Developing Customer Networking Quality Model to Improve SMES’ Marketing Performance

Sales persons in small and medium enterprises (SMEs) have a fundamental role in marketing the product so that they can compete with other enterprises. In addition, a strong customer networking quality is required to improve marketing performance. This study focused on factors for improving marketing performance in SMEs such as adaptive selling, customer networking quality, Community based Relational Capability, and Expertise Salesperson. The population of this study was 266 sales persons in SMEs focusing on handicrafts. The samples were selected using the purposive sampling technique. SEM-Amos version 22 was used to analyze the data. The results of the study showed that Adaptive Selling, Community Based Relational Capability, and Customer Networking Quality significantly improve marketing performance. Furthermore, Adaptive Selling has a significant effect on Community Based Relational Capability while Community Based Relational Capability has a significant effect on Marketing Performance. The Expertise Sales Person has a significant effect on the Customer Networking Quality, but it has no significant effect on marketing performance. The findings of this study strengthen the theory of Service Dominated Logic in which service logic can be effective through the creation of a strong networking platform and technology to improve marketing capabilities and customer networking technology as well as to carry out value co-creation activities with the support of technology networking to improve marketing performance in SMEs.