Determinants of the sustainability of capability-based culinary businesses: evidence from urban areas in Central Java Province
DOI: https://doi.org/10.3846/bmee.2025.21987Abstract
Purpose – Amidst the increasing public awareness of the need for environmentally friendly products and social concerns, sustainability practices can be utilized as a source of competitive advantage for businesses in the culinary industry. The purpose of this study is to investigate the effects of entrepreneurial marketing, transformation capability, and financial capability on sustainability.
Research methodology – This study was based on field survey data involving 315 culinary business actors in the cities of Semarang, Salatiga, and Surakarta, Central Java Province. The data analysis used the Partial Least Squares Structural Equation Modeling (PLS-SEM) method.
Findings – The determinants of sustainability predicted through the formulation of nine hypotheses are mostly proven empirically. Entrepreneurial marketing, transformation capability, and financial capability are demonstrated to have a positive effect on all dimensions of sustainability including economic, environmental, and social performance.
Research limitations – The objects of this research were limited to culinary business actors in urban areas so that only limited generalizations could be made. Future studies can be directed to involve business actors in rural areas so that they can capture the dynamics of sustainability practices better.
Practical implications – A policy that can be proposed based on research findings to the government in order to improve sustainability practices is to improve the capabilities of culinary business actors through training and mentoring that emphasize the importance of creating customer value, renewing company operations, and having financial literacy.
Originality/Value – This study fills the research gap by introducing a capability-based sustainability determinant model.
Keywords:
sustainability, entrepreneurial marketing, transformation capability, financial capability, culinary businessHow to Cite
Share
License
Copyright (c) 2025 The Author(s). Published by Vilnius Gediminas Technical University.
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Adam, A. M. (2020). Sample size determination in survey research. Journal of Scientific Research and Reports, 26(5), 90–97. https://doi.org/10.9734/jsrr/2020/v26i530263
Alojail, M., & Khan, S. B. (2023). Impact of digital transformation toward sustainable development. Sustainability, 15(20), Article 14697. https://doi.org/10.3390/su152014697
Alqahtani, N., Uslay, C., & Yeniyurt, S. (2022). Entrepreneurial marketing and firm performance: Scale development, validation, and empirical test. Journal of Strategic Marketing, 1–22. https://doi.org/10.1080/0965254X.2022.2059773
Al-Shaikh, M. E., & Hanaysha, J. R. (2023). A conceptual review on entrepreneurial marketing and business sustainability in small and medium enterprises. World Development Sustainability, 2, Article 100039. https://doi.org/10.1016/j.wds.2022.100039
Amankwah-Amoah, J., Khan, Z., & Wood, G. (2021). COVID-19 and business failures: The paradoxes of experience, scale, and scope for theory and practice. European Management Journal, 39(2), 179–184. https://doi.org/10.1016/j.emj.2020.09.002
Ayuso, S., & Navarrete-Báez, F. E. (2018). How does entrepreneurial and international orientation influence SMEs’ commitment to sustainable development? Empirical evidence from Spain and Mexico. Corporate Social Responsibility and Environmental Management, 25(1), 80–94. https://doi.org/10.1002/csr.1441
Bapat, D. (2019). Exploring antecedents to financial management behavior for young adults. Journal of Financial Counseling and Planning, 30(1), 44–55. https://doi.org/10.1891/1052-3073.30.1.44
Bednárová, M., Tesarová, M., & Simberová, I. (2023). The evolution of digital transformation in SMES in the manufacturing industry in defferent blocks of The BM Canvas since the beginning of the pandemic. Business, Management and Economics Engineering, 21(1), 48–62. https://doi.org/10.3846/bmee.2023.17607
