THE IMPACT OF INNOVATION DRIVERS AND INNOVATION ON BUSINESS PERFORMANCE: COFFEE SHOPS IN BEKASI

• Main Author: Bariza, Fauzan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/74027
• Institution: Institut Teknologi Bandung

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.