The Influence of SMEs Marketing Capability on Increasing Export Performance in Central Java

Central Java, a region rich in cultural heritage and natural beauty, is also home to a burgeoning community of skilled artisans and innovative small businesses. Many SMEs in Central Java have conducted their business and able to export their commodities through the use of e-commerce. Despite advances in digital platforms and infrastructure the region achieves poor sales numbers for exported items. Past research produced conflicting results about the impact of International Marketing Capabilities on Export Performance. Therefore, based on these phenomena and research gaps, this study seeks to bridge the gap in understanding the relationship between International Marketing Capabilities of SMEs in Central Java with their Export Performance. The concept of the research framework model developed between IT Capabilities, International Marketing Capabilities, Marketing Agility in International Markets, Export Operation Capabilities, E-commerce Strategic Performance, and Export Performance originate from theory and previous research. Data were obtained from 123 respondents by giving questionnaires that consist of open-ended and closed-ended questions. The criteria for respondents for this research are companies that reside in the state of Central Java and have the capability of exporting their goods internationally through the use of e-commerce. The data obtained were analyzed quantitatively and structurally using SEM (Structural Equation Modeling) method through AMOS (Analysis Moment of Structural) program 24. Current research findings claimed that Marketing Agility in International Markets, Export Operations Capabilities, and E-commerce Strategic Performance could leverage the relationship between International Marketing Capabilities, IT Capabilities and Export Performance significantly and positively. IT Capabilities played a significant impact on Marketing Agility in International Markets and E-commerce Strategic Performance which both leads to the positive impact on Export Performance. On the other hand, this research found that International Marketing Capabilities does not have a significant impact on E-commerce Strategic Performance. The possible managerial implication of this research provides insights for Central Java's policymakers to optimize export strategies and support local SMEs.