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Service Distribution Strategy on Business Performance of Padang Restaurants in North Jakarta

Service Distribution Strategy on Business Performance of Padang Restaurants in North Jakarta

The Journal of Distribution Science(JDS) / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2021, v.19 no.12, pp.57-69
https://doi.org/https://doi.org/10.15722/jds.19.12.202112.57
CHRISTIAN, Michael (Faculty of Social Sciences and Humanities. Universitas Bunda Mulia)
HARIS, Kevin (Faculty of Social Sciences and Humanities. Universitas Bunda Mulia)
INDRIYARTI, Eko Retno (Faculty of Economics and Business. Universitas Trisakti)
WIBOWO, Suryo (Psychological Science Doctoral Program. Universitas Persada Indonesia YAI)
SUNARNO, Sunarno (Psychological Science Doctoral Program. Universitas Persada Indonesia YAI)
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Abstract

Purpose: This study aims to measure whether the business performance of Padang restaurants in North Jakarta is primarily affected by service distribution strategy and other factors, specifically the local-based organizational culture and entrepreneurial orientation. Research design, data and methodology: This quantitative research has used Structural Model-Partial Least Square (PLS-SEM) with SMART PLS 3.0 as the analytical tool. The study's sample focus is the owner or person in charge of the Padang restaurant business in North Jakarta. Data has been collected using a questionnaire instrument with a Likert scale scale ('1-strongly disagree' to '5-strongly agree'). A total of 86 samples with a random technique were obtained from three areas in North Jakarta: Kelapa Gading, Pademangan, and Penjaringan. Results: Interestingly, this research finds that service distribution strategy does not affect business performance, either directly or indirectly. Business performance in this study is affected by entrepreneurial orientation. In additional results, the local organizational culture significantly affects the entrepreneurial orientation, but does not affect the business performance in terms of management process. Conclusions: This study provides practical implications for restaurant businesses regarding the use of local cultural concepts to consider strategies for survival in today's challenging times while continuing operations during limitations.

keywords
Service Distribution, Distribution Strategy, Business Performance, Local-Based Organizational Culture

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