Marketing Strategy, Service Quality, and Innovation Drive Coffee Shop Performance in Indonesia, Study Finds
A new peer-reviewed study by Dhenis Nurul Farida and a team of management scholars from Universitas Gajayana Malang and Universitas Bahaudin Mudhary Madura shows that marketing strategy, service quality, and business innovation play a decisive role in improving the performance of coffee shop micro, small, and medium enterprises (MSMEs) in Greater Malang, Indonesia. Published in 2026 in the International Journal of Integrative Research, the research highlights market advantage as the key factor that connects these business practices to higher sales, profits, and customer growth.
The findings are significant as Indonesia’s coffee shop industry continues to expand rapidly, particularly in urban and tourism-driven regions such as Malang Raya, which includes Malang City, Malang Regency, and Batu City. While the number of cafés has increased sharply, many small business owners still struggle with unstable income and intense competition. This study provides evidence-based insights into what separates high-performing coffee shops from those that merely survive.
Why Coffee Shop Performance Matters
Coffee shops have become more than places to drink coffee. In Greater Malang, cafés function as social spaces, creative hubs, and tourism attractions. The region also benefits from strong local coffee production, making coffee-based MSMEs an important contributor to local employment and economic growth.
Despite this potential, many café owners face fluctuating revenues. Competition is fierce, customer preferences change quickly, and operational costs continue to rise. These conditions make it difficult for small business owners to sustain growth without a clear competitive position in the market.
Against this backdrop, the research by Dhenis Nurul Farida and colleagues examines how internal business strategies translate into measurable performance outcomes.
How the Research Was Conducted
The research team surveyed 205 coffee shop MSME owners across Greater Malang, drawn from a total population of 422 cafés operating in the region. Respondents represented a balanced mix from Malang City, Malang Regency, and Batu City.
Business owners were asked about their marketing practices, service quality, innovation activities, perceived market advantage, and overall business performance. The researchers then analyzed the data to understand how these factors interact and which ones have the strongest influence on business success.
Rather than focusing on technical metrics, the study examined practical elements familiar to café operators, such as pricing strategies, customer service experience, menu innovation, and promotional activities.
Key Findings at a Glance
The study reveals several clear patterns that are highly relevant for small business owners:
1. Marketing strategy matters. Coffee shops that apply a balanced marketing mix—covering product quality, pricing, location, promotion, people, service processes, and physical atmosphere—tend to perform better financially.
2. Service quality builds loyalty. Friendly staff, fast service, and a comfortable café environment significantly strengthen customer trust and repeat visits.
3.Innovation boosts competitiveness. New menu offerings, creative café concepts, and the use of digital tools such as online delivery platforms and social media marketing contribute to stronger market positioning.
4.Market advantage is the bridge to performance. Marketing, service quality, and innovation improve business results most effectively when they create a clear advantage over competitors, such as unique value, better customer experience, or stronger brand perception.
Statistical analysis shows that market advantage plays a mediating role, meaning it connects business strategies directly to outcomes such as increased sales, higher profits, and business growth.
What Market Advantage Looks Like in Practice
Market advantage, as described in the study, refers to the ability of a coffee shop to offer something customers perceive as better or more valuable than alternatives. This can include consistent taste quality, reasonable pricing, a distinctive café atmosphere, or superior service.
According to the authors, strategies alone are not enough if customers do not recognize a café’s uniqueness. When marketing efforts, service improvements, and innovation work together to build that recognition, performance gains follow more reliably.
“Market advantage explains why some coffee shops are able to translate strategy into real financial results, while others struggle despite similar efforts,” the authors note, emphasizing the importance of customer-perceived value.
Implications for Business and Policy
For coffee shop owners and other MSMEs, the study offers a practical roadmap. Success does not depend on one factor alone but on the integration of marketing, service, and innovation to strengthen competitive position.
Local governments and business development agencies can also benefit from these findings. Training programs for MSMEs often focus on financial management, but this research suggests that equal attention should be given to customer experience, innovation capability, and market differentiation.
In the education sector, the results can inform entrepreneurship and business management curricula, particularly those aimed at preparing students to manage or support small businesses in creative industries.
Insights from the Researchers
The research team, led by Dhenis Nurul Farida of Universitas Gajayana Malang, stresses that coffee shop performance is shaped by strategic consistency rather than short-term tactics. By aligning marketing activities, service standards, and innovation efforts, MSMEs can build sustainable advantages even in highly competitive markets.
The authors also suggest future research could explore additional factors such as brand strength and digital presence, which may further reinforce market advantage in the coffee shop industry.
Author Profile
Dhenis Nurul Farida, S.E., M.M. is a lecturer and researcher at Universitas Gajayana Malang, specializing in marketing management, MSME performance, and business strategy. She collaborated with colleagues from Universitas Gajayana Malang and Universitas Bahaudin Mudhary Madura, whose expertise spans management, entrepreneurship, and innovation studies.
Source
Article Title: The Influence of Marketing Mix, Service Quality, and Business Innovation on Business Performance Mediated by Market Advantage in Café Coffee MSMEs in Greater Malang
Journal: International Journal of Integrative Research
Year: 2026
Official URL: https://mrymultitechpublisher.my.id/index.php/ijir
0 Komentar