Charfeddine, L., Umlai, M. I., & El-Masri, M. (2024). Impact of financial literacy, perceived access to finance, ICT use, and digitization on credit constraints: Evidence from Qatari MSME importers. Financial Innovation, 10, Article 15. https://doi.org/10.1186/s40854-023-00557-4
Duarte, P., Silva, S. C., Roza, A., S., & Dias, J. C. (2024). Enhancing consumer purchase intentions for sustainable packaging products: An in-depth analysis of key determinants and strategic insights. Sustainable Futures, 7, Article 100193. https://doi.org/10.1016/j.sftr.2024.100193
Dyllick, T., & Hockerts, K. (2002). Beyond the business case for corporate sustainability. Business Strategy and the Environment, 11(2), 130–141. https://doi.org/10.1002/bse.323
Eikelenboom, M., & de Jong, G. (2019). The impact of dynamic capabilities on the sustainability performance of SMEs. Journal of Cleaner Production, 235, 1360–1370. https://doi.org/10.1016/j.jclepro.2019.07.013
Fernández-López, S., Álvarez-Espiño, M., Castro-González, S., & Rey-Ares, L. (2023). Financial capability and households’ financial vulnerability: Evidence for the Spanish case. Managerial Finance, 49(4), 679–702. https://doi.org/10.1108/MF-02-2022-0086
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104
Guo, B., & Huang, J. (2023). Financial well-being and financial capability among low-income entrepreneurs. Journal of Risk and Financial Management, 16(3), Article 181. https://doi.org/10.3390/jrfm16030181
Gomes, S., Lopes, J. M., & Nogueira, S.(2023). Willingness to pay more for green products: A critical challenge for Gen Z. Journal of Cleaner Production, 390, Article 136092. https://doi.org/10.1016/j.jclepro.2023.136092
Goyal, K., Kumar, S., & Hoffmann, A. (2023). The direct and indirect effects of financial socialization and psychological characteristics on young professionals’ personal financial management behavior. International Journal of Bank Marketing, 41(7), 1550–1584. https://doi.org/10.1108/IJBM-09-2022-0419
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis (7th ed.). Pearson Education.
Jiao, X,. Zhang, P., He, L., &, Li, Z. (2023). Business sustainability for competitive advantage: Identifying the role of green intellectual capital, environmental management accounting and energy efficiency. Economic Research – Ekonomska Istraživanja, 36(2), Article 2125035. https://doi.org/10.1080/1331677X.2022.2125035
Khan, M. A. (2022). Barriers constraining the growth of and potential solutions for emerging entrepreneurial SMEs. Asia Pacific Journal of Innovation and Entrepreneurship, 16(1), 38–50. https://doi.org/10.1108/APJIE-01-2022-0002
Kok, A. M., de Bakker, F. G. A., & Groenewegen, P. (2019). Sustainability struggles: Conflicting cultures and incompatible logics. Business and Society, 58(8), 1496–1532. https://doi.org/10.1177/0007650317703644
Kumara, S. (2023). Indonesia introduces its unique culinary delights to Australian youth in cultural exchange program. The S Media. https://thesmedia.id/posts/indonesia-introduces-its-unique-culinary-delights-to-australian-youth-in-cultural-exchange-program
Lichtenthaler, U. (2022). Explicating a sustainability-based view of sustainable competitive advantage. Journal of Strategy and Management, 15(1), 76–95. https://doi.org/10.1108/JSMA-06-2021-0126
Linh, N. T. C. (2023). A rising trend in eco-friendly products: A health-conscious approach to green buying. Heliyon, 9(9), Article e19845. https://doi.org/10.1016/j.heliyon.2023.e19845
Lopez-Torres, G. C. (2023). The impact of SMEs’ sustainability on competitiveness. Measuring Business Excellence, 27(1), 107–120. https://doi.org/10.1108/MBE-12-2021-0144
Meidutė-Kavaliauskienė, I., Abdurakhmanova, A., Cigdem, S., & Činčikaitė, R. (2024). Sustainable development goals in Kazakhstan’s academic landscape: A critical bibliometric study on sustainable development. Business, Management, and Economics Engineering, 22(2), 297–316. https://doi.org/10.3846/bmee.2024.21848
