Moderating Effects of Networking Capabilities on Marketing Capabilities and Performance of Small Firms in Kenya

Abstract

Marketing and Networking have separately occupied research for a long time.  Yet the two compliment and or supplement each other especially in small firms in driving superior firm performance.  Hence, this study focused on the two concepts and sought to determine the moderating effect of networking capabilities the relationship between marketing capabilities and performance of small firms. The resource-based view and social capital theories were used as bases for this study.  The results from an explanatory survey of a sample of 384 small firms in Nairobi, Kenya are discussed. Data was collected by use of self-administered questionnaires. Multiple Regression analysis results showed that both marketing and networking capabilities positively influence small firm performance but networking capability does not significantly moderate the relationship between marketing capabilities and small firm performance. The study recommends to managers and advisory service providers that small firms can improve performance by developing both marketing and networking capabilities because each of the capabilities has exclusive influence performance.

Key words: Marketing capability, network capability, small firm performance.