View of Sustainable Business Performance for Local Business Development: Evidence from Indonesia Coffee Shops

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Available online at HABITAT website: http://www.habitat.ub.ac.id

Sustainable Business Performance for Local Business Development: Evidence from Indonesia Coffee Shops

Anisa Aprilia^1*, Fitrotul Laili¹, Putri Budi Setyowati¹, Adella Rania Salsabilah¹, Ivonia Indah Armasari¹

1Department of Socio-Economics, Faculty of Agriculture, University of Brawijaya, Jl. Veteran, Malang 65145, Indonesia

Received: 27 July 2022; Revised: 28 December 2022; Accepted: 24 January 2023

ABSTRACT

Drawing on the concept of sustainable business performance, this study proposes a research model to investigate how variables such as digital organizational culture, organizational learning culture, ethical sensitivity, and access to finance contribute to the formation of a business performance model that is expected to contribute to long-term business performance in local industries dominated by coffee shops.

The measure of sustainable business performance is the performance of economic, social, and environmental factors. The PLS-SEM approach was utilized to estimate this investigation's sustainable business performance model. The study examined 111 coffee shop owners, managers, and employees, selected based on their present position within the company, using a questionnaire distributed between July and November 2021. Several factors, including the organizational learning culture, the digital organizational culture, ethical awareness, and financial access, significantly influence the long-term financial performance of the coffee shop's business. This study contributes to the existing theory and the existing body of literature on topics such as the importance of ethical awareness, access to finance, digital organizational culture, and organizational learning culture. To improve overall business performance, business owners, managers, and even employees should examine the role that sustainable company performance plays in the development of each human resource's talents.

Keywords: digital organization; ethical sensitivity; finance; learning culture; sustainability How to cite:

Aprilia, A., Laili, F., Setyowati, P. B., Salsabilah, A. R., & Armasari, I. I. (2023). Sustainable Business Performance for Local Business Development : Evidence from Indonesia Coffee Shops. Habitat, 34(1), 23–37. https://doi.org/10.21776/ub.habitat.2023.034.1.3

1. Introduction

Co Companies are becoming increasingly interested in practices such as eco-innovation that contribute to business sustainability due to increased environmental awareness among stakeholders (Fernando et al., 2019; Larbi-Siaw et al., 2022; Almeida and Wasim, 2023). Meanwhile, SMEs have historically struggled with technology adoption due to lacking resources and other market constraints. Numerous technological challenges have a detrimental effect on the sustainable business performance of SMEs, but Industry 4.0 is critical for SMEs to grow sustainably. Industry 4.0 elements such as big data, the Internet of Things, and smart factories contribute to adopting information technology

(IT), which helps businesses achieve sustainable performance (Haseeb et al., 2019b and Le 2022).

By incorporating sustainability into their core business strategy, SMEs can realize cost savings, risk reduction, and new opportunities. Meanwhile, small and medium-sized firms (SMEs) face increased pressure to quantify and manage their environmental effect and secure the resources necessary to continue supplying their products and services in the future, and long-term sustainability challenges will remain a worry. Collaborative working methods, helpful government policies and facilitation, and supportive corporate culture can all positively affect the sustainability performance of SMEs and, consequently, their financial success (Das et al., 2019).

Coffee shops are an example of the small and medium-sized firm (SMEs) that contributes significantly to employment and income absorption (Purnomo et al., 2019; Purnomo at al.,

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*Correspondence Author.

E-mail: [email protected]

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Available online at HABITAT website: http://www.habitat.ub.ac.id 2021; Hartono and Purnomo, 2023). Small and

medium-sized firms (SMEs) must overcome various societal and technological obstacles to sustain their operations over the long term.

Sustainable businesses have a distinct organizational culture that sets them apart from their competition (Grayson et al., 2018; Purnomo, 2018; Ghobakhloo et al., 2022). Long-term business performance is essential to main contributions in order to compete successfully in a postmodern industrialization age market that is highly competitive (Haseeb et al., 2019a).

Businesses aim to address the immediate needs of the market and society and future needs (Schoenherr, 2012).

