Market Engagement, Customer Centricity, and Business Growth in Indonesian Coffee SMEs: Evidence from Customer-Based PLS-SEM Analysis

Abstract

The rapid growth of coffee small and medium enterprises (SMEs) in Indonesia has intensified market competition, compelling businesses to adopt strategies that foster deeper customer relationships. This study investigates the role of customer centricity as a strategic mechanism linking market engagement to business growth in Indonesian coffee SMEs, focusing on dKupiAceh. A quantitative research design was employed using survey data collected from 160 customers. Data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that market engagement has a significant positive effect on business growth, while customer centricity significantly mediates this relationship. The findings demonstrate that customer-centric practices enhance emotional engagement, loyalty, and repurchase intention, ultimately contributing to sustainable business growth. This study provides empirical evidence for SME managers and contributes to the literature on customer engagement and growth strategies in the hospitality and beverage industry.