Improving Marketing Performance of Small-Medium Enterprises of Food Stall by Innovation on Online Orders

Widodo *


The food and beverage industry should be excellent for small-medium enterprises (SMEs) in Indonesia. The digital economy that has swiftly entered the SMEs in Indonesia has also become a new driver for the economy. Digital companies have made innovations to take advantage of the potential market of SMEs. This article brings an insight into how SMEs can benefit from leveraging the creative work of digital companies. Specifically, this study investigated the effect of online market orientation, online service innovation, and online service creativity on the marketing performance of SMEs of food stalls. Data were collected by distributing questionnaires to SME owners, which were the samples for this study. Multiple linear regression tested the influence of online market orientation, online service innovation, and online service creativity variables on the marketing performance of processed food SMEs. The results showed that most SMEs ran their business for less than three years, but they have an online sales turnover of less than IDR 10 million per month. The multiple linear regression analysis results showed that online market orientation variables, online service innovation, and online service creativity created by digital companies affected the marketing performance of SMEs. This research provided novelty in digital companies’ creative innovations for food stall SMEs' marketing performance.

Keywords: digital company, food stall, marketing performance, partnership.

Full Text:



MINISTRY OF INDUSTRY REPUBLIC OF INDONESIA. Industry Facts & Figures 2017. Ministry of Industry Republic of Indonesia, Jakarta, 2018.

KEMETERIAN PPN/BAPPENAS. Penguatan UMKM Untuk Pertumbuhan Ekonomi yang Berkualitas. Warta KUMKM, 2016, 5(1): 1-36.

RIKA H. Ministry of Communication and Information: 9.6 million SMEs already Selling Online. Kementerian Komunikasi dan Informatika Republik Indonesia, 2019.

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION. Survey Report on Indonesian Internet User Penetration & Behavior Profile 2018. Polling Indonesia, 2019.

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION. Indonesia Internet Penetration 2018. Bulletin of APJII, 2019, 40.

MERCHANT MACHINE. Saturated Sectors: Finding Gaps in The Ecommerce Market In 2019. Merchant Machine, 2019.

ISWARA A.J. Online Shopping in Indonesia in 2019 Figures. Good News From Indonesia, 2019.

SUDJATMIKO T. Potential of Student Economic in Yogyakarta IDR 7.2T in 2016. KRJogja, 2016.

FEDERAL DEPARTMENT OF ECONOMIC AFFAIRS, EDUCATION AND RESEARCH. Financing Small Businesses in Indonesia: Challenges and Opportunities. International Labour Organization, 2019.

INDONESIA INTERNET SERVICE PROVIDER ASSOCIATION. Look beyond the start-up and decacorn in Indonesia. Bulletin APJII, 2019, 39.

LUBIS T. A., & JUNAIDI J. Utilization of Information Technology in Micro, Small, and Medium Enterprises in Jambi City. Journal of Regional Financing and Development Perspectives, 2016, 3(3): 163–174.

BAKAR M. F. A., TALUKDER M., QUAZI A., and KHAN I. Adoption of Sustainable Technology in the Malaysian SMEs Sector: Does the Role of Government Matter? Information, 2020, 11(4): 215.

CHAIROEL L., & RISKI T. R. Internal and external factor influence ICT adoption: A case of Indonesian SMEs. Jurnal Manajemen Dan Kewirausahaan, 2018, 20(1): 38–44.

PURNAMA C., & SUBROTO W. T. Competition intensity, uncertainty environmental on the use of information technology and its impact on business performance small and medium enterprises. International Review of Management and Marketing, 2016, 6(4): 984–992.

ZHAO S., & PRIPORAS C. V. Information technology and marketing performance within international market-entry alliances: A review and an integrated conceptual framework. International Marketing Review, 2017, 34(1): 5–28.

WIRAWAN Y. R. The Influence of Market Orientation, Entrepreneurship Orientation on Marketing Performance of Batik MSMEs in Jombang Regency. Equilibrium: Scientific Journal of Economics and Learning, 2017, 5(1): 56–69.

ROKHMAN M. T. N. Market orientation to improve marketing performance through the competitive advantages of batik SMEs. Jurnal Aplikasi Manajemen, 2019, 17(3): 489–495.

SUTAPA S., MULYANA M., and WASITOWATI W. The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance. Jurnal Dinamika Manajemen, 2017, 8(2): 152–166.

SAHIN H., & TOPAL B. Impact of information technology on business performance : Integrated structural equation modeling and artificial neural network approach. Scientia Iranica, 2018, 25: 1272–1280.

PARK S., CHUNG S., and LEE S. The effects of online product reviews on sales performance: Focusing on a number, extremity, and length. Journal of Distribution Science, 2019, 17(5): 85–94.

LEE C. F., CHEN H. Y., and LEE J. Financial Econometrics, Mathematics, and Statistics. Springer, New York, 2019.

GOJEK. The new spirit of Gojek in 2019.

SHALTONI A. M., WEST D., ALNAWAS I., and SHATNAWI T. Electronic marketing orientation in the Small and Medium-sized Enterprises context. European Business Review, 2018, 30(3): 272–284.

