Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)


Market Orientation and Service Quality as Driving Forces of Business Sustainability: Evidence from Small Coffee Shop

Author(s): Mukhamad Najib, Hardiana Widyastuti, Mokhamad Syaefudin Andrianto, Stevia Septiani, Farah Fahma

Business sustainability of small coffee shops has become a rising issue due to the current competitive environment which makes a company’s life cycle shorter than before. Market orientation is part of business culture that is always aware of the customer’s needs and competitor’s actions. Companies with good market orientation remain competitive since they have the ability to formulate suitable strategy to protect their customers from competitor action. Market orientation with good service quality has the potential to help small coffee shops to become more sustainable. This study aims to assess the role of market orientation and service quality to business sustainability of small coffee shops. As many as 110 owners of small coffee shops have been selected to be interviewed. The criteria of respondents are those owners of coffee shops with less than 10 workers and whose business has been running for a minimum of one year. To test the proposed hypotheses, Structural Equation Modelling using Partial Least Square (SEM-PLS) is applied. The results of this study can be input for small business owners as well as stakeholders who are concerned about business sustainability of small firms.

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