Small and medium-sized enterprises (SMEs) are crucial for economic health and stability, as well as growth engines (Quintero- Angel et al., 2018; Das & Rangarajan, 2020), accounting for more than 60% of Indonesia's GDP, while significant businesses account for the remaining (Ministry of Cooperatives and Small Enterprises and Intermediate, 2019). At the moment, developing a sustainable coffee shop business as a source of income and employment for the community is also a significant and pressing issue that must be addressed to alleviate poverty. Demand for coffee shop services is expanding in lockstep with the growth of culture and lifestyle. Simultaneously, though, rivalry in the coffee sector is intensifying (Kasimin, 2017).

Numerous difficulties exist in the coffee shop sector, which is gaining popularity among Indonesian businesses. These difficulties range from working with coffee bean suppliers to dealing with diverse clients. For business owners and/or coffee shop managers, the capacity to react rapidly to environmental changes is critical.

Although environmental changes are challenging to forecast, how well a firm or coffee shop responds to them might show the supply chain's decision-making unit's success or failure (Aprilia et al., 2020). Given the uncertainty created by the COVID-19 epidemic, it motivates coffee shop operators to continue innovating to ensure their business' long-term existence.

Organizational culture, environmental stewardship, and digitalization all influence the growth of small and medium-sized businesses.

The components of organizational culture (e.g., attitudes, conventions, and assumptions) contribute to a feeling of identity and influence behaviour. Meanwhile, an organization's impact on the natural environment (environmental

sustainability) or adoption of digital technologies (digitalization) may necessitate a significant shift in business strategies (Isensee et al., 2020).

Business education must be rethought to strike a healthy balance between positive social effects and economic performance. Sustaining high economic, environmental, and social levels under all conditions are considered sustainability in corporate performance. According to Isensee et al. (2020), the research framework for this study includes organizational culture, digitization, and sustainability in the research process.

Organizational learning culture affects organizational performance; digital organizational culture improves organizational performance through business digitization and digital technology value development (Martnez-Caro et al., 2020); organizational learning culture mediates the relationship between leadership empowerment and innovation and is moderated by absorptive capacity (Naqshbandi & Tabche, 2018); and the impact of organizational culture and internal analytic knowledge on commuting (Naqshbandi & Tabche, 2018) and media outlets for organizational learning culture (Upadhyay &

Kumar, 2020). As a result, most studies have made little attempt to examine long-term business performance. The research produced a quantitative assessment of how organizational culture, organizational learning culture, ethical sensitivity, and access to finance all contribute to long-term business performance in local sectors dominated by coffee shops. Numerous factors were considered while deciding on the location, the most important of which was the region's uniqueness and relevance in local business and the creative economy.

2. Theoretical Underpinning

2.1. Sustainable Business Performance The concept of sustainable business practices has grown, and it is now commonly recognized to encompass economic viability, environmental sustainability, and social responsibility. As a result of their predisposition for sustainable business practices, companies with a high propensity for sustainable business practices will be better prepared to address the obstacles associated with adopting the Triple Bottom Line into their enterprises and business networks (Høgevold et al., 2015). The ability to transition swiftly and successfully to new business models is a substantial source of long-term competitive advantage. It considerably impacts an

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Available online at HABITAT website: http://www.habitat.ub.ac.id organization's overall sustainability performance

(Geissdoerfer et al., 2018). Organizations are under increasing pressure to transition from conventional to sustainable manufacturing models, highlighting the importance of evaluating their performance in terms of environmental and social sustainability (Gupta et al., 2021).

Businesses that employ sustainable business models must recognize business models that foster collaboration, sharing, and networking to benefit their bottom line (Comin et al., 2020). Meanwhile, the business model interacted with the relationship between consumer participation and sustainable performance and between customer engagement and innovation and sustainable performance (Danarahmanto et al., 2020). Therefore, this study examines sustainable business performance based on economic, social, and environmental performance.

2.2. Organizational Learning Culture

Knowledge sharing, both within and outside of corporate organizations, positively affects innovation, resulting in increased performance and long-term competitive advantages for businesses (Arsawan et al., 2020).

Businesses can benefit from organizational learning as a kind of knowledge management.

Local knowledge, learning processes, knowledge transfer, and knowledge sharing are all components of knowledge management that affect sustainable agriculture (Zecca & Rastorgueva, 2017). Effective knowledge management affects agricultural production, including the performance of human resources. Employee performance is critical in determining a corporation's long-term viability in the business sector, as employees are one of the company's driving forces.

