The Impact of Innovation Drivers and Innovation on Business Performance: Coffee Shops in Bekasi
Abstract
Due to the increasing demand for coffee in Indonesia and the predilection of the Indonesian people for coffee, numerous coffee businesses have emerged in various locations, including Bekasi. The coffee stores of Bekasi City, a city with a population of 2.5 million (Central Bureau of Statistics, 2020) and a border with DKI Jakarta, are a significant and expanding culinary enterprise. This increase makes competition among coffee shops very intense, and efforts must be made to comprehend how coffee shops can preserve or improve their performance through innovation in order to retain certain competitive advantages in order to survive and to maintain a stable, growing business performance. This study investigates whether innovation drivers and innovation have an impact on business performance. This research combines quantitative and qualitative approaches. The quantitative survey was conducted with 83 participants using a technique of purposive sampling. The findings of quantitative analysis utilising the Partial Least Square-Structural Equation Model (PLS-SEM) tool indicate that organisational innovation and internal innovation drivers have no effect on business performance, while for external innovation drivers, product innovation, process innovation, and marketing innovation have a positive impact on business performance. Qualitative methods are carried out to complement the analysis that has been carried out based on the findings from the processing of quantitative data. The conclusion of this study is that coffee shop owners and management should pay attention to aspects of organizational innovation by always empowering existing human resources, creating comprehensive SOPs, and always analyzing information obtained by owners and management in order to remain adaptive. In addition, owners and management must actively communicate with their employees/baristas in order for them to comprehend field conditions and actively conduct R&D while considering the coffee shop's financial situation in order for it to be effective and cost-effective.
References
Albert, K. (2014). Metode Riset Untuk Ekonomi Dan Bisnis. Bandung: Alfabeta.
Astuti, P. D., & Sabeni, A. (2005). Hubungan intellectual capital dan business performance dengan diamond specification: sebuah perspektif akuntansi. SNA VIII Solo, 15–16.
Baumol, W. J. (2002). The free-market innovation machine: Analyzing the growth miracle of capitalism. Princeton university press.
Bernauer, T., Engel, S., Kammerer, D., & Sejas Nogareda, J. (2007). Explaining green innovation: ten years after Porter’s win-win proposition: how to study the effects of regulation on corporate environmental innovation? Politische Vierteljahresschrift, 39, 323–341.
Boone, L. E., Kurtz, D. L., & Berston, S. (2019). Contemporary business. John Wiley & Sons.
Davis, W. D., Dibrell, C., Craig, J. B., & Green, J. (2013). The effects of goal orientation and client feedback on the adaptive behaviors of family enterprise advisors. Family Business Review, 26(3), 215–234.
Ghozali, I. (2014). Structural Equation Modeling: Metode Alternatif Dengan Partial Least Square. Badan Penerbit Universitas Diponegoro.
Hafasnuddin, H., Ridwan, R., & Djalil, M. A. (2019). The coffee shop lifestyle in Banda Aceh City, Indonesia: A study based on marketing approach. 1st Aceh Global Conference (AGC 2018), 294–299.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2010). Multivariate data analysis 6th Edition. Pearson Prentice Hall. New Jersey. humans: Critique and reformulation ….
Heunks, F. J. (1998). Innovation, creativity and success. Small Business Economics, 10, 263–272.
Lincoln, Y. S., Guba, E. G., & Pilotta, J. J. (1985). Naturalistic inquiry. Beverly Hills. CA: Sage Publications. Lee, WS (2001). Parents divorce and their duty to support the expense of bringing up their child. Asian Women, 13(1), 85–105.
Mashal, I., & Shuhaiber, A. (2018). What makes Jordanian residents buy smart home devices? A factorial investigation using PLS-SEM. Kybernetes, 48(8), 1681–1698.
Mulyadi, M. (2011). Penelitian kuantitatif dan kualitatif serta pemikiran dasar menggabungkannya. Jurnal studi komunikasi dan media, 15(1), 128–137.
Nwachukwu, C., Chládková, H., & Fadeyi, O. (2018). Strategy Formulation Process and innovation Performance Nexus. International Journal for Quality Research, 12(1).
Pearce, J. A., & Robinson, R. B. (2013). Manajemen strategis: formulasi, implementasi, dan pengendalian. Jakarta: Salemba Empat.
Prawirosentono, S. (1999). Employee performance policy. Yogyakarta: BPFE.
Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California management review, 61(1), 15–42.
Schwenk, C. R., & Shrader, C. B. (1993). Effects of formal strategic planning on financial performance in small firms: A meta-analysis. Entrepreneurship theory and practice, 17(3), 53–64.
Sekaran, U., & Bougie, R. (2018). Metode Penelitian untuk Bisnis, Penerbit Salemba Empat. Jakarta.
Singh, M. P., Chakraborty, A., & Roy, M. (2016). The link among innovation drivers, green innovation and business performance: empirical evidence from a developing economy. World Review of Science, Technology and Sustainable Development, 12(4), 316–334.
Teece, D. J. (2018). Business models and dynamic capabilities. Long range planning, 51(1), 40–49.
Tidd, J., & Bessant, J. R. (2020). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright for this article is retained by the author(s), with first publication rights granted to the journal. This is an open-access article distributed under the terms and conditions of the Creative Commons Attribution license (https://creativecommons.org/licenses/by-nc-nd/4.0/).
