Social network ties, proactive entrepreneurial behavior and successful retail business: a study on Indonesia small enterprises

Abstract

Purpose This study aims to examine the relationship between social network ties (SNT) and successful retail business (SRB), as well as the effect of the moderating variable of proactive entrepreneurial behavior (PEB). Design/methodology/approach The quantitative method with a cross-sectional design is used. A series of questionnaires are distributed and collected from a total of 101 retail business owners selected by a purposive sampling technique. Factor analysis and regression analysis are used to test the validity of the data and hypotheses. Findings The results establish that the higher the SNT, the higher the chance of a retail business to be successful. Interestingly, subsequent findings indicate that the role of PEB can strengthen the relationship between SNT and SRBs. Originality/value Business owners or entrepreneurs are considering both SNT and PEB in making business decisions. A new insight on the importance of intangible resources is revealed where it is rooted in resource-based and social capital theories.