Entrepreneurial Marketing and Consumer Need Adaptability for Strengthening Market Penetration Power   in MSMEs FnB Sector Within Central Java

Ahmad Ali; Satria Avianda Nurcahyo; Teguh Harso Widagdo

doi:10.21043/bisnis.v13i2.34858

Entrepreneurial Marketing and Consumer Need Adaptability for Strengthening Market Penetration Power in MSMEs FnB Sector Within Central Java

Ahmad Ali, Satria Avianda Nurcahyo, Teguh Harso Widagdo

Abstract

This study aims to analyze the influence of entrepreneurial marketing and consumer needs adaptability in strengthening market penetration among Micro, Small, and Medium Enterprises (MSMEs) in the Food and Beverage (FnB) sector in Central and East Java. The research employs a quantitative approach using Structural Equation Modeling–Partial Least Squares (SEM-PLS). A total of 150 FnB MSME owners and managers were selected through purposive sampling. The findings indicate that entrepreneurial marketing has a significant and positive effect on marketing performance and market penetration. Consumer needs adaptability is proven to mediate the relationship between entrepreneurial marketing and marketing performance, highlighting the importance of aligning innovation with consumer expectations. Furthermore, the integration of aesthetic value in product presentation enhances consumers’ emotional engagement, which indirectly supports market penetration. The results also reveal that adaptability and creativity are not only strategic capabilities but are culturally embedded practices within local MSMEs. This study concludes that FnB MSMEs can achieve sustainable growth by adopting entrepreneurial-oriented marketing strategies that are responsive to dynamic consumer preferences, local tastes, and aesthetic values, thereby improving market expansion and overall marketing performance in a competitive and evolving business environment.

Keywords

Market Penetration Power, Entrepreneurial Marketing, Consumer Need Adaptability, Aesthetical Value, Marketing Performance MSMEs.

Full Text:

PDF

References

A. U., I., & D. B., C. (2024). Creative Thinking, Adaptability and Entrepreneurial Development in Nigeria. British Journal of Management and Marketing Studies, 7(1), 69–77. https://doi.org/10.52589/bjmms-96uf1zbt

Abdelfattah, F., Al Halbusi, H., & Al-Brwani, R. M. (2022). Influence of self-perceived creativity and social media use in predicting E-entrepreneurial intention. International Journal of Innovation Studies, 6(3), 119–127. https://doi.org/10.1016/j.ijis.2022.04.003

Acuña-Opazo, C., & González, O. C. (2021). The impacts of intellectual capital on financial performance and value-added of the production evidence from Chile. Journal of Economics, Finance and Administrative Science, 26(51), 127–142.

Agarwal, I., & Gowda, K. R. (2020). The effect of airline service quality on customer satisfaction and loyalty in India. Materials Today: Proceedings, 37(Part 2), 1341–1348. https://doi.org/10.1016/j.matpr.2020.06.557

Al-Aali, A., & Teece, D. J. (2014). International Entrepreneurship and the Theory of the (Long-Lived) International Firm: A Capabilities Perspective. Entrepreneurship: Theory and Practice, 38(1), 95–116. https://doi.org/10.1111/etap.12077

Albaity, M., & Rahman, M. (2019). The intention to use Islamic banking: an exploratory study to measure Islamic financial literacy. International Journal of Emerging Markets, 14(5), 988–1012. https://doi.org/10.1108/IJOEM-05-2018-0218

Alqahtani, N., & Uslay, C. (2020). Entrepreneurial marketing and firm performance: Synthesis and conceptual development. Journal of Business Research, 113(December), 62–71. https://doi.org/10.1016/j.jbusres.2018.12.035

Bonsón Ponte, E., Carvajal-Trujillo, E., & Escobar-Rodríguez, T. (2015). Influence of trust and perceived value on the intention to purchase travel online: Integrating the effects of assurance on trust antecedents. Tourism Management, 47, 286–302. https://doi.org/10.1016/j.tourman.2014.10.009

Bradley, S. W., Kim, P. H., Klein, P. G., McMullen, J. S., & Wennberg, K. (2021). Policy for innovative entrepreneurship: Institutions, interventions, and societal challenges. Strategic Entrepreneurship Journal, 15(2), 167–184. https://doi.org/10.1002/sej.1395

Dwivedi, V., & Keswani, M. (2025). A profit-cost ratio maximization model for dynamic pricing and inventory management incorporating infection awareness, solved using Ant Colony and Cuckoo search algorithms. Journal of Advances in Management Research, September. https://doi.org/10.1108/JAMR-05-2024-0183

Hair. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). SAGE Publications.

