Continuity Business of Coffe Shop in Malang City in the Facing of Covid-19 Pandemic

Bayu Ilham Pradana, Ema Zahra Firdaus, Rini Safitri

Abstract


In the midst of the impact of the pandemic, coffee shops are facing problems in maintaining the continuity of their business. For this reason, it is important for coffee entrepreneurs shop to have an entrepreneurial and innovation orientation. This study aims to determine the effect of entrepreneurial orientation and innovation toward business continuity. This type of research is explanatory research using path analysis. The population of this research is coffee SMEs shop in Malang City who have started their business for at least two years. Respondent data comes from umkm.depkop.go.id with the keyword coffee shops and coffee shops, so that as many as 149 respondents were obtained. Based on the search, there are 132 coffee SMEs shops and coffee shops in Malang City that have been running the business for at least two years. The sample technique used is a saturated sample, so that all members of the population are sampled. Data was collected by distributing questionnaires. The results of this study are that there is an influence of entrepreneurial orientation on business continuity, there is an influence of entrepreneurial orientation on innovation, there is an influence of innovation on business continuity, and innovation has a mediating role in the influence of entrepreneurial orientation on the sustainability of coffee shops in Malang City.


Keywords


Business Continuity, Entrepreneurial Orientation, Innovation

Full Text:

PDF

References


Adam, NA, & Alarifi, G. (2021). Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of Innovation and Entrepreneurship , 10 (1). https://doi.org/10.1186/s13731-021-00156-6

Adiputra, I. P. P., Suardhika, I. N., & Yuesti, A. (2023). The Model of Competitive Advantage for Increasing Business Performance in Small and Medium Industries of Woven Fabric (Endek) in Bali Province. International Journal of Applied Business and International Management, 8(1), 14–28. https://doi.org/10.32535/ijabim.v8i1.1858

Agus, S. (2020). Culinary is Mainstay of Malang City to Support Economic Growth. Kabarmalang. Com .

Ahmed, PK, & Shepherd, CD (2010). Innovation Management; Context, Strategies, Systems, and Processes

Aigboje, PO (2020). Entrepreneurial Orientation and Survival of SME Manufacturing Companies in River State, Nigeria. American Journal of Humanities and Social Sciences Research , 4 (11), 1–8. www.ajhssr.com

Al-Hakimi, MA, & Borade, DB (2020). The impact of entrepreneurial orientation on the supply chain resilience. Cogent Business and Management , 7 (1). https://doi.org/10.1080/23311975.2020.1847990

Aljanabi, AQRA (2017). The mediating role of absorptive capacity on the relationship between entrepreneurial orientation and technological innovation capabilities. International Journal of Entrepreneurial Behavior and Research , 24 (4), 818–841. https://doi.org/10.1108/IJEBR-07-2017-0233

Anderson, BS, & Eshima, Y. (2013). The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs. Journal of Business Venturing , 28 (3), 413–429. https://doi.org/10.1016/j.jbusvent.2011.10.001

Asemokha, A., Musona, J., Torkkeli, L., & Saarenketo, S. (2019). Business model innovation and entrepreneurial orientation relationships in SMEs: Implications for international performance. Journal of International Entrepreneurship , 17 (3), 425–453. https://doi.org/10.1007/s10843-019-00254-3

Aulia, TR, & Soetjipto, BW (2022). Effect of Openness to Change, Empowerment, Customer Orientation, and Marketing Innovation to Resilience and Survival of a Convenience Store Business in the Midst of Covid-19 Pandemic. Proceedings of the 3rd International Conference on Business and Management of Technology (ICONBMT 2021) , 202 (Iconbmt), 100–106. https://doi.org/10.2991/aebmr.k.211226.014

Aziz, NA, & Omar, NA (2013). Exploring the effect of Internet marketing orientation, Learning Orientation and Market Orientation on innovativeness and performance: SME (exporters) perspectives. Journal of Business Economics and Management , 14 (SUPPL1), 37–41. https://doi.org/10.3846/16111699.2011.645865

Baldwin, JR, & Gu, W. (2004). Trade liberalization: Export-market participation, productivity growth, and innovation. Oxford Review of Economic Policy , 20 (3), 372–392. https://doi.org/10.1093/oxrep/grh022

Cefis, E., & Marsili, O. (2019). Good times, bad times: Innovation and survival over the business cycle. Industrial and Corporate Change , 28 (3), 565–587. https://doi.org/10.1093/icc/dty072

Chadwick, IC, & Raver, JL (2020). Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship. Entrepreneurship: Theory and Practice , 44 (2), 233–255. https://doi.org/10.1177/1042258718801597

Ciampi, F., Demi, S., Magrini, A., Marzi, G., & Papa, A. (2021). Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation. Journal of Business Research , 123 (October 2020), 1–13. https://doi.org/10.1016/j.jbusres.2020.09.023

Coleman, RO, & Adim, CV (2019). Entrepreneurial proactiveness and organizational resilience in mobile telecommunication firms in Rivers State, Nigeria. The Strategic Journal of Business & Change Management , 6 (3), 454–465.

