2022JAPB-History of Submission Baru

LAMPIRAN 1
HISTORY OF MANUSCRIPT PUBLICATION

(Journal of Asia-Pacific Business)
Cultural and System Relational Capabilities on Business Performance:

Role of Value Co-Creation Activities
Mulyana, Tatiek Nurhayati, Lutfi Nurkholis
Dept. of Management, Faculty of Economics

Universitas Islam Sultan Agung Semarang
1
DAFTAR ISI
1. Submission Confirmation (11 April 2021) ................................................................................. 3

2. Revision Required (First Round) (10 Desember 2021) ............................................................... 5
2.1. Reviewers’ comments ........................................................................................................ 6
3. Submission Revision (First Round) and Editors’ Confirmation (12 Desember 2021) .................. 8
3.1. Response to Reviewers ...................................................................................................... 9
3.2. Revised Manuscript ......................................................................................................... 10
4. Completing Copy Right Transfer Agreement (CTA) (3 Januari 2022) ....................................... 37
5. Author’s Request to Correct the Name of Authors in CTA and Editor’s Confirmation (6 Januari
2022)............................................................................................................................................... 39
6. Request to Complete CTA after Adjustment (6 Januari 2022) ................................................... 41
6.1. Signed Copyright form ..................................................................................................... 42
7. Revision Required: Table Formatting (Second Round) (9 Januari 2022) ................................. 45
7.1. Reviewers’ Comment ....................................................................................................... 46
7.2. Authors’ Response ........................................................................................................... 46
7.3. Revised Manuscript ......................................................................................................... 47
7.4. Editable Table and Figure ............................................................................................... 64
8. Request to Proof Manuscript before Publish (12 Januari 2022) ............................................. 67
8.1. Proof paper...................................................................................................................... 68
8.1. Queries from Editor ............................................................................................................... 90
8.2. Response to Queries .............................................................................................................. 90
9. Submission Confirmation of Author correction (21 Januari 2022).......................................... 93
10. Follow Up Author Correction and Need adjustment Based on Editor’s feedback (25 Januari
2022)............................................................................................................................................... 94
11. Notification of Manuscript Publish (16 Februari 2022) .......................................................... 98
2
1. Submission Confirmation (11 April 2021)
Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id>
Submission received for Journal of Asia-Pacific Business (Submission ID:

210639124)
1 message
Sun, Apr 11, 2021 at

journalshelpdesk@taylorandfrancis.com <journalshelpdesk@taylorandfrancis.com>
11:58 PM
To: mulyana@unissula.ac.id
Dear Mulyana Mulyana,
Thank you for your submission. Please see the details below.
Submission
210639124
ID
Manuscript Cultural and Systems Relational Capability on Business
Title Performance: Role of Value Co-Creation Activities
Journal Journal of Asia-Pacific Business
You can always check the progress of your submission here (we now offer multiple
options to sign in to your account. To log in with your ORCID please click on the 'with
ORCID' box on the bottom right of the log in area).
If you have any queries, please get in touch with journalshelpdesk@taylorandfrancis.com.
Thank you for submitting your work to our journal.
Kind Regards,
Journal of Asia-Pacific Business Editorial Office
3
Taylor & Francis is a trading name of Informa UK Limited, registered in England under no. 1072954.
Registered office: 5 Howick Place, London, SW1P 1W.
4
2. Revision Required (First Round) (10 Desember 2021)
ID WAPB-2021-0054/210639124
1 message
Submission, JAPB <japbsubm@wright.edu> Fri, Dec 10, 2021 at 7:14 AM

To: "mulyana@unissula.ac.id" <mulyana@unissula.ac.id>
I am very pleased to inform you that your manuscript “Cultural and Systems Relational Capability on
Business Performance: Role of Value Co-Creation Activities,” has been accepted for publication in the
Journal of Asia-Pacific Business Volume 23 Issue 1, due to be published in March 2022. Taylor and Francis
will contact you directly concerning proofs and publication details. Be aware that the manuscript may still
look like it is with editor as we are currently working out software issues with the T&F portal. You may
consider this full notification of intent to publish.
Please find attached information for Authors from T&F, and a brief style guide to prepare your manuscript.
Please read these instructions carefully and edit your manuscript accordingly. If you have any questions or
concerns regarding any of the points listed, or other matters related to your manuscript, please contact our
office at japbsubm@wright.edu as soon as possible.
Please let us know if we can be of further assistance. We look forward to seeing your good work published in
the near future and thank you for your valuable contribution to the Journal of Asia-Pacific Business.
Sincerely yours,
Riad A. Ajami, PhD
Editor-in-Chief
and
Susan E. Meindl
Managing Editor
Journal of Asia-Pacific Business
japbsubm@wright.edu
2 attachments
5
INSTRUCTIONS TO AUTHORS.doc
27K
TF_APA-7_update_11192020.pdf
379K
2.1. Reviewers’ comments
All parts of the manuscript should be typewritten, double-spaced, with margins of at

least one inch on all sides. Number manuscript
pages consecutively throughout the paper. Authors should also supply a shortened
version of the title suitable for the running head, not
exceeding 50 character spaces. Each article should be summarized in an abstract of not
more than 100 words. Avoid abbreviations,
diagrams, and reference to the text in the abstract.
References: Cite in the text by author and date (Smith, 1983). Prepare reference list in
accordance with the APA Publication Manual, 6th ed.
Examples:
Journal: Jacks, J.Z., & Cameron, K.A. (2003). Strategies for resisting persuasion. Basic
an Applied Social Psychology, 25, 145-161.
Books: Brehm, J.W. (1966). A Theory of Psychological reactance. New York:
Academic.
Contribution to a Book: Tajfel, H. & Turner, J.C. (1979). An integrative theory of
intergroup conflict. In W. Austin & Worchel (Eds.),
The social psychology of intergroup relations (pp. 334-47). Monterey, CA:
Brooks/Cole.
Illustrations: Illustrations submitted (line drawings, halftones, photos,

photomicrographs, etc.) should be clean originals or digital files.
Digital files are recommended for highest quality reproduction and should follow these
guidelines.
- 300 dpi or higher
- Sized to fit on journal page
- EPS, TIFF, or PSD format only
- Submitted as separate files
Color Illustrations. Color illustrations will be considered for publication; however, the
author will be required to bear the full cost
involved in color art reproduction. Color art can be purchased for online only
reproduction or for print + online reproduction. Color
reprints can only be ordered if print + online reproduction costs are paid. Rates for
color art reproduction are: Online Only Reproduction:
$225 for the first page of color; $100 for the next three pages of color. A custom quote
will be provided for articles with more than four
pages of color. Print + Online Reproduction: $900 for the first page of color; $450 for
the next three pages of color. A custom quote will
be provided for articles with more than four pages of color.
6
Tables and Figures. Tables and figures (illustrations) should not be embedded
in the text, but should be included as separate sheets or files. A short descriptive title
should appear above each table with a clear legend
and any footnotes suitably identified below. All units must be included. Figures should
be completely labeled, taking into account
necessary size reduction. Captions should be typed, double-spaced, on a separate sheet.
Proofs. Page proofs are sent to the designated author using Taylor & Francis' Central
Article Tracking System (CATS). They must be
carefully checked and returned within 48 hours of receipt.
Reprints and Issues. Reprints of individual articles are available for order at the time
authors review page proofs. A discount on reprints
is available to authors who order before print publication. Each corresponding author
will receive 3 complete issues in which the article
publishes and a complimentary PDF. This file is for personal use only and may not be
copied and disseminated in any form without prior
written permission from Taylor and Francis Group, LLC.
7
3. Submission Revision (First Round) and Editors’ Confirmation (12 Desember 2021)
Submission of Revision
2 messages
Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id> Wed, Dec 15, 2021 at 11:12 AM
To: japbsubm@wright.edu
Dear Editor of Journal of Asia-Pacific Business,
We are very grateful to know that my manuscript entitled “Cultural and Systems Relational Capability on
Business Performance: Role of Value Co-Creation Activities,” will be published in the Journal of Asia-
Pacific Business Volume 23 Issue 1.
But, some revisions are attached to this email. We have improved some points regarding the editor's input as
follows:
1. We have adjusted by using double space, the margin of one inch, and the 7th APA style.
2. We have added running head title and page number
3. We also shortened the total word of abstract to not more than 100 words.
Thank you very much. Please inform us regarding the next step of journal publication.
Regards,
Authors
2 attachments
title page.docx
13K
main manuscript.docx
183K
Submission, JAPB <japbsubm@wright.edu> Tue, Dec 21, 2021 at 7:42 AM

