Vol.
2 No.
2 June .
The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
The Role of Entrepreneurship Orientation and Service Innovation Capability in Improving Market Performance Through Service Positional Advantage at the Coffeshop of West Kotawarinigin Central Kalimantan Sudirmansyah.
& Alifah Ratnawati.
Faculty of Economic.
Universitas Islam Sultan Agung (UNISSULA) Semarang.
Indonesia.
Email: sudirfaeyza@gmail.
Faculty of Economic.
Universitas Islam Sultan Agung (UNISSULA) Semarang.
Indonesia.
Email: Alifah@unissula.
Abstract.
Thisstudy aims to identify and examine the factors influencing entrepreneurship orientation toward service positional advantage, service innovation capability toward service positional advantage, entrepreneurship orientation toward market performance, service innovation capability toward market performance, and service positional advantage toward market performance.
Respondents in this study were coffee shop owners in West Kotawaringin.
Central Kalimantan.
There search method used was explanatory research through a quantitative approach, using a questionnaire as a tool to uncover data on entrepreneurship orientation, service innovation capability toward market performance, and service positional advantage as an intervening factor.
The sample size for this study was 120 coffee shop owners in West Kotawaringin.
Central Kalimantan.
The analysis technique used in this study was data analysis using Smart PLS software.
Three data collection methods were used: offline questionnaires and online Google Forms, which were then analyzed using static analysis techniques.
The results of this study indicate that entrepreneurship orientation and service innovation capability have a positive effect on service positional advantage.
Entrepreneurship orientation has a positive effect on market performance, and service innovation capability has a positive effect on market performance.
Service positional advantage is able to mediate the relationship between entrepreneurship orientation and service innovation capability on market performance.
Keywords: Entrepreneurship.
Capability.
Innovation.
Orientation.
Introduction Coffee Shop This includes Micro.
Small, and Medium Enterprises (MSME.
, which are part of the economy and must also increase their competitiveness by innovating to build economic Service Positional Advantage, based on service orientation and innovation, should be prioritized because it has greater resilience and a longer lifespan.
(Nuryakin, 2.
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The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
Entrepreneurship orientation is understood as the process of creating strategies, structures and corporate behaviors characterized by innovation, proactivity, risk-taking, competitive aggressiveness and autonomy, facilitating the pursuit of opportunities.
(Lechner, 2.
Competitive strategy explores how a company operates to improve company (Lechner, 2.
Internal capabilities as a source of competitive strategic advantage can create uniqueness for a company compared to competitors and directly guarantee superior company performance.
The importance of internal capabilities for a company is an opportunity that can be utilized for company development and thus be able to win the competition.
(Nuryakin, 2.
Furthermore.
Micro.
Small, and Medium Enterprises (MSME.
are drivers of economic growth that can increase total income and per capita income.
MSMEs are productive economic enterprises carried out by business entities or individuals and are not subsidiaries or branches of companies.
The development of MSMEs continues to receive attention from various groups, especially the government.
The MSME development program has become a longterm government plan for 2005-2025, as outlined in Law of the Republic of Indonesia Number 17 of 2007, which directs MSMEs towards a technology base capable of increasing competitiveness in various regions of Indonesia (Ministry of Religious Affairs of the Republic of Indonesia, 2.
Furthermore, there is service innovation capability, which is defined as the extent to which MSMEs achieve competitive advantage based on service innovation capability.
l, 2.
an effort to achieve success, the company's main task is to determine market perception, needs and demand in order to create products with superior value.
(Nuryakin, 2.
Based on the theory of resource advantage, it is argued that the value of resources for a company is seen from its potential to produce competitive differentiation and/or deliver customer value that improves performance results.
(Hunt, 2.
This study focuses on a model for improving market performance and service positional advantage through entrepreneurship orientation and service innovation.
The focus of customer satisfaction measurement is based on customer demands and expectations, as well as their perceptions of the service they receive.
The benefits of providing good service to customers can increase profitability, customer satisfaction, customer loyalty, and customer retention, which in turn enhances a company or organization's market performance.
(Cote.
Currently, one of the main problems that is clear to researchers is that traditional marketing methods are not always accessible or appropriate for entrepreneurial ventures.
The level of success of MSMEs can be seen from the results of an MSME's performance itself.
Market performance is a concept for measuring the achievements obtained from a company's marketing activities as a whole.
Every company must know the achievements that have been achieved as a reflection of the strategies implemented.
A company's success in creating a product to be marketed will lead to its marketing performance.
l A.
, 2.
By looking at the results of marketing performance that has been implemented in a company, you can determine the company's position within a specified time period.
