Digital Capability and Business Networking on SME Marketing Performance: Evidence from SMEs in Dili, Timor-Leste
Keywords:
Digital Capability, Business Networking, SME Marketing PerformanceAbstract
This study aims to analyze the influence of digital capability and business networking on SME marketing performance in small and medium enterprises (SMEs) in Dili City, Timor-Leste. Small and medium enterprises play a crucial role in supporting economic growth, but many SMEs still face challenges in improving their marketing performance, particularly in the face of digital technology advancements and limited business networks. This study employed a quantitative approach with a survey method. Data were collected through questionnaires distributed to 65 small and medium enterprises (SMEs) in Dili City who have utilized digital technology in their marketing activities. Data analysis used Partial Least Squares–Structural Equation Modeling (PLS-SEM) with the help of SmartPLS software. The results showed that business networking had a positive and significant effect on SME marketing performance (β = 0.446; t = 3.773; p < 0.001). In addition, digital capability also had a positive and significant effect on SME marketing performance (β = 0.368; t = 3.637; p < 0.001). The coefficient of determination (R²) of 0.542 indicates that digital capability and business networking explain 54.2% of the variation in SME marketing performance, with the remainder influenced by factors outside the research model. These findings underscore the importance of enhancing digital capabilities and strengthening business networks for small and medium-sized enterprises (SMEs) to improve marketing performance and competitiveness.
Keywords: Digital Capability, Business Networking, SME Marketing Performance, PLS-SEM.
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