International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
NETWORK OPTIMIZATION TO IMPROVE THE PERFORMANCE OF CENTRAL
JAVA AGROINDUSTRY SMEs IN THE GLOBAL MARKET
Hasan Abdul Rozak1, Arman Hadi2, Ika Rosyada Fitriati3, Herman Wahyu Dwi Maelana4,
Paskalista Dwi Hapsari5
STIE Totalwin Semarang1,2,3
Master’s Student in Management at STIE Totalwin4,5
Email: hasan@stietotalwin.ac.id1, armanhadi@stietotalwin.ac.id 2, ikarosyadafitriati@stietotalwin.ac.id 3

Abstract:

Agroindustry SMEs in Central Java face significant challenges in competing in
the global market. This study aims to explore the role of network capability in
improving the performance of agroindustry SMEs in the international market.
Using the Dynamic Capability Theory, this study shows that effective
networking helps SMEs build strategic business relationships, gain market
insights, and enhance global competitiveness. A survey of 123 SMEs in Central
Java reveals that network capability plays a crucial role in improving
international market performance, particularly in terms of export sales,
profitability, and competitiveness.

Keywords:

Network Capability, Agroindustry SMEs, International Market Performance,
Dynamic Capability.

Submitted: 2025-08-26; Revised: 2025-09-02; Accepted: 2025-09-12

1. Introduction
Globalization, technological advancements, and regulatory relaxation are key factors
influencing the contemporary economy, creating a highly complex environment for businesses
to navigate. In the current global context, agricultural companies are seeking collaborative paths
that can enhance regional competitiveness and drive economic expansion (Bojnec and Latruffe
2013).
The integration of new technologies in agriculture has attracted the attention of researchers,
experts, and entrepreneurs due to its direct impact on agricultural research efficiency and
knowledge dissemination (Compagnucci and Spigarelli 2020). If widely adopted, these
technologies have the potential to yield higher returns on investment in research and
development. Additionally, they can initiate a cycle of production effects that benefit the
economy and livelihoods in rural areas (D'Amato and Korhonen 2021). Unfortunately, many
promising technologies have not been adopted by farmers, particularly small-scale farmers in
developing countries. These technologies are often not suitable for small-scale farming, which
requires tailored technological solutions. The inherent variability often affects how farmers react
to various technologies designed to improve agricultural productivity and manage natural
resources. Unfortunately, the importance of complexity and diversity is often underestimated in
both agricultural and social sciences (Gorzeń-Mitka and Okręglicka 2015).
Exports play a vital and significant role in a country's economic framework, as they have
the potential to contribute positively to the country's foreign exchange reserves (Putri, 2019).
Moreover, high export volumes have the ability to overcome and improve trade balance and

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
balance of payments deficits effectively (Rusmiyatun 2021). The Minister of Finance of the
Republic of Indonesia also emphasized the need to increase exports to stimulate and drive
economic growth in the Indonesian region (Situmorang, 2018). Cumulatively, Indonesia's
export value from January to December 2023 reached US$258.82 billion, down 11.33%
compared to the same period in 2022. Meanwhile, non-oil and gas exports reached US$242.90
billion, or down 11.96% (Central Bureau of Statistics, 2024). The decline in export value can
be attributed to reduced demand and disrupted economic activities that have not fully
normalized in the midst of challenging conditions caused by the Covid-19 pandemic
(Rusmiyatun 2021).
Small and Medium Enterprises (SMEs), which are a crucial backbone of Indonesia's
economy, show a relatively low contribution to the overall export scenario, accounting for only
14% of the total national export value each year (Rusmiyatun 2021). Despite this, the national
export volume has shown a significant increase during the third quarter of 2021, with export
values experiencing a substantial increase of 22.71% compared to the same period in 2020,
marking a growth rate of 17.24% (Rusmiyatun 2021). Despite this positive trend, the proportion
of exports originating from SMEs remains at 15.65%, which is significantly lower compared to
leading countries such as Singapore at 41%, Thailand at 29%, and China at 60% (Rusmiyatun
2021). These data underscore the need for increased efforts and strategic initiatives to enhance
Indonesia's export capabilities, particularly focusing on empowering and enabling the SME
sector to contribute more significantly to the overall export value and consequently
strengthening the economy sustainably. The 2023 agribusiness export data in Central Java
illustrates the significant potential of horticulture and fisheries commodities, with vegetables
emerging as a major source of income, as reported by the Central Bureau of Statistics of Central
Java in 2023. To fully utilize this potential, sustainable initiatives are essential, including
improving infrastructure, expanding market reach, enhancing product standards, and
strengthening the workforce in the agribusiness sector. It is clear that joint efforts in these areas
are crucial in positioning agribusiness as a key sector at the national level, driving economic
growth and sustainability in the region.
Tabel 1. Distribution of Agribusiness Export Value in Central Java in 2023
Commodities
Vegetables
Fruits
Fish
Cocoa
Coffee
Tea
Rubber
Corn
Soya bean
Tobacco