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Haryanto, J. O., Moutinho, L., Aldas-Manzano, J., & Hadiansah, I. (2018). Understanding a better future: antecedents of market performance. Marketing Intelligence and Planning, 36(5), 543–557. https://doi.org/10.1108/MIP-12-2017-0345

Herawaty, V. (2008). Peran Praktek Corporate Governance sebagai Moderating Variabel dari Pengaruh Earnings Management Terhadap Nilai Perusahaan. Jurnal Akuntansi Dan Keuangan, 10, 97.

Herdiansyah, H., Firdaus, A., & Tarmizi, E. (2019). A Model of Maslahah Performance for Higher Education Institution: Case of Institut Agama Islam Tazkia. Al-Iktisab: Journal of Islamic Economic Law, 3(2). https://doi.org/10.21111/al-iktisab.v3i2.3910

Herman. (2018). The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises (UKM) Performance. International Journal of Science and Engineering Invention, 08, 1–22.

Homayoun, S., Salehi, M., ArminKia, A. H., & Novakovic, V. (2024). The Mediating Effect of Innovative Performance on the Relationship Between the Use of Information Technology and Organizational Agility in SMEs. Sustainability (Switzerland), 16(22), 1–23. https://doi.org/10.3390/su16229649

Hussain, I., Mu, S., Mohiuddin, M., Danish, R. Q., & Sair, S. A. (2020). Effects of sustainable brand equity and marketing innovation on market performance in hospitality industry: Mediating effects of sustainable competitive advantage. Sustainability (Switzerland), 12(7), 1–19. https://doi.org/10.3390/su12072939

Ingsih, K., Astuti, S. D., Riyanto, F., & Perdana, T. A. (2024). Entrepreneurial Competence, Entrepreneurial Motivation, Entrepreneurial Self-Efficacy on Entrepreneurial Intention: Evidence Gen Z Student Indonesia. Tamansiswa Accounting Journal International, 12(1), 1–14.

Ingvaldsen, J. A., & Engesbak, V. (2020). Organizational learning and bureaucracy: an alternative view. Learning Organization, 27(5), 403–415. https://doi.org/10.1108/TLO-11-2019-0168

Iskandar, D., Nurmalina, R., & Riani, E. (2015). The Effect of Service, Product Quality, and Perceived Value on Customer Purchase Intention and Satisfaction. Indonesian Journal of Business and Entrepreneurship, 1(2), 51–62.

Joddy Andrian Setiawan, Wanda Gema Prasadio Akbar Hidayat, & Purnamaningsih. (2023). The Effect of Entrepreneurial Education, Mindset, and Creativity on Entrepreneurial Intention of University Students: Assisted in the Mediation Role of Entrepreneurial Self Efficacy. Jurnal Multidisiplin Madani, 3(8), 1698–1703. https://doi.org/10.55927/mudima.v3i8.5351

Julia, T., & Kassim, S. (2020). Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework. Journal of Islamic Marketing, 11(3), 729–744. https://doi.org/10.1108/JIMA-10-2017-0105

Kim, J., & Jung, H. S. (2022). The Effect of Employee Competency and Organizational Culture on Employees’ Perceived Stress for Better Workplace. International Journal of Environmental Research and Public Health, 19(8). https://doi.org/10.3390/ijerph19084428

Lai, J. Y., Wang, J., Ulhas, K. R., & Chang, C. H. (2021). Aligning strategy with knowledge management system for improving innovation and business performance. Technology Analysis and Strategic Management, 1–15. https://doi.org/10.1080/09537325.2021.1907328

