Sustainable business model development in the coffee industry: Evidence from Banda Aceh, Indonesia
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Abstract
Despite the rapid growth of coffee enterprises in Indonesia, limited research has examined integrated sustainable business models addressing economic, environmental, and social dimensions simultaneously. This study aimed to develop a sustainable business model for coffee enterprises in Banda Aceh, Indonesia. A descriptive survey approach was employed using interviews, observations, and questionnaires involving coffee shop owners, managers, employees, suppliers, and customers, complemented by secondary data from government reports, industry publications, and relevant literature. Internal and external strategic factors were assessed using Internal Factor Analysis Summary (IFAS) and External Factor Analysis Summary (EFAS) matrices, followed by SWOT and Internal–External (IE) matrix analyses to determine strategic positioning. The resulting strategies were subsequently translated into economic, environmental, and social dimensions to formulate an integrated sustainable business model. The findings indicate that coffee enterprises have strong internal capabilities and operate in a favorable external environment, supported by Aceh’s coffee culture, customer loyalty, product differentiation, and access to premium Gayo coffee. However, limited financial capacity and weak integration of sustainability practices remain significant challenges. The strategic analysis indicates a Grow and Build orientation, emphasizing innovation, digital transformation, sustainable value creation, stakeholder collaboration, and environmental responsibility to strengthen long-term business resilience. This study demonstrates how strategic analysis can be systematically translated into actionable sustainable business model innovation. The findings contribute to sustainability and business model innovation literature by proposing an integrated framework for sustainable value creation, delivery, and capture in coffee enterprises in emerging economies.
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