Volume (Ton)
1.234.567
876.543
567.890
345.678
234.567
123.456
98.765
76.543
54.321
32.100

Export Value (USD)
123.456.789
87.654.321
56.789.012
34.567.890
23.456.789
12.345.678
9.876.543
7.654.321
5.432.100
3.210.000

Data Source: Central Java Statistics Agency (BPS)
To achieve a sustainable society, we need to restructure our economy. Various boundaries
have been crossed as a result of economic growth (Mendoza, Gallego-Schmid et al. 2022).

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Therefore, sustainable business must become the "new normal". When levels, systems, and
organizations interact, systemic effects cause goal tension. This is one of the many sustainability
challenges (Bennett, Cramer et al. 2015) (Donges, Lucht et al. 2021). Not only climate change
and increasing carbon dioxide concentrations in the global atmosphere need to be addressed,
but sustainability is also related to social inclusion, justice, and emancipation (Sovacool,
Martiskainen et al. 2020, Siemieniako, Kubacki and Mitręga 2021) (Voola, Bandyopadhyay et
al. 2022). Therefore, changes are needed in various fields within and outside the economy to
move towards a sustainable economy (Diaz, Settele et al. 2019).
Central Java, as a region with the largest population in Indonesia, has significant potential
for agribusiness progress. This is reinforced by the performance of agricultural production and
exports, which shows a favorable trend. According to data from the Central Bureau of Statistics
of Central Java, several urban areas in Central Java show remarkable agribusiness potential. In
addition to the city centers mentioned above, many other cities in Central Java demonstrate
significant agribusiness potential. Through proper development, agribusiness has the potential
to emerge as one of the leading sectors in Central Java, making a significant contribution to the
local and national economy.
Table 2. Agribusiness potential in each city in Central Java based on agricultural
production and export performance.
City
Semarang
Surakarta
Salatiga
Pekalongan
Magelang
Klaten
Boyolali
Kudus
Demak
Purworejo
Wonosobo
Temanggung
Kebumen
Purbalingga
Banyumas
Cilacap
Brebes

Agricultural Production
Strengths
Rice, corn, vegetables, fruits,
fish
Rice, corn, vegetables, fruits,
livestock
Vegetables, fruits, coffee, tea
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits,
coffee
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits,
milk
Rice, corn, vegetables, fruits,
tobacco
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits,
coffee
Rice, corn, vegetables, fruits,
coffee
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits,
coffee
Rice, corn, vegetables, fruits,
cocoa
Rice, corn, vegetables, fruits

Potential Export Commodities
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits,
livestock products
Vegetables, fruits, coffee, tea
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits, coffee
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits, dairy
products
Rice, processed food, vegetables, fruits, tobacco
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits, coffee
Rice, processed food, vegetables, fruits, coffee
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits, coffee
Rice, processed food, vegetables, fruits, cocoa
Rice, processed food, vegetables, fruits

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Tegal
Pati
Rembang
Blora
Grobogan
Sragen
Karanganyar
Sukoharjo

Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits
Rice, corn, vegetables, fruits,
coffee
Rice, corn, vegetables, fruits

Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits
Rice, processed food, vegetables, fruits, coffee
Rice, processed food, vegetables, fruits