Covin, JG, & Slevin, DP (1991). A Conceptual Model of Entrepreneurship as Firm Behavior: A Critique and Extension. Entrepreneurship Theory and Practice , 17 (4), 5–21.

Darma, P. E., Bailusy, M. N., & Buamonabot, I. (2022). Impact of The Covid-19 Pandemic on Profitability of Companies Incorporated in IDX30 (Studies Before and During the Pandemic Took Place). International Journal of Applied Business and International Management, 7(2), 116–125. https://doi.org/10.32535/ijabim.v7i2.1663

Deller, SC, & Conroy, T. (2017). Business survival rates across the urban–rural divide. Community Development , 48 (1), 67–85. https://doi.org/10.1080/15575330.2016.1246459

Doh, S., & Kim, B. (2014). Government support for SME innovations in the regional industries: The case of government financial support programs in South Korea. Research Policy , 43 (9), 1557–1569. https://doi.org/10.1016/j.respol.2014.05.001

Espallardo, HM, & Ballester, DE (2009). Product innovation in small manufacturers, market orientation and the industry's five competitive forces. European Journal of Innovation Management , 12 (4), 470–491. https://doi.org/10.1108/14601060910996927

Etim, JJ, Adabu, MU, & Ogar, CA (2017). Influence of Entrepreneurial Orientation As Survival Strategy for Small and Medium Enterprises : the Nigerian Experience. International Journal of Economics, Commerce and Management , 5 (8), 502–518.

Ferreras-Méndez, JL, Olmos-Peñuela, J., Salas-Vallina, A., & Alegre, J. (2021). Entrepreneurial orientation and new product development performance in SMEs: The mediating role of business model innovation. Technovation , 108 (April). https://doi.org/10.1016/j.technovation.2021.102325

Gabriel, J., … KA-EB and M., & 2015, undefined. (2015). Entrepreneurial orientation and survivability of banks in Nigeria: The mediating role of human capital management. Papers. Iafor. Org . http://papers.iafor.org/wp-content/uploads/papers/ebmc2015/EBMC2015_17803.pdf

Genc, E., Dayan, M., & Genc, OF (2019a). The impact of SME internationalization on innovation: The mediating role of market and entrepreneurial orientation. Industrial Marketing Management , 82 (December 2018), 253–264. https://doi.org/10.1016/j.indmarman.2019.01.008

Genc, E., Dayan, M., & Genc, OF (2019b). The impact of SME internationalization on innovation: The mediating role of market and entrepreneurial orientation. Industrial Marketing Management , 82 (January), 253–264. https://doi.org/10.1016/j.indmarman.2019.01.008

Gupta, S., Malhotra, NK, Czinkota, M., & Foroudi, P. (2016). Marketing innovation: A consequence of competitiveness. Journal of Business Research , 69 (12), 5671–5681. https://doi.org/10.1016/j.jbusres.2016.02.042

Hervas-Oliver, JL, Sempere-Ripoll, F., & Boronat-Moll, C. (2014). Process innovation strategy in SMEs, organizational innovation and performance: A misleading debate? Small Business Economics , 43 (4), 873–886. https://doi.org/10.1007/s11187-014-9567-3

Hult, GTM, Hurley, RF, & Knight, GA (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management , 33 (5), 429–438. https://doi.org/10.1016/j.indmarman.2003.08.015

Iza, CLB, & Dentoni, D. (2020). How entrepreneurial orientation drives farmers' innovation differential in Ugandan coffee multi-stakeholder platforms. Journal of Agribusiness in Developing and Emerging Economies , 10 (5), 629–650. https://doi.org/10.1108/JADEE-01-2020-0007

Kaufmann, A., & Tödtling, F. (2002). How effective is innovation support for SMEs? An analysis of the region of Upper Austria. Technovation , 22 (3), 147–159. https://doi.org/10.1016/S0166-4972(00)00081-X

Kieso, DE, Weygandt, JJ, & Warfield, TD (2020). Intermediate Accounting: IRS Edition .