Meanwhile, the circular economy pervades the firm and has the potential to impact how sustainable business operations are managed significantly. Additionally, the organization's culture plays a role in determining whether a circular economy program succeeds or fails.

Organizations must therefore comprehend and accurately incorporate circularity ideas into their strategy strategies (Barros et al., 2021). This study determines the organizational learning culture based on how employee skills and performance are enhanced.

2.3. Digital Organizational Culture

Businesses can successfully share information through digital technology, increasing

and improving business network links (Zoppelletto et al., 2020). As a result of digital transformation, businesses become more imaginative regarding product quality management inspections, certification mapping across business networks, and establishing standards that align with company sustainability.

These factors can have a favourable effect on a business's long-term performance. The more science and technology advance, the more opportunities exist for any business to invest in digitalization. Adopting digital technology in small-scale company services results in cost savings, enhanced customer experience, engagement, and a better understanding of customer insights (Chen et al., 2021). Digital transformation can significantly increase corporate efficiency, performance, and growth. In this study, the digital organizational culture is examined based on the extent to which all employees contribute to enhancing business performance through digital technology.

2.4. Ethical Sensitivity

Businesses must understand consumers' ethical decision-making processes to recruit ethical consumers and capitalize on their ethical proclivities (Toti et al., 2021). Ethical judgments also contribute to strengthening the relationship between attitudes and subjective norms concerning the environmental sustainability aspirations of family-owned enterprises. In other words, the business's owner/manager is likelier than the average businessperson to exhibit sound ethical judgment and adopt environmentally friendly methods (Singh et al., 2021). Profit- driven businesses frequently make decisions in the short term with little concern for long-term survival and sustainability. The sustainability performance of small and medium-sized firms is strongly tied to their ethical sensitivity, and businesses need to uphold their ethical standards for the benefit of their shareholders during uncertain times (Adamu et al., 2019). This study determines ethical sensitivity based on how business ethics policies are implemented by involving all parties, from suppliers to end consumers while considering the community's welfare.

2.5. Access to Finance

Access to finance refers to the affordability of capital in the form of financing and the availability of certain financial services associated with the company. "Adequate access to finance"

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Available online at HABITAT website: http://www.habitat.ub.ac.id refers to the absence of financial or non-financial

impediments to obtaining financial skills and services (Adamu et al., 2019). Businesses with more affordable and larger loans create more jobs than businesses without access, with jobs in businesses with more cheap and larger loans rising at the quickest rate of growth. Access to finance significantly impacts manufacturing enterprises more than service firms, indicating that targeting the financial sector as a prospective industrialization policy (Brixiová et al., 2020) is a smart idea. Financial limitations will impede businesses' ability to alter their operations in response to the COVID-19 pandemic's external shocks more than other variables (Khan, 2022).

Financial resources are crucial for a business's growth, so numerous activities and projects are being taken to improve the finance available (Fowowe, 2017). Meanwhile, the organization's business strategy influences the relationship between agency costs and financial performance (Savitri, 2018). Therefore, this study measures access to finance based on how business growth capital is accessed from diverse sources, ranging from individuals to governments.

3. Research Methods

The location is Malang City, East Java, Indonesia. The coffee shop has operated for at least five years, employs people and runs a coffee

shop business using digital technology. The research site was chosen because coffee shops are proliferating in this region, which is representative of the state of coffee shops in Indonesia. Given that the city is bordered by tourist attractions and educational institutions that attract visitors and students from all over Indonesia, the level of consumer variety in this region is relatively high.

Therefore, it becomes a challenge for coffee shop entrepreneurs in Indonesia.

The sampling method employed is non- probability sampling. The type of judgment sampling employed employs specific criteria (Sekaran & Bougie, 2016). Respondents to the survey are coffee shop owners, managers, and employees. Participants are chosen based on their current position within the organization. A diverse group of participants was chosen to ensure that all perspectives were represented. Hair et al. (2017) determined the number of research samples to be used by considering the significance level and the maximum number of arrows pointing at a construct with an 80 per cent power in PLS-SEM.

As a result, a sample of 111 respondents was recommended, and data was gathered through a questionnaire distributed between July and November 2021. It is consistent with Creswell (2013), who states that more is needed to study only a few sites or individuals, but rather, extensive information about each site must be gathered.

