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Abstract
Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector contribute significantly to local economic growth in Palopo City. However, many MSME actors face challenges in sustaining their businesses due to the lack of systematic business strategies. This study aims to analyze the effectiveness of implementing the Business Model Canvas (BMC) in improving the performance of culinary MSMEs in Palopo. The research employed a quantitative approach by distributing questionnaires to 80 culinary MSME respondents, complemented by in-depth interviews to enrich the qualitative data. Data analysis was conducted using the Structural Equation Modeling (SEM) method to examine the influence of the nine BMC elements on competitiveness and business sustainability. The results indicate that Value Proposition, Customer Relationship, and Key Activities have a significant impact on revenue growth and customer loyalty. Meanwhile, Channels and Revenue Streams play an important role in expanding market access and enhancing profitability. These findings confirm that BMC is an effective strategic framework for strengthening the competitiveness of culinary MSMEs in Palopo and can serve as a reference for local governments and supporting institutions in formulating sustainable MSME development programs
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References
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- Barney, J. (2020). Gaining and sustaining competitive advantage (5th ed.). Pearson Education.
- Chen, J., Wang, Y., & Xie, K. L. (2022). Business model innovation and resilience: Evidence from small businesses. Journal of Business Research, 142, 112–125.
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- Grönroos, C. (2019). Relationship marketing: The Nordic school perspective. Journal of Services Marketing, 33(4), 422–425.
- Hair, J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
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- Priyono, A., Moin, A., & Putri, VNAO (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Markets, and Complexity, 6(4), 104.
- Sarwono, J. (2014). A practical guide to partial least squares (PLS) for social and business research. ANDI.
- Tambunan, T. (2019). Micro, small, and medium enterprises in Indonesia: Key issues. LP3ES.
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- Zott, C., & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. https://doi.org/10.1016/j.lrp.2009.07.004
References
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Barney, J. (2020). Gaining and sustaining competitive advantage (5th ed.). Pearson Education.
Chen, J., Wang, Y., & Xie, K. L. (2022). Business model innovation and resilience: Evidence from small businesses. Journal of Business Research, 142, 112–125.
Churchill, N. C., & Lewis, V. L. (1983). The five stages of small business growth. Harvard Business Review, 61(3), 30–50.
Palopo City Cooperatives and MSMEs Service. (2023). Palopo City MSME sector performance report 2023. Palopo City Government.
Drucker, P. F. (1994). Innovation and entrepreneurship: Practice and principles. Harper Business.
Drucker, P. F. (2007). Management challenges for the 21st century. Routledge.
Ghozali, I. (2011). Multivariate analysis application with IBM SPSS 19 program (5th ed.). Diponegoro University Publishing Agency.
Grönroos, C. (2019). Relationship marketing: The Nordic school perspective. Journal of Services Marketing, 33(4), 422–425.
Hair, J.F., Hult, G.T.M., Ringle, C.M., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.
Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business School Press.
Ministry of Cooperatives and SMEs of the Republic of Indonesia. (2022). 2022 MSME Statistics. Ministry of Cooperatives and SMEs.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
Laudon, K. C., & Traver, C. G. (2022). E-commerce 2022: Business, technology, society (16th ed.). Pearson.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: A handbook for visionaries, game changers, and challengers. John Wiley & Sons.
Porter, M. E. (1990). The competitive advantage of nations. Free Press.
Priyono, A., Moin, A., & Putri, VNAO (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Markets, and Complexity, 6(4), 104.
Sarwono, J. (2014). A practical guide to partial least squares (PLS) for social and business research. ANDI.
Tambunan, T. (2019). Micro, small, and medium enterprises in Indonesia: Key issues. LP3ES.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Teece, D.J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development and future research perspectives. Long Range Planning, 49(1), 36–54.
Wright, P. M., Dunford, B. B., & Snell, S. A. (2001). Human resources and the resource-based view of the firm. Journal of Management, 27(6), 701–721.
Zott, C., & Amit, R. (2010). Business model design: An activity system perspective. Long Range Planning, 43(2–3), 216–226. https://doi.org/10.1016/j.lrp.2009.07.004