Hilarious, A., Carsrud, A., & Oflazoglu, S. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision , 55 (2), 248–270. https://doi.org/10.1108/MD-04-2015-0146

Koçoğlu, İ., İmamoğlu, SZ, Akgün, AE, İnce, H., & Keskin, H. (2015). Exploring the Unseen: A Collective Emotional Framework in Entrepreneurial Orientation and Business Model Innovation. Procedia - Social and Behavioral Sciences , 207 , 729–738. https://doi.org/10.1016/j.sbspro.2015.10.148

Kohtamäki, M., Heimonen, J., & Parida, V. (2019). The nonlinear relationship between entrepreneurial orientation and sales growth: The moderating effects of slack resources and absorptive capacity. Journal of Business Research , 100 (September 2018), 100–110. https://doi.org/10.1016/j.jbusres.2019.03.018

Kurniawati, L. (2019). Analysis of Consumer Attitudes and Satisfaction on Coffee Quality and Prices and Coffee Shop Facilities in Malang City. In Brawijaya University . Faculty of Agriculture.

Lita, PR, Fitriana Faisal, R., & Meuthia, M. (2020). Enhancing small and medium enterprises performance through innovation in Indonesia: A framework for creative industries supporting tourism. Journal of Hospitality and Tourism Technology , 11 (1), 155–176. https://doi.org/10.1108/JHTT-11-2017-0124

Liu, CHS, & Lee, T. (2019). The multilevel effects of transformational leadership on entrepreneurial orientation and service innovation. International Journal of Hospitality Management , 82 (May), 278–286. https://doi.org/10.1016/j.ijhm.2018.10.006

Mas-Verdú, F., Ribeiro-Soriano, D., & Roig-Tierno, N. (2015). Firm survival: The role of incubators and business characteristics. Journal of Business Research , 68 (4), 793–796. https://doi.org/10.1016/j.jbusres.2014.11.030

McKibbin, W., & Fernando, R. (2020). The economic impact of COVID-19. In CEPR Press . www.cepr.org

McKibbin, W., & Fernando, R. (2021). The global macroeconomic impacts of covid-19: Seven scenarios. Asian Economic Papers , 20 (2), 2–30. https://doi.org/10.1162/asep_a_00796

Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science , 29 (7), 770–791. https://doi.org/10.1287/mnsc.29.7.770

Mitussis, D. (2010). SME innovation in Zhejiang, China. Journal of Knowledge-Based Innovation in China , 2 (1), 89–105. https://doi.org/10.1108/17561411011032007

Musawa, MS, & Ahmad, K. (2018). A Conceptual Framework for the Influence of Entrepreneurial Orientation and Environmental Dynamism on Marketing Innovation Performance in SMEs. Business and Economics Journal , 09 (03). https://doi.org/10.4172/2151-6219.1000361

Najib, M., & Kiminami, A. (2011). Innovation, cooperation and business performance: Some evidence from the Indonesian small food processing cluster. Journal of Agribusiness in Developing and Emerging Economies , 1 (1), 75–96. https://doi.org/10.1108/20440831111131523

Najib, M., Rahman, AAA, & Fahma, F. (2021). Business survival of small and medium-sized restaurants through a crisis: The role of government support and innovation. Sustainability (Switzerland) , 13 (19). https://doi.org/10.3390/su131910535

Najib, M., Septiani, S., & Nurlaela, S. (2020). The role of innovation, entrepreneurial self-efficacy and local uniqueness on marketing performance in small and medium-sized restaurants. Journal of Foodservice Business Research , 23 (6), 499–519. https://doi.org/10.1080/15378020.2020.1803687

Ndubisi, NO, & Agarwal, J. (2014). Quality performance of SMEs in a developing economy: Direct and indirect effects of service innovation and entrepreneurial orientation. Journal of Business and Industrial Marketing , 29 (6), 454–468. https://doi.org/10.1108/JBIM-07-2013-0146

Neirotti, P., Raguseo, E., & Paolucci, E. (2018). How SMEs develop ICT-based capabilities in response to their environment: Past evidence and implications for the uptake of the new ICT paradigm. Journal of Enterprise Information Management , 31 (1), 10–37. https://doi.org/10.1108/JEIM-09-2016-0158

Nwankwo, CA, & Kanyangale, M. (2020). Entrepreneurial orientation and survival of small and medium enterprises in Nigeria: An examination of the integrative entrepreneurial marketing model. International Journal of Entrepreneurship , 24 (2), 1–14.