Figure 1. Research Model A research model is developed based on the

background and literature from several previous investigations which consists of first order construct and second order construct, as illustrated in Figure 1. While Table 1. details the constructs measured in this study. And developed four study hypotheses, including the following:

H1: Organizational Learning Culture has a significant effect on Sustainable Business Performance.

H2: Digital Organizational Culture has a significant effect on Sustainable Business Performance

H3: Ethical Sensitivity has a significant effect on Sustainable Business Performance

H4: Access to Finance has a significant effect on Sustainable Business Performance

Organizational Learning Culture (ORLC) Digital Organizational

Culture (DIOC)

Ethical Sensitivity (ES)

Access to Finance (ATF)

Sustainable Business Performance (SBF)

Economic Performance (ECOPF)

Environmental Performance (ENPF)

Social Performance (SOPF)

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Available online at HABITAT website: http://www.habitat.ub.ac.id Table 1. Construct Measurement of Research

Construct Measurement

Organizational Learning Culture (ORLC)

(Hahn et al., 2015)

Employees who learn new skills for a coffee shop are rewarded/appreciated.

Employees in the coffee shop take the time to build trust with one another (ORLC1)

Discussion activities in the team have been carried out effectively in order to improve the performance of the coffee shop (ORLC2).

The coffee shop provides learning facilities for all employees to improve their skills (ORLC3)

Coffee shops collaborate with other communities to meet common needs (ORLC4).

Coffee shop owners support the need for employees to have access to learning and training opportunities in order to improve coffee shop performance (ORLC5).

Coffee shops regularly use two-way communication methods such as suggestion systems, electronic bulletin boards, and open meetings with employees (ORLC6).

Digital

Organizational Culture (DIOC) (Martínez-Caro et al., 2020)

At the coffee shop, the team works together on digital transformation initiatives and relevant innovations to improve coffee shop performance (DIOC1).

Coffee shops are clearly oriented toward changes in digital technology (DIOC2).

Naturally, a coffee shop embraces an innovation and digital change culture (DIOC3).

When discussing digitization strategies, the coffee shop takes employee suggestions into account (DIOC4).

Managers at the coffee shop are responsible for assisting, encouraging, and supporting training, including digital technology training, in order to improve performance (DIOC5).

Economic Performance (ECOPF)

(Joyce & Paquin, 2016

Profits from coffee shops rise year after year (ECOPF1).

Coffee shops' return on investment (ROI) is increasing year after year (ECOPF2).

Every year, the volume of product sales in coffee shops increases (ECOPF3).

Coffee shops are known to boost productivity (ECOPF4).

Environmental Performance (ENPF) (Joyce & Paquin, 2016)

Coffee shops have reduced the amount of waste generated during production (ENPF1).

The coffee shop has done an excellent job of managing the waste generated by this business (ENPF2).

Coffee shops have reduced their use of plastic and other hazardous materials in their operations (ENPF3).

Coffee shops are more conscientious and efficient in their use of natural resources such as water (ENPF4).

Social Performance (SOPF)

(Joyce & Paquin, 2016)

Other parties are pleased with the coffee shop's sustainable business practices (SOPF1).

Coffee shops reduce social and reputational risks for the general public by always maintaining a public image and adhering to societal norms (SOPF2).

Employee health and safety have improved as a result of coffee shops (SOPF3).

Coffee shops have recognized the communities' needs and rights (SOPF4).

Coffee makes every effort to comply with all applicable legal requirements (SOPF5).

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Available online at HABITAT website: http://www.habitat.ub.ac.id Construct Measurement

Ethical Sensitivity (ES)

(Adamu et al, 2019)

When dealing with competitors, the coffee shop follows business ethics (fellow coffee shops) (ES1).

The coffee shop practices ethical business practices with its suppliers (coffee bean suppliers/farmers) (ES2).

Coffee always practices good business ethics when dealing with buyers/consumers (ES3).

Coffee shops strive not only for maximum profit, but also for increased productivity (ES4).

Coffee shops prioritize not only personal interests, but also community benefits (ES5).

Access to Finance (ATF)

(Adamu et al, 2019)

The government provides coffee shops with capital to help them grow their businesses (ATF1).

The private financial institutions provide coffee shops with capital to help them grow their businesses (ATF2).

Coffee shop has access to personal capital to develop a business (ATF3).

Coffee shops can obtain capital for business development from a group/partnership (ATF4).