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The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
Business performance can be measured by the extent to which a company is able to meet its survival needs.
Innovation is the ability to adapt or transform new ideas into new products or (Blommerde, 2.
Service innovation is an emerging competitive dimension in today's business world and has been identified as a key strategy for entrepreneurial success.
By providing innovation in services, organizations seek to address the challenges of gaining a competitive advantage.
(Wijetunge, 2.
Improving market performance requires an entrepreneurial orientation.
Entrepreneurial orientation relates to the spirit or personal characteristics of a company's owners and shapes the company.
(Daniel, 2.
describes entrepreneurial orientation as one that is involved in product-market innovation, undertakes less risky ventures, and is first to come up with 'proactive' innovations, as well as delivering blows to beat competitors.
The uniqueness that a company has as a result of innovation will temporarily bring greater competition, even the innovation created by the company becomes the key to competitive advantage that determines the economic success of an organization.
Good sharing can be a source of strategy to produce continuously improving performance.
(Urbancova, 2.
Likewise, service innovation is implemented because consumers want innovation in the services they experience.
According to(Yousaf, 2.
Innovation is a key driving factor in corporate success, not only in the industrial sector but also in the service sector.
l P.
states that innovation is related to the implementation of innovative actions that lead to the creation of new products or services.
Innovation can be carried out in both products and services.
According to(Bendatu, 2.
The concept of service innovation includes service innovation related to service design and development of new services, process innovation, namely new ways or improvements in the process of designing and producing services, as well as innovation in companies or management which is closely related to organizational innovation, service products, innovation processes, and management of innovation processes in service organizations.
Furthermore, there are several influencing factors in improving market performance, namely service positional advantage.
Service positional advantage is a factor that differentiates small companies from competitors by providing a unique service aspect in the market, thus excelling and becoming a market leader over its competitors.
l H.
, 2.
Research Methods This research was conducted to test a hypothesis with the aim of confirming or strengthening the hypothesis, which in the end can strengthen the theory that is used as a basis.
The type of research used is associative explanatory research, which is research that aims to determine the relationship between two or more variables(Zulganef, 2.
This study seeks a causal relationship between the independent variables, namely entrepreneurship orientation and service innovation capability, with the dependent variables, namely market performance and service positional advantage as mediating variables.
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2 June .
The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
Results and Discussion The population in this study was coffee shop owners in West Kotawaringin.
Central Kalimantan.
The questionnaire was distributed directly by visiting coffee shops in West Kotawaringin, and indirectly through online channels like Google Forms, resulting in a sample size of 120 respondents.
To gain a better understanding of the respondents.
Convergent validity is a reflective indicator calculation model based on item scores with a score construct.
Indicators are considered reliable if they have a correlation value above 0.
An outer loading value >0.
7 is the most desirable, and a loading value of 0.
5Ae0.
6 in the scale development stage of research is considered valid.
The results of the SmartPLS calculations are explained in Figure and Table Convergent Validity Test Image Based on the image of the convergent validity test results explained in the image explaining each indicator of the marketing performance, service positional advantage, entrepreneurship orientation, and service innovation capability variables, it shows that all indicators are declared valid, because the loading value is greater than the Standard Deviation.
This study employed structural equation modeling (SEM) techniques using the Partial Least Squares method to determine the effect of entrepreneurship orientation and service innovation capability on market performance, with service positional advantage as an intervening variable.
The test results are as follows:
Table Results of Partial Least Square Path Analysis Variable Original Sample Sample Mean Entrepreneurship Orientation -> Service Positional Advantage Standard Deviation Statistics 1,284 Values Description Hypothesis Vol.
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The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
Service Innovation Capability -> Service Positional_Advantage 12,459 0,000 Entrepreneurship Orientation -> Market Performance 3,359 Hypothesis Service Innovation Capability -> Market Performance 6,838 0,000 Hypothesis Service Positional Advantage -> Market Performance 3,555 0,000 Hypothesis Hypothesis Source: PLS data processing results, 2025 The results of the path analysis between research variables can be interpreted as follows:
Original sample values for the entrepreneurship orientation variable towards service positional advantage has a positive parameter value of 0.
095, meaning that the higher the entrepreneurship orientation of the cafy owner, the more it increases the service positional advantage of the cafy.
The original sample value for the service innovation capability variable on service positional advantage has a positive parameter value of 0.
884, meaning that the higher the service innovation capability owned by the coffee shop, the higher the service positional .
The original sample value for the entrepreneurship orientation variable on market performance has a negative parameter value of -0.
274, meaning that increasing the entrepreneurship orientation of coffee shop owners has not been able to increase market .
