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

Authors: Mukhamad Najib; Farah Fahma

Addresses: Department of Management, IPB University, Indonesia ' Department of Agroindustrial Technology, IPB University, Indonesia

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.

DOI: 10.1504/IJPQM.2023.132832

International Journal of Productivity and Quality Management, 2023 Vol.39 No.4, pp.536 - 553

Received: 27 Jul 2021
Accepted: 21 Sep 2021
Published online: 11 Aug 2023 *

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