Morgan, T., Anokhin, S., Ofstein, L., & Friske, W. (2020). SME response to major exogenous shocks: The bright and dark sides of business model pivoting. International Small Business Journal: Researching Entrepreneurship, 38(5), 369–379. https://doi.org/10.1177/0266242620936590
Morris, M. H., Schindehutte, M., & LaForge, R. W. (2002). Entrepreneurial marketing: A construct for integrating emerging entrepreneurship and marketing perspectives. Journal of Marketing Theory and Practice, 10(4), 1–19. https://doi.org/10.1080/10696679.2002.11501922
Moscalu, M., Girardone C., & Calabrese, R. (2020). SMEs’ growth under financing constraints and banking markets integration in the euro area. Journal of Small Business Management, 58(4), 707–746. https://doi.org/10.1080/00472778.2019.1668722
Moursellas, A., De, D., Wurzer, T., Skouloudis, A., Reiner, G., Chaudhuri, A., Manousidis, T., Malesios, C., Evangelinos, K., & Dey, P. K. (2023). Sustainability practices and performance in European small-and-medium enterprises: Insights from multiple case studies. Circular Economy and Sustainability, 3, 835–860. https://doi.org/10.1007/s43615-022-00224-3
Niewiadomski, P., & Stachowiak, A. (2024). The sustainable production and well-being of employees as a derivative of the concept of sustainable production. Sustainability, 16(1), Article 465. https://doi.org/10.3390/su16010465
Ouragini, I., & Lakhal, L. (2023). The impact of entrepreneurial marketing on the firm performance. Journal of the Knowledge Economy, 15, 6003–6025. https://doi.org/10.1007/s13132-023-01352-3
Polas, M. R. H., & Raju, V. (2021). Technology and entrepreneurial marketing decisions during COVID-19. Global Journal of Flexible Systems Management, 22(2), 95–112. https://doi.org/10.1007/s40171-021-00262-0
Purnomo, B. R., Adiguna, R., Widodo, W., Suyatna, H., & Nusantoro, B. P. (2021). Entrepreneurial resilience during the COVID-19 pandemic: Navigating survival, continuity and growth. Journal of Entrepreneurship in Emerging Economies, 13(4), 497–524. https://doi.org/10.1108/JEEE-07-2020-0270
Rita, M. R., & Nastiti, P. K. Y. (2024). The influence of financial bootstrapping and digital transformation on financial performance: Evidence from MSMEs in the culinary sector in Indonesia. Cogent Business and Management, 11(1), Article 2363413. https://doi.org/10.1080/23311975.2024.2363415
Rizky Widya Mardika, D., Damayanti, T. W., Rio Rita, M., & Supramono, S. (2024). Determinants of discouraged borrowers and gender as contextual factors: Evidence from Indonesian MSMEs. Cogent Business and Management, 11(1), Article 2336300. https://doi.org/10.1080/23311975.2024.2336300
Rodríguez, J. C., Gomez, M., & Ortiz, A. L. (2019). Entrepreneurial marketing and business performance: An econometric analysis of SMEs in the tertiary sector of Mexico. Revista Nicolaita de Estudios Economics, 14(1), 29–48.
Binekasri, R. (2023). Bisnis Kuliner Booming, ESB Bagikan Tips Jadi Juara Pasar [Booming culinary business, ESB shares tips to become a market champion]. CNBC Indonesia. https://www.cnbcindonesia.com/entrepreneur/20230526175138-25-441002/bisnis-kuliner-booming-esb-bagikan-tips-jadi-juara-pasar
Ruiz-Palomo, D., Fernández-Gámez, M. Á., & León-Gómez, A. (2022). Analyzing the effect of financial constraints on technological and management innovation in SMEs: A gender perspective. SAGE Open, 12(1). https://doi.org/10.1177/21582440221079925
Sari, D., Kusuma, B. A., Sihotang, J., & Febrianti, T. (2023) The role of entrepreneurial marketing & innovation capability in the performance of SMEs during COVID-19 pandemic: Evidence of MSMEs in West Java. Cogent Business & Management, 10(1), Article 2194091. https://doi.org/10.1080/23311975.2023.2194091
Serido, J., Shim, S., & Tang, C. (2013). A developmental model of financial capability: A framework for promoting a successful transition to adulthood. International Journal of Behavioral Development, 37(4), 287–297. https://doi.org/10.1177/0165025413479476
Shefrin, H. (2018). Behavioral corporate finance concepts and cases for teaching behavioral finance. McGraw-Hill Education.
