Business sustainability for small coffee shops: the role of leader and quality

Mukhamad Najib and Farah Fahma

International Journal of Productivity and Quality Management, 2023, vol. 39, issue 4, 536-553

Abstract: The rapid growth in the number of coffee shops in Indonesia and the increasingly fierce competition in that space presents a challenge for small independent coffee shops. To survive and have a sustainable business, small coffee shops must compete in a crowded market. One strategy to maintain a sustainable business is to meet and exceed customer expectations by providing exemplary service. This study analyses the influence of a quality-oriented culture and service quality on business sustainability and the role of leadership in achieving a quality culture, service quality and business sustainability. A total of 110 coffee shop owners and managers in Bogor, Indonesia, comprised the study sample. We analyse the relationship between variables using a structural equation model with partial least squares (SEM-PLS) approach. The results reveal that a leader significantly affects the establishment of a quality-oriented culture and actual service quality. Furthermore, our research also shows that having a quality culture and maintaining a high level of service quality significantly affects business sustainability. We provide several managerial implications and policy recommendations based on these results.

Keywords: Indonesia; quality culture; service quality; small coffee shop; SEM-PLS. (search for similar items in EconPapers)
Date: 2023
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