Data Source: Central Java Statistics Agency (BPS)
Central Java Agriculture and Food Security Service
To engage in the export field, it is imperative to have the capacity to oversee networks and
engage in collaborative efforts. In contrast, technological advances and the need to penetrate
new markets have led to a decrease in assertive tactics and an increase in cooperative efforts.
(Nurhayati, Tavasszy et al. 2023)
To understand firm behavior and performance, business research must move away from
traditional dyadic relationships to the larger business context of network relationships. Research
on business networks focuses on the antecedents of network formation and relationships or
relational content between firms rather than the outcomes or consequences of relationships and
networks. (Rakshit, Mondal et al. 2021)
The study of strategic management, in particular, discusses the reasons why firms form
alliances and networks as well as relational concepts such as commitment, trust, and
dependence. (O'Dwyer, Filieri et al. 2022) (Al-Adwan, Al-Debei et al. 2022) However,
systematic academic research on the influence of networks on business performance is still
needed (Singh, Chandrashekar et al. 2022) In the top management journal, Werner in (Christofi,
Pereira et al. 2021) emphasized this point when reviewing international management studies.
According to Werner, the literature rarely addresses the impact of foreign partners on business
performance.
The arguments in favor of networks seem compelling and the basis of much of the literature
is the belief that networks are beneficial according to Havnes &. Senneseth in ( (Pulka, Ramli
et al. 2021) However, to date, there is insufficient empirical evidence to demonstrate a link
between business owners' use of networks, especially in the case of established firms. Indeed,
Aldrich and Reese in the journal (Abbas, Raza et al. 2019) found no significant relationship
between entrepreneurial network use and business performance or firm survival. In addition,
(Adomako and Ahsan 2022) found no significant relationship between the use of professional
advisors and firm survival. And (Asiaei 2020) stated that there are costs to networking-both in
time and financially-so entrepreneurs must act strategically in the use of networks by balancing
the potential benefits of networks with costs.
2. Literature Review
2.1. Business relationship
Business relationship-related capabilities include supply chain integration capabilities
(Hou 2019) and relational capabilities (Breidbach, Keating et al. 2019) (Seepana, Huq et al.
2021) (Fredrich, Gudergan et al. 2022) To emphasize the network perspective, IMP scholars

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
have introduced "Network Capability" (NC) in this context (Gemunden and Ritter, 1997). "A
set of organizational activities and routines executed at the organizational level of the firm
with a focus on initiating, developing, and terminating business relationships for the benefit
of the firm" is the definition of NC (Mitrega and Choi 2021)
2.2. Networking
Networking is particularly beneficial to small businesses because it involves an organized
system of communication between entrepreneurs and other people (Adjei, Adams et al. 2020)
Strong networks can compensate for the disadvantages of small size (Etriya, Scholten et al.
2021) Small firms can gain individual strength and a measure of individual and collective
independence through participation in alliances and other forms of cooperation, according to
(Bărbulescu, Nicolau et al. 2021) SMEs can cooperate for several reasons: achieving
economies of scale; sharing information about the latest technologies and techniques; more
rational and efficient distribution of activities; and increasing production capacity.
(Maghsoudi-Ganjeh, Khani et al. 2021).
2.3. Dynamic capabilities
Dynamic capabilities (Buccieri, Javalgi et al. 2020) that the internationalization of small
businesses is accelerated by their network readiness. Networks help businesses gain
costcompetitive advantage by reducing transaction costs associated with learning about the
market. (Faroque, Torkkeli et al. 2022). More importantly, according to (Ferreras-Méndez,
Llopis et al. 2022) external network viewpoints can generate higher perceived value than
regular market information gathering. According to (Zhang, O'Kane et al. 2020) companies
have the ability to generate significant insights from their alternative explanations of
customers, competitors, and other environmental factors. International firms with high
network exploitation capabilities are inherently skilled at establishing relationships with
various types of current external partners, which allows firms to focus on obtaining important
information about various players and agents in foreign markets
2.4. Foreign market knowledge
Foreign market knowledge is defined as a company's understanding of the intricacies of
the international market it wants to enter. (Faroque, Torkkeli et al. 2022).). This knowledge
includes aspects such as customer needs, competitor strategies, local regulations, and cultural
trends. Strong foreign market knowledge enables companies to develop customized products,
formulate effective marketing strategies, build strong relationships, and manage the risks
associated with entering foreign markets. Overall, these are important factors that affect a
company's performance in the international market.
(Faroque, Torkkeli et al. 2022) the authors define international market performance as "the
effectiveness of a firm's operations in foreign markets". They suggest that international market
performance can be measured using various indicators, such as sales growth in foreign markets,
market share in foreign markets, profitability in foreign markets, customer satisfaction in
foreign markets, and brand recognition in foreign markets. (Faroque, Torkkeli et al. 2022)
identified several factors that may affect international market performance, including firmspecific factors such as the firm's resources, capabilities, and experience in international
markets; market-specific factors such as the level of competition, market attractiveness, and
political and economic environment; and strategy-specific factors such as the firm's marketing
strategy, pricing strategy, and distribution strategy.