Li, Y. H., Huang, J. W., & Tsai, M. T. (2009). Entrepreneurial orientation and firm performance: The role of knowledge creation process. Industrial Marketing Management, 38(4), 440–449. https://doi.org/10.1016/j.indmarman.2008.02.004

Li, Y., Liu, H., Su, W., Feng, C., & Yu, S. (2025). When “low price” temptations prevail: the role of decision reversibility and product knowledge. Marketing Intelligence and Planning, September. https://doi.org/10.1108/MIP-09-2024-0696

Muafi. (2017). Human capital in Islamic Bank and its effect on the improvement of healthy organization and employee performance. International Journal for Quality Research, 11, 849–868. https://doi.org/https://doi.org/10.18421/IJQR11.04-08

Muhajirin, M., Kamaluddin, K., & Ernawati, S. (2020). The Effect of Market Orientation and Product Innovation on Competitive Advantages of Gedogan Weaving MSME. Advances in Social Science, Education and Humanities Research, 465(Access 2019), 388–390. https://doi.org/10.2991/assehr.k.200827.099

Nurcahyo, S. A., Wikaningrum, T., & Thoha, A. M. (2025). Green banking practices and HRM in enchancing innovation capability: A knowledge management perspective on sharia banking performance. Diponegoro International Journal of Business, 8(1), 28–49. https://ejournal2.undip.ac.id/index.php/ijb/article/view/25080

Paraskevi. (2015). Measuring The Impact of Organization Learning on On Job Satisfactionand Individual Performance in Greek Advertising sectorl. International Conferenceon Strategic Innovative Marketing. Madrid, Spain: ICSIM, 08, 32–42.

Pham, P. H., & Gammoh, B. S. (2016). Characteristic of Social Media Marketing Strategy and Customer-Based Brand Equity Outcomes: A Conceptual Model. Developments in Marketing Science: Proceedings of the Academy of Marketing Science, April 2018, 433–434. https://doi.org/10.1007/978-3-319-26647-3_87

Purmono, B. B. (2023). Entrepreneurial intention among generation z education self efficacy and attitude. Enrichment : Journal of Management, 13(1), 16–31. https://doi.org/10.35335/enrichment.v13i1.1228

Purwati, A. A., Budiyanto, B., & Suhermin, S. (2021). The Role of Intellectual Capital in Improving Micro, Small, And Medium-Scale Business Performance in The Hostel And Culinary Sector in Pekanbaru, Indonesia. International Journal of Economics Development Research (IJEDR), 2(2), 110–125. https://doi.org/10.37385/ijedr.v2i2.274

Putri, R. N., Putri, J. K., Christanti, R., & Nugroho, A. H. L. (2024). Investigating the Impact of Green Banking on Efficiency Strategy: Evidence from Indonesia. The Indonesian Journal of Accounting Research, 27(01), 157–178. https://doi.org/10.33312/ijar.751

Quddus, A., Sulistiyo Nugroho, B., Hakim, L., Sidi Ritaudin, M., Nurhasanah, E., Suarsa, A., Budi Karyanto, U., Tanjung, R., Yudha Pratama, V., Awali, H., Mufid, A., Purwanto, A., Fahlevi, M., & Sudargini, Y. (2020). Effect of Ecological, Servant dan Digital Leadership Style Influence University Performance? Evidence from Indonesian Universities. Systematic Reviews in Pharmacy, 11(10), 408–417.

Rashid, T. (2012). Web-based customer-centric strategies: New ways of attracting religious tourist to religious sites. International Journal of Tourism Policy, 4(2), 146–156. https://doi.org/10.1504/IJTP.2012.049001

Rasyidah, A. N., Azizi, A. Q., & Kholis, N. (2025). Digital Ecosystems in Supporting Global Trade of Halal Products: Innovation and Challenges. ADPEBI International Journal of Business and Social Science, 5(2), 1–11.