The original sample value for the service innovation capability variable on market performance has a positive parameter value of 0.
856, meaning that the higher the service innovation capability owned by the cafy, the market performance of the Coffee Shop will .
The original sample value for the service positional advantage variable on market performance has a positive parameter value of 0.
385, meaning that the better the service positional advantage owned by the coffee shop, the more the market performance of the coffee shop will increase.
After conducting the measurement model test, a structural model test was conducted.
Hypothesis testing uses two criteria to determine whether a hypothesis is accepted or The first criterion is the t-statistic or critical value, where the hypothesis is accepted Vol.
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The Role of Entrepreneurship A (Sudirmansyah & Alifah Ratnawat.
if the critical value .
-statisti.
is greater than 1.
The second criterion is the p-value, where the hypothesis is accepted if the p-value is less than 0.
The Influence of Entrepreneurship Orientation on Service Positional Advantage The results of the test of entrepreneurship orientation on service positional advantage obtained a P Value of 0.
200 > 0.
05, which means the hypothesis is rejected.
This explanation can be interpreted as a positive but insignificant influence between entrepreneurship orientation and service positional advantage.
These results can be concluded that the test is unable to accept the first hypothesis, so the assumption that entrepreneurship orientation has a positive and significant effect on service positional advantage cannot be accepted.
The Influence of Service Innovation Capability on Service Positional Advantage The test results of service innovation capability on service positional advantage obtained a Pvalue of 0.
000 < 0.
05, which means accepting the proposed hypothesis.
This explanation can be interpreted as a positive and significant influence between service innovation capability and service positional advantage.
These results can be concluded that the test is able to accept the second hypothesis, so the assumption that service innovation capability has a positive and significant influence on service positional advantage can be accepted.
The Influence of Entrepreneurship Orientation on Market Performance The results of the entrepreneurship orientation test on market performance obtained a P Value of 0.
001 < 0.
05, but because the original sample had a negative value (-0.
, the hypothesis was rejected.
With these results, it was concluded that the test was not able to accept the third hypothesis, so the assumption that stated that entrepreneurship orientation had a positive and significant effect on market performance could not be accepted.
The influence of Service Innovation Capability on Market Performance The test results of service innovation capability on market performance obtained a P-value of 000 < 0.
05, which means the proposed hypothesis is accepted.
This explanation can be interpreted as a positive and significant influence between service innovation capability and market performance.
These results can be concluded that the test is able to accept the fourth hypothesis, so the assumption that service innovation capability has a positive and significant influence on market performance is accepted.
The Influence of Service Positional Advantage on Market Performance The test results of service positional advantage on market performance obtained a P-value of 000 < 0.
05, which means Ho is rejected and Ha is accepted.
This explanation can be interpreted as a positive and significant influence between service positional advantage and market performance.
These results can be concluded that the test is able to accept the fifth hypothesis, so the assumption that service positional advantage has a positive and significant Vol.
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influence on market performance can be accepted.
Meanwhile, for entrepreneurship orientation, service innovation capability and service positional advantage on market performance, the R Square value was obtained at 0.
meaning that the percentage of market performance can be explained by the three variables of entrepreneurship orientation, service innovation capability and service positional advantage at 94.
6%, while the rest is explained by other variables not examined in this study.
Discussion:
The Influence of Entrepreneurship Orientation on Service Positional Advantage The results of the test of entrepreneurship orientation on service positional advantage indicate that there is a positive but insignificant influence between entrepreneurship orientation and service positional advantage, so the hypothesis is rejected.
These results can be concluded that the test is unable to accept the first hypothesis, so the assumption that entrepreneurship orientation has a positive and significant influence on service positional advantage cannot be accepted.
This is different from the statement (Rua et al.
, 2.
that a high level of entrepreneurship orientation can give coffee shops the courage to take controlled risks in creating and implementing new strategies.
Thus, an insignificant entrepreneurial orientation toward service positional advantage can lead to differences in focus, service complexity, implementation gaps, intense competition, and long-term impacts.
It is important for companies not only to have a strong entrepreneurial orientation but also to pay attention to and manage other aspects related to service positional advantage.
According to Louis Utama .
, entrepreneurial orientation needs to be balanced with a deep understanding of the market, strong implementation capabilities, and a focus on customer needs to achieve sustainable excellence.
The Influence of Service Innovation Capability on Service Positional Advantage The test results of service innovation capability on service positional advantage obtained a Pvalue of 0.
000 < 0.
05, which means accepting the proposed hypothesis.
This explanation can be interpreted as a positive and significant influence between service innovation capability and service positional advantage.