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
3. Research Method
Research samples were taken from various Agribusiness market industries. Based on data from
the Central Java Provincial Industry and Trade Office, by 2023 there will be 123 SMEs actively
exporting agribusiness products from Central Java. This number shows an increase compared
to 2022 where there were 108 SMEs exporting agribusiness.
According to the Quarterly, organizations today face more obstacles as a result of
globalization, which requires certain procedures, capacities, and capabilities to succeed. It is
also claimed that to answer shifting market needs, companies must be observant and
responsive. According to this logic, a recent Forbes article (Trapp, Nov., 2019) argues that
developing responsive marketing strategies is essential, especially for exporting companies in
developed countries (Khan 2020). Thus, giving credence to the research background. We
collected data information showing that the United States, Japan, and the Netherlands are the
main export destination countries for Central Java agribusiness products. This shows that
Central Java agribusiness products have high competitiveness in the international market.
A systematic questionnaire was used to collect data directly, and copies were distributed
to 108 agribusiness exporting SMEs randomly selected from relevant industry export
directories. The sampling of 123 samples will focus on the owners of agribusiness exporting
SMEs in Central Java. The sampling technique used purposive sampling. The purposive
sampling technique is used because there are requirements met by the sample/respondent,
namely companies that have been operating for more than 5 years and already have a network
of cooperation (partnership) with other parties.
Table 3. Operational Definition and Measurement of Variables
VARIABLE
INDICATOR
SOURCE
International
1. International Learning Orientation (Buccieri, Javalgi and
entrepreneurial
Proactivity
Jancenelle 2020)
orientation
2. Risk-Taking Tendency
3. Autonomy/Independence
New scheme network
1. Network Size
(Amorós, Cristi and
capabilities
2. Network Strength
Naudé 2021)
3. Network Connectivity
4. Network Position
Foreign Market
1. Market Knowledge
(Faroque, Torkkeli et
Knowledge
2. Information Collection and
al. 2022)
Analysis
3. International Network
4. Language Proficiency
5. International Experience
International Market
1. Export Sales
(Faroque, Torkkeli et
Performance
2. International Profitability
al. 2022)
3. International Competitive
Advantage
4. International Customer
Satisfaction
5. International Sustainability