Sun, S., Chen, Y.-C., Ansong, D., Huang, J., & Sherraden, M. S. (2022). Household financial capability and economic hardship: An empirical examination of the financial capability framework. Journal of Family and Economic Issues, 43(4), 716–729. https://doi.org/10.1007/s10834-022-09816-5
Tallott, M., & Hilliard, R. (2016). Developing dynamic capabilities for learning and internationalization: A case study of diversification in an SME. Baltic Journal of Management, 11(3), 328–347. https://doi.org/10.1108/BJM-02-2015-0060
Taylor, M. P., Jenkins, S. P., & Sacker, A. (2011). Financial capability and psychological health. Journal of Economic Psychology, 32(5), 710–723. https://doi.org/10.1016/j.joep.2011.05.006
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640
Teece, D., & Pisano, G. (1994). The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3(3), 537–556. https://doi.org/10.1093/icc/3.3.537-a
Tenuta, P., & Cambrea, D. R. (2022). Corporate sustainability: Measurement, reporting and effects on firm performance. Springer. https://doi.org/10.1007/978-3-031-11491-5
Thompson, A. A., Peteraf, M., Gamble, J.E., & Strickland. A. J. (2021). Crafting & executing strategy: The quest for competitive advantage: Concepts and cases (23rd ed.). McGraw Hill.
Velenturf, A. P. M., & Purnell, P. (2021). Principles for a sustainable circular economy. Sustainable Production and Consumption, 27, 1437–1457. https://doi.org/10.1016/j.spc.2021.02.018
Vo Thai, H. C., Hong-Hue, T.-H., & Tran, M.-L. (2024). Dynamic capabilities and digitalization as antecedents of innovation and sustainable performance: Empirical evidence from Vietnamese SMEs. Journal of Asia Business Studies, 18(2), 385–411. https://doi.org/10.1108/JABS-08-2023-0325
Wang, J., Hong, Z., & Long, H. (2023). Digital transformation empowers ESG performance in the manufacturing industry: From ESG to DESG. SAGE Open, 13(4). https://doi.org/10.1177/21582440231204158
WCED. (1987). Our common future. Oxford University Press.
Wei, S., Ang, T., & Jancenelle, V. E. (2018). Willingness to pay more for green products: The interplay of consumer characteristics and customer participation. Journal of Retailing and Consumer Services, 45, 230–238. https://doi.org/10.1016/j.jretconser.2018.08.015
Xu, Z. (2023). Environmental dynamics and corporate social responsibility: An empirical analysis based on Chinese manufacturing listed companies. Sustainable Futures, 6, Article 100124. https://doi.org/10.1016/j.sftr.2023.100124
Yi, H., Meng, X., Linghu, Y., & Zhang, Z. (2023). Can financial capability improve entrepreneurial performance? Evidence from rural China. Economic Research – Ekonomska Istraživanja, 36(1), 1631–1650. https://doi.org/10.1080/1331677X.2022.2091631
Zahara, Z., Ikhsan, Santi, I. N., & Farid. (2023). Entrepreneurial marketing and marketing performance through digital marketing capabilities of SMEs in post-pandemic recovery. Cogent Business and Management, 10(2), Article 2204592. https://doi.org/10.1080/23311975.2023.2204592
View article in other formats
Published
Issue
Section
Copyright
Copyright (c) 2025 The Author(s). Published by Vilnius Gediminas Technical University.
License
This work is licensed under a Creative Commons Attribution 4.0 International License.