Abstract
The purpose of this study is to examine how network advantage mediates the relationship between marketing capabilities and relational capabilities in influencing the marketing performance of Batik Small and Medium-sized Enterprises (SMEs). Grounded in the Resource-Based View (RBV), this research highlights the strategic importance of intangible resources such as trust, communication, and market responsiveness in enhancing competitiveness within the creative industry sector. A quantitative approach was employed using a survey method, with purposive sampling applied to select 250 Batik SMEs respondents from Java and Bali—two regions recognized as cultural centers of Indonesia’s Batik industry. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling (SEM) with SmartPLS software. The findings reveal that both relational and marketing capabilities exert a positive and significant influence on network advantage. Moreover, relational capabilities, marketing capabilities, and network advantage each have a significant effect on marketing performance. Importantly, the results demonstrate that network advantage plays a mediating role in strengthening the effect of relational and marketing capabilities on marketing performance. This indicates that the benefits of these capabilities are optimized when SMEs are able to leverage strategic business networks. The study contributes theoretically by extending RBV into the context of creative industries and empirically by providing evidence from Batik SMEs in Indonesia. Practically, it emphasizes the need for Batik SMEs to continuously build strong relational ties and enhance marketing competencies while actively engaging in collaborative networks to sustain competitiveness in increasingly dynamic markets.
Keywords: Marketing Capabilities, Marketing Performance, Network Advantage, Relational Capabilities.