Abstract

Effed Darta, Henni Febriawati, Amrullah.

The role of market indicators for small and medium enterprise (SME) international performance has always considered as a vital area of interest for researchers with emergence and growth of SME’s internationalization. Previously many studies have conferred the role of marketing capabilities as a key factor for international performance of SME’s, however only handful studies have analyzed the indicators of firm marketing and customer satisfaction mediating role in the relationship between organizational capabilities and pharmaceutical SMEs' international performance. In this paper, four marketing drivers (market intelligence, product innovation, pricing, and marketing communication) are taken as determinants of international performance of Indonesian pharmaceutical SMEs. Drawing on theory of SME’s performance, this paper examines the direct and indirect relationships between market intelligence, market communication capability, price capability, product innovation, customer satisfaction and pharmaceutical SME’s international performance. A quantitative survey consisted of a self-administrative questionnaire was engaged to collect data from employees of pharmaceutical SME’s. Based on a sample of 438 employees and structural equation modeling. the results shown that all these capabilities provoke pharmaceutical SME’s international performance. Further, outcomes designated that customer satisfaction acts as a mediator between pricing capability and pharmaceutical SMEs' international performance. This study directs that managers must focus on establishing marketing capabilities in order to satisfy their customers.