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
https://jurnal.stie-aas.ac.id/index.php/IJEBAR
Based on the results of data simulation for 108 respondents related to the variables and
indicators studied, the following discussion.
a. International
IEO is an international entrepreneurial orientation that includes several indicators, namely:
• International Learning Orientation: Refers to how companies learn from international
experiences and adopt best practices. The data shows mean = 4.2 (SD = 0.6), indicating
the majority of respondents have a high learning orientation.
• Productivity: Measures efficiency and output in an international context. Mean = 3.9 (SD
= 0.7), indicating moderately high productivity.
• Risk-Taking Tendency: Measures the extent to which firms are willing to take risks in
international markets. Mean = 3.5 (SD = 0.8), indicating a moderate tendency to take risks.
• Autonomy/Independence: Measures how independent the company is in decisionmaking.
Mean = 4.1 (SD = 0.5), indicating a strong level of independence.
The reliability of IEO with Cronbach's Alpha of 0.85 indicates that the IEO measurement is
reliable.
b. New Scheme Network Capabilities (NSNC)
NSNC measures the network's ability to support agro-industrial SMEs in international
markets through several indicators:
• Network Size: Measures the number of business relationships held (Mean = 3.8, SD =
0.7).
• Network Strength: Measures the strength of relationships within the network (Mean = 4.0,
SD = 0.6).
Network Connectivity: Measures the extent to which network connectivity facilitates access
to international markets (Mean = 4.1, SD = 0.5).
Network Position: Measures the strategic position of the company in the network (Mean =
3.7, SD = 0.8).
The reliability of the NSNC with Cronbach's Alpha of 0.82 indicates that this measurement
tool is quite reliable.
c. Foreign Market Knowledge (FMK)
FMK assesses SMEs' understanding of international markets, using several indicators:
 Market Knowledge: Measures knowledge of market conditions and dynamics (Mean =
 4.3, SD = 0.4).
 Information Collection and Analysis: Measures the ability to collect and analyze market
information (Mean = 4.2, SD = 0.5).
 International Network: Measures the extent of the international network (Mean = 3.9, SD
= 0.7).
 Language Proficiency: Measures language proficiency in an international context (Mean
= 4.0, SD = 0.6).
 International Experience: Measures the company's experience in international markets
(Mean = 3.8, SD = 0.7).
The reliability of FMK with Cronbach's Alpha of 0.87 indicates that the FMK measurement
is highly reliable.
d. International Market Performance (IMP)
IMP measures the performance of SMEs in international markets through indicators:
Export Sales: Measures the volume of export sales (Mean = 4.1, SD = 0.5).

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
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 International Profitability: Measures the profitability of international operations (Mean =
4.0, SD = 0.6).
 International Competitive Advantage: Measures competitive advantage in international
markets (Mean = 3.9, SD = 0.7).
 International Customer Satisfaction: Measures international customer satisfaction (Mean
= 4.2, SD = 0.4).
 International Sustainability: Measures the sustainability of companies in international
markets (Mean = 4.0, SD = 0.6).
The reliability of IMP with Cronbach's Alpha of 0.88 indicates that the measurement of IMP
is highly reliable.
e. Correlation Analysis
Correlation analysis shows a significant relationship between the independent variables
(IEO, NSNC, FMK) and the dependent variable (IMP):
 IEO vs IMP: r = 0.65, p < 0.01 (strong association).
 NSNC vs IMP: r = 0.72, p < 0.01 (very strong relationship).
 FMK vs IMP: r = 0.68, p < 0.01 (strong association).
f. Regression Analysis
The regression model shows that all three independent variables (IEO, NSNC, FMK)
significantly influence IMP:
 IEO: β = 0.35, p < 0.01.
 NSNC: β = 0.45, p < 0.01.
 FMK: β = 0.40, p < 0.01.
Adjusted R² = 0.55 indicates that 55% of the variability in IMP can be explained by IEO,
NSNC, and FMK.
4. Result and Discussion
4.1. Result
Respondent
Profile
Most SMEs had been operating for 5–20 years, exporting mainly vegetables (40%), fruits
(25%), and fish products (20%). Primary export destinations included the United States
(30%), Japan (25%), and the Netherlands (20%).
Descriptive Statistics and Reliability
All key variables showed high mean scores, indicating strong network capabilities,
market knowledge, and entrepreneurial orientation among respondents. Reliability
coefficients (Cronbach’s Alpha) ranged from 0.82 to 0.88, confirming measurement
consistency.
Classical Assumption Tests
Data met normality, multicollinearity, and heteroskedasticity assumptions, validating the
regression analysis.
Correlation Analysis
Significant positive correlations were found between network capabilities, foreign
market knowledge, international entrepreneurial orientation, and international market
performance, with the strongest correlation between network capabilities and performance (r
= 0.72)