This research used the statistical modelling technique PLS-SEM, which is gaining ground as a two-element model. First, the inner model depicts the construct and the relationship (path) between the constructs. Second, an outer model of the construct illustrates its interaction with the indicator variable. When using PLS-SEM, researchers additionally benefit from excellent parameter estimation efficiency, evidenced by the method's statistical solid power. It shows that PLS-SEM is more likely to identify a significant association if it is significant in the population.

This study employs the PLS-SEM algorithm within the SmartPLS program. The SmartPLS results reports that allow the user to determine if the algorithm converged (i.e., the

stopping requirement was met and not the maximum number of iterations) and to assess the initial results for the outer weights, outer loadings, structural model path coefficients, and R2 values (Hair et al., 2017). At the same time, to measure the validity and reliability of the construct using Average Variance Extracted (AVE), rho A, Composite Reliability (CR), and Cronbach's alpha (CA). Meanwhile, systematic evaluation of PLS- SEM using coefficients of determination (R2) and f2 effect size to evaluate the structural model;

Fornell-Larcker criterion and the heterotrait- monotrait ratio of correlations (HTMT) are used to assess discriminant validity; Variance Inflation Factor (VIF) is used to assess the level of collinearity.

Table 2. Respondent Personality Traits

Total Percentage

Number of Respondents 111 Number of coffee shops 77 Position

Business Owner 44 39.64%

Manager 11 9.91%

Employee 56 50.45%

Age

18-20 years old 9 8.10%

21-30 years old 88 79.28%

31-40 years old 12 10.81%

41-50 years old 2 1.8%

Most recent education

High School 42 37.84%

Diploma/undergraduate 64 57.66%

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Total Percentage

Graduated 4 3.6%

Other 1 0.9%

Years of experience in the coffee shop industry

<1 year 14 12.61%

1-5 years 88 79.28%

>5 years 9 8.1%

Years of employment at the current coffee shop

<1 year 37 33.33%

1-5 years 74 66.67%

4. Results and Discussion 4.1. Respondents' Characteristics

The owners and employees of various coffee shops were interviewed for this study. The research questionnaire was completed by 111 people from 77 different coffee shops. All respondents were divided into groups based on their position, age, last education, length of experience in the coffee shop industry, and length of service with the company. The following is a table of research respondents' characteristics:

According to the information in Table 2 on the characteristics of respondents, the majority of positions occupied by respondents are as employees while the age of the majority of respondents was between the ages of 21-30 years, and the most recent educational data obtained is the latest education level Diploma/undergraduate.

The respondent's tenure in the coffee sector is dominated by those with one to five years of experience.

4.2. Measurement Model Rating

Cronbach's alpha (CA), rho A, Composite Reliability (CR), and Average Variance Extracted (AVE) are employed in this part to determine the constructs' reliability and validity, and the results are reported in Tables 3 and 4. Cronbach's alpha values ranging from 0.792 to 0.902 suggest the research indicators' dependability and consistency. Ursachi et al. (2015) substantiate this by noting that 0.7 is acceptable, 0.8 is outstanding, and 0.95 is the maximum. All indicators have a Rho A value between 0.797 and 0.911, indicating dependability. According to Ibrahim et al. (2015), a Rho A value greater than 0.7 suggests that, the indicator is very reliable in expressing the measurement of each variable.

Composite Reliability (CR) measures construct reliability and consistency where the target value is more significant than 0.7 (Saeed &

Kassim, 2017). The CR value in Table 3 is reliable because it has a range of 0.857-0.921 on each variable. The adequate Average Variance Extracted (AVE) value for construct validity is more significant than 0.5 (Tentama & Anindita, 2020). Except for the SBPF variable for the second-order construct, the AVE on all variables is more significant than 0.5, indicating that it is valid. Fornell-Lacker criterion and Heterotrait- Monotrait (HTMT) ratio assess discriminant validity. The Fornell-Larcker criterion for a construct should be greater than its correlation with other constructs in the model (Fornell &

Larcker, 1981). The Fornell-Larcker requirements are met (Table 5). The HTMT strict criterion stipulates that the HTMT value must be below 0.85. All HTMT values are below 0.85, except for SBPF-ENPF and SOPF-SBPF (Table 6).

