The findings matter as Indonesia’s coffee sector—especially in Lampung, one of the country’s leading robusta producers—faces growing competition and rapid digital transformation. While the region contributes substantially to the national economy, many coffee SMEs still struggle with limited marketing reach, inconsistent service quality, and weak strategic planning.
Digital Shift Reshapes SME Competition
The rise of digital platforms has transformed how small businesses operate. Coffee SMEs are no longer confined to local markets; they can now reach broader audiences through social media, online marketplaces, and messaging apps. However, adopting digital tools alone does not guarantee success.
At the same time, customer expectations have evolved. In the coffee business, product quality must be matched with strong service experiences—friendly staff, fast service, and a comfortable environment all shape customer loyalty. This combination of digital presence and service excellence is increasingly seen as essential for business survival.
How the Study Was Conducted
The research gathered data from 243 coffee SME owners across Lampung Province. Participants were selected based on their active involvement in business operations, particularly in marketing and customer service.
Using structured questionnaires, the researchers collected insights on four key areas: digital marketing practices, service quality, business strategy, and overall business performance. The data was then analyzed using a statistical modeling approach that identifies both direct and indirect relationships between these factors.
This approach allowed the researchers to examine not only how each factor influences performance, but also how they interact through business strategy.
Key Findings at a Glance
The study presents several clear and actionable findings:
- Digital marketing significantly improves SME performance, helping businesses expand market reach and increase sales.
- Service quality also has a strong positive effect, particularly in building customer satisfaction and loyalty.
- Digital marketing has the strongest influence on business strategy, acting as a key source of market insight.
- Business strategy plays a mediating role, strengthening the impact of both digital marketing and service quality on performance.
- The model explains nearly 60% of SME performance variation, indicating strong reliability and relevance.
One of the most notable results is the dominant role of digital marketing in shaping business strategy. The study shows that online platforms provide valuable data on consumer behavior, enabling SMEs to make more informed decisions.
Strategy as the Missing Link
While both digital marketing and service quality directly improve business performance, their full impact is only realized when integrated into a well-defined strategy.
The research confirms that business strategy acts as a bridge between internal capabilities and measurable outcomes. SMEs that align their digital efforts and service improvements with clear strategic goals tend to achieve better results.
Moh Fakhrurozi of Asia e University emphasizes that digital marketing is more than just promotion. It serves as a source of competitive intelligence that can guide decision-making. Meanwhile, Tulus Suryanto from UIN Raden Intan Lampung highlights the importance of customer experience as a strategic differentiator in the coffee industry.
Their findings suggest that SMEs must move beyond fragmented efforts and adopt a more holistic approach to business management.
Real-World Impact for SMEs and Policymakers
The implications of this research extend beyond Lampung’s coffee sector. For SME owners, the message is clear: success in the digital era requires more than adopting technology. It demands a combination of digital capability, high service standards, and strategic planning.
Businesses that invest in social media marketing, maintain consistent customer service, and align these efforts with long-term strategies are more likely to achieve sustainable growth.
For policymakers and development agencies, the study highlights the need for integrated support programs. Training initiatives should not only focus on digital skills but also include strategic management and customer experience development.
In the education sector, the research contributes to a broader understanding of SME performance by combining two major frameworks: the Resource-Based View (RBV), which focuses on internal capabilities, and the Balanced Scorecard (BSC), which evaluates performance from multiple perspectives.
Academic Insight
Fakhrurozi and colleagues from Asia e University explain that internal capabilities such as digital marketing and service quality become truly valuable “when transformed through effective business strategies into measurable performance outcomes.” This insight reinforces the idea that strategy is not optional—it is essential.
Author Profiles
- Moh Fakhrurozi, M.M. – Researcher at Asia e University, specializing in business management and SME development.
- Juhari Aly, Ph.D. – Academic at Asia e University with expertise in strategic management and organizational performance.
- Tulus Suryanto, Ph.D. – Lecturer at UIN Raden Intan Lampung, focusing on economics, finance, and SME empowerment.
- Zulkarnain Kedah, Ph.D. – Scholar at Asia e University with a research focus on business strategy and entrepreneurship.
Source
Fakhrurozi, M., Aly, J., Suryanto, T., & Kedah, Z. (2026). Digital Marketing and Service Quality in Driving the Performance of Lampung Coffee SMEs: The Role of Business Strategy Mediation. International Journal of Economic, Finance and Business Statistics (IJEFBS), Vol. 4 No. 1, pp. 65–84.
DOI: https://doi.org/10.59890/ijefbs.v4i1.384
URL: https://dmimultitechpublisher.my.id/index.php/ijefbs
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