To: "Dr. Mulyana, SE, MSi" <mulyana@unissula.ac.id>
Dear Dr. Mulyana,
Thank you for your email. I will make sure the correct version of the paper is uploaded to the
journal’s production site.
The production editors will contact you regarding any additional revisions.
8
Sincerely,
Susan Meindl
Managing Editor
japbsubm@wright.edu
[Quoted text hidden]
3.1. Response to Reviewers
Dear Editor of Journal of Asia-Pacific Business,
We are very grateful to know that my manuscript entitled “Cultural and Systems Relational Capability
on Business Performance: Role of Value Co-Creation Activities,” will be published in the Journal of
Asia-Pacific Business Volume 23 Issue 1.
But, some revisions are attached to this email. We have improved some points regarding the editor's
input as follows:
1. We have adjusted by using double space, the margin of one inch, and the 7th APA style.
2. We have added running head title and page number
3. We also shortened the total word of abstract to not more than 100 words.
Thank you very much. Please inform us regarding the next step of journal publication.
Regards,
Authors
Response to Reviewer:
Thank you for the comment. We have corrected it according to your suggestion.
No Reviewer’s Comments Response
1 All parts of the manuscript We have adjusted the type of writing, double-
should be typewritten, double- spaced, margins, and number of manuscripts
spaced, with margins of at least according to the writing guidelines of the
one inch on all sides. Number Journal of Asia-Pacific Business
manuscript pages consecutively
throughout the paper.
2 Authors should also supply a We have added less than 50 characters of a
shortened version of the title running head title to the manuscript
suitable for the running head, not
exceeding 50 character spaces.
3 Each article should be We also shortened the total word of abstract
summarized in an abstract of not to not more than 100 words.
more than 100 words. Avoid In the abstract, we have removed the
abbreviations, diagrams, and abbreviations and written them in actual
reference to the text in the words. The revised abstract is presented in
abstract. the paper as follows:
Abstract
This paper aims to examine the effect of
cultural relational capability, managerial
9
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
5 Cite in the text by author and We have adjusted the reference according to
date (Smith, 1983). Prepare the APA Publication Manual, 6th ed. on the
reference list in accordance with manuscript.
the APA Publication Manual, 6th
ed.
3.2. Revised Manuscript
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
Introduction
10
Some researches on relational capabilities as determinants of business
performance have been carried out by researchers recently (Mitrega, 2012; Zohdi et
al., 2013; Indriastuti, 2019). Companies try to collaborate with customers, suppliers,
competitors, and other companies to acquire new knowledge (Coombs & Metcalfe,
2000). Collaboration efforts with external parties allow greater value to be created
in the long run (Wagner et al., 2010). Several researchers have attempted to study
the value creation phenomenon through collaboration (Walter & Ritter, 2003; Vargo
et al., 2008; Wagner et al., 2010). Researches on initial value creation only focused
on supplier value (Bowman & Ambrosini, 2007), customer value (Yeh, 2008), and
relationship value (Mele, 2011; Ramaswamy & Ozcan, 2016).
When customers and suppliers collaborate, value co-creation is mutually
beneficial (Grönroos, 2011; Voss, 2012). Value co-creation has an important role in
strategic decisions and as a joint activity between customers and suppliers that gives
greater results and is mutually beneficial. The facts show that relational capabilities
can encourage value co-creation in a relationship (Forsström & Törnroos, 2005;
Möller, 2006; Wagner & Hoegl, 2006). Relational capability will create value co-
creation and provide benefits in the form of cost efficiency, increased income,
competence, and risk sharing (Ngugi et al., 2010); it also has an important role in
increasing sales volume, profits, and market access (Xu & Lin, 2008).
Furthermore, cultural-based business relationships allow companies to overcome
differences in the culture and values of partners (Johnsen, 2005). Therefore, the
ability to understand the culture and values embedded in partners will make it easier
to overcome mutual conflicts. Changes in the external environment encourage
organizations to continue to learn to develop new ideas and understand market trends
(Hoe, 2008). Besides, the facts show that customer and supplier relationships are
11
triggered by customers so that suppliers will respond to customer value expectations
(Farrelly et., 2006). Changes in increasingly dynamic customer desires will create
opportunities to enhance mutually beneficial customer-supplier relationships
through value co-creation activities.
Relational system in organizations related to governance control, roles, and
reciprocity will determine the alliance of relational capabilities (Muthusamy &
White, 2006; Oshri et al., 2015). Therefore, the involvement of top management is
very necessary for the implementation of the relational system so that it becomes the
driving force for the creation of value co-creation activities. Likewise, managerial
systems of relational capability has an important role in realizing value co-creation
and providing benefits through increasing income, cost efficiency, sharing risks, and
fostering mutual competence (Ngugi, et al., 2010). The managerial relational system
is built according to the characteristics of each business partner so that it allows
partners to be able to manage resources properly and sistematically. A good
managerial systems relational capability between suppliers and customers will foster
value co-creation activities.
Studies on the relationship between relational and business performance have
been conducted by previous researchers, but the results are still inconsistent. The
study found business networks to be a determinant of business performance (Agndal
& Chetty, 2007; Roy, 2012; Raza, 2012; Mu et al., 2008; Mitrega, 2012).
Furthermore, the ability to build relationships with customers is a driver of business
performance (Mitrega, 2012; Shafei & Zohdi, 2014; Indriastuti, 2019). Other studies
show different results, the relational capability has a negative effect on company
performance (Breda & John, 2013; Salisu & Abu Bakar, 2019) and relational
12
competence is also not able to improve business performance (Nuryakin et al., 2017;
Salisu & Abu Bakar, 2019).
Based on description above, this study aims to examine the role of value co-
creation activities as a mediating variable for the relationship between cultural
performance. The results of this study are expected to add new knowledge and
contribute to overcoming gaps from various previous research results as well as
contribute to the development of relationship marketing discipline.
Literature review
Cultural relational capability
Dyer & Singh (1998) and Jacob (2006) state that the concept of relationship
capabilities includes three dimensions, they are: configuration process capabilities,
the ability to communicate with customers, and the ability to control business
processes. Relationship capabilities are an important asset and an internal
organizational capability (Zohdi et al., 2013; Ngugi, et al., 2010; Esther Hormiga et
al., 2011; Fazli et al., 2013). Relationship capabilities are related to the acceleration
of access to knowledge that can support innovation and competitive advantage
(Smirnova et al., 2011). Furthermore, relationship capabilities are an effort to obtain
information on business activities by integrating various knowledge. Cultural-based
business relationships will make it easier for companies to resolve mutual conflicts
and understand cultural differences and values embedded in partners (Johnsen,
2005). Cultural relational capability allows companies to learn across cultures and
develop skills that involve various network partners to increase competence, cost
efficiency, share risks and increase income (Ngugi et al., 2010). In this study, cultural
13
relationship capability are the ability of an organization to communicate, coordinate
and manage business interactions by understanding cultural values, which is
measured through indicators of development of culturally appropriate relationships,
developing relationships according to inner values, cross-cultural learning
experiences, and competency development through network variations.
Managerial systems relational capability
Managerial systems relational capability related to structures and methods
enable the creation of knowledge in accordance with the characteristics of each
company (Snehota, 1995). The relational systems developed will affect the
characteristics of the relationship through the development of structures, methods,
strategies, and resources. The strength of the relationship allows each partner to
manage resources well. Managerial systems relational capability have an important
role in realizing value co-creation and product and process innovation (Ngugi et al.,
2010). Furthermore, the relationship system includes the development of structures,
strategies, methods, and facilities as well as related approaches to overcome
differences. Facts show that management interaction capability can improve
company performance (Nurhayati & Hendar, 2017). Managerial systems relational
capability has an important role in realizing value co-creation as well as providing
benefits through increasing income, cost efficiency, sharing risks, and fostering
mutual competence (Ngugi et al., 2010). In this study, managerial systems relational
capabilities are the ability to develop relationship structures and strategies that allow
the creation of relationships in accordance with the characteristics of each company,
which is measured through indicators of relationship structure, relationship strategy,
relationship facilities, and overcoming differences in gaps.
14
Value co-creation activities
Prahald & Ramaswamy (2004) and Vargo & Lusch (2004) state that the concept
of value co-creation is an important basic value in collaborative activities. According
to Service-Dominant Logic (SDL), customers are active participants and
collaborative partners in exchanges that will create shared value with the company
(Vargo & Lusch, 2008). Value co-creation occurs through interaction by sharing
information and using resources (Vargo & Lusch, 2008). According to Aron O’Cass
(2013), the concept of value creation in organizations is a determinant of the
company's innovation activities, so that managers and employees have an important
role in creating value. Furthermore, innovation ability has a positive effect on the
ability of an organization to offer value and subsequently has an impact on company
performance (Aron O. & Sok, P. 2013). The results of the study state that value
creation is the main key to the success of product innovation which ultimately has
an impact on business performance (Viljakainen & Toivonen, 2014; Sørensen &
Jensen, 2015; Gura˘u, 2015).
Value creation is related to internal activities to create customer value, for
example, product design, markets, delivery, and activities related to product
manufacturing (Gura˘u, 2015) and there is a strong correlation between customer
involvement, value creation, and customer loyalty (Banyte & Dovaliene, 2014). The
facts explain that effective value creation can produce value-added for product
quality, create cost efficiency, guarantee product service and customer response so
that it affects business performance (Nuryakin et al., 2017). Value co-creation is a
collaborative activity to create shared value through operational activities to respond
quickly to market changes, create profits on sales, increase cost efficiency, increase
15
competence, and share risks (Ngugi et al., 2010). In this study, value co-creation
activities are collaborative activities to create shared values through mutually
beneficial interactions, which is measured through indicators of joint integrative
learning, mutual exchange interactions, sharing information and knowledge, and
sharing risks.
Business performance
Olson & Slater (2002) emphasized that company performance can be known
from the sales of new products or new customers, market share, and innovation and
learning perspectives. Sin et al (2006) emphasized that business performance can be
measured through seven aspects, namely sales growth, customer retention, return on
investment (ROI), market share, trust, customer satisfaction, and return on sales
(ROS). According to Nuryakin et al (2018), business performance is the result of the
organization's operational activities which include internal and internal aspects,
which include indicators of sales volume, sales growth, profitability, and market
share. Najib & Kiminami (2011) also believed that business performance can be
measured through three indicators, namely market share, profitability, and sales
volume. Nwokah & Maclayton (2006) assert that business performance can be
measured through indicators of sales growth, company profits, and controlled
market share. Sharabati et al (2010) emphasized that business performance can be
measured through the dimensions of productivity, profitability, and market
valuation. In this study, business performance is measured through indicators of
profit growth, sales growth, customer satisfaction, customer growth, and Return on
Assets (ROA).
16
Literature review and Hypothesis Development
Cultural relational capability and value co-creation activities
Relationship capabilities are an organization's ability to communicate,
coordinate and manage business interactions (Day & Butle, 2002). According
Nuryakin et al. (2017), relationship capabilities are an organization's ability to
communicate, coordinate and manage business interactions to create value creation
and increase business performance. Cultural relational capability are a relationship
approach that allows companies to overcome cultural differences and partner values
(Johnsen, 2005). Relationship development is influenced by the values that are
embedded in oneself or the behavior of partners. The ability to learn to understand
customer culture and values will make it easier to deal with both conflict and the ebb
and flow of relationships. Sharing values and understanding the culture will create
greater relationship opportunities by respecting each other thus improving the
quality of the relationship. Relational capability become a determinant of value co-
creation by developing a structure and strategy for relationships with suppliers and
customers (Ngugi et al., 2010). Organizational operations that can understand and
overcome differences in partner culture will be able to create mutually beneficial
value co-creation activities, through risk-sharing, competency enhancement, profit
sharing, and cost-efficiency. Therefore, cultural relational capability are possible to
influence value co-creation activities.
H1: CRC has a significant effect on VCCA
Managerial systems relational capability and value co-creation activities
Customer-supplier relationship studies focus primarily on economic benefits,
competencies, and ultimately on the development of relationship norms (Gottschalk
& Solli-Sæther, 2006; Goo et al., 2009). Relational capability are determined by
17
relationship norms related to roles, reciprocity, and control governance (Muthusamy
& White, 2006). Top management support is needed for the development of
relational norms to create strong relationships and have a big role in the creation of
value co-creation. Furthermore, client participation allows companies to increase
their innovation capabilities (Ngo & O’Cass, 2012). The relational capability that is
developed through information disclosure, interaction facilities, and the ability to
absorb knowledge will make the company stronger so that it has a higher capacity
in value co-creation (Indriastuti, 2019). Furthermore, value co-creation can be
obtained through the relational capabilities of the organization (Wagner & Hoegl,
2006). Organizational activities that can build cooperative relationships with
customers or partners will get greater benefits through value co-creation activities.
Therefore, managerial systems relational capability is possible to encourage the
creation of value co-creation activities.
H2: MSRC has a significant effect on VCCA
Cultural relational capability and business performance
Companies that can interact with customers intensively will benefit through
customer identification, customer acquisition, and customer retention (Wang &
Feng, 2012). Cultural-based relationships allow companies to overcome differences
in the cultural values of partners and make it easier to solve problems together
quickly (Johnsen, 2005). Ralational capital developed through the culture to
understand personal relationships, maintain the quality of information, provide
interaction facilities and be able to absorb knowledge from other parties can improve
marketing performance (Indriastuti, 2019). According to Olson & Slater (2002), the
business performance of a company can be seen from the sales of new products or
18
new customers, market share, innovation, and learning. Organizations that can
understand the cultural values of partners will easily solve common problems and
set the right strategy so that it will have an impact on business performance.
Therefore, cultural relational capability may affect business performance.
H3: CRC has a significant effect on BP
Managerial systems relational capability and business performance
Ngugi et al. (2010) stated that the relational system developed by the organization
will affect the characteristics of the relationship through the development of
structures, methods, strategies, and resources. The strength of the relationship allows
each partner to manage resources well. Furthermore, relational systems have an
important role in encouraging value co-creation and strengthening company
performance as stated by Ngugi et al. (2010). The concept of relationship is built
through the development of relationship structures and strategies between customers
and suppliers as well as experiences in building collaboration. The ability to
understand different situations and provide collaboration facilities will make it easier
to overcome differences in partners. Likewise, customer management interaction
capability in SMEs can improve business performance (Nurhayati & Hendar, 2017).
At various stages in the cooperative relationship, customer value will change very
dynamically so that companies can develop value co-creation strategies based on
knowledge of customers and customer preferences (Beverland & Lockshin, 2003;
Payne et al., 2008). Managerial systems relational capability allow companies to be
able to develop structures, methods, strategies and manage resources effectively and
efficiently to overcome gaps in differences with customers and potentially increase
19
sales. Therefore, managerial systems relational capability may affect business
performance.
H4: MSRC has a significant effect on BP
Value co-creation activities and business performance
Vargo & Lusch (2004) state value co-creation in a service-dominant logic
framework as a joint process in which customers and companies are involved
together in creating mutually beneficial value during the interaction process. Value
co-creation shows customer involvement in sharing information, spending time,
effort, and other resources in decision making during the production process
(Durugbo & Pawar, 2014; Youjae & Gong, 2013). Effective value creation activities
can generate value- added for product quality, create cost efficiency, guarantee
product service and customer response as a determinant of business performance
(Nuryakin et al., 2017).
Value co-creation is a collaboration to create shared value through operational
activities to respond quickly to market changes, through profit on sales, cost
efficiency, increased competence, and shared risk (Ngugi et al., 2010). Value co-
creation developed through collaboration, integrated learning together, sharing
information and knowledge, mutually beneficial interactions, and willingness to
interact mutually can improve marketing performance (Indriastuti, 2019). Likewise,
value co-creation in a collaborative relationship can improve business performance
(Parthasarathy & Aris, 2011). Value co-creation activities built by the organization
can provide greater added value to customers through cost efficiency, speed of
product service, and speed of responding to customer expectations so that it will
20
affect customer satisfaction and business performance. Therefore, value co-creation
activities may affect business performance.
H5: VCCA has a significant effect on BP
Value co-creation activities as mediating variable
Aron, O. & Sok, P. (2013) stated that innovation ability has a positive
influence on an organization's ability to offer value and subsequently has an impact
on company performance. The results of the study state that value co-creation is the
main key to the success of product innovation which ultimately has an impact on
business performance (Viljakainen & Toivonen, 2014; Sørensen & Jensen, 2015;
Gura˘u, 2015). Value creation is related to internal activities to create customer
value, for example, product design, markets, delivery, and activities related to
product manufacturing (Gura˘u, 2015). Furthermore, customer involvement in value
creation and customer loyalty has a strong correlation (Banyte & Dovaliene, 2014).
Relational capability have a significant effect on value co-creation and better
value co-creation will encourage increased marketing performance (Indriastuti,
2019). Relational capability can be developed through the culture to always explore
personal ties, maintain the quality of information, provide reliable interaction
facilities and be able to absorb other knowledge which will increase the co-creation
value. Likewise, alliance relational capabilities that are developed through
innovation, intellectual property, behavior alignment, and relational norms can
strengthen value co-creation. Gottschalk & Solli-Sæther (2006) and Goo et al.
(2009) stated that the concept of developing relationships leads to norms and alliance
management. Furthermore, relational norms related to roles, governance control,
and reciprocal influence will affect business performance. The role of top
21
management as the main contributor to the norms of cooperative relations is very
much needed to facilitate information sharing and knowledge sharing to encourage
the creation of value co-creation activities. Customer value changes very
dynamically at various stages of the cooperative relationship so that companies can
develop a value co-creation strategy based on knowledge of customers and customer
preferences (Beverland & Lockshin, 2003; Payne et al., 2008).
The managerial systems relational developed by the organization will affect
the characteristics of the relationship through the development of structures,
methods, strategies so that the organization can manage resources efficiently (Ngugi
et al., 2010). Furthermore, the strength of the relationship allows each partner to be
able to manage resources well in a structured manner, so that relational systems have
an important role in encouraging value co-creation and strengthening company
performance (Ngugi et al., 2010). Organizations that can adjust to cultural
differences and partner values in a working relationship will be able to quickly solve
common problems and strengthen value co-creation activities and have an impact
on business performance. Likewise, managerial systems relational capability related
to strategies, structures, and methods so that organizations can manage resources
effectively and efficiently will become a contributor to value co-creation activities.
Furthermore, value co-creation activities as joint activities can create cost efficiency,
share risks, increase knowledge and have the potential to improve business
performance. Therefore, the following hypotheses are formulated as follows:
H6: VCCA mediates the relationship between CRC and BP.
H7: VCCA mediates the relationship between MSRC and BP.
Cultural
Relational 22
Capability
Business
Figure 1. Conceptual framework
Research methodology
Sample and data collection
The object of this research was fashion retail SMEs in Central Java, Indonesia.
Respondents were owners or leaders of fashion retail SMEs who had at least 3 years
of experience in managing a business. Data was collected by distributing
questionnaires offline and online via a google form. Researchers distributed
questionnaires to as many as 390 respondents in 10 cities/districts in Central Java
and respondents who returned as many as 345 (88.4%). Furthermore, the selection
and validation of the returned questionnaires were carried out, it turned out that only
305 (78.2%) met the requirements for analysis. All of the respondents selected were
female (68.4%) and male (31.6%) with ages 19 to 69 years and business experience
between 3 to 25 years.
Measurement
Primary data in this study were collected by researchers through surveys (offline)
and online (google form). The questionnaire was designed by using a rating scale of
1 - 10 to measure respondents' answers from all constructs (Hair et al, 2010).
23
Respondents were allowed to choose from the lowest score (1) for strongly disagree
to the highest score (10) for strongly agree. The research construct was adopted from
several previous research literature with some modifications to suit the context of
the research. Cultural relational capability are adopted from the perspective of
(Ngugi et al., 2010), with indicators of developing cultural-appropriate relationships,
developing relationships according to inner values, cross-cultural learning
experiences, developing competencies through network variations. Managerial
systems relational capability were adopted from (Ngugi et al., 2010) with indicators
of relationship structure, relationship strategy, relationship facilities, and
overcoming differences in gaps. Value co-creation activities are adopted from
(Indriastuti, 2019; Ngugi et al., 2010) with indicators of joint integrative learning,
mutual exchange interaction, sharing information and knowledge, as well as sharing
risks. Business performance is adopted from (Tzokas et al., 2015; Nuryakin et al.,
2018) with indicators of profit growth, sales growth, customer satisfaction, market
share growth, and ROA growth.
Data analysis and measurement model
There are several criteria for model testing in SEM. Model testing shows that
the Goodness-of-Fit index is in accordance with the criteria recommended by SEM.
The test results show the value of Chi-Square value = 116.471 and not significant at
α: 0.05, GFI index: 0.958; AGFI: 0.947; TLI: 0.998; CFI: 0.998; NFI: 946; RMSEA:
0.010 that is less than 0.08 and CMIN / DF: 1.031 that is less than 2.00, so it can be
concluded that all values have met the requirements recommended by SEM and are
feasible to use.
24
Table 2. Confirmatory Factor Analysis Results for the Measurement Models
Variable and Indicator (N= 305) Loading
factor
Cultural Relational Capability
Collaborative relationships are built in accordance with shared cultural .097
values .792
The cooperative relationship is based on the values that exist in each
partner. .718
Building cooperative relationships with partners is a cross-cultural
learning experience .680
A variety of collaborative networks can add skills to building working
relationships.
Managerial Systems Relational Capability .689
The structure of the cooperative relationship is built in accordance with
the characteristics of each company .726
The cooperative relationship strategy is developed according to the
characteristics of each company .719
The available relationship facilities are in accordance with the .718
characteristics of each company
The ability to deal with differences can strengthen cooperative .731
relationships. .697
Value co-Creation Activities .678
Learning together in an integrated way will be mutually beneficial .731
Mutually beneficial interactions can create mutual benefits
Information and knowledge sharing can improve competence .779
Interactions with shared risks will reduce uncertainty .762
Business Performance .727
Profit growth in my company always occurs every year .697
Sales growth in my company occurs every year .735
Customers are satisfied with the company's service.
The number of customers in my company keeps increasing every year
Return on Assets always increases every year.
X² = 116.471; df =113; Prob = .392; GFI = .958; AGFI = .947; TLI = .998; CFI =.998;
RMSEA = 0.010; CMIN/DF: 1.031
25
Table 3. Construct Reliabilities and AVE
N = 305 1 2 3 4
Cultural Relational Capability (CRC) .813
Managerial Systems Relational Capability .496 .805
(MSRC)
Value co-Creation Activities(VCCA) .435 .423 .820
Business Performance (BP) .413 .395 .486 .858
Average Variance Extracted (AVE) .696 .678 .710 .769
Table 2 explains that all indicators have a loading factor value > 0.05 and a p-
value < 0.05, so it can be concluded that all the indicators tested are valid. Table
3 explains that all average variance extracted (AVE) value is greater than 0.50
and the construct reliability (CR) value is greater than 0.70, this means that the
measurement results of all indicators of research variables have internal
consistency (Hair et al, 2010).
Results
In Table 4 and Figure 2, it is explained that CRC has a significant effect on VCCA
(Std. β = .330, CR = 4.324 and p-value < 0.01), then MSRC on VCCA (Std. β =
.381; CR = 4.841 and p-value < 0.01), so it can be concluded that H1, H2 are
accepted. The effect of CRC on BP (Std. β = .345, CR = 4.558, p-value < 0.01),
MSRC on BP (Std. β = .266, CR = 3.484, p-value < 0.01) and VCCA on BP (Std. β
= .206, CR = 2.654 and p-value < 0.01), so it can be concluded that H3, H4, H5 are
accepted.
The Sobel test approach was used to test VCCA as a mediating variable. Table 5,
shows the effect of CRC on BP with VCCA as the mediating variable. The test results
of the effect of CRC on VCCA (Unstd. β = .312 and SE = 0.073) and VCCA on BP
(Unstd. β = .240 and SE = 0.091). The results of the Sobel test statistic = 2.252 and
26
p-value 0.01 < 0.05, it is concluded that VCCA is the mediating variable for the
relationship between CRC and BP. Furthermore, for the effect of MSRC on BP with
VCCA as a mediating variable. The test results of the effect of MSRC on VCCA
(Unstd. β = .364, SE = 0.075), and VCCA on BP (Unstd. β = .297, SE = 0.085). The
results of the Sobel test statistic = 2.835 and p-value 0.00 < 0.05, thus VCCA can
mediate the relationship between MSRC and BP.
Table 4. Hypothesis test

