Eco-Innovation and Ethical Certification: A Dual Pathway to Competitive Advantage For F&B Enterprises
DOI:
https://doi.org/10.31004/riggs.v4i4.4205Keywords:
Differentiation, Customer Loyalty, Certification, Profit MarginsAbstract
The study aims to test the dual impact of two independent variables (Sustainable Product Differentiation and Ethical Certification) on a dependent variable (Profit Margins), mediated by Customer Loyalty. The research adopts a quantitative, cross-sectional, survey-based methodology aimed at measuring the sustainable practices of micro food and beverage businesses. The quantitative approach facilitates the systematic collection and analysis of numerical data to identify patterns or relationships among the constructs being studied. The data collection technique in this study used a survey instrument developed based on existing literature, which provides a robust framework for measuring key constructs related to sustainability practices and consumer perceptions.The data analysis technique in this study is Variance-Based Structural Equation Modeling (PLS-SEM) using SmartPLS 3.0, justifying its use for predictive research and theory development in complex models. The results of this study show that the coefficient value obtained is 0.265 with a T-statistic of 4.902 and a p-value of 0.000. Because T>1.96 and p<0.05, Certification (X2) has a significant indirect effect on Profit Margin (Y). This means that Loyalty (Z) significantly (fully) mediates the effect of Certification (X2) on Profit Margin (Y). And with a coefficient value of 0.467 with a T-statistic of 8.455 and a p-value of 0.000. With T <1.96 and p> 0.05, Differentiation (X1) has a significant indirect effect on Profit Margin (Y). This means that Loyalty (Z) significantly (fully) mediates the effect of Differentiation (X1) on Profit Margin (Y).
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References
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Sayal, Amber, and Saikat Banerjee. "Factors influence performance of B2B SMEs of emerging economies: view of owner-manager." Journal of Research in Marketing and Entrepreneurship 24.1 (2022): 112-140. DOI : https://doi.org/10.1108/JRME-06-2020-0082
Candra, Sevenpri, et al. "Innovation process of micro, small and medium enterprises (MSMEs) in greater Jakarta area (perspective from foodpreneurs)." Journal of Science and Technology Policy Management 13.3 (2022): 542-560. DOI : https://doi.org/10.1108/JSTPM-10-2020-0153
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Matindana, Juma M., and Mary J. Shoshiwa. "Lean manufacturing implementation in food and beverage SMEs in Tanzania: using structural equation modelling (SEM)." Management System Engineering 4.1 (2025): 1. DOI : https://doi.org/10.1007/s44176-025-00036-3
D’Souza EP. “Navigating Change In The Food And Beverage Service Industry: Sustainable Practices, Customer Preferences, And Evolving Trends. RDT [Internet]. 2023 Dec. 23 [cited 2025 Dec. 2];(36). Available from: https://revistadeturism.ro/index.php/rdt/article/view/87
Adobor, Henry. "Entrepreneurial failure in agribusiness: evidence from an emerging economy." Journal of Small Business and Enterprise Development 27.2 (2020): 237-258. DOI : https://doi.org/10.1108/JSBED-04-2019-0131
Sayal, Amber, and Saikat Banerjee. "Factors influence performance of B2B SMEs of emerging economies: view of owner-manager." Journal of Research in Marketing and Entrepreneurship 24.1 (2022): 112-140. DOI : https://doi.org/10.1108/JRME-06-2020-0082
Candra, Sevenpri, et al. "Innovation process of micro, small and medium enterprises (MSMEs) in greater Jakarta area (perspective from foodpreneurs)." Journal of Science and Technology Policy Management 13.3 (2022): 542-560. DOI : https://doi.org/10.1108/JSTPM-10-2020-0153
Sumastuti, Efriyani, and Indriasari, Ika. "Key creative industry analysis using input-output approach." Journal of Innovation in Business and Economics 9.02 (2025). DOI: https://doi.org/10.22219/jibe.v9i01.35377
Garzoni, Antonello, et al. "Fostering digital transformation of SMEs: a four levels approach." Management Decision 58.8 (2020): 1543-1562. DOI : https://doi.org/10.1108/MD-07-2019-0939
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Ariwibowo P, Purba IS, Fiyanto A. Analysis Of MSME District In Cileungsi District-Bogor Regency Using K-Means Cluster. sa [Internet]. 2025 Sep. 30 [cited 2025 Dec. 4];14(2):125-43. Available from: https://jurnal2.untagsmg.ac.id/index.php/sa/article/view/3179
Ariwibowo P, Purba IS, Fiyanto A. Analysis Of MSME District In Cileungsi District-Bogor Regency Using K-Means Cluster. sa [Internet]. 2025 Sep. 30 [cited 2025 Dec. 4];14(2):125-43. Available from: https://jurnal2.untagsmg.ac.id/index.php/sa/article/view/3179
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