Sustainable Business Practices in Coffee Shops: The Role of Marketing Innovation, Digital Marketing, and Branding Innovation Through Market Development

  • Authors

    • Ari Prabowo Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia https://orcid.org/0009-0009-5179-0974
    • Aisyah Azhar Adam Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia
    • Zhafira Nur Subhan Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia
    • Yahya Tanjung Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia
    • Austin Alexander Parhusip Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia
    • Alda Deviana Department of Management, Faculty of Economics and Business, Potensi Utama University, Medan, North Sumatra, Indonesia
    • Irwansyah Honorary Consul of Timor Leste
    https://doi.org/10.14419/p0k0pc78

    Received date: August 13, 2025

    Accepted date: September 23, 2025

    Published date: October 2, 2025

  • Business sustainability, branding strategy, digital marketing, marketing innovation, market development
  • Abstract

    This study examines relationships between marketing innovation, digital marketing, and branding strategies on business sustainability through market development in Indonesian coffee shops. Using a quantitative approach with Structural Equation Modeling (SEM) via Smart-PLS, data were collected from 50 Indonesian coffee shops through census sampling from January to May 2025. Results show marketing innovation (β = 0.331, p < 0.01), digital marketing (β = 0.368, p < 0.001), and branding strategies (β = 0.277, p < 0.01) significantly influence market development. All variables demonstrate significant direct effects on business sustainability, with digital marketing showing the strongest impact (β = 0.410, p < 0.001). Market development significantly mediates all relationships, with the model explaining 60.2% of the variance in market development and 77.3% in business sustainability. Coffee shop owners should prioritize integrated marketing strategies combining digital capabilities, authentic branding, and continuous innovation for sustainable business practices.