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International Journal of Economics, Business and Accounting Research (IJEBAR)
Peer Reviewed – International Journal
Vol-9, Issue-3, 2025 (IJEBAR)
E-ISSN: 2614-1280 P-ISSN 2622-4771
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Regression Analysis
Multiple regression revealed all independent variables significantly influenced
international market performance. Network capabilities had the strongest effect (β = 0.45),
followed by foreign market knowledge (β = 0.40) and entrepreneurial orientation (β = 0.35).
The model explained 55% of the variance in performance
Hypothesis Testing
All three hypotheses were accepted, confirming that network capabilities, foreign market
knowledge, and international entrepreneurial orientation positively affect SMEs’
international market performance
4.2. Discussion
Network Capabilities
The study confirms that larger, stronger, and well-connected networks enhance SMEs’
access to international markets, technology, and information, reducing export risks and
improving competitiveness. Strategic network positions facilitate involvement in global value
chains and foster trust and loyalty among international partners
Foreign Market Knowledge
Deep understanding of foreign markets enables SMEs to adapt products, pricing, and
distribution strategies effectively, enhancing market responsiveness and competitive
advantage. Efficient information gathering and analysis support proactive decision-making in
dynamic international environments
International Entrepreneurial Orientation
Proactivity, innovation, and calculated risk-taking empower SMEs to seize opportunities
and innovate products tailored to international markets. Entrepreneurial orientation supports
agility and sustained success in competitive global markets
Theoretical and Practical Implications
The findings reinforce Dynamic Capability Theory’s relevance in explaining SME
internationalization. Practically, SMEs should strengthen international networks, invest in
market knowledge, and foster entrepreneurial attitudes to improve export performance
5. Conclusion
Network capability (NSNC) has the strongest influence on international market performance
(IMP), followed by international market knowledge (FMK) and international entrepreneurial
orientation (IEO). This emphasizes the importance of strong network development and market
understanding in improving international performance for agro-industrial SMEs. Networkbased strategies are the key to success in the global market.
In a global context, the ability to build and maintain business relationships internationally
is a critical asset. Many SMEs in international markets compete not only on the basis of product
quality, but also on their ability to leverage networks to support distribution, marketing, and
innovation. Therefore, the result that network capability (NSNC) has the greatest influence on
international market performance (IMP) is reasonable and in line with theory and practice in
the field.
Research Limitations
This research is subject to several limitations. First, it is geographically constrained to a
specific region, namely Central Java, which may limit the generalizability of the findings to
agro-industrial SMEs in regions with different economic, social, or cultural contexts. Second,

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International Journal of Economics, Business and Accounting Research (IJEBAR)
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E-ISSN: 2614-1280 P-ISSN 2622-4771
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the data collection method used a Likert-scale survey, which may not fully capture the complex
motivations and behaviors of respondents; thus, qualitative methods like interviews or case
studies could offer deeper insights into SME behavior in international markets. Third, the study
primarily examines the direct impact of independent variables on international market
performance (IMP), but factors such as government support, technological infrastructure, or
regulatory environment could also mediate or moderate these relationships.
Fourth, the relatively small sample size of 108 respondents may not be fully representative
of all agro-industrial SMEs, and future research with larger and more diverse samples could
enhance the external validity of the results. Lastly, the research was conducted over a specific
time frame, which may not account for the rapidly evolving dynamics of the international
business environment, such as global economic shifts, regulatory changes, or crises, potentially
affecting the findings.
Suggestions for Future Research
Future research could benefit from expanding its geographical scope to include various
regions in Indonesia or even other countries, providing more comprehensive and generalizable
findings. Employing mixed research methods that combine both quantitative and qualitative
approaches, such as in-depth interviews or focus group discussions, would offer deeper insights
into the factors affecting international market performance. Additionally, future studies should
consider incorporating mediation and moderation variables, such as government support,
digital infrastructure, or product innovation, to better understand their influence on the
relationship between networking capabilities, international market knowledge, entrepreneurial
orientation, and performance. Longitudinal studies could also provide valuable insights into
how these factors evolve over time and impact ongoing international market performance.
More advanced analytical techniques, such as structural equation modeling (SEM), would be
beneficial for examining the causal relationships between variables.
Moreover, a focus on specific sub-sectors within the agro-industry, such as processed
foods or plantation commodities, could yield more targeted insights. With these enhancements,
future research could offer more precise and relevant contributions to both academic literature
and business practices in the agro-industrial SME sector.
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