The relationship Unstandardized ß Standardized ß SE CR
between constructs
H1: CRC -> VCCA .312 .330 .072 4.324*
H2: MSRC -> .364 .381 .075 4.841*
VCCA
H3: CRC -> BP .381 .345 .083 4.558*
H4: MSRC -> BP .297 .266 .085 3.484*
H5: VCCA -> BP .240 .206 .091 2.654*
Note: * p < 0.01
Table 5. Sobel Test Results

The relationship between constructs Sobel test statistic p-value
H6: CRC -> VCCA -> BP 2.252 .01
H7: MSRC -> VCCA -> BP 2.835 .00
27
Figure 2: Full Model of SEM
Discussion
Cultural relational capability have an important role in value co-creation
activities. Organizations that build relationships with customers and partners on a
cultural basis will easily resolve mutual conflicts and understand cultural
differences. Culture-based business relationships provide opportunities to learn and
understand partner cultures and encourage the creation of value co-creation activities
through joint integrative learning, mutual exchange interactions, sharing information
and knowledge, and sharing risks. The results of this study reinforce the findings
that cultural relational capability provides companies with opportunities to learn
across cultures and develop network partner skills to create knowledge sharing to
increase competence and share risks (Ngugi et al., 2010) and to easily resolve
conflicts together (Johnsen, 2005).
Managerial systems relational capability can encourage the creation of value co-
creation activities. The relational system developed by the organization will affect
28
the structure, method, and strategy of the organization. A harmonious relationship
allows each partner to manage resources in a structured manner and strategize
appropriately. A structured managerial relational system will encourage the growth
of value co-creation activities in the form of risk sharing, cost efficiency, and
increased profit, thereby this reinforces the statement that managerial systems
relational capability can create value co-creation (Ngugi et al, 2010). Likewise, the
relational capability will encourage the creation of customer value co-creation
(Indriastuti, 2019).
Cultural relational capability will improve business performance. Understanding
the culture of partners in business relationships allows companies to overcome
differences in cultural values and makes it easier to solve problems faced together
quickly. The development of culture-based relationships is a means of adding to
cross-cultural learning experiences and a means of developing skills through a
variety of networks. Cultural relational capability have an important role in the
creation of value co-creation activities. This reinforces the statement that relational
capital developed through culture will be able to understand the meaning of
relationships, maintain the quality of information, provide interaction facilities, be
able to absorb knowledge from other parties and have the potential to improve
marketing performance (Indriastuti, 2019).
Managerial systems relational capabilitiy significantly affect business performance.
The company's ability to develop a relationship structure and strategy will allow the
creation of a relationship structure that is in line with the characteristics of each
partner. A structured relationship system will facilitate collaboration, provide
relationship facilities and overcome differences in partners together. The ability to
build relationships has an important role in improving business performance through
29
customer satisfaction, sales growth, thereby this reinforces the finding that
interaction management skills with customers can improve business performance
(Nurhayati & Hendar, 2017) and revenue through cost efficiency (Ngugi et al.,
2010).
Value co-creation activities will improve business performance. Value co-
creation activities developed through collaboration, learning together, sharing
information and knowledge will be mutually beneficial. The added value of product
quality, cost-efficiency, guaranteed product service, and customer response will be
achieved when there is mutually beneficial interaction with partners. Willingness for
mutually beneficial reciprocal interactions can improve marketing performance
(Indriastuti, 2019). Likewise, effective value creation can generate value-added
through cost efficiency, product service guarantees, and as a determinant of business
performance (Nuryakin et al., 2017), and value co-creation in a collaborative
relationship can improve business performance (Parthasarathy & Aris, 2011).
Value co-creation activities can mediate the relationship between cultural
relational capabilities and business performance. Relational capabilities are built
through culture so that the organization can explore personal ties, maintain the
quality of information and provide facilities for reliable interaction. The ability to
absorb knowledge through cultural relational capability will encourage the creation
of value co-creation activities. The better value co-creation activities will create
information and knowledge sharing, strengthening new competencies, sharing risks,
cost efficiency, thereby encouraging increased business performance. Value co-
creation activities are also able to mediate the relationship between managerial
systems relational capability and business performance. The relationship system has
a role in structuring and strategic relationships between customers and suppliers
30
when building collaboration. The ability to understand the relationship system
properly will be able to overcome the differences faced together. Therefore,
relational systems have an important role in encouraging the creation of value co-
creation activities to create cost efficiency, share risks, share information and
knowledge so that they have an impact on business performance.
Conclusion
Business performance can be improved when retail fashion SMEs can understand
partner culture and as a means of adding to cross-cultural learning experiences as
well as a means of developing competencies through business partners. The ability
to understand each other's culture of partners when building business relationships
allows companies to overcome differences in cultural values and quickly solve
common problems for the common good. Likewise, managerial systems relational
capability have an important role to play in improving business performance when
the company can take advantage of the appropriate relationship structure and
strategy, provide adequate relationship facilities and address differences in a fair
manner.
Cultural relational capability need the ability to understand the cultural values of
partners in business relationships so that companies can overcome differences in
cultural values and solve common problems quickly. The awareness to understand
cultural differences in business cooperation relationships will encourage value co-
creation activities to create information and knowledge sharing, increase new
competencies, share risks and experiences and increase profits on sales. The success
of value co-creation activities has the potential to improve business performance.
Likewise, an effective managerial relational system in business relationships will
31
encourage the creation of value co-creation activities, through sharing information
and knowledge, sharing risks, increasing competence, cost efficiency so that it will
improve business performance.
Limitations and future research
The study of cultural relational capability and managerial systems relational
capability in retail fashion SMEs is a challenge for researchers because these two
constructs are often known as weaknesses. Business in the fashion sector is changing
so dynamically that it requires strong relational skills and managerial system to
satisfy and retain customers. The focus of this study is still very limited to fashion
retail SMEs and only examines relational capabilities, while the number and types
of SMEs are very broad. Future research will be better directed at large companies
or various types of SMEs so that it will provide more comprehensive results.
Research results are expected to add new knowledge to address gaps in previous
research results and contribute to the development of science, especially in the field
of relational marketing.
References
Agndal, H., & Chetty, S. (2007). The impact of relationships on changes in
internationalisation strategies of SMEs. European Journal of Marketing, 41(11–12),
1449–1474. https://doi.org/10.1108/03090560710821251
Aron, O., & Sok, P. (2013). Exploring innovation driven value creation in B2B service
firms: The roles of the manager, employees, and customers in value creation.
Journal of Business Research, 66 , 1074-1084.
https://doi.org/10.1016/j.jbusres.2012.03.004
Banyte, J., & Dovaliene, A. (2014). Relations between customer engagement into value
creation and customer loyalty. Procedia - Social and Behavioral Sciences,
156(April), 484–489. https://doi.org/10.1016/j.sbspro.2014.11.226
Beverland, M., & Lockshin, L. (2003). A longitudinal study of customers’ desired value
change in business-to-business markets. Industrial Marketing Management, 32(8),
653–666. https://doi.org/10.1016/j.indmarman.2003.06.006
Bowman, C., & Ambrosini, V. (2007). Firm value creation and levels of strategy.
Management Decision, 45(3), 360–371.
32
https://doi.org/10.1108/00251740710745007
Breda, K., & John, F. (2013). The role of tie strength, relational capability and trust in
the international performance of high tech SMEs. The IMP Journal, 7(3), 188-203.
Day, G. S., & Bulte, C. V. (2002). Superiority in customer relationship management:
consequences for competitive advantage and performance. Marketing Science
Institute, 2(123), 1–49.
Durugbo, C., & Pawar, K. (2014). A unified model of the co-creation process. Expert
Systems With Applications, 41(9), 4373–4387.
https://doi.org/10.1016/j.eswa.2014.01.007
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources
of interorganizational competitive advantage. Academy of Management Review,
23(4), 660–679. https://doi.org/10.5465/AMR.1998.1255632
Esther, H., Canino, R. M. B., & Mediana, A. S. (2011). The impact of relational capital
on the success of new business start-ups. Journal of Small Business Management,
I49(4), 617–638.
Farrelly, F., Quester, P., & Burton, R. (2006). Changes in sponsorship value:
Competencies and capabilities of successful sponsorship relationships. Industrial
Marketing Management, 35(8), 1016–1026.
https://doi.org/10.1016/j.indmarman.2006.05.006
Fazli, S., Hooshangi, M., & Hosseini, A. (2013). The relationship between relational
capital and buyer performance. International Research Journal of Applied and
Basic Sciences, 5(4), 436–440. Retrieved from www.irjabs.com
Forsström, B., & Törnroos, J.A. (2005, September, 4-7). The role of interdependencies
for value co-creation in buyer-seller partnerships in business markets. [Paper
presentation] A WP Paper for 21st Annual IMP Conference Rotterdam.
Netherlands
Goo, J., Kishore, R., Rao, H. R., & Nam, K. (2009). The role of service level agreements
in relational management of information technology outsourcing: An empirical
study. MIS Quarterly: Management Information Systems, 33(1), 119–146.
https://doi.org/10.2307/20650281
Gottschalk, P., & Solli-Sæther, H. (2006). Maturity model for IT outsourcing
relationships. Industrial Management and Data Systems, 106(2), 200–212.
https://doi.org/10.1108/02635570610649853
Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing
Theory, 11(3), 279–301. https://doi.org/10.1177/1470593111408177
Gura˘u, C. (2015). Positioning strategies in the value-added chain of the
biopharmaceutical sector: the case of UK SMEs. Journal of Consumer Marketing,
21(7),476-485.
Hair, J. F., Black, B. J., & Anderson, R.E. (2010). Multivariate data analysis. 7th
ed. New York. Prentice Hall.
Hoe, S. L. (2008). Perceptions becoming reality: Bridging the market knowledge gap.
Development and Learning in Organisations, 22(2), 18–19.
https://doi.org/10.1108/14777280810850697
Indriastuti, H. (2019). Entrepreneurial innovativeness, relational capabilities, and value
co-creation to enhance marketing performance. Humanities and Social Sciences
Reviews, 7(3), 181–188. https://doi.org/10.18510/hssr.2019.7328
Jacob, F. (2006). Preparing industrial suppliers for customer integration. Industrial
Mele, C. (2011). Conflicts and value co-creation in project networks. Industrial
33
Mitrega, M. (2012). Network partner knowledge and internal relationships influencing
customer relationship quality and company performance. Journal of Business and
Industrial Marketing. https://doi.org/10.1108/08858621211251488
Möller, K. (2006). Role of competences in creating customer value: A value-creation
logic approach. Industrial Marketing Management, 35(8), 913–924.
Mu, J., Peng, G., & Love, E. (2008). Interfirm networks, social capital, and knowledge
flow. Journal of Knowledge Management, 12(4), 86–100.
https://doi.org/10.1108/13673270810884273
Muthusamy, S. K., & White, M. A. (2006). Does power sharing matter? The role of
power and influence in alliance performance. Journal of Business Research, 59(7),
811–819. https://doi.org/10.1016/j.jbusres.2006.01.018
Najib, M., & Kiminami, A. (2011). Innovation, cooperation and business performance:
Some evidence from Indonesian small food processing cluster. Journal of
Agribusiness in Developing and Emerging Economies, 1(1), 75–96.
https://doi.org/10.1108/20440831111131523
Ngo, L. V., & O’Cass, A. (2012). In search of innovation and customer-related
performance superiority: The role of market orientation, marketing capability, and
innovation capability interactions. Journal of Product Innovation Management,
29(5), 861–877. https://doi.org/10.1111/j.1540-5885.2012.00939.x
Ngugi, I. K., Johnsen, R. E., & Erdélyi, P. (2010). Relational capabilities for value co-
creation and innovation in SMEs. Journal of Small Business and Enterprise
Development, 17(2), 260–278. https://doi.org/10.1108/14626001011041256
Nurhayati, T., & Hendar, H. (2017). Customer interaction management capabilities on
the micro-retail fashion in Indonesia. Journal of Relationship Marketing, 16(1), 1–
20. https://doi.org/10.1080/15332667.2016.1209066
Nuryakin, N., Didiek A. V., & Budi, M. (2018). Mediating effect of value creation in the
relationship between relational capabilities on business performance. Contaduría y
Administración, 63(1), 1–21. https://doi.org/10.22201/fca.24488410e.2018.1178
Nwokah, N. G., & Maclayton, D. W. (2006). Customer-focus and business performance:
The study of food and beverages organizations in Nigeria. Measuring Business
Excellence, 10(4), 65–76. https://doi.org/10.1108/13683040610719281
Olson, E. M., & Slater, S. F. (2002). The balanced scorecard, competitive strategy , and
performance. Business Horizons, (800), 545-685
Oshri, I., Kotlarsky, J., & Gerbasi, A. (2015). Strategic innovation through outsourcing:
The role of relational and contractual governance. Journal of Strategic Information
Systems, 21(3), 1–37. https://doi.org/10.1016/j.jsis.2015.08.001
Parthasarathy, R., Huang, C., & Ariss, S. (2011). Impact of dynamic capability on
innovation, value creation and industry leadership. IUP Journal of Knowledge, 9(3),
59–73.
Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value.
Journal of the Academy of Marketing Science, 36(1), 83–96.
https://doi.org/10.1007/s11747-007-0070-0
Prahald, V. & Ramaswamy. (2004). Co-creation experiences: the next pactice in value
creation. Journal of Interactive Marketing, 18(3), 5–14.
https://doi.org/10.1002/dir.20015
Ramaswamy, V., & Ozcan, K. (2016). Brand value co-creation in a digitalized world: An
integrative framework and research implications. International Journal of Research
34
in Marketing, 33(1), 93–106. https://doi.org/10.1016/j.ijresmar.2015.07.001
Raza, A. (2012). Impact of relational capital management on firm performance. Abasyn
Journal of Social Science, 6(1), 65–78.
Roy, M. (2012). Impact of formal networking on SMEs : A study of sampled small firms
in West Bengal. Globsyn Management Journal, 6(1), 19–30.
Salisu, Y., & Abu Bakar, L. J. (2019). Technological capability, relational capability and
firms’ performance. Revista de Gestão, 27(1), 79–99. https://doi.org/10.1108/rege-
03-2019-0040
Shafei, R., & Zohdi, M. (2014). Relational capabilities in market orientation to
improvement of performance outcomes in SMEs. International Journal of Business
Performance Management, 15(4), 295–315.
https://doi.org/10.1504/IJBPM.2014.065009
Sharabati, A. A., Jawad, S. N., & Bontis, N. (2010). Intellectual capital and business
performance in the pharmaceutical sector of Jordan. Management Decision, 48(1),
105–131. https://doi.org/10.1108/00251741011014481
Sin, L. Y. M., Tse, A. C. B., Chan, H., Heung, V. C. S., & Yim, F. H. K. (2006). The
effects of relationship marketing orientation on business performance in the Hotel
Industry. Journal of Hospitality and Tourism Research, 30(4), 407–426.
https://doi.org/10.1177/1096348006287863
Smirnova, M., Naudé, P., Henneberg, S. C., Mouzas, S., & Kouchtch, S. P. (2011). The
impact of market orientation on the development of relational capabilities and
performance outcomes: The case of Russian industrial firms. Industrial Marketing
Management, 40(1), 44–53. https://doi.org/10.1016/j.indmarman.2010.09.009
Snehota, I., & Hakansson, H. (1995). Developing relationships in Business Networks.
International Thomson Press, Boston. https://doi.org/10.4324/9780203392638.
Sørensen, F., & Jensen, J. F. (2015). Value creation and knowledge development in
tourism experience encounters. Tourism Management, 46, 336–346.
https://doi.org/10.1016/j.tourman.2014.07.009
Tzokas, N., Kim, Y. A., Akbar, H., & Al-dajani, H. (2015). Absorptive capacity and
performance : The role of customer relationship and technological capabilities in
high-tech SMEs. Industrial Marketing Management.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic. Journal of
Marketing, 68(1), 1–17.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution
service-dominant logic . Journal of the Academic Marketing Science, 36, 1–10.
https://doi.org/10.1007/s11747-007-0069-6
Vargo, S. L., & Lusch, R. F. (2016). Institutions and axioms : an extension and update of
service-dominant logic. Journal of the Academic Marketing Science, 44, 5–23.
https://doi.org/10.1007/s11747-015-0456-3
Vargo, S. L., Maglio, P. P., & Akaka, M. A. (2008). On value and value co-creation: A
service systems and service logic perspective. European Management Journal,
26(3), 145–152. https://doi.org/10.1016/j.emj.2008.04.003
Viljakainen, A., & Toivonen, M. (2014). The futures of magazine publishing:
Servitization and co-creation of customer value. Futures, 64, 19–28.
https://doi.org/10.1016/j.futures.2014.10.004
Voss, M. (2012). Impact of customer integration on project portfolio management and its
success-Developing a conceptual framework. International Journal of Project
Management, 30(5), 567–581. https://doi.org/10.1016/j.ijproman.2012.01.017
Wagner, S. M., Eggert, A., & Lindemann, E. (2010). Creating and appropriating value in
35
collaborative relationships. Journal of Business Research, 63(8), 840–848.
Wagner, S. M., & Hoegl, M. (2006). Involving suppliers in product development:
Insights from R&D directors and project managers. Industrial Marketing
Walter, A., & Ritter, T. (2003). The influence of adaptations, trust, and commitment on
value-creating functions of customer relationships. Journal of Business and
Industrial Marketing, 18(4–5), 353–365.
https://doi.org/10.1108/08858620310480250
Wang, Y., & Feng, H. (2012). Customer relationship management capabilities:
Measurement, antecedents and consequences. Management Decision, 50(1), 115–
129. https://doi.org/10.1108/00251741211194903
Xu, Z., Lin, J., & Lin, D. (2008). Networking and innovation in SMEs: Evidence from
Guangdong Province, China. Journal of Small Business and Enterprise
Yeh, H. (2008). A knowledge value creation model for knowledge-intensive procurement
projects. Journal of Manufacturing Technology Management, 19(7), 871–892.
https://doi.org/10.1108/17410380810898796
Youjae, Y., & Gong, T. (2011). Customer value co-creation behavior: Scale development
and validation. Journal of Business Research, 66(9), 1279–1284.
Zohdi, M., Shafeai, R., & Hashemi, R. (2013). Influence of relational capabilities on
business performance: Case of Kermanshah industrial city SMEs. International
Research Journal of Applied and Basic Sciences, 4(3), 589–596.
36
4. Completing Copy Right Transfer Agreement (CTA) (3 Januari 2022)
Welcome to Taylor & Francis Production: Journal of Asia-Pacific Business