Rauch, A., Wiklund, J., Lumpkin, G. T., & Frese, M. (2009). Entrepreneurial orientation and business performance: An assessment of past research and suggestions for the future. Entrepreneurship: Theory and Practice, 33(3), 761–787. https://doi.org/10.1111/j.1540-6520.2009.00308.x

Rehman, A., Ullah, I., Afridi, F. e. A., Ullah, Z., Zeeshan, M., Hussain, A., & Rahman, H. U. (2021). Adoption of green banking practices and environmental performance in Pakistan: a demonstration of structural equation modelling. Environment, Development and Sustainability, 23(9), 13200–13220. https://doi.org/10.1007/s10668-020-01206-x

Riduan. (2021). Effects of Customer Relationship Marketing, Service Quality, and Product Excellence On Customer Value and Its Effects on Satisfaction and Loyalty of PT. Bank Syariah Mandiri Customers. International Journal of Islamic and Social Sciences, 03, 17–31.

Santoso, B., Supriyati, Y., & Djamal, A. H. (2019). The Effect of Team Work and Motivation of Nurses’ Work on the Quality of Health Services at a Military Hospital in Indonesia. In International Strategic Management Review, 35(1), 1–9. https://doi.org/10.2991/icobame-18.2019.37

Saraji, M. K., Sadrabadi, A. N., & Monshizadeh, M. (2018). Evaluating the Role of Brand Ambassadors in Social Media Evaluating the Role of Brand Ambassadors in Social Media ARTICLE INFO JEL Classification. Journal of Marketing Management and Consumer Behavior Sadrabadi A, 2(December), 54–70.

Saraswati. (2021). Market Orientation, Service Quality on Customer Satisfaction and Loyalty: Study on Sharia Banking in Indonesia. Golden Ratio of Marketing and Applied Psychology of Business, 10, 26–41.

Setiawan, A. M., Yulianto, E., & Kusumawati, A. (2020). A Review of Concept of Sharia Marketing, Customer Satisfaction, Trust, and Loyalty. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 27(1). https://doi.org/10.20476/jbb.v27i1.11618

Shi, Y., Yuan, T., Bell, R., & Wang, J. (2020). Investigating the Relationship Between Creativity and Entrepreneurial Intention: The Moderating Role of Creativity in the Theory of Planned Behavior. Frontiers in Psychology, 11(June), 1–12. https://doi.org/10.3389/fpsyg.2020.01209

Tirno, R. R., Islam, N., & Happy, K. (2023). Green HRM and ecofriendly behavior of employees: Relevance of proecological climate and environmental knowledge. Heliyon, 9(4), e14632. https://doi.org/10.1016/j.heliyon.2023.e14632

van Assen, M. F. (2020). Empowering leadership and contextual ambidexterity – The mediating role of committed leadership for continuous improvement. European Management Journal, 38(3), 435–449. https://doi.org/10.1016/j.emj.2019.12.002

Wu, S., Lim, A. F., & Lim, W. Y. (2025). Do source credibility, green experience, and green brand image shape sustainable consumer behaviour? A PLS-SEM-fsQCA model. Asia Pacific Journal of Marketing and Logistics, 1–17. https://doi.org/10.1108/APJML-01-2025-0110

Wu, Y., & Huang, H. (2023). Influence of Perceived Value on Consumers’ Continuous Purchase Intention in Live-Streaming E-Commerce—Mediated by Consumer Trust. Sustainability (Switzerland), 15(5). https://doi.org/10.3390/su15054432

Wulandari. (2022). Analysis of Social Media Marketing and Product Review on the Marketplace Shopee on Purchase Decisions. Review of Integrative Business and Economics Research, 16, 303–334.

Zafar, M. B., & Abu-Hussin, M. F. (2025). Halal purchasing decisions and consumer behavior: a multi method review. Journal of Islamic Marketing, September. https://doi.org/10.1108/JIMA-08-2024-0365

Zeebaree, M. R. Y., & Siron, R. B. (2017). International Review of Management and Marketing The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs. International Review of Management and Marketing, 7(1), 43–52.

Zhang, N., Yu, P., Li, Y., & Gao, W. (2022). Research on the Evolution of Consumers’ Purchase Intention Based on Online Reviews and Opinion Dynamics. Sustainability (Switzerland), 14(24). https://doi.org/10.3390/su142416510

Zhu. (2015). The impact of green advertising on consumer purchase intention of green products. World Review of Business Research, 12, 72–85.

DOI: http://dx.doi.org/10.21043/bisnis.v13i2.34858