These results can be concluded that the test is able to accept the second hypothesis, so the assumption that service innovation capability has a positive and significant influence on service positional advantage can be accepted.
These results are supported by Liu & Huang's .
statement that providing excellent customer service is a top business priority.
Good service can foster high customer loyalty.
Satisfied customers tend to return to cafes that consistently provide good service, even when there are many other options on the market.
This can help cafes maintain a stable market share and create a positional advantage in customer loyalty (Anning-Dorson, 2.
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Based on the research findings above, service innovation capability can be developed through understanding customer needs, expectations, and problems, which is key to generating relevant innovations in services.
Coffee shops need to actively listen to customer feedback, conduct surveys, and analyze market trends to identify innovation opportunities.
This research is in line with the findings of Liu & Huang .
that service innovation capability has a positive effect on service positional advantage.
The Influence of Entrepreneurship Orientation on Market Performance The results of the test of entrepreneurship orientation on market performance indicate that entrepreneurial orientation has no effect on market performance.
Based on these results, it is concluded that the test fails to support the third hypothesis, thus rejecting the hypothesis that entrepreneurial orientation has a positive and significant effect on market performance.
The test results show that the existence of an entrepreneurial orientation from a coffee shop has not been able to provide better changes for the company in improving market performance, meaning that the higher the entrepreneurial orientation, the higher the market performance of the coffee shop.
Entrepreneurship Orientation, which refers to the strategic orientation of a coffee shop towards entrepreneurial activities such as autonomy, proactivity, and risk-taking, has not been able to provide a significant influence on market performance.
The results of this study support the findings of Cho & Lee .
that entrepreneurship orientation has no influence on market performance.
The Influence of Service Innovation Capability on Market Performance The test results of service innovation capability on market performance obtained a P-value of 000 < 0.
05, which means the proposed hypothesis is accepted.
This explanation can be interpreted as a positive and significant influence between service innovation capability and market performance.
These results can be concluded that the test is able to accept the fourth hypothesis, so the assumption that service innovation capability has a positive and significant influence on market performance is accepted.
Based on the research findings above, service innovation capability can be developed through a deep understanding of customer needs, desires, and problems, which is key to generating relevant innovations in services.
Coffee shops need to actively listen to customer feedback, conduct market research, and analyze industry trends to identify innovation opportunities.
This research aligns with the findings of Tajeddini & Martin .
that service innovation capability has a positive effect on market performance.
The Influence of Service Positional Advantage on Market Performance The test results of service positional advantage on market performance obtained a P-value of 000 < 0.
05, which means Ho is rejected and Ha is accepted.
This explanation can be Vol.
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interpreted as a positive and significant influence between service positional advantage and market performance.
These results can be concluded that the test is able to accept the fifth hypothesis, so the assumption that service positional advantage has a positive and significant influence on market performance can be accepted.
The results of the study show that the high service positional advantage possessed by a coffee shop is able to provide better changes in improving market performance, meaning that the higher the level of service positional advantage possessed by a coffee shop, the more it will improve the market performance of the coffee shop.
Based on the research findings above, service positional advantage can be established through thorough market and customer research.
This requires understanding customer needs, preferences, and expectations, as well as a deep understanding of competitors' strengths and weaknesses.
Prioritize quality in all aspects of service, from products to customer interactions.
Ensure that every customer feels heard, valued, and well-served.
This research is in line with the findings of Nuryakin .
that service positional advantage has a positive effect on market performance.
Indirect Influence The research results prove that service positional advantage is not able to be an intervening variable between entrepreneurship orientation and market performance, meaning that businesses that have a high level of entrepreneurship orientation have not been able to develop a strong service positional advantage, which in turn increases their market Conclusion Based on the research that has been done, the following conclusions can be obtained: Service positional advantage has a positive and significant effect on market performance, meaning that the higher the level of service positional advantage a coffee shop has, the more it will increase market performance in the coffee shop.
Service positional advantage is not able to mediate the relationship between service innovation capability and market performance, meaning that the higher the service innovation capability a cafe has, it has not been able to increase service positional advantage which has an impact on increasing market performance in the cafe.
However.
Service positional advantage is able to mediate the relationship between Service Innovation Capability and market performance in the cafe Entrepreneurship Orientation has a positive but not significant effect on service positional advantage, giving the understanding that the higher the entrepreneurship orientation, the service positional advantage owned by the coffee shop has not been able to become higher Service Innovation Capability has a positive and significant effect on service positional advantage, meaning that coffee shops with high service innovation capability tend to provide higher quality services to Vol.
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References