2025642
1 message
WAPB-production@journals.taylorandfrancis.com Mon, Jan 3, 2022 at 10:42

<cats@taylorandfrancis.com> AM
Reply-To: WAPB-production@journals.taylorandfrancis.com
Any copyrighted material reproduced in your paper must include an accompanying

attribution. Brief extracts of third-party material may be cleared for use under the fair use /
fair dealing policy, and don't require full copyright clearance from the Rightsholder. For
further information and to access a template form for requesting permission, please see
https://authorservices.taylorandfrancis.com/using-third-party-material-in-your-article/. Please
keep copies of all correspondence.
Article: Cultural and Relational Capability on Business Performance: Role of Value Co-
Creation
Journal: Journal of Asia-Pacific Business WAPB
Article ID: WAPB 2025642
We are delighted that you have chosen to publish your article in Journal of Asia-Pacific
Business. I will be your Production Editor and will work with you to oversee the production
of your article through to publication. My contact details are given at the end of this email.
• Please log in to CATS to complete your Author Publishing Agreement. Your user name and
password are given below. If you have any questions on the process of completing your
agreement, please contact me.
Proofs will be ready for you to check in approximately 15 working days and we would like
you to return your corrections within 3 days. Please let me know if there will be any difficulty
in meeting this schedule.
We will be sending proofs to you through our online proofing system. You will receive
notification when your proofs are available and the link to access them from the email
address: iproof@integra.co.in.
37
• You can check the status of your paper online through the CATS system at:
https://cats.informa.com/PTS/in?ut=CD01775EBE4146B0A4280796982848F3
• Your User Name is: mulyanm3
• Your Password is: Muly5787_# (You will be required to change this first time you log in)
Open Access
When you complete your Author Publishing Agreement you will also be asked whether you
wish to make your article open access using our Open Select option. Articles published Open
Select with Taylor & Francis typically receive 32% more citations* and over 6 times as many
downloads** compared to those that are not published Open Select.
If you select the option to make your article open access you will receive an invoice for the
article publishing charge (APC). Some funders mandate open access publishing and your
research funder or institution may be able to cover the cost of the article publishing charge.
Find out more about publishing your article open access.
*Citations received up to Jan 31st 2020 for articles published in 2015-2019 in journals listed
in Web of Science®.
**Usage in 2017-2019 for articles published in 2015-2019.
• The DOI of your paper is: 10.1080/10599231.2022.2025642. Once your article has
published online, it will be available at the following permanent link:
https://doi.org/10.1080/10599231.2022.2025642 .
Yours sincerely,
Uma Maheshwari Gangadharane
Email:WAPB-production@journals.taylorandfrancis.com
38
5. Author’s Request to Correct the Name of Authors in CTA and Editor’s Confirmation (6
Januari 2022)
Re: Report problem in completing Author Publishing Agreement

#TrackingId:10755221
1 message
WAPB-production@journals.taylorandfrancis.com <WAPB- Thu, Jan 6, 2022 at

production@journals.taylorandfrancis.com> 2:07 AM
Dear Authors,
Thanks for your email.
I have corrected the name and resent the agreement link. Please could you check and sign now.
Best wishes,
Uma
From:mulyana@unissula.ac.id
Sent:04-01-2022 08:37
To:umamaheshwari.gangadharane@integra.co.in
Cc:
Subject:Re: Report problem in completing Author Publishing Agreement
CAUTION: This email originated from outside of the organization. Do not click links or open attachments
unless you recognize the sender and know the content is safe.
Dear Editor,
39
I have completed my Author Publishing Agreement, but I found an error in writing authors' names. Please
revised to be :
Mulyana Mulyana
Tatiek Nurhayati
Lutfi Nurkholis
Thank you. Your cooperation is highly appreciated.
Regards,
Authors
40
6. Request to Complete CTA after Adjustment (6 Januari 2022)
Journal of Asia-Pacific Business - Please complete your author agreement

1 message
Thu, Jan 6, 2022 at

authoragreement@taylorandfrancis.com <authoragreement@taylorandfrancis.com>
2:13 AM
Your Author Publishing Agreement (APA) with Taylor and Francis

Attention: Mulyana Mulyana
Hello,
In order to publish your article, "Cultural and Relational Capability on
Business Performance: Role of Value Co-Creation", we ask that you
complete your Author Publishing Agreement. Please click the link below (or
copy the URL into your browser) to launch our online Author Publishing
Agreement portal. The process should take only a few minutes. In most
cases, you will receive immediate notice that your agreement is accepted
and will be able to download a copy of it for your records.
Please do not reply to this email. If you need immediate assistance

concerning your article, please instead contact WAPB-
production@journals.taylorandfrancis.com.
Thank you.
Start »
https://authoragreement.taylorandfrancisgroup.com/Start/3d53772e-f331-4fcd-93ac-e605b203d336
© 2015 - Informa UK Limited, an Informa Group Company
41
6.1. Signed Copyright form
42
43
44
7. Revision Required: Table Formatting (Second Round) (9 Januari 2022)
WAPB_A_2025645 - Request for tables in editable format

#TrackingId:10796774
3 messages
WAPB-production@journals.taylorandfrancis.com <WAPB- Sun, Jan 9, 2022 at

production@journals.taylorandfrancis.com> 1:02 PM
Hi Mulyana,
I hope you're doing well.
Thanks for submitting the manuscript entitled "Cultural and Relational Capability on Business Performance:
Role of Value Co-Creation". While doing initial analysis, we have noticed that the tables are received in
image format which we actually require in editable format.
Please could you provide the tables in editable format in order to proceed further.
Best wishes,
Uma
Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id> Mon, Jan 10, 2022 at 2:30 PM
To: WAPB-production@journals.taylorandfrancis.com
Dear Editor,
Thank you for your email. Please find the attachment below, I send my full manuscript and appendix
(consisting figure and table) in editable format.
Thank you in advance. We are waiting for the next stage of the production process.
Regards,
Authors
--
Nama : Mulyana
Dosen Prodi manajemen
FE Unissula
45
email ; mulyana@unissula.co.id
2 attachments
main manuscript_fix.docx
183K
APPENDIX-table and figure.docx
89K
WAPB-production@journals.taylorandfrancis.com <WAPB- Tue, Jan 11, 2022