Meanwhile, the VIF values reflect collinearity between exogenous and endogenous components, and VIF values less than 5 are acceptable for all model variable predictors (Hair et al., 2017). All VIF values are less than 5, indicating no collinearity problem affecting the results (Table 7). The coefficient of determination (R2) represents the predictive accuracy of the model and the amount of variance in the endogenous construct that can be attributed to all of the related exogenous constructs. The R2 value of 0.75, 0.50, or 0.25 indicates a strong, moderate, or poor correlation, respectively (Hair et al., 2017). In this study, the economic, environmental, and social predictor variable with values between

>0.50 and 0.75 can explain sustainable business performance (Table 8). It implies that the link is sufficiently robust. The f2 represents how an independent construct influences a dependent construct (Hair et al., 2017). The f2 value of 0.35, 0.15, or 0.02 indicates a strong, medium, or weak correlation, respectively. The result indicates that the f2 value is weak and moderate (Table 9).

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Available online at HABITAT website: http://www.habitat.ub.ac.id Table 3. First Order Construct Validity and Reliability Measurement

Indicator AVE (>0.5) Rho A (>0.7) CR (>0.7) CA (0.7-0.9)

ATF 0.749 0.911 0.898 0.837

DIOC 0.546 0.797 0.857 0.792

ES 0.700 0.894 0.921 0.893

ORLC 0.501 0.809 0.857 0.801

ECOPF 0.744 0.881 0.920 0.883

ENPF 0.683 0.844 0.896 0.843

SOPF 0.662 0.872 0.907 0.871

Table 4. Second Order Construct Validity and Reliability Measurement 1st Order Construct 2nd Order

Construct

AVE (>0.5)

Rho A (>0.7)

CR (>0.7)

CA (0.7-0.9)

ECOPF SBPF 0.460 0.903 0.917 0.902

Table 5. Fornell-Larcker Criterion

Variable ATF DIOC ECOPF ENPF ES ORLC SBPF SOPF

ATF 0.865

DIOC 0.252 0.739

ECOPF 0.237 0.465 0.862

ENPF 0.205 0.466 0.424 0.826

ES 0.198 0.528 0.373 0.465 0.837

ORLC 0.382 0.611 0.430 0.343 0.587 0.708

SBPF 0.242 0.616 0.748 0.813 0.615 0.512 0.678

SOPF 0.165 0.559 0.467 0.591 0.626 0.465 0.876 0.813 ATF – Access to Finance; DIOC – Digital Organizational Culture; ECOPF – Economic Performance;

ENPF – Environmental Performance; ES – Ethical Sensitivity; ORLC – Organizational Learning Culture;

SBPF – Sustainable Business Performance; SOPF – Social Performance.

Table 6. Heterotrait-Monotrait Ratio (HTMT) test results

Variable ATF DIOC ECOPF ENPF ES ORLC SBPF SOPF

ATF

DIOC 0.330

ECOPF 0.255 0.548

ENPF 0.262 0.567 0.489

ES 0.226 0.622 0.411 0.532

ORLC 0.449 0.766 0.499 0.407 0.697

SBPF 0.289 0.721 0.855 0.931 0.673 0.589

SOPF 0.212 0.671 0.531 0.690 0.710 0.549 0.975 ATF – Access to Finance; DIOC – Digital Organizational Culture; ECOPF – Economic Performance;

Table 7. Inner Variance Inflation Factor (VIF) Values

ATF DIOC ECOPF ENPF ES ORLC SBPF SOPF

ATF 1.174

DIOC 1.716

ECOPF ENPF

ES 1.643

ORLC 2.062

SBPF 1.000 1.000 1.000

SOPF

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ATF – Access to Finance; DIOC – Digital Organizational Culture; ECOPF – Economic Performance;

Table 8. R Square (R²)

R Square

ECOPF 0.560

ENPF 0.661

SBPF 0.500

SOPF 0.767

ECOPF – Economic Performance; ENPF – Environmental Performance; SBPF – Sustainable Business Performance; SOPF – Social Performance.

4.3. Hypothesis testing

Meanwhile, the hypothesis was tested using a parameter coefficient and a 0.05 level of significance (p = 0.05) to determine its validity.