Oktavio, A., Kaihatu, TS, & Kartika, EW (2019). Learning Orientation, Entrepreneurial Orientation, Innovation and Their Impacts on New Hotel Performance: Evidence From Surabaya. Journal of Management Applications , 17 (1), 8–19. https://doi.org/10.21776/ub.jam.2019.017.01.02

Omar, ARC, Ishak, S., & Jusoh, MA (2020). The impact of Covid-19 Movement Control Order on SMEs' businesses and survival strategies. Malaysian Journal of Society and Space , 16 (2). https://doi.org/10.17576/geo-2020-1602-11

Omisakin, OM, Nakhid, C., Littrell, R., & Verbitsky, J. (2016). Entrepreneurial Orientation among Migrants and Small and Medium Enterprises. Journal of Business Administration Research , 5 (1), 7–22. https://doi.org/10.5430/jbar.v5n1p7

Ortiz-Villajos, JM, & Sotoca, S. (2018). Innovation and business survival: A long-term approach. Research Policy , 47 (8), 1418–1436. https://doi.org/10.1016/j.respol.2018.04.019

Otero-Neira, C., Arias, MJF, & Lindman, MT (2013). Market Orientation and Entrepreneurial Proclivity: Antecedents of Innovation. Global Business Review , 14 (3), 385–395. https://doi.org/10.1177/0972150913496719

Park, S., Lee, IH, & Kim, JE (2020). Government support and small- and medium-sized enterprise (SME) performance: the moderating effects of diagnostic and support services. Asian Business and Management , 19 (2), 213–238. https://doi.org/10.1057/s41291-019-00061-7

Parkman, ID, Holloway, SS, & Sebastiao, H. (2012). Creative industries: Aligning entrepreneurial orientation and innovation capacity. Journal of Research in Marketing and Entrepreneurship , 14 (1), 95–114. https://doi.org/10.1108/14715201211246823

Petti, C., Rubini, L., & Podetti, S. (2017). Government support and R&D investment effectiveness in Chinese SMEs: A complex relationship. Asian Economic Papers , 16 (1), 201–226. https://doi.org/10.1162/ASEP_a_00504

Pradana, BI, Yuana, P., Ayuni, RF, Amir, AM, & Kartika, AK (2021). How to help restaurants survive during COVID-19? Estudios de Economia Aplicada , 39 (12), 1–13. https://doi.org/10.25115/eea.v39i12.5998

Putra, JJ, Arimbawa, IG, Wulandari, A., Sukoco, A., Damayanti, E., Dharmani, AN, Saleh, OFM, & Bon, T. Bin. (2020). Entrepreneurial orientation and business sustainability of the leather shoes home industry in Surabaya. Proceedings of the International Conference on Industrial Engineering and Operations Management , 59 , 3001–3010.

Rahman, NA, Yaacob, Z., & Radzi, RM (2016). An Overview of Technological Innovation on SME Survival: A Conceptual Paper. Procedia - Social and Behavioral Sciences , 224 (August 2015), 508–515. https://doi.org/10.1016/j.sbspro.2016.05.427

Rhee, J., Park, T., & Lee, DH (2010). Drivers of innovativeness and performance for innovative SMEs in South Korea: Mediation of learning orientation. Technovation , 30 (1), 65–75. https://doi.org/10.1016/j.technovation.2009.04.008

Rodgers, S. (2007). Innovation in food service technology and its strategic role. International Journal of Hospitality Management , 26 (4), 899–912. https://doi.org/10.1016/j.ijhm.2006.10.001

Rowan, NJ, & Galanakis, CM (2020). Unlocking challenges and opportunities presented by the COVID-19 pandemic for cross-cutting disruption in agri-food and green deal innovations: Quo Vadis? Science of the Total Environment , 748 , 141362. https://doi.org/10.1016/j.scitotenv.2020.141362

Rubin, A., & Callaghan, CW (2019). Entrepreneurial orientation, technological propensity and academic research productivity. Heliyon , 5 (8), e02328. https://doi.org/10.1016/j.heliyon.2019.e02328

Rypestøl, JO, & Aarstad, J. (2018). Entrepreneurial innovativeness and growth ambitions in thick vs. thin regional innovation systems. Entrepreneurship and Regional Development , 30 (5–6), 639–661. https://doi.org/10.1080/08985626.2018.1444104

Sarsah, S. ato, Tian, H., Dogbe, CSK, Bamfo, BA, & Pomegbe, WWK (2020). Effect of entrepreneurial orientation on radical innovation performance among manufacturing SMEs: the mediating role of absorptive capacity. Journal of Strategy and Management , 13 (4), 551–570. https://doi.org/10.1108/JSMA-03-2020-0053

Shah, SZA, & Ahmad, M. (2019). Entrepreneurial orientation and performance of small and medium-sized enterprises: Mediating effects of differentiation strategy. Competitiveness Review , 29 (5), 551–572. https://doi.org/10.1108/CR-06-2018-0038