production@journals.taylorandfrancis.com> at 5:13 PM
Thank you Authors.
Best wishes,
Uma
From:mulyana@unissula.ac.id
Sent:10-01-2022 01.01 PM
To:WAPB-production@journals.taylorandfrancis.com
Cc:
Subject:Re: WAPB_A_2025645 - Request for tables in editable format
7.1. Reviewers’ Comment
Please could you provide the tables in editable format in order to proceed further.
7.2. Authors’ Response
46
Dear Editor,
Thank you for your email. Please find the attachment below, I send my full manuscript and appendix
(consisting figure and table) in editable format.
Thank you in advance. We are waiting for the next stage of the production process.
Regards,
Authors
Response to Reviewer:
No Reviewers’ Comment Response
1 Please could you provide the tables in Thank you for the advice. We have
editable format in order to proceed attached the table in the latest
further. editable format to the manuscript.
7.3. Revised Manuscript
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
Introduction
Some researches on relational capabilities as determinants of business
performance have been carried out by researchers recently (Mitrega, 2012; Zohdi
47
et al., 2013; Indriastuti, 2019). Companies try to collaborate with customers,
suppliers, competitors, and other companies to acquire new knowledge (Coombs
& Metcalfe, 2000). Collaboration efforts with external parties allow greater value
to be created in the long run (Wagner et al., 2010). Several researchers have
attempted to study the value creation phenomenon through collaboration (Walter
& Ritter, 2003; Vargo et al., 2008; Wagner et al., 2010). Researches on initial
value creation only focused on supplier value (Bowman & Ambrosini, 2007),
customer value (Yeh, 2008), and relationship value (Mele, 2011; Ramaswamy &
Ozcan, 2016).
When customers and suppliers collaborate, value co-creation is mutually
beneficial (Grönroos, 2011; Voss, 2012). Value co-creation has an important role
in strategic decisions and as a joint activity between customers and suppliers that
gives greater results and is mutually beneficial. The facts show that relational
capabilities can encourage value co-creation in a relationship (Forsström &
Törnroos, 2005; Möller, 2006; Wagner & Hoegl, 2006). Relational capability will
create value co-creation and provide benefits in the form of cost efficiency,
increased income, competence, and risk sharing (Ngugi et al., 2010); it also has
an important role in increasing sales volume, profits, and market access (Xu &
Lin, 2008).
Furthermore, cultural-based business relationships allow companies to
overcome differences in the culture and values of partners (Johnsen, 2005).
Therefore, the ability to understand the culture and values embedded in partners
will make it easier to overcome mutual conflicts. Changes in the external
environment encourage organizations to continue to learn to develop new ideas
and understand market trends (Hoe, 2008). Besides, the facts show that customer
and supplier relationships are triggered by customers so that suppliers will
respond to customer value expectations (Farrelly et., 2006). Changes in
increasingly dynamic customer desires will create opportunities to enhance
mutually beneficial customer-supplier relationships through value co-creation
activities.
Relational system in organizations related to governance control, roles, and
reciprocity will determine the alliance of relational capabilities (Muthusamy &
White, 2006; Oshri et al., 2015). Therefore, the involvement of top management
is very necessary for the implementation of the relational system so that it
becomes the driving force for the creation of value co-creation activities.
Likewise, managerial systems of relational capability has an important role in
realizing value co-creation and providing benefits through increasing income, cost
efficiency, sharing risks, and fostering mutual competence (Ngugi, et al., 2010).
The managerial relational system is built according to the characteristics of each
business partner so that it allows partners to be able to manage resources properly
and sistematically. A good managerial systems relational capability between
suppliers and customers will foster value co-creation activities.
Studies on the relationship between relational and business performance have
been conducted by previous researchers, but the results are still inconsistent. The
study found business networks to be a determinant of business performance
(Agndal & Chetty, 2007; Roy, 2012; Raza, 2012; Mu et al., 2008; Mitrega, 2012).
Furthermore, the ability to build relationships with customers is a driver of
business performance (Mitrega, 2012; Shafei & Zohdi, 2014; Indriastuti, 2019).
Other studies show different results, the relational capability has a negative effect
48
on company performance (Breda & John, 2013; Salisu & Abu Bakar, 2019) and
relational competence is also not able to improve business performance (Nuryakin
et al., 2017; Salisu & Abu Bakar, 2019).
Based on description above, this study aims to examine the role of value co-
creation activities as a mediating variable for the relationship between cultural
performance. The results of this study are expected to add new knowledge and
contribute to overcoming gaps from various previous research results as well as
contribute to the development of relationship marketing discipline.
Literature review
Cultural relational capability
Dyer & Singh (1998) and Jacob (2006) state that the concept of relationship
capabilities includes three dimensions, they are: configuration process
capabilities, the ability to communicate with customers, and the ability to control
business processes. Relationship capabilities are an important asset and an
internal organizational capability (Zohdi et al., 2013; Ngugi, et al., 2010; Esther
Hormiga et al., 2011; Fazli et al., 2013). Relationship capabilities are related to
the acceleration of access to knowledge that can support innovation and
competitive advantage (Smirnova et al., 2011). Furthermore, relationship
capabilities are an effort to obtain information on business activities by integrating
various knowledge. Cultural-based business relationships will make it easier for
companies to resolve mutual conflicts and understand cultural differences and
values embedded in partners (Johnsen, 2005). Cultural relational capability allows
companies to learn across cultures and develop skills that involve various network
partners to increase competence, cost efficiency, share risks and increase income
(Ngugi et al., 2010). In this study, cultural relationship capability are the ability
of an organization to communicate, coordinate and manage business interactions
by understanding cultural values, which is measured through indicators of
development of culturally appropriate relationships, developing relationships
according to inner values, cross-cultural learning experiences, and competency
development through network variations.
Managerial systems relational capability

Managerial systems relational capability related to structures and methods
enable the creation of knowledge in accordance with the characteristics of each
company (Snehota, 1995). The relational systems developed will affect the
characteristics of the relationship through the development of structures, methods,
strategies, and resources. The strength of the relationship allows each partner to
manage resources well. Managerial systems relational capability have an
important role in realizing value co-creation and product and process innovation
(Ngugi et al., 2010). Furthermore, the relationship system includes the
development of structures, strategies, methods, and facilities as well as related
approaches to overcome differences. Facts show that management interaction
capability can improve company performance (Nurhayati & Hendar, 2017).
Managerial systems relational capability has an important role in realizing value
co-creation as well as providing benefits through increasing income, cost
efficiency, sharing risks, and fostering mutual competence (Ngugi et al., 2010). In
this study, managerial systems relational capabilities are the ability to develop
49
relationship structures and strategies that allow the creation of relationships in
accordance with the characteristics of each company, which is measured through
indicators of relationship structure, relationship strategy, relationship facilities,
and overcoming differences in gaps.
Value co-creation activities

Prahald & Ramaswamy (2004) and Vargo & Lusch (2004) state that the
concept of value co-creation is an important basic value in collaborative activities.
According to Service-Dominant Logic (SDL), customers are active participants
and collaborative partners in exchanges that will create shared value with the
company (Vargo & Lusch, 2008). Value co-creation occurs through interaction by
sharing information and using resources (Vargo & Lusch, 2008). According to
Aron O’Cass (2013), the concept of value creation in organizations is a
determinant of the company's innovation activities, so that managers and
employees have an important role in creating value. Furthermore, innovation
ability has a positive effect on the ability of an organization to offer value and
subsequently has an impact on company performance (Aron O. & Sok, P. 2013).
The results of the study state that value creation is the main key to the success of
product innovation which ultimately has an impact on business performance
(Viljakainen & Toivonen, 2014; Sørensen & Jensen, 2015; Gura˘u, 2015).
Value creation is related to internal activities to create customer value, for
example, product design, markets, delivery, and activities related to product
manufacturing (Gura˘u, 2015) and there is a strong correlation between customer
involvement, value creation, and customer loyalty (Banyte & Dovaliene, 2014).
The facts explain that effective value creation can produce value-added for
product quality, create cost efficiency, guarantee product service and customer
response so that it affects business performance (Nuryakin et al., 2017). Value co-
creation is a collaborative activity to create shared value through operational
activities to respond quickly to market changes, create profits on sales, increase
cost efficiency, increase competence, and share risks (Ngugi et al., 2010). In this
study, value co-creation activities are collaborative activities to create shared
values through mutually beneficial interactions, which is measured through
indicators of joint integrative learning, mutual exchange interactions, sharing
information and knowledge, and sharing risks.
Business performance
Olson & Slater (2002) emphasized that company performance can be
known from the sales of new products or new customers, market share, and
innovation and learning perspectives. Sin et al (2006) emphasized that business
performance can be measured through seven aspects, namely sales growth,
customer retention, return on investment (ROI), market share, trust, customer
satisfaction, and return on sales (ROS). According to Nuryakin et al (2018),
business performance is the result of the organization's operational activities
which include internal and internal aspects, which include indicators of sales
volume, sales growth, profitability, and market share. Najib & Kiminami (2011)
also believed that business performance can be measured through three indicators,
namely market share, profitability, and sales volume. Nwokah & Maclayton
(2006) assert that business performance can be measured through indicators of
sales growth, company profits, and controlled market share. Sharabati et al (2010)
50
emphasized that business performance can be measured through the dimensions
of productivity, profitability, and market valuation. In this study, business
performance is measured through indicators of profit growth, sales growth,
customer satisfaction, customer growth, and Return on Assets (ROA).
Literature review and Hypothesis Development

Cultural relational capability and value co-creation activities
Relationship capabilities are an organization's ability to communicate,
coordinate and manage business interactions (Day & Butle, 2002). According
Nuryakin et al. (2017), relationship capabilities are an organization's ability to
communicate, coordinate and manage business interactions to create value
creation and increase business performance. Cultural relational capability are a
relationship approach that allows companies to overcome cultural differences and
partner values (Johnsen, 2005). Relationship development is influenced by the
values that are embedded in oneself or the behavior of partners. The ability to
learn to understand customer culture and values will make it easier to deal with
both conflict and the ebb and flow of relationships. Sharing values and
understanding the culture will create greater relationship opportunities by
respecting each other thus improving the quality of the relationship. Relational
capability become a determinant of value co-creation by developing a structure
and strategy for relationships with suppliers and customers (Ngugi et al., 2010).
Organizational operations that can understand and overcome differences in
partner culture will be able to create mutually beneficial value co-creation
activities, through risk-sharing, competency enhancement, profit sharing, and
cost-efficiency. Therefore, cultural relational capability are possible to influence
value co-creation activities.
H1: CRC has a significant effect on VCCA
Managerial systems relational capability and value co-creation activities
Customer-supplier relationship studies focus primarily on economic
benefits, competencies, and ultimately on the development of relationship norms
(Gottschalk & Solli-Sæther, 2006; Goo et al., 2009). Relational capability are
determined by relationship norms related to roles, reciprocity, and control
governance (Muthusamy & White, 2006). Top management support is needed for
the development of relational norms to create strong relationships and have a big
role in the creation of value co-creation. Furthermore, client participation allows
companies to increase their innovation capabilities (Ngo & O’Cass, 2012). The
relational capability that is developed through information disclosure, interaction
facilities, and the ability to absorb knowledge will make the company stronger so
that it has a higher capacity in value co-creation (Indriastuti, 2019). Furthermore,
value co-creation can be obtained through the relational capabilities of the
organization (Wagner & Hoegl, 2006). Organizational activities that can build
cooperative relationships with customers or partners will get greater benefits
through value co-creation activities. Therefore, managerial systems relational
capability is possible to encourage the creation of value co-creation activities.
H2: MSRC has a significant effect on VCCA
Cultural relational capability and business performance

Companies that can interact with customers intensively will benefit
through customer identification, customer acquisition, and customer retention
51
(Wang & Feng, 2012). Cultural-based relationships allow companies to overcome
differences in the cultural values of partners and make it easier to solve problems
together quickly (Johnsen, 2005). Ralational capital developed through the culture
to understand personal relationships, maintain the quality of information, provide
interaction facilities and be able to absorb knowledge from other parties can
improve marketing performance (Indriastuti, 2019). According to Olson & Slater
(2002), the business performance of a company can be seen from the sales of new
products or new customers, market share, innovation, and learning. Organizations
that can understand the cultural values of partners will easily solve common
problems and set the right strategy so that it will have an impact on business
performance. Therefore, cultural relational capability may affect business
performance.
H3: CRC has a significant effect on BP
Managerial systems relational capability and business performance

Ngugi et al. (2010) stated that the relational system developed by the
organization will affect the characteristics of the relationship through the
development of structures, methods, strategies, and resources. The strength of the
relationship allows each partner to manage resources well. Furthermore, relational
systems have an important role in encouraging value co-creation and
strengthening company performance as stated by Ngugi et al. (2010). The concept
of relationship is built through the development of relationship structures and
strategies between customers and suppliers as well as experiences in building
collaboration. The ability to understand different situations and provide
collaboration facilities will make it easier to overcome differences in partners.
Likewise, customer management interaction capability in SMEs can improve
business performance (Nurhayati & Hendar, 2017). At various stages in the
cooperative relationship, customer value will change very dynamically so that
companies can develop value co-creation strategies based on knowledge of
customers and customer preferences (Beverland & Lockshin, 2003; Payne et al.,
2008). Managerial systems relational capability allow companies to be able to
develop structures, methods, strategies and manage resources effectively and
efficiently to overcome gaps in differences with customers and potentially
increase sales. Therefore, managerial systems relational capability may affect
business performance.
H4: MSRC has a significant effect on BP
Value co-creation activities and business performance

Vargo & Lusch (2004) state value co-creation in a service-dominant logic
framework as a joint process in which customers and companies are involved
together in creating mutually beneficial value during the interaction process.
Value co-creation shows customer involvement in sharing information, spending
time, effort, and other resources in decision making during the production process
(Durugbo & Pawar, 2014; Youjae & Gong, 2013). Effective value creation
activities can generate value- added for product quality, create cost efficiency,
guarantee product service and customer response as a determinant of business
performance (Nuryakin et al., 2017).
Value co-creation is a collaboration to create shared value through operational
activities to respond quickly to market changes, through profit on sales, cost
52
efficiency, increased competence, and shared risk (Ngugi et al., 2010). Value co-
creation developed through collaboration, integrated learning together, sharing
information and knowledge, mutually beneficial interactions, and willingness to
interact mutually can improve marketing performance (Indriastuti, 2019).
Likewise, value co-creation in a collaborative relationship can improve business
performance (Parthasarathy & Aris, 2011). Value co-creation activities built by
the organization can provide greater added value to customers through cost
efficiency, speed of product service, and speed of responding to customer
expectations so that it will affect customer satisfaction and business performance.
Therefore, value co-creation activities may affect business performance.
H5: VCCA has a significant effect on BP
Value co-creation activities as mediating variable

