Journal of Business and Applied Management

Small hotels rely on relationships that extend beyond the physical boundaries of their premises, but the value of those relationships may depend on the degree to which managers can exploit the opportunities they offer. This study investigates the relationship between network relations and business performance in small and medium-sized enterprise (SME) hotels in Jakarta and whether entrepreneurial orientation (EO) moderates such a relationship. It draws on 200 complete questionnaire records and a three-construct SmartPLS 4 model containing network relations, EO, their interaction, and perceived business performance. Reflective measurement results show satisfactory indicator loadings, internal consistency, and average variance extracted. The direct path from network relations to performance is positive and statistically significant (β = 0.757, t = 8.267, p < 0.001). In contrast, the EO × network-relations interaction is negative but does not reach conventional two-sided significance (β = −0.053, t = 1.706, p = 0.088); EO's own path is also nonsignificant (β = 0.102, p = 0.239). Although the model explains substantial variance in performance (R² = 0.898), the Fornell–Larcker assessment fails to establish clear separation between EO and network relations, and between network relations and performance. These measurement concerns limit the strength of the structural interpretation. The evidence supports an association between relational resources and reported hotel performance, but does not establish that entrepreneurial posture changes the value of networks in this sample. The article highlights the practical value of purposeful external relationships while identifying discriminant validity, independent performance measures, and better documentation of respondent selection as priorities for future tests

Network Relations; Entrepreneurial Orientation; Business Performance; SME Hotels; Jakarta; Moderation

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