According to the hypothesis analysis in Table 9 and Table 10, an organization's learning culture (ORLC) positively affects long-term business performance (SBPF). There is a positive relationship between ORLC and SBPF, as evidenced by the P value for the relationship is 0.05, and the hypothesis is accepted. The Digital Organizational Culture (DIOC) variable has a positive relationship with Sustainable Business

Performance (SBPF), as indicated by a path coefficient of 0.378. (SBPF). If the P value is less than 0.05, the hypothesis is correct. The Ethical Sensitivity (ES) variable positively affects Sustainable Business Performance (SBPF), as indicated by the path coefficient value of 0.384.

The coefficient on Ethical Sensitivity P value of 0.05 indicates that the hypothesis is accepted. The Access to Finance (ATF) variable positively affects Sustainable Business Performance (SBPF) with a coefficient value of 0.058 and a p-value of 0.00, respectively. Furthermore, the enormous indirect effect is ES → SBPF → SOPF (Table 10).

Table 9. Hypothesis Testing

Hypothesis Relationship Path Coefficient f² Conclusion

H1 ORLC → SBPF 0.033*** 0.001 supported

H2 DIOC → SBPF 0.378*** 0.167 supported

H3 ES → SBPF 0.384*** 0.180 supported

H4 ATF → SBPF 0.058*** 0.006 supported

Notes: *** = P-Value is below 0.001 Table 10. Indirect Effect

Relationship Specific Indirect Effect

ORLC → SBPF → ECOPF 0.024

ORLC → SBPF → ENPF 0.027

ORLC → SBPF → SOPF 0.029

DIOC → SBPF → ECOPF 0.283

DIOC → SBPF → ENPF 0.307

DIOC → SBPF → SOPF 0.331

ES → SBPF → ECOPF 0.288

ES → SBPF → ENPF 0.312

ES → SBPF → SOPF 0.337

ATF → SBPF → ECOPF 0.044

ATF → SBPF → ENPF 0.048

ATF → SBPF → SOPF 0.051

Economic, environmental, and social sustainability are three dimensions of business sustainability. Sustainable business aims to ensure

that society benefits equally from development today and in the future (Wadu et al., 2020).

Economic indicators of sustainable business

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Available online at HABITAT website: http://www.habitat.ub.ac.id include the community's reliance on natural

resources and labour in various ways that might serve as materials for improving the community's economic prospects. The purpose of exploiting the development potential of the economic sector is to improve the welfare of the community or local labour resources in order for the area to develop into a superior area that contributes to a productive environment conducive to long-term company development.

Economic development has a favourable effect on the economic sustainability of a community, according to the discipline of sustainable performance. In terms of the environmental dimension, a sustainable business considers the environmental impact of its actions.

According to Nawaz et al. (2016), a better and healthier environment may be maintained when firms adopt international environmental standards such as ISO 14001. The social aspect of company practices affects the social welfare of each employee and the surrounding community. The corporate social sustainability model places a premium on social ethics in all aspects of a business and community, including infrastructure, human resource rights (HR), health, equality, education, and community welfare (Amrutha &

Geetha, 2020).

Each business activity contributing to long- term sustainability must be maintained to maximize corporate performance. ORLC (organizational learning culture) is one of the activities in a business organization that substantially affects the organization's long-term performance (SBPF). The outcomes of this study corroborate earlier studies in this field. Attia and Essam Eldin (2018) discovered that organizational learning significantly affects organizational performance in the Saudi food industry. They discovered that organizations might gain and exchange knowledge internally and externally, resulting in increased business coordination. It has a good effect on a company's performance and long-term existence.

According to Zgrzywa-Ziemak and Walecka-Jankowska (2020), organizational learning favours the organization's long-term viability. According to the research, firms devoted to sustainability will continue to evaluate their strategy, products, system and technology advancements, systems, and collaborations.

Additionally, an organization's learning culture fosters innovation through new goods and services (Škerlavaj et al., 2010). The acquisition of

information, the interpretation of information, and the production of knowledge inside an organization capable of optimizing the company's innovative capabilities occur within the context of the learning culture. As a result, the entire performance of the business improves. Given the sector's rapid growth and importance on the country's economic well-being, a sustainable business model is critical for the local coffee industry to compete and thrive over the long term.

To help create a sustainable coffee business and boost performance, business owners or managers must examine the importance of a learning culture in developing the capabilities of each human resource.