Aron, O. & Sok, P. (2013) stated that innovation ability has a positive
influence on an organization's ability to offer value and subsequently has an
impact on company performance. The results of the study state that value co-
creation is the main key to the success of product innovation which ultimately has
an impact on business performance (Viljakainen & Toivonen, 2014; Sørensen &
Jensen, 2015; Gura˘u, 2015). Value creation is related to internal activities to
create customer value, for example, product design, markets, delivery, and
activities related to product manufacturing (Gura˘u, 2015). Furthermore,
customer involvement in value creation and customer loyalty has a strong
correlation (Banyte & Dovaliene, 2014).
Relational capability have a significant effect on value co-creation and
better value co-creation will encourage increased marketing performance
(Indriastuti, 2019). Relational capability can be developed through the culture to
always explore personal ties, maintain the quality of information, provide reliable
interaction facilities and be able to absorb other knowledge which will increase
the co-creation value. Likewise, alliance relational capabilities that are developed
through innovation, intellectual property, behavior alignment, and relational
norms can strengthen value co-creation. Gottschalk & Solli-Sæther (2006) and
Goo et al. (2009) stated that the concept of developing relationships leads to
norms and alliance management. Furthermore, relational norms related to roles,
governance control, and reciprocal influence will affect business performance.
The role of top management as the main contributor to the norms of cooperative
relations is very much needed to facilitate information sharing and knowledge
sharing to encourage the creation of value co-creation activities. Customer value
changes very dynamically at various stages of the cooperative relationship so that
companies can develop a value co-creation strategy based on knowledge of
customers and customer preferences (Beverland & Lockshin, 2003; Payne et al.,
2008).
The managerial systems relational developed by the organization will affect
the characteristics of the relationship through the development of structures,
methods, strategies so that the organization can manage resources efficiently
(Ngugi et al., 2010). Furthermore, the strength of the relationship allows each
partner to be able to manage resources well in a structured manner, so that
relational systems have an important role in encouraging value co-creation and
strengthening company performance (Ngugi et al., 2010). Organizations that can
adjust to cultural differences and partner values in a working relationship will be
53
able to quickly solve common problems and strengthen value co-creation
activities and have an impact on business performance. Likewise, managerial
systems relational capability related to strategies, structures, and methods so that
organizations can manage resources effectively and efficiently will become a
contributor to value co-creation activities. Furthermore, value co-creation
activities as joint activities can create cost efficiency, share risks, increase
knowledge and have the potential to improve business performance. Therefore,
the following hypotheses are formulated as follows:
H6: VCCA mediates the relationship between CRC and BP.
H7: VCCA mediates the relationship between MSRC and BP.
Cultural
Relational
Capability
Business
Value co-Creation
Activities Performance
Managerial Systems
Relational
Capability
Research methodology
Sample and data collection
The object of this research was fashion retail SMEs in Central Java, Indonesia.
Respondents were owners or leaders of fashion retail SMEs who had at least 3
years of experience in managing a business. Data was collected by distributing
questionnaires offline and online via a google form. Researchers distributed
questionnaires to as many as 390 respondents in 10 cities/districts in Central Java
and respondents who returned as many as 345 (88.4%). Furthermore, the selection
and validation of the returned questionnaires were carried out, it turned out that
only 305 (78.2%) met the requirements for analysis. All of the respondents
selected were female (68.4%) and male (31.6%) with ages 19 to 69 years and
business experience between 3 to 25 years.
Measurement
54
Primary data in this study were collected by researchers through surveys
(offline) and online (google form). The questionnaire was designed by using a
rating scale of 1 - 10 to measure respondents' answers from all constructs (Hair et
al, 2010). Respondents were allowed to choose from the lowest score (1) for
strongly disagree to the highest score (10) for strongly agree. The research
construct was adopted from several previous research literature with some
modifications to suit the context of the research. Cultural relational capability are
adopted from the perspective of (Ngugi et al., 2010), with indicators of developing
cultural-appropriate relationships, developing relationships according to inner
values, cross-cultural learning experiences, developing competencies through
network variations. Managerial systems relational capability were adopted from
(Ngugi et al., 2010) with indicators of relationship structure, relationship strategy,
relationship facilities, and overcoming differences in gaps. Value co-creation
activities are adopted from (Indriastuti, 2019; Ngugi et al., 2010) with indicators
of joint integrative learning, mutual exchange interaction, sharing information and
knowledge, as well as sharing risks. Business performance is adopted from
(Tzokas et al., 2015; Nuryakin et al., 2018) with indicators of profit growth, sales
growth, customer satisfaction, market share growth, and ROA growth.
Data analysis and measurement model

There are several criteria for model testing in SEM. Model testing shows
that the Goodness-of-Fit index is in accordance with the criteria recommended by
SEM. The test results show the value of Chi-Square value = 116.471 and not
significant at α: 0.05, GFI index: 0.958; AGFI: 0.947; TLI: 0.998; CFI: 0.998;
NFI: 946; RMSEA: 0.010 that is less than 0.08 and CMIN / DF: 1.031 that is less
than 2.00, so it can be concluded that all values have met the requirements
recommended by SEM and are feasible to use.

factor
Collaborative relationships are built in accordance with shared .097
cultural values .792
The cooperative relationship is based on the values that exist in each
partner. .718
Building cooperative relationships with partners is a cross-cultural
learning experience .680
A variety of collaborative networks can add skills to building working
relationships.
Managerial Systems Relational Capability .689
The structure of the cooperative relationship is built in accordance
with the characteristics of each company .726
The cooperative relationship strategy is developed according to the
The available relationship facilities are in accordance with the .718
characteristics of each company
The ability to deal with differences can strengthen cooperative .731
relationships. .697
55
Value co-Creation Activities .678
Mutually beneficial interactions can create mutual benefits
Business Performance .727
Customers are satisfied with the company's service.
The number of customers in my company keeps increasing every year
Return on Assets always increases every year.
X² = 116.471; df =113; Prob = .392; GFI = .958; AGFI = .947; TLI = .998; CFI =.998;
RMSEA = 0.010; CMIN/DF: 1.031

N = 305 1 2 3 4
(MSRC)
Value co-Creation Activities(VCCA) .435 .423 .820
Table 1 explains that all indicators have a loading factor value > 0.05 and a p-
value < 0.05, so it can be concluded that all the indicators tested are valid.
Table 2 explains that all average variance extracted (AVE) value is greater than
0.50 and the construct reliability (CR) value is greater than 0.70, this means
that the measurement results of all indicators of research variables have
internal consistency (Hair et al, 2010).
Results
In Table 3 and Figure 2, it is explained that CRC has a significant effect on
VCCA (Std. β = .330, CR = 4.324 and p-value < 0.01), then MSRC on VCCA
(Std. β = .381; CR = 4.841 and p-value < 0.01), so it can be concluded that H1,
H2 are accepted. The effect of CRC on BP (Std. β = .345, CR = 4.558, p-value <
0.01), MSRC on BP (Std. β = .266, CR = 3.484, p-value < 0.01) and VCCA on
BP (Std. β = .206, CR = 2.654 and p-value < 0.01), so it can be concluded that
H3, H4, H5 are accepted.
The Sobel test approach was used to test VCCA as a mediating variable. Table
4, shows the effect of CRC on BP with VCCA as the mediating variable. The test
results of the effect of CRC on VCCA (Unstd. β = .312 and SE = 0.073) and VCCA
on BP (Unstd. β = .240 and SE = 0.091). The results of the Sobel test statistic =
2.252 and p-value 0.01 < 0.05, it is concluded that VCCA is the mediating variable
for the relationship between CRC and BP. Furthermore, for the effect of MSRC
on BP with VCCA as a mediating variable. The test results of the effect of MSRC
on VCCA (Unstd. β = .364, SE = 0.075), and VCCA on BP (Unstd. β = .297, SE
56
= 0.085). The results of the Sobel test statistic = 2.835 and p-value 0.00 < 0.05,
thus VCCA can mediate the relationship between MSRC and BP.
The relationship Unstandardized Standardized ß SE CR
between ß
constructs
H1: CRC -> .312 .330 .072 4.324*
VCCA
H2: MSRC -> .364 .381 .075 4.841*
VCCA
H3: CRC -> BP .381 .345 .083 4.558*
H4: MSRC -> BP .297 .266 .085 3.484*
H5: VCCA -> BP .240 .206 .091 2.654*
Note: * p < 0.01

The relationship between Sobel test statistic p-value
constructs
H6: CRC -> VCCA -> BP 2.252 .01
H7: MSRC -> VCCA -> BP 2.835 .00

Discussion
Cultural relational capability have an important role in value co-creation
activities. Organizations that build relationships with customers and partners on a
cultural basis will easily resolve mutual conflicts and understand cultural
differences. Culture-based business relationships provide opportunities to learn
and understand partner cultures and encourage the creation of value co-creation
activities through joint integrative learning, mutual exchange interactions, sharing
information and knowledge, and sharing risks. The results of this study reinforce
the findings that cultural relational capability provides companies with
opportunities to learn across cultures and develop network partner skills to create
57
knowledge sharing to increase competence and share risks (Ngugi et al., 2010)
and to easily resolve conflicts together (Johnsen, 2005).
Managerial systems relational capability can encourage the creation of value
co-creation activities. The relational system developed by the organization will
affect the structure, method, and strategy of the organization. A harmonious
relationship allows each partner to manage resources in a structured manner and
strategize appropriately. A structured managerial relational system will encourage
the growth of value co-creation activities in the form of risk sharing, cost
efficiency, and increased profit, thereby this reinforces the statement that
managerial systems relational capability can create value co-creation (Ngugi et al,
2010). Likewise, the relational capability will encourage the creation of customer
value co-creation (Indriastuti, 2019).
Cultural relational capability will improve business performance.
Understanding the culture of partners in business relationships allows companies
to overcome differences in cultural values and makes it easier to solve problems
faced together quickly. The development of culture-based relationships is a means
of adding to cross-cultural learning experiences and a means of developing skills
through a variety of networks. Cultural relational capability have an important
role in the creation of value co-creation activities. This reinforces the statement
that relational capital developed through culture will be able to understand the
meaning of relationships, maintain the quality of information, provide interaction
facilities, be able to absorb knowledge from other parties and have the potential
to improve marketing performance (Indriastuti, 2019).
Managerial systems relational capabilitiy significantly affect business
performance. The company's ability to develop a relationship structure and
strategy will allow the creation of a relationship structure that is in line with the
characteristics of each partner. A structured relationship system will facilitate
collaboration, provide relationship facilities and overcome differences in partners
together. The ability to build relationships has an important role in improving
business performance through customer satisfaction, sales growth, thereby this
reinforces the finding that interaction management skills with customers can
improve business performance (Nurhayati & Hendar, 2017) and revenue through
cost efficiency (Ngugi et al., 2010).
Value co-creation activities will improve business performance. Value co-
creation activities developed through collaboration, learning together, sharing
information and knowledge will be mutually beneficial. The added value of
product quality, cost-efficiency, guaranteed product service, and customer
response will be achieved when there is mutually beneficial interaction with
partners. Willingness for mutually beneficial reciprocal interactions can improve
marketing performance (Indriastuti, 2019). Likewise, effective value creation can
generate value-added through cost efficiency, product service guarantees, and as
a determinant of business performance (Nuryakin et al., 2017), and value co-
creation in a collaborative relationship can improve business performance
(Parthasarathy & Aris, 2011).
Value co-creation activities can mediate the relationship between cultural
relational capabilities and business performance. Relational capabilities are built
through culture so that the organization can explore personal ties, maintain the
quality of information and provide facilities for reliable interaction. The ability to
absorb knowledge through cultural relational capability will encourage the
58
creation of value co-creation activities. The better value co-creation activities will
create information and knowledge sharing, strengthening new competencies,
sharing risks, cost efficiency, thereby encouraging increased business
performance. Value co-creation activities are also able to mediate the relationship
between managerial systems relational capability and business performance. The
relationship system has a role in structuring and strategic relationships between
customers and suppliers when building collaboration. The ability to understand
the relationship system properly will be able to overcome the differences faced
together. Therefore, relational systems have an important role in encouraging the
creation of value co-creation activities to create cost efficiency, share risks, share
information and knowledge so that they have an impact on business performance.
Conclusion
Business performance can be improved when retail fashion SMEs can understand
partner culture and as a means of adding to cross-cultural learning experiences as
well as a means of developing competencies through business partners. The
ability to understand each other's culture of partners when building business
relationships allows companies to overcome differences in cultural values and
quickly solve common problems for the common good. Likewise, managerial
systems relational capability have an important role to play in improving business
performance when the company can take advantage of the appropriate
relationship structure and strategy, provide adequate relationship facilities and
address differences in a fair manner.
Cultural relational capability need the ability to understand the cultural values
of partners in business relationships so that companies can overcome differences
in cultural values and solve common problems quickly. The awareness to
understand cultural differences in business cooperation relationships will
encourage value co-creation activities to create information and knowledge
sharing, increase new competencies, share risks and experiences and increase
profits on sales. The success of value co-creation activities has the potential to
improve business performance. Likewise, an effective managerial relational
system in business relationships will encourage the creation of value co-creation
activities, through sharing information and knowledge, sharing risks, increasing
competence, cost efficiency so that it will improve business performance.
Limitations and future research