  • References

    1. Aaker, D. A., & Moorman, C. (2023). Strategic market management (12th ed.). Wiley.
    2. Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113–124.
    3. Ardito, L., Raby, S., Albino, V., & Bertoldi, B. (2021). The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance. Journal of Business Research, 123, 44–56. https://doi.org/10.1016/j.jbusres.2020.09.022
    4. Athaide, G. A., Jeon, J., Raj, S. P., Sivakumar, K., & Xiong, G. (2025). Marketing innovations and digital technologies: A systematic review, pro-posed framework, and future research agenda. Journal of Product Innovation Management, 42(1), 144–165. https://doi.org/10.1111/jpim.12741
    5. Bassetti, T., Blasi, S., & Sedita, S. R. (2021). The management of sustainable development: A longitudinal analysis of the effects of environmental performance on economic performance. Business Strategy and the Environment, 30(1), 21–37. https://doi.org/10.1002/bse.2607
    6. Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Mar-keting, 73(3), 52–68. https://doi.org/10.1509/jmkg.73.3.052
    7. BrightLocal. (2024, March 6). Local Consumer Review Survey 2024: Trends, behaviors, and platforms. https://www.brightlocal.com/research/local-consumer-review-survey-2024/
    8. Chaffey, D., & Ellis-Chadwick, F. (2022/2023). Digital marketing (8th ed.). Pearson. (Overview page: Pearson catalogue).
    9. Davcik, N. S., Vinhas da Silva, R., & Hair, J. F. (2015). Towards a unified theory of brand equity: Conceptualizations, taxonomy and avenues for future research. Journal of Product & Brand Management, 24(1), 3–17. https://doi.org/10.1108/JPBM-06-2014-0639
    10. Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., … Wirtz, J. (2021). Setting the future of digital and social me-dia marketing research. International Journal of Information Management, 59, 102168. https://doi.org/10.1016/j.ijinfomgt.2020.102168
    11. Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E
    12. Elkington, J. (2020). Green swans: The coming boom in regenerative capitalism. Fast Company Press.
    13. Erdmann, A., Petrescu, M., & Bratu, R. (2022). Search engine optimization: The long-term strategy of digital marketing. Journal of Business Re-search, 147, 328–337. https://doi.org/10.1016/j.jbusres.2022.03.028
    14. Giménez, C., & Tachizawa, E. M. (2012). Extending sustainability in the supply chain: A review. International Journal of Operations & Production Management, 32(5), 622–646. https://doi.org/10.1108/01443571211226533
    15. GroupM. (2024, December). This year, next year: Global end-of-year forecast 2024/2025. GroupM/WPP. https://www.groupm.com/insights/this-year-next-year-global-end-of-year-forecast-2024
    16. Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2024). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer.
    17. Hart, S. L., & Milstein, M. B. (2003). Creating sustainable value. Academy of Management Executive, 17(2), 56–69. https://doi.org/10.5465/ame.2003.10025194
    18. Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based SEM. Industrial Marketing Management, 43(1), 115–123. https://doi.org/10.1016/j.indmarman.2014.10.001
    19. Iglesias, O., Singh, J. J., & Batista-Foguet, J. M. (2011). The role of brand experience and affective commitment in determining brand loyalty. Ser-vice Industries Journal, 31(13), 2057–2073. https://doi.org/10.1080/02642069.2011.557366
    20. Insider Intelligence / eMarketer. (2025, January 28). Worldwide ad spending forecast 2025 (Executive summary). Retrieved September 20, 2025, from https://www.emarketer.com/content/worldwide-ad-spending-forecast-2025
    21. Interactive Advertising Bureau & PricewaterhouseCoopers. (2025, April 17). Internet advertising revenue report: Full year 2024. Retrieved Sep-tember 20, 2025, from https://www.iab.com/wp-content/uploads/2025/04/IAB_PwC-Internet-Ad-Revenue-Report-Full-Year-2024.pdf
    22. International Coffee Organization. (2024, December). I-CIP closes 2024 up 40%… Retrieved March 26, 2025, from https://www.ico.org/documents/cy2024-25/cmr-1224-e.pdf
    23. International Coffee Organization. (2024–2025). Monthly coffee market reports / specialized reports. Retrieved March 7, 2025, from https://ico.org/resources/coffee-market-report-statistics-section/
    24. International Finance Corporation. (2024, August 16). IFC and small and medium enterprises. Retrieved April 20, 2025, from https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099924208162450064
    25. Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? Journal of Business Research, 65(10), 1480–1486. https://doi.org/10.1016/j.jbusres.2011.10.014
    26. King, W. R., & He, J. (2006). A meta-analysis of the technology acceptance model. Information & Management, 43(6), 740–755. https://doi.org/10.1016/j.im.2006.05.003
    27. Ko, J.-H., & Jeon, H.-M. (2024). The impact of eco-friendly practices on Generation Z’s green image, brand attachment, brand advocacy, and brand loyalty in coffee shop. Sustainability, 16(8), 3126. https://doi.org/10.3390/su16083126
    28. Kumar, V., Sharma, A., Gupta, S., et al. (2024). AI-powered marketing: What, where, and how? Information & Management, 61(2), 103031. https://doi.org/10.1016/j.im.2024.103031
    29. Liadeli, G., Villarroel Ordenes, F., Grewal, D., & Kopalle, P. K. (2023). A meta-analysis of the effects of brands’ owned social media on social media engagement and sales. Journal of Marketing, 87(6), 105–133. https://doi.org/10.1177/00222429221123250
    30. Malesios, C., Evangelinos, K., Skouloudis, A., & Nikolaou, I. (2018). Impact of small- and medium-sized enterprises’ sustainability practices and performance on financial performance. Business Strategy and the Environment, 27(7), 960–972. https://doi.org/10.1002/bse.2045
    31. Muñoz-Pascual, L., Curado, C., & Galende, J. (2019). The triple bottom line on sustainable product innovation performance in SMEs: A mixed methods approach. Sustainability, 11(6), 1689. https://doi.org/10.3390/su11061689
    32. Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018
    33. National Coffee Association. (2025). National Coffee Data Trends 2025. Retrieved March 22, 2025, from https://www.ncausa.org/market-research/national-coffee-data-trends
    34. Ngo, L. V., & O’Cass, A. (2012). In search of innovation and customer-related performance superiority: The role of market orientation, marketing capability, and innovation capability. Journal of Product Innovation Management, 29(5), 861–877. https://doi.org/10.1111/j.1540-5885.2012.00939.x
