Sustainable Business Practices in Coffee Shops: The Role of Marketing Innovation, Digital Marketing, and Branding Innovation Through Market Development

Abstract

This study examines relationships between marketing innovation, digital marketing, and branding strategies on business sustainability through market development in Indonesian coffee shops. Using a quantitative approach with Structural Equation Modeling (SEM) via Smart-PLS, data were collected from 50 Indonesian coffee shops through census sampling from January to May 2025. Results show marketing innovation (β = 0.331, p < 0.01), digital marketing (β = 0.368, p < 0.001), and branding strategies (β = 0.277, p < 0.01) significantly influence market development. All variables demonstrate significant direct effects on business sustainability, with digital marketing showing the strongest impact (β = 0.410, p < 0.001). Market development significantly mediates all relationships, with the model explaining 60.2% of the variance in market development and 77.3% in business sustainability. Coffee shop owners should prioritize integrated marketing strategies combining digital capabilities, authentic branding, and continuous innovation for sustainable business practices.