Shaher, ATHQ, & Ali, KAM (2020). The effect of entrepreneurial orientation and knowledge management on innovation performance: The mediation role of market orientation. Management Science Letters , 10 (15), 3723–3734. https://doi.org/10.5267/j.msl.2020.6.020

Soininen, J., Martikainen, M., Puumalainen, K., & Kyläheiko, K. (2012). Entrepreneurial orientation: Growth and profitability of finnish small- and medium-sized enterprises. International Journal of Production Economics , 140 (2), 614–621. https://doi.org/10.1016/j.ijpe.2011.05.029

Sok, P., O'Cass, A., & Miles, MP (2016). The Performance Advantages for SMEs of Product Innovation and Marketing Resource–Capability Complementarity in Emerging Economies. Journal of Small Business Management , 54 (3), 805–826. https://doi.org/10.1111/jsbm.12172

Sumarlinah, Y., Sukesi, S., & Sugiyanto, S. (2022). The Role of Digital Marketing, Service Quality, Product Quality on Purchasing Power through the Satisfaction of Probolinggo MSME Followers during the Covid-19 Pandemic. International Journal of Applied Business and International Management, 7(1). https://doi.org/10.32535/ijabim.v7i1.1444

Thoumrungroje, A., & Racela, O. (2013). The contingent role of customer orientation and entrepreneurial orientation on product innovation and performance. Journal of Strategic Marketing , 21 (2), 140–159. https://doi.org/10.1080/0965254X.2012.742129

Utomo, HS (2020). The Effect of Muslim Religiosity and Innovation Capability on Firm Survival: A Study on Small Enterprises During the Covid-19 Pandemic. Iqtishadia , 13 (2), 179. https://doi.org/10.21043/iqtishadia.v13i2.7626

Varis, M., & Littunen, H. (2010). Types of innovation, sources of information and performance in entrepreneurial SMEs. European Journal of Innovation Management , 13 (2), 128–154. https://doi.org/10.1108/14601061011040221

Wales, WJ (2015). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal: Researching Entrepreneurship , 34 (1), 3–15. https://doi.org/10.1177/0266242615613840

Wibisono, RS, & Weihua, P. (2021). Personality Characteristics of Entrepreneur and Business Survival : The Role of External Environments. International Sustainable Competitiveness Advantage , 11 (1), 123–129.

Wicaksana, A. (2020). The Influence of Market Orientation and Entrepreneurship Orientation to Increase Competitiveness Through Innovation (Study on Secondwave coffeeshop SMEs in Malang Raya) . Brawijaya University.

Wickramaratne, A., Kiminami, A., & Yagi, H. (2014). Entrepreneurial competencies and entrepreneurial orientation of tea manufacturing firms in Sri Lanka. Asian Social Science , 10 (18), 50–62. https://doi.org/10.5539/ass.v10n18p50

Wiklund, J., & Shepherd, D. (2003). Knowledge-based resources, entrepreneurial orientation, and the performance of small and medium-sized businesses. Strategic Management Journal , 24 (13), 1307–1314. https://doi.org/10.1002/smj.360

Worthington, SLS (2018). Innovation, entrepreneurial orientation, and the survival of the 21st century tech organization. IEEE Engineering Management Review , 46 (4), 19–21. https://doi.org/10.1109/EMR.2018.2879320

Yamali, FR, & Putri, RN (2020). The Impact of Covid-19 on the Indonesian Economy. Economics: Journal of Economics and Business , 4 (2), 384. https://doi.org/10.33087/economics.v4i2.179

Yu, X., Nguyen, B., & Chen, Y. (2016). Internet of things capability and alliance: Entrepreneurial orientation, market orientation and product and process innovation. Internet Research , 26 (2), 402–434. https://doi.org/10.1108/IntR-10-2014-0265

Zhang, M., & Mohnen, P. (2022). R&D, innovation and firm survival in Chinese manufacturing, 2000–2006. In Eurasian Business Review (Vol. 12, Issue 1). Springer International Publishing. https://doi.org/10.1007/s40821-021-00200-1




DOI: https://doi.org/10.32535/ijabim.v8i3.2667

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Rini Safitri

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by: 

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:
+62 341 366222
Email: journal.ijabim@gmail.com
Website: http://ejournal.aibpmjournals.com/index.php/IJABIM

Supported by: Association of International Business & Professional Management 

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2614-7432 (Print)
ISSN 2621-2862 (Online)

DOI: Prefix 10.32535 by CrossREF

International Journal of Applied Business and International Management (IJABIM) INDEXED:

    

    

     

In Process

   

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.