    35. Nitzl, C., Roldan, J. L., & Cepeda, G. (2016). Mediation analysis in PLS path modeling. Industrial Management & Data Systems, 116(9), 1849–1864. https://doi.org/10.1108/IMDS-07-2015-0302
    36. Nogueira, E., Gomes, S., & Lopes, J. M. (2023). Triple bottom line, sustainability, and economic development: What binds them together? A bibli-ometric approach. Sustainability, 15(8), 6706. https://doi.org/10.3390/su15086706
    37. OECD/Eurostat. (2018). Oslo manual 2018: Guidelines for collecting, reporting and using data on innovation. OECD Publishing. Retrieved Apr 20, 2025, from https://www.oecd.org/content/dam/oecd/en/publications/reports/2018/10/oslo-manual-2018_g1g9373b/9789264304604-en.pdf
    38. Pan, M., et al. (2025). Influencer marketing effectiveness: A meta-analytic review. Journal of the Academy of Marketing Science. https://doi.org/10.1007/s11747-024-01052-7
    39. Park, C. W., MacInnis, D. J., & Priester, J. (2010). Beyond attitudes: Attachment and consumer behavior. Journal of Consumer Psychology, 20(2), 97–100. https://doi.org/10.1016/j.jcps.2010.03.001
    40. PwC. (2024, May 15). Voice of the Consumer 2024. Retrieved May 10, 2025, from https://www.pwc.com/gx/en/issues/c-suite-insights/voice-of-the-consumer-survey/2024.html
    41. Rosenbusch, N., Brinckmann, J., & Bausch, A. (2011). Is innovation always beneficial? A meta-analysis of the relationship between innovation and performance in SMEs. Journal of Business Venturing, 26(4), 441–457. https://doi.org/10.1016/j.jbusvent.2009.12.002
    42. Rubera, G., & Kirca, A. H. (2012). Firm innovativeness and its performance outcomes: A meta-analytic review and theoretical integration. Journal of Marketing, 76(3), 130–147. https://doi.org/10.1509/jm.10.0494
    43. Santos, C., Duarte, P., & Pinho, J. C. (2024). A systematic literature review on greenwashing and its impacts. Management Review Quarterly. https://doi.org/10.1007/s11301-023-00337-5
    44. Sarstedt, M., & Cheah, J. H. (2024). Partial least squares structural equation modeling using SmartPLS: A software review. Journal of Marketing Analytics, 12(1), 1–35. https://doi.org/10.1057/s41270-023-00207-5
    45. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2024). Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Planning, 57(2), 103456. https://doi.org/10.1016/j.lrp.2023.103456
    46. Schepers, J. J. L., & Wetzels, M. (2007). A meta-analysis of the technology acceptance model: Investigating subjective norm and moderation ef-fects. Information & Management, 44(1), 90–103. https://doi.org/10.1016/j.im.2006.10.007
    47. Sharabati, A. A. A., Alghanmi, F., Alhakami, W., Alahmadi, O., Alnaami, M., & Alharthi, S. (2024). The impact of digital marketing on SME per-formance: An analytical study in light of modern digital transformations. Sustainability, 16(19), 8667. https://doi.org/10.3390/su16198667
    48. Shen, F., Li, K., & Ha, L. (2024). Effects of green messages in advertisements: A meta-analysis. International Journal of Advertising. https://doi.org/10.1080/02650487.2023.2252675
    49. Sirmon, D. G., Hitt, M. A., & Ireland, R. D. (2007). Managing firm resources in dynamic environments to create value: Looking inside the black box. Academy of Management Review, 32(1), 273–292. https://doi.org/10.5465/amr.2007.23466005
    50. Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: Breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390–1412. https://doi.org/10.1177/0149206310385695
    51. Specialty Coffee Association. (2024, June 12). 2024 National Coffee Data Trends – Specialty coffee breakout. Retrieved February 9, 2025, from https://sca.coffee/sca-news/2024-national-coffee-data-trends-specialty-coffee-breakout-report-now-available
    52. Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Manage-ment Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
    53. Trizotto, R. C. A., Nascimento, L. D. S., da Silva, J. P. T., & Zawislak, P. A. (2024). Sustainability, business strategy and innovation: A thematic literature review. Sustainability Accounting, Management and Policy Journal, 15(6), 1338–1377. https://doi.org/10.1108/SAMPJ-05-2023-0234
    54. Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisci-plinary reflection and research agenda. Journal of Business Research, 122, 889–901. https://doi.org/10.1016/j.jbusres.2019.09.022
    55. Wang, C. L., & Ahmed, P. K. (2004). The development and validation of the organizational innovativeness construct. European Journal of Innova-tion Management, 7(4), 303–313. https://doi.org/10.1108/14601060410565056
    56. World Bank. (2019, October 16). Small and medium enterprises (SMEs) finance. Retrieved April 18, 2025, from https://www.worldbank.org/en/topic/smefinance
    57. Wright, D. R., Bekessy, S. A., Lentini, P. E., Robinson, C., & Garrard, G. E. (2024). Sustainable coffee: A review of the diverse initiatives and governance dimensions of global coffee supply chains. Ambio, 53(7), 984–1001. https://doi.org/10.1007/s13280-024-02003-w
    58. Xu, X., & Gursoy, D. (2015). Influence of sustainable hospitality supply chain management on customers’ attitudes and behaviors. International Journal of Hospitality Management, 49, 105–116. https://doi.org/10.1016/j.ijhm.2015.06.003
    59. Yeo, T. E., et al. (2025). How persuasive is personalized advertising? A meta-analysis. Journal of Advertising. https://doi.org/10.1080/00218499.2025.2467763
    60. Yoo, B., & Donthu, N. (2001). Developing and validating a multidimensional consumer-based brand equity scale. Journal of Business Research, 52(1), 1–14. https://doi.org/10.1016/S0148-2963(99)00098-3
    61. Zahoor, N., Zopiatis, A., Adomako, S., & Lamprinakos, G. (2023). The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes. Journal of Business Research, 159, 113755. https://doi.org/10.1016/j.jbusres.2023.113755
    62. Zhu, Q., Sarkis, J., & Lai, K. H. (2008). Confirmation of a measurement model for green supply chain management practices implementation. Inter-national Journal of Production Economics, 111(2), 261–273. https://doi.org/10.1016/j.ijpe.2006.11.029
    63. Zhuang, W., Luo, X., & Riaz, M. U. (2021). On the factors influencing green purchase intention: A meta-analysis approach. Frontiers in Psychology, 12, 644020. https://doi.org/10.3389/fpsyg.2021.644020.
  • Downloads

  • How to Cite

    Prabowo, A., Adam, A. A., Subhan, Z. N., Tanjung, Y., Parhusip, A. A., Deviana, A., & Irwansyah. (2025). Sustainable Business Practices in Coffee Shops: The Role of Marketing Innovation, Digital Marketing, and Branding Innovation Through Market Development. International Journal of Accounting and Economics Studies, 12(6), 43-50. https://doi.org/10.14419/p0k0pc78