Cultural and System Relational Capabilities on Business Performance: Role of Value Co-Creation Activities

ABSTRACT

This paper aims to examine the effect of cultural relational capability, managerial systems relational capability, value co-creation activities on business performance. The respondents are the owners of fashion retail SMEs in Indonesia. The data was processed by using Structural Equation Modeling. This study found that cultural relational capability and managerial systems relational capability have a significant effect on value co-creation activities and business performance. Furthermore, value co-creation activities can be a mediator of the relationship between cultural relational capability and managerial systems relational capability on business performance.

KEYWORDS:

• Cultural relational capability
• managerial systems relational capability
• value co-creation activities
• business performance

Disclosure statement

No potential conflict of interest was reported by the author(s).