The study of cultural relational capability and managerial systems relational
capability in retail fashion SMEs is a challenge for researchers because these two
constructs are often known as weaknesses. Business in the fashion sector is
changing so dynamically that it requires strong relational skills and managerial
system to satisfy and retain customers. The focus of this study is still very limited
to fashion retail SMEs and only examines relational capabilities, while the number
and types of SMEs are very broad. Future research will be better directed at large
companies or various types of SMEs so that it will provide more comprehensive
results. Research results are expected to add new knowledge to address gaps in
previous research results and contribute to the development of science, especially
in the field of relational marketing.
References
59
Agndal, H., & Chetty, S. (2007). The impact of relationships on changes in
internationalisation strategies of SMEs. European Journal of Marketing, 41(11–
12), 1449–1474. https://doi.org/10.1108/03090560710821251
Aron, O., & Sok, P. (2013). Exploring innovation driven value creation in B2B service
firms: The roles of the manager, employees, and customers in value creation.
Journal of Business Research, 66 , 1074-1084.
Banyte, J., & Dovaliene, A. (2014). Relations between customer engagement into
value creation and customer loyalty. Procedia - Social and Behavioral Sciences,
156(April), 484–489. https://doi.org/10.1016/j.sbspro.2014.11.226
Beverland, M., & Lockshin, L. (2003). A longitudinal study of customers’ desired
value change in business-to-business markets. Industrial Marketing
Bowman, C., & Ambrosini, V. (2007). Firm value creation and levels of strategy.
Management Decision, 45(3), 360–371.
https://doi.org/10.1108/00251740710745007
Breda, K., & John, F. (2013). The role of tie strength, relational capability and trust in
the international performance of high tech SMEs. The IMP Journal, 7(3), 188-
203.
Day, G. S., & Bulte, C. V. (2002). Superiority in customer relationship management:
consequences for competitive advantage and performance. Marketing Science
Institute, 2(123), 1–49.
Durugbo, C., & Pawar, K. (2014). A unified model of the co-creation process. Expert
Systems With Applications, 41(9), 4373–4387.
https://doi.org/10.1016/j.eswa.2014.01.007
Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources
of interorganizational competitive advantage. Academy of Management Review,
23(4), 660–679. https://doi.org/10.5465/AMR.1998.1255632
Esther, H., Canino, R. M. B., & Mediana, A. S. (2011). The impact of relational capital
on the success of new business start-ups. Journal of Small Business Management,
I49(4), 617–638.
Farrelly, F., Quester, P., & Burton, R. (2006). Changes in sponsorship value:
Competencies and capabilities of successful sponsorship relationships. Industrial
Fazli, S., Hooshangi, M., & Hosseini, A. (2013). The relationship between relational
capital and buyer performance. International Research Journal of Applied and
Basic Sciences, 5(4), 436–440. Retrieved from www.irjabs.com
Forsström, B., & Törnroos, J.A. (2005, September, 4-7). The role of
interdependencies for value co-creation in buyer-seller partnerships in business
markets. [Paper presentation] A WP Paper for 21st Annual IMP Conference
Rotterdam. Netherlands
Goo, J., Kishore, R., Rao, H. R., & Nam, K. (2009). The role of service level
agreements in relational management of information technology outsourcing: An
empirical study. MIS Quarterly: Management Information Systems, 33(1), 119–
146. https://doi.org/10.2307/20650281
Gottschalk, P., & Solli-Sæther, H. (2006). Maturity model for IT outsourcing
relationships. Industrial Management and Data Systems, 106(2), 200–212.
https://doi.org/10.1108/02635570610649853
60
Grönroos, C. (2011). Value co-creation in service logic: A critical analysis. Marketing
Theory, 11(3), 279–301. https://doi.org/10.1177/1470593111408177
Gura˘u, C. (2015). Positioning strategies in the value-added chain of the
biopharmaceutical sector: the case of UK SMEs. Journal of Consumer
Marketing, 21(7),476-485.
Hair, J. F., Black, B. J., & Anderson, R.E. (2010). Multivariate data analysis. 7th
ed. New York. Prentice Hall.
Hoe, S. L. (2008). Perceptions becoming reality: Bridging the market knowledge gap.
Development and Learning in Organisations, 22(2), 18–19.
https://doi.org/10.1108/14777280810850697
Indriastuti, H. (2019). Entrepreneurial innovativeness, relational capabilities, and
value co-creation to enhance marketing performance. Humanities and Social
Sciences Reviews, 7(3), 181–188. https://doi.org/10.18510/hssr.2019.7328
Jacob, F. (2006). Preparing industrial suppliers for customer integration. Industrial
Mele, C. (2011). Conflicts and value co-creation in project networks. Industrial
Mitrega, M. (2012). Network partner knowledge and internal relationships influencing
customer relationship quality and company performance. Journal of Business and
Industrial Marketing. https://doi.org/10.1108/08858621211251488
Möller, K. (2006). Role of competences in creating customer value: A value-creation
logic approach. Industrial Marketing Management, 35(8), 913–924.
Mu, J., Peng, G., & Love, E. (2008). Interfirm networks, social capital, and knowledge
flow. Journal of Knowledge Management, 12(4), 86–100.
https://doi.org/10.1108/13673270810884273
Muthusamy, S. K., & White, M. A. (2006). Does power sharing matter? The role of
power and influence in alliance performance. Journal of Business Research,
59(7), 811–819. https://doi.org/10.1016/j.jbusres.2006.01.018
Najib, M., & Kiminami, A. (2011). Innovation, cooperation and business performance:
Some evidence from Indonesian small food processing cluster. Journal of
Agribusiness in Developing and Emerging Economies, 1(1), 75–96.
https://doi.org/10.1108/20440831111131523
Ngo, L. V., & O’Cass, A. (2012). In search of innovation and customer-related
performance superiority: The role of market orientation, marketing capability,
and innovation capability interactions. Journal of Product Innovation
Management, 29(5), 861–877. https://doi.org/10.1111/j.1540-5885.2012.00939.x
Ngugi, I. K., Johnsen, R. E., & Erdélyi, P. (2010). Relational capabilities for value co-
creation and innovation in SMEs. Journal of Small Business and Enterprise
Nurhayati, T., & Hendar, H. (2017). Customer interaction management capabilities on
the micro-retail fashion in Indonesia. Journal of Relationship Marketing, 16(1),
1–20. https://doi.org/10.1080/15332667.2016.1209066
Nuryakin, N., Didiek A. V., & Budi, M. (2018). Mediating effect of value creation in
the relationship between relational capabilities on business performance.
Contaduría y Administración, 63(1), 1–21.
https://doi.org/10.22201/fca.24488410e.2018.1178
61
Nwokah, N. G., & Maclayton, D. W. (2006). Customer-focus and business
performance: The study of food and beverages organizations in Nigeria.
Measuring Business Excellence, 10(4), 65–76.
https://doi.org/10.1108/13683040610719281
Olson, E. M., & Slater, S. F. (2002). The balanced scorecard, competitive strategy ,
and performance. Business Horizons, (800), 545-685
Oshri, I., Kotlarsky, J., & Gerbasi, A. (2015). Strategic innovation through
outsourcing: The role of relational and contractual governance. Journal of
Strategic Information Systems, 21(3), 1–37.
https://doi.org/10.1016/j.jsis.2015.08.001
Parthasarathy, R., Huang, C., & Ariss, S. (2011). Impact of dynamic capability on
innovation, value creation and industry leadership. IUP Journal of Knowledge,
9(3), 59–73.
Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value.
Journal of the Academy of Marketing Science, 36(1), 83–96.
https://doi.org/10.1007/s11747-007-0070-0
Prahald, V. & Ramaswamy. (2004). Co-creation experiences: the next pactice in value
creation. Journal of Interactive Marketing, 18(3), 5–14.
https://doi.org/10.1002/dir.20015
Ramaswamy, V., & Ozcan, K. (2016). Brand value co-creation in a digitalized world:
An integrative framework and research implications. International Journal of
Research in Marketing, 33(1), 93–106.
https://doi.org/10.1016/j.ijresmar.2015.07.001
Raza, A. (2012). Impact of relational capital management on firm performance.
Abasyn Journal of Social Science, 6(1), 65–78.
Roy, M. (2012). Impact of formal networking on SMEs : A study of sampled small
firms in West Bengal. Globsyn Management Journal, 6(1), 19–30.
Salisu, Y., & Abu Bakar, L. J. (2019). Technological capability, relational capability
and firms’ performance. Revista de Gestão, 27(1), 79–99.
https://doi.org/10.1108/rege-03-2019-0040
Shafei, R., & Zohdi, M. (2014). Relational capabilities in market orientation to
improvement of performance outcomes in SMEs. International Journal of
Business Performance Management, 15(4), 295–315.
https://doi.org/10.1504/IJBPM.2014.065009
Sharabati, A. A., Jawad, S. N., & Bontis, N. (2010). Intellectual capital and business
performance in the pharmaceutical sector of Jordan. Management Decision,
48(1), 105–131. https://doi.org/10.1108/00251741011014481
Sin, L. Y. M., Tse, A. C. B., Chan, H., Heung, V. C. S., & Yim, F. H. K. (2006). The
effects of relationship marketing orientation on business performance in the Hotel
Industry. Journal of Hospitality and Tourism Research, 30(4), 407–426.
https://doi.org/10.1177/1096348006287863
Smirnova, M., Naudé, P., Henneberg, S. C., Mouzas, S., & Kouchtch, S. P. (2011). The
impact of market orientation on the development of relational capabilities and
performance outcomes: The case of Russian industrial firms. Industrial
Snehota, I., & Hakansson, H. (1995). Developing relationships in Business Networks.
International Thomson Press, Boston. https://doi.org/10.4324/9780203392638.
Sørensen, F., & Jensen, J. F. (2015). Value creation and knowledge development in
62
tourism experience encounters. Tourism Management, 46, 336–346.
https://doi.org/10.1016/j.tourman.2014.07.009
Tzokas, N., Kim, Y. A., Akbar, H., & Al-dajani, H. (2015). Absorptive capacity and
performance : The role of customer relationship and technological capabilities in
high-tech SMEs. Industrial Marketing Management.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic. Journal of
Marketing, 68(1), 1–17.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution
service-dominant logic . Journal of the Academic Marketing Science, 36, 1–10.
https://doi.org/10.1007/s11747-007-0069-6
Vargo, S. L., & Lusch, R. F. (2016). Institutions and axioms : an extension and update
of service-dominant logic. Journal of the Academic Marketing Science, 44, 5–23.
https://doi.org/10.1007/s11747-015-0456-3
Vargo, S. L., Maglio, P. P., & Akaka, M. A. (2008). On value and value co-creation: A
service systems and service logic perspective. European Management Journal,
26(3), 145–152. https://doi.org/10.1016/j.emj.2008.04.003
Viljakainen, A., & Toivonen, M. (2014). The futures of magazine publishing:
Servitization and co-creation of customer value. Futures, 64, 19–28.
https://doi.org/10.1016/j.futures.2014.10.004
Voss, M. (2012). Impact of customer integration on project portfolio management and
its success-Developing a conceptual framework. International Journal of Project
Management, 30(5), 567–581. https://doi.org/10.1016/j.ijproman.2012.01.017
Wagner, S. M., Eggert, A., & Lindemann, E. (2010). Creating and appropriating value
in collaborative relationships. Journal of Business Research, 63(8), 840–848.
Wagner, S. M., & Hoegl, M. (2006). Involving suppliers in product development:
Insights from R&D directors and project managers. Industrial Marketing
Walter, A., & Ritter, T. (2003). The influence of adaptations, trust, and commitment
on value-creating functions of customer relationships. Journal of Business and
Industrial Marketing, 18(4–5), 353–365.
https://doi.org/10.1108/08858620310480250
Wang, Y., & Feng, H. (2012). Customer relationship management capabilities:
Measurement, antecedents and consequences. Management Decision, 50(1),
115–129. https://doi.org/10.1108/00251741211194903
Xu, Z., Lin, J., & Lin, D. (2008). Networking and innovation in SMEs: Evidence from
Guangdong Province, China. Journal of Small Business and Enterprise
Yeh, H. (2008). A knowledge value creation model for knowledge-intensive
procurement projects. Journal of Manufacturing Technology Management, 19(7),
871–892. https://doi.org/10.1108/17410380810898796
Youjae, Y., & Gong, T. (2011). Customer value co-creation behavior: Scale
development and validation. Journal of Business Research, 66(9), 1279–1284.
Zohdi, M., Shafeai, R., & Hashemi, R. (2013). Influence of relational capabilities on
business performance: Case of Kermanshah industrial city SMEs. International
Research Journal of Applied and Basic Sciences, 4(3), 589–596.
63
7.4. Editable Table and Figure
APPENDIX
FIGURES
Cultural
Relational
Capability
Business
Value co-Creation
Activities Performance
Managerial Systems
Relational
Capability
64
TABLES

factor
Collaborative relationships are built in accordance with shared cultural values .097
The cooperative relationship is based on the values that exist in each partner. .792
Building cooperative relationships with partners is a cross-cultural learning experience .718
A variety of collaborative networks can add skills to building working relationships. .680
Managerial Systems Relational Capability
The structure of the cooperative relationship is built in accordance with the
The cooperative relationship strategy is developed according to the characteristics of
each company .726
The available relationship facilities are in accordance with the characteristics of each
company .719
The ability to deal with differences can strengthen cooperative relationships. .718
Value co-Creation Activities
65
Mutually beneficial interactions can create mutual benefits .697
Business Performance
Customers are satisfied with the company's service. .727
The number of customers in my company keeps increasing every year .697
Return on Assets always increases every year. .735
X² = 116.471; df =113; Prob = .392; GFI = .958; AGFI = .947; TLI = .998; CFI =.998; RMSEA = 0.010;
CMIN/DF: 1.031

N = 305 1 2 3 4
(MSRC)
Value co-Creation Activities (VCCA) .435 .423 .820

The relationship Unstandardized ß Standardized ß SE CR
between constructs
H1: CRC -> VCCA .312 .330 .072 4.324*
H2: MSRC -> .364 .381 .075 4.841*
VCCA
H3: CRC -> BP .381 .345 .083 4.558*
H4: MSRC -> BP .297 .266 .085 3.484*
H5: VCCA -> BP .240 .206 .091 2.654*
Note: * p < 0.01

The relationship between constructs Sobel test statistic p-value
H6: CRC -> VCCA -> BP 2.252 .01
H7: MSRC -> VCCA -> BP 2.835 .00
66
8. Request to Proof Manuscript before Publish (12 Januari 2022)
Your article proofs for review (Manuscript ID: WAPB A 2025642)

1 message
support@integra.co.in <support@integra.co.in> Wed, Jan 12, 2022 at 9:21 PM

Manuscript Title: WAPB - (Cultural and Relational Capability on Business Performance: Role of
Value Co-Creation)
Manuscript DOI: 10.1080/10599231.2022.2025642
Journal: WAPB-Journal of Asia-Pacific Business
I am pleased to inform you that your proofs are now available for review using the Taylor
& Francis online proofing system: Click here
Please submit your corrections by 19 January 2022, to avoid delay to publication.
Corrections must be limited to answers to the Author Queries, typographical and

essential corrections only.
After we have received your corrections and Author Publishing Agreement, your article
will be corrected and published online within 10 working days.
The DOI of your paper is 10.1080/10599231.2022.2025642. Once your article has

published online, it will be available at the following permanent link:
http://dx.doi.org/10.1080/10599231.2022.2025642.
If you have any questions, please contact me using the details below and I will be pleased
to assist.
Thank you,
On behalf of the WAPB production team