ALZAHRANI J. The impact of e-commerce adoption on business strategy in Saudi Arabian small and medium enterprises (SMEs). Review of Economics and Political Science, 2019, 4(1): 73–88.

PAREDES I. R., & CARVALHO J. A. Implantation process of Enterprise IT Application in a medium-sized enterprise. 2019 International Conference on Information Systems and Software Technologies Implantation, IEEE, 2019.

ALABSY N. M. A. Market orientation and corporate performance of small and medium-sized enterprises in Saudi Arabia. Innovative Marketing, 2021, 17(1): 66–77.

MOLANDER S, FELLESSON M, and FRIMAN M. Market Orientation in Public Service — A Comparison Between Buyers and Providers. Journal of Nonprofit and Public Sector Marketing, 2018, 30(1): 74–94.

METZ D., ILIEŞ L., and NISTOR R. L. The impact of organizational culture on customer service effectiveness from a sustainability perspective. Sustainability, 2020, 12(15): 3–6.

ALNAWAS I., & HEMSLEY-BROWN, J. Market orientation and hotel performance: investigating the role of high-order marketing capabilities. International Journal of Contemporary Hospitality Management, 2019, 31(4): 1885–1905.

SHANMUGAM J. K., PING T. A., and THURAISAMY R. The Effect of Perceived Characteristics of DOI and Technology Adoption on SMEs Performance in Malaysia. International Journal of Recent Technology and Engineering, 2019, 8(4): 4773–4779.

MARIUS DAN D. Small and Medium Enterprise’s Growth and New Technologies Implementation. Romanian Economic and Business Review, 2011, 6(2): 7–18.

RANGASWAMY A., MOCH N., FELTEN C., VAN BRUGGEN G., WIERINGA J. E., and WIRTZ J. The Role of Marketing in Digital Business Platforms. Journal of Interactive Marketing, 2020, 51: 72–90.

PURWITA A. W., & SUBRIADI A. P. Information technology investment: In search of the closest accurate method. Procedia Computer Science, 2019, 161: 300–307.

TALWAR S., TALWAR M., KAUR P., and DHIR A. Consumers’ resistance to digital innovations: A systematic review and framework development. Australasian Marketing Journal, 2020, 28(4): 286–299.

CHOY M., & PARK G. Sustaining innovative success: A case study on consumer-centric innovation in the ICT industry. Sustainability, 2016, 8(10).

STOJCIC N., HASHI I., and ORLIC E. Creativity, innovation effectiveness and productive efficiency in the UK. European Journal of Innovation Management, 2018, 21(4): 564–580.

DWIVEDI Y. K., ISMAGILOVA E., HUGHES D. L., CARLSON J., FILIERI R., JACOBSON J., JAIN V., KARJALUOTO H., KEFI H., KRISHEN A. S., KUMAR V., RAHMAN M. M., RAMAN R., RAUSCHNABEL P. A., ROWLEY J., SALO J., TRAN G. A., and WANG Y. Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 2021, 59: 102168.

EFERIN Y., HOHLOV Y., and ROSSOTTO C. Digital platforms in Russia: competition between national and foreign multi-sided platforms stimulates growth and innovation. Digital Policy, Regulation and Governance, 2019, 21(2): 129–145.

SOLOMON E. M., & VAN KLYTON A. The impact of digital technology usage on economic growth in Africa. Utilities Policy, 2020, 67: 101104.

LI Y., DAI J., and CUI L. The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model. International Journal of Production Economics, 2020, 229: 107777.

MYOVELLA G., KARACUKA M., and HAUCAP J. Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies. Telecommunications Policy, 2020, 44(2): 101856.

BRIGLAUER W., DÜRR N. S., FALCK O., and HÜSCHELRATH K. Does state aid for broadband deployment in rural areas close the digital and economic divide? Information Economics and Policy, 2019, 46: 68–85.

TAKAGI S. Literature survey on the economic impact of digital platforms. International Journal of Economic Policy Studies, 2020, 14(2): 1–16.

ALY H. Digital transformation, development, and productivity in developing countries: is artificial intelligence a curse or a blessing? Review of Economics and Political Science, 2020.

APRIYANI D., NURMALINA R., and BURHANUDDIN B. Bullwhip Effect Study in Leaf Organic Supply Chain. AGRARIS: Journal of Agribusiness and Rural Development Research, 2021, 7(1): 1–10.

THOMAS A., PASSARO R., and QUINTO I. Developing Entrepreneurship in Digital Economy: The Ecosystem Strategy for Startups Growth. Strategy and Behaviors in the Digital Economy. IntechOpen, 2020.

CHOI S. K., HAN S., and KWAK K. T. Innovation capabilities and the performance of start-ups in Korea: The role of government support policies. Sustainability, 2021, 13(11): 1–14.

AKHMADI H., SUSANAWATI S., PUTRI UTAMI N., and WIDODO A. S. Use of WhatsApp Application on Fruit Marketing Communication. Journal of Information and Organizational Sciences, 2021, 45(1): 95–113.

EDOHO F. M. Entrepreneurship paradigm in the new millennium: A critique of public policy on entrepreneurship. Journal of Entrepreneurship in Emerging Economies, 2016, 8(2): 279–294.


  • There are currently no refbacks.