agustus 2013, Malang, Indonesia.

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Abstract

The objective of this study is to investigate the role degree of internationalization as mediator in influencing the network capital impact on business performance in SMis. This study also uses the size of SMis as moderator variables that influence the degree of internationalization and business performance. The population in this study is the ownerslmanagers of SMis who conduct international business (export orientation). The survey was conducted on 186 SMIs in three provinces (DKI Jakarta, Banten and West Java). Hypothesis testing used ismultivariate statistics- Partial Least Quare. The study shows the degree of internationalization acts as a mediator variable for network capital on business performance. The network capital significantly influences the degree of internationalization. The study also finds that the degree of internationalization has a strong influence on business performance, meaning the higher the degree of internationalization the bigger impact it imposes on improving business performance. The size of SMI is able to moderate the influence of the degree of internationalization on business performance, whereas for the small industries the influences are greater on business performance compared to medium-sized industries.

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