Taylor and Francis
4 Park Square, Milton Park, Abingdon, Oxfordshire, OX14 4RN, United Kingdom
67
Email: WAPB-production@journals.taylorandfrancis.com
“In accordance with the requirement of any applicable Data Protection Laws, “By including any personal data in your response to this
email, you are freely consenting to this being used and stored by the company for the purpose of service delivery. This email and any
accompanying attachments is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any
unauthorized review, use, disclosure, distribution, or copying is strictly prohibited. If you are not the intended recipient of this
communication or received the email by mistake, please notify the sender and destroy all copies. Integra Software Services Pvt Ltd.
reserves the right, subject to applicable local law, to monitor and review the content of any electronic message or informati on sent to or
from its company allotted employee email address/ID without informing the sender or recipient of the message.”
8.1. Proof paper
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
8.1. Queries from Editor
AUTHOR QUERIES
Q1 Please provide missing affiliation as per journal style.
Q2 Please provide complete postal address for the corresponding author.
Q3 Please provide reference for citation [Coombs & Metcalfe, 2000].
Q4 Please add an in-text callout for Figure 1.
Q5 Please provide reference for citation [Johnsen, 2005].
Q9 Please provide reference for citation [Youjae & Gong, 2013].
Q11 The disclosure statement has been inserted. Please correct if this is inaccurate.
Q12 References [Aron and Sok, 2013; Payne et al., 2008; Tzokas et al., 2015; Vargo and
Lusch, 2008; Vargo and Lusch, 2016] have been updated. OK?
Q13 Please provide missing [State/Country] for the [Hair et al., 2010] references list
entry.
Q14 Please cite [Vargo and Lusch, 2016] in text or delete reference.
Q15 Please cite [Youjae and Gong, 2011] in text or delete reference.
Q16 Please check and confirm Tables 2 to 5 re-numbered in orderwise.
8.2. Response to Queries
Response to Queries:
No Request to Proof Manuscript Response

before Publish
Q1 Please provide missing Q1 Please provide missing affiliation as per
affiliation as per journal style. journal style.
Q2 Please provide complete Response:
postal address for the Please add the affiliation of the authors:
corresponding author. Mulyana Mulyana (Universitas Islam Sultan
Q3 Please provide reference for Agung)
citation [Coombs & Metcalfe, Tatiek Nurhayati (Universitas Islam Sultan
2000]. Agung)
Q4 Please add an in-text callout Lutfi Nurkholis (Universitas Islam Sultan
for Figure 1. Agung)
Q5 Please provide reference for Q2 Please provide complete postal address for
citation [Johnsen, 2005]. the corresponding author.
Q6 Please provide reference for Response:
citation [Johnsen, 2005]. Please add the postal address:
Q7 Please provide reference for Jl. Kaligawe KM 04, Semarang, Central Java,
citation [Johnsen, 2005]. Indonesia, 50112
Q8 Please provide reference for Q3 Please provide reference for citation
citation [Johnsen, 2005]. [Coombs & Metcalfe, 2000].
Q9 Please provide reference for Response:
citation [Youjae & Gong, 2013]. Please change the citation of [Coombs &
Q10 Please provide reference for Metcalfe, 2000] to be (Tsai, 2009)
citation [Johnsen, 2005]. Reference: Tsai, K. (2009). Collaborative
networks and product innovation performance :
90
Q11 The disclosure statement has Toward a contingency perspective. Research
been inserted. Please correct if Policy, 38, 765–778.
this is inaccurate. https://doi.org/10.1016/j.respol.2008.12.012
Q12 References [Aron and Sok, Q4 Please add an in-text callout for Figure 1.
2013; Payne et al., 2008; Tzokas Response:
et al., 2015; Vargo and it needs to be revised, I will attach the revision in
Lusch, 2008; Vargo and Lusch, attachment.
2016] have been updated. OK? Q5 Please provide reference for citation
Q13 Please provide missing [Johnsen, 2005].
[State/Country] for the [Hair et Response:
al., 2010] references list For Q5, Q6, Q7, Q8, and Q10 need to changed
entry. the citation to be (Johnsen & Ford, 2006)
Q14 Please cite [Vargo and with the reference: Johnsen, R. E., & Ford, D.
Lusch, 2016] in text or delete (2006). Interaction capability development of
reference. smaller suppliers in relationships with larger
Q15 Please cite [Youjae and customers. Industrial Marketing Management,
Gong, 2011] in text or delete 35(8), 1002–1015.
reference. https://doi.org/10.1016/j.indmarman.2006.05.005
Q16 Please check and confirm Q6 Please provide reference for citation
Tables 2 to 5 re-numbered in [Johnsen, 2005].
orderwise. Response:
For Q5, Q6, Q7, Q8, and Q10 need to changed
the citation to be (Johnsen & Ford, 2006)
with the reference: Johnsen, R. E., & Ford, D.
(2006). Interaction capability development of
smaller suppliers in relationships with larger
customers. Industrial Marketing Management,
35(8), 1002–1015.
Q7 Please provide reference for citation
[Johnsen, 2005].
Response:
35(8), 1002–1015.
[Johnsen, 2005].
Response:
91
35(8), 1002–1015.
Q9 Please provide reference for citation [Youjae
& Gong, 2013].
Response;
The citation of [Youjae & Gong, 2013] should
be changed to be (Yi & Gong, 2013) with the
reference:
Yi, Y., & Gong, T. (2013). Customer value co-
creation behavior: Scale development and
validation. Journal of Business Research, 66(9),
1279–1284.
[Johnsen, 2005].
Response:
35(8), 1002–1015.
Q11 The disclosure statement has been inserted.
Please correct if this is inaccurate.
Response:
Thank you very much, it was good. I confirmed.
Q12 References [Aron and Sok, 2013; Payne et
al., 2008; Tzokas et al., 2015; Vargo and
Lusch, 2008; Vargo and Lusch, 2016] have been
updated. OK?
Response:
OK, I confirmed.
Q13 Please provide missing [State/Country] for
the [Hair et al., 2010] references list
entry.
Response:
Please amend to be : Hair, J. F., W. C. Black, B.
J. Babin, and R. E. Anderson. 2010. Multivariate
Data Analysis. 7th ed. New York. Prentice Hall.
USA.
Q14 Please cite [Vargo and Lusch, 2016] in text
or delete reference.
Response:
Please delete the reference.
Q15 Please cite [Youjae and Gong, 2011] in text
or delete reference.
Response:
Please delete the reference.
92
Q16 Please check and confirm Tables 2 to 5 re-
numbered in orderwise
Response:
I have checked. Very Great, Thanks.
9. Submission Confirmation of Author correction (21 Januari 2022)
Author corrections submitted for Manuscript ID: WAPB A 2025642

1 message
support@integra.co.in <support@integra.co.in> Fri, Jan 21, 2022 at 2:24 PM

Cc: umamaheshwari.gangadharane@integra.co.in
Manuscript Title: WAPB - (Cultural and Relational Capability on Business Performance:

Role of Value Co-Creation)
Manuscript DOI: 10.1080/10599231.2022.2025642
Date proof corrections submitted: 21 January 2022
This email confirms that you have submitted corrections to your proofs via the Taylor &
Francis online proofing system. Your record of corrections are now available using the
Taylor & Francis online proofing system.
Click here
If any of this information is incorrect, please contact the Production Editor: Uma
Maheshwari Gangadharane
We would be grateful if you could answer this very short questionnaire to provide
feedback on how you found the online proofing process. It should take about 1-2 minutes
to complete: http://www.surveygizmo.eu/s3/90026339/Taylor-Francis-Online-
Correction-Tool-I
Thank you.
93
Yours sincerely,
Taylor & Francis Online Proofing Team
reserves the right, subject to applicable local law, to monitor and review the content of any electronic message or information sent to or
10. Follow Up Author Correction and Need adjustment Based on Editor’s feedback (25 Januari
2022)
WAPB_A_2025642 - Author query #TrackingId:10881257

6 messages
Tue, Jan 25,

WAPB-production@journals.taylorandfrancis.com <WAPB-
2022 at 6:28
production@journals.taylorandfrancis.com>
AM
Good day.
We have noticed that you have submitted the file in iAuthor but none of the author queries were resolved.
I have attached the initial PDF to this email.
Please could you check and respond to those queries as quickly as possible.
Best wishes,
Uma
From:support@integra.co.in
Sent:20-01-2022 05:31
To:mulyana@unissula.ac.id,umamaheshwari.gangadharane@integra.co.in
Cc:
Subject:Re: Proof corrections required for your article (Manuscript ID: WAPB A 2025642)
94
Manuscript Title: WAPB - (Cultural and Relational Capability on Business Performance: Role of
Value Co-Creation)
Manuscript DOI: 10.1080/10599231.2022.2025642
According to our records we have not yet received your corrections for this article. Please
submit your answers to the Author Queries and any other typographical or essential
corrections as soon as possible so that we can proceed with publication.
You can access and make corrections to your article through the Taylor & Francis online
proofing system: Click here
If you have any questions, please contact me using the details below and I will be pleased
to assist.
Thank you,
On behalf of the WAPB production team

Taylor and Francis
4 Park Square, Milton Park, Abingdon, Oxfordshire, OX14 4RN, United Kingdom
reserves the right, subject to applicable local law, to monitor and review the content of any electronic message or information sent to or
95
WAPB_A_2025642_PROOF.pdf
1798K
Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id> Tue, Jan 25, 2022 at 11:28 AM
Dear Editor,
Thank you very much for your email,
Please find the attachment below, consisting of the proofing file and revised figure (to be inserted in the text).
We do thank you for your cooperation. Please inform me regarding the next information.
Regards,
Authors

--
Nama : Mulyana
Dosen Prodi manajemen
FE Unissula
email ; mulyana@unissula.co.id
2 attachments
Figure 1.docx
20K
WAPB_A_2025642_PROOF-confirmed.pdf
1417K
WAPB-production@journals.taylorandfrancis.com <WAPB- Tue, Jan 25, 2022 at

Thank you Authors.
I will check and let you know for any further help.
Best wishes,
Uma
96
WAPB-production@journals.taylorandfrancis.com <WAPB- Wed, Jan 26, 2022 at

Dear Authors,
Good day.
While amending the corrections, we have noticed that the in-text citation of figure is missing. I have also
attached the initial PDF for your easy reference.
Please could you provide the same in order to proceed further.
Best wishes,
Uma
WAPB_A_2025642_PROOF.pdf
1798K
Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id> Wed, Jan 26, 2022 at 4:30 PM
Dear Editor,
Thank you very much. Please find the attachment below, I have revised the figure and added the
citation.
Thank you.
Regards,
Authors
Virus-free. www.avast.com
97
Figure 1.docx
21K
WAPB-production@journals.taylorandfrancis.com <WAPB- Wed, Jan 26, 2022 at

Dear Authors,
Thanks for your response.
I'm requesting for figure citation within the text part.

11. Notification of Manuscript Publish (16 Februari 2022)
Routledge author update: congratulations, your article is published!

1 message
Taylor & Francis <noreply@tandfonline.com> Wed, Feb 16, 2022 at 8:02 PM

Reply-To: support@tandfonline.com
The online platform for Taylor & Francis Group content
Author Services | FAQ | Twitter | Facebook | LinkedIn
Congratulations, we’re delighted to let you know that your final published article (the Version of Record) is now
on Taylor & Francis Online.
Cultural and System Relational Capabilities on Business Performance: Role of Value Co-Creation Activities
98
Want to tell others you're published? Use your free eprints today
Every author at Routledge (including all co-authors) gets 50 free online copies of their article to share with
friends and colleagues as soon as their article is published. Your eprint link is now ready to use and is:
https://www.tandfonline.com/eprint/C4HC9FEP88VBJDQSX5US/full?target=10.1080/10599231.2022.2025642
You can paste this into your emails, on social media, or anywhere else you’d like others to read your article.
Author feedback tells us this is a highly effective way of highlighting your research. Using this link also means
we can track your article’s downloads and citations, so you can measure its impact. Find out more about
sharing your work, how you can work with us to highlight your article.
Have you registered to access your Authored Works?

If you haven't already done so, now is the time to register for your Authored Works, our dedicated center for
all Taylor & Francis published authors. Authored Works gives you instant access to your article, and is where
you can go to see how many people have downloaded it, cited it and access your Altmetric data.
To access your Authored Works, you will need to register with the email address below:
mulyana@unissula.ac.id
Once you've completed the quick registration you'll be sent an email asking you to confirm. Click on the
verification link and you can then login (using the above email address) whenever you want to by going to
Taylor & Francis Online. Once you have logged in, click on "Your Account" at the top of the page to see the
latest updates on your article.
Next steps
We’ll be in touch as soon as your article is assigned to the latest issue of Journal of Asia-Pacific Business, but if
you've any queries in the interim don't hesitate to contact us.
Kind regards,
Stewart Gardiner
Global Production Director, Journals
Taylor & Francis Group
Interested in insights, tips, and updates for Taylor & Francis authors? Be part of our researcher community on:
Twitter
Facebook
LinkedIn
Taylor & Francis Author Services
99
Routledge
Please do not reply to this email. To ensure that you receive your alerts and information from Taylor & Francis
Online, please add "alerts@tandfonline.com" and "info@tandfonline.com" to your safe senders list.
Taylor & Francis, an Informa business.

Taylor & Francis is a trading name of Informa UK Limited, registered in England under no. 1072954. Registered office:
5 Howick Place, London, SW1P 1WG.
100

2022JAPB-History of Submission Baru

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2022JAPB-History of Submission Baru

Uploaded by

Copyright:

Available Formats

LAMPIRAN 1

HISTORY OF MANUSCRIPT PUBLICATION

Cultural and System Relational Capabilities on Business Performance:

Mulyana, Tatiek Nurhayati, Lutfi Nurkholis

Dept. of Management, Faculty of Economics

1. Submission Confirmation (11 April 2021) ................................................................................. 3

Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id>

Submission received for Journal of Asia-Pacific Business (Submission ID:

Sun, Apr 11, 2021 at

Dear Mulyana Mulyana,

If you have any queries, please get in touch with journalshelpdesk@taylorandfrancis.com.

Thank you for submitting your work to our journal.

Registered office: 5 Howick Place, London, SW1P 1W.

Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id>

Submission, JAPB <japbsubm@wright.edu> Fri, Dec 10, 2021 at 7:14 AM

Dear Mulyana Mulyana,

2.1. Reviewers’ comments

All parts of the manuscript should be typewritten, double-spaced, with margins of at

Illustrations: Illustrations submitted (line drawings, halftones, photos,

Dr. Mulyana, SE, MSi <mulyana@unissula.ac.id>

Dear Editor of Journal of Asia-Pacific Business,

Submission, JAPB <japbsubm@wright.edu> Tue, Dec 21, 2021 at 7:42 AM

Dear Dr. Mulyana,

Journal of Asia-Pacific Business

[Quoted text hidden]

3.1. Response to Reviewers

Dear Editor of Journal of Asia-Pacific Business,

3.2. Revised Manuscript

Cultural and System Relational Capabilities on Business

Keywords: Cultural relational capability, managerial systems relational capability,

relationship value (Mele, 2011; Ramaswamy & Ozcan, 2016).

When customers and suppliers collaborate, value co-creation is mutually

can encourage value co-creation in a relationship (Forsström & Törnroos, 2005;

Furthermore, cultural-based business relationships allow companies to overcome

to overcome mutual conflicts. Changes in the external environment encourage

opportunities to enhance mutually beneficial customer-supplier relationships

through value co-creation activities.

Relational system in organizations related to governance control, roles, and

reciprocity will determine the alliance of relational capabilities (Muthusamy &

systems of relational capability has an important role in realizing value co-creation

is built according to the characteristics of each business partner so that it allows

partners to be able to manage resources properly and sistematically. A good

value co-creation activities.

Studies on the relationship between relational and business performance have

study found business networks to be a determinant of business performance (Agndal

Furthermore, the ability to build relationships with customers is a driver of business

Salisu & Abu Bakar, 2019).

creation activities as a mediating variable for the relationship between cultural

relational capability and managerial systems relational capability on business

contribute to overcoming gaps from various previous research results as well as

contribute to the development of relationship marketing discipline.

Cultural relational capability

capabilities includes three dimensions, they are: configuration process capabilities,

processes. Relationship capabilities are an important asset and an internal

of access to knowledge that can support innovation and competitive advantage

(Smirnova et al., 2011). Furthermore, relationship capabilities are an effort to obtain

information on business activities by integrating various knowledge. Cultural-based

and understand cultural differences and values embedded in partners (Johnsen,

and manage business interactions by understanding cultural values, which is

measured through indicators of development of culturally appropriate relationships,

developing relationships according to inner values, cross-cultural learning

experiences, and competency development through network variations.

Managerial systems relational capability