EXAMINING NETWORK CHARACTERISTIC DYNAMICS OF KINSHIP-BASED FAMILIES ON PERFORMANCE WITHIN INDONESIAN SMES

Hardo Firmana Given Grace Manik and Nurul Indarti and Andy Susilo Lukito-Budi (2023) EXAMINING NETWORK CHARACTERISTIC DYNAMICS OF KINSHIP-BASED FAMILIES ON PERFORMANCE WITHIN INDONESIAN SMES. Journal of Enterprising Communities: People and Places in the Global Economy, 17 (1). pp. 72-97. ISSN 1750-6204

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Abstract

Purpose – This study aims to examine the moderating effect of firm age and size on the relationship between network characteristics (network centrality, network density and tie strength) and firm performance. This study also aims to investigate the difference in the effect of network characteristics on the firm performance of Javanese and Minang ethnic enterprises. Design/methodology/approach – An explanatory research design was adopted, which involved a survey in the form of a structured questionnaire of target owners and managers of 34 Javanese ethnic enterprises in North Sumatra, Indonesia and 100 Minang ethnic enterprises in Yogyakarta, Central Java, Jakarta and Bogor, Indonesia. The data is analysed using structural equation modelling. Findings – The findings of this study confirm resource dependency and social capital theory. Network centrality, network density and tie strength have a significant effect on firm performance. The results also show support for the moderating role of firm age on the relationship between network characteristics and firm performance. The moderating role of firm size is not supported. The comparative test of the influence of the three network characteristics on ethnic enterprise performance confirms that Javanese ethnic enterprises have identity-based networks, while Minang ethnic enterprises use calculative-based networks. Originality/value – The originality of this study lies in the investigation of the role of family and external partners in the running of ethnic enterprises at start-up and during the growth phase. The definition of “family” is based on a kinship perspective due to the specificity of Asian cultures, particularly in Indonesia. Of the hundreds of tribes in Indonesia, the Javanese and Minang were chosen because both are well-known as entrepreneurial tribes, have unique cultural values and have active migrants to other provinces.

Item Type:	Article
Uncontrolled Keywords:	Network centrality, Network density, Ethnic enterprise performance, Minang, Javanese, Age and size of the firm
Subjects:	H Ilmu Sosial > Ilmu-ilmu Sosial (Umum)
Divisions:	Fakultas Bisnis
Depositing User:	Admin Repository
Date Deposited:	05 Sep 2024 04:24
Last Modified:	05 Sep 2024 04:24
URI:	http://katalog.ukdw.ac.id/id/eprint/9074

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