Adopting a Digital Organizational Culture (DIOL) favours the sustainability performance of businesses (SBPF). Prior studies on organizational business performance corroborate the conclusions of this study. "Digital culture" refers to organizational or corporate technical developments incorporating digital culture.

According to the food industry research of Cosentino et al. (2020), technological innovation in industry 4.0 is currently positively affecting sustainability and company performance.

Companies can improve production efficiency, product quality, environmental sustainability, and the availability of communication media that can improve collaboration with customers and other businesses.

It is consistent with the viewpoint of Stankevičius et al. (2020), who claim that the benefits of digitizing business processes include increased process flexibility, opportunities for innovation in business development, and the use of modern technology in data processing, and improved collaboration and collaboration processes with various parties. Additionally, the customer-related component enhances the user experience by streamlining the purchasing process. According to Haseeb et al. (2019b), implementing IT, such as big data, the Internet of Things, and smart factories, increases the long- term performance of MSMEs. Enterprise data storage and processing can be improved, increasing innovation and commercial competition. Business leaders should evaluate their organization's digital culture (DIOL) because it benefits performance and can promote sustainability. Specifically, technology improvements and contemporary conditions require practically all parties to conduct business via digital platforms, presenting a chance for

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Available online at HABITAT website: http://www.habitat.ub.ac.id MSMEs to innovate and address market demands

and aspirations.

Ethical Sensitivity has a good effect on the long-term performance of businesses. Previous research has established that culture, work environment, and personal experience affect an individual's ability to comprehend ethical dilemmas (Hunt & Vitell, 2006). Ethical behaviour is described as an individual's commitment to generally held social ideals about what is right and wrong. Individual awareness is the most critical aspect in determining ethical action. Additional study is necessary immediately to encourage SMEs to embrace ethical and ecologically sustainable business strategies (Luthra et al., 2021). Apart from reaching worldwide success, small and medium-sized firms (SMEs) must plan for the future and embrace technology to conduct ethical and sustainable business (Kumar et al., 2020).

Because ethical Sensitivity is a form of Sensitivity to the values present in one's surroundings, it is critical in stressing sustainable business practices, particularly in the coffee shop industry today. Because it can mitigate issues that arise within the boundaries of the workplace organization, it can help ensure that the performance of coffee shop employees meets the manager's established standards. Businesspeople must assess and evaluate ethical Sensitivity in the workplace; an employee will be more aware of ethical circumstances and strive to put professional goals ahead of personal interests (Aziza & Salim, 2008).

A Access to capital also positively affects the long-term profitability of businesses. Access to money is a sign of a business's lack of financial troubles, as indicated by the flow of financial capital such as debt loans and capital. According to Shariff et al. (2020), financial access can significantly hinder a company's growth and sustainability throughout its life. Access to finance is insufficient to drive economic growth.

However, there is a strong and statistically significant association between access to capital and national discourse about poverty for the growth and development of a firm. Access to finance has a considerable impact on labour market activity and income levels, as well as on the ability of businesses to succeed over the long run.

5. Conclusion

It is vital to achieving long-term success in a competitive market where business actors attempt to satisfy current customer and societal needs and the business enterprise's long-term needs. A critical and pressing issue that must be handled promptly is establishing a coffee shop as a source of revenue and employment for the local community to increase local business. Numerous difficulties exist in the coffee shop sector, which is gaining popularity among Indonesian businesses. These difficulties affect everyone, from coffee bean producers to varied demographics of consumers where the firm is headquartered. They must be able to react rapidly to an ever-changing environment. It encourages coffee shop owners to continue innovating to ensure their businesses' long-term existence, particularly in light of the unpredictable climate created by the COVID-19 pandemic.

Rethinking business education is essential to strike a healthy balance between positive social effects and economic performance. The organizational learning culture, the digital organizational culture, ethical sensitivity, and financial access all substantially impact the coffee shop's long-term commercial performance. When it comes to enhancing the capabilities of each human resource, business owners, managers, and even employees should consider the role of sustainable business performance. Since not all of the model's measurements are exact, it is required to identify indicators for each variable more precisely to develop a more accurate and applicable model to other sectors.

Acknowledgments

We would like to express our gratitude to the coffee shop owners and managers who participated in this study for taking the time to respond to the research objectives. Additionally, the Institute for Research and Community Service of Universitas Brawijaya (LPPM-UB) funded this research.

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