Transformation of Traditional Food and Beverage Industry with Industry 4.0 Approach: Case Study on Culinary Business in Bandung Area

Authors

  • Marwan Effendi STIE Manajemen Bisnis Indoneisa
  • Jasman Jasman Sekolah Tinggi Ilmu Komputer 22 Januari Kendari
  • Eva Yuniarti Utami Universitas Sebelas Maret
  • Loso Judijanto IPOSS Jakarta, Indonesia

DOI:

https://doi.org/10.58812/wsjee.v1i04.390

Keywords:

Traditional, Food, Beverage Industry, Culinary Business, Bandung, Indonesia

Abstract

The advent of Industry 4.0 has precipitated transformative changes in traditional industries globally. This research investigates the impact of Industry 4.0 on the traditional food and beverage sector in Bandung, Indonesia, with a focus on technological adoption, operational efficiency, customer engagement, and business performance. Through a quantitative approach involving 121 culinary establishments, the study employs Structural Equation Modeling with Partial Least Squares (SEM-PLS) to analyze the complex interplay of these factors. The results indicate a positive and significant relationship between technological adoption and operational efficiency. Operational efficiency, in turn, correlates positively with customer engagement, leading to improved business performance. The study provides nuanced insights into the varied dynamics across different culinary segments and emphasizes the pivotal role of Industry 4.0 in shaping the competitive landscape of Bandung's culinary businesses.

References

I. Ali, M. Aboelmaged, K. Govindan, and M. Malik, “Understanding the key determinants of IoT adoption for the digital transformation of the food and beverage industry,” Ind. Manag. Data Syst., 2023.

S. Senturk, F. Senturk, and H. Karaca, “Industry 4.0 technologies in agri-food sector and their integration in the global value chain: A review,” J. Clean. Prod., p. 137096, 2023.

S. Chatterjee, R. Chaudhuri, D. Vrontis, and A. Galati, “Digital transformation using industry 4.0 technology by food and beverage companies in post COVID-19 period: from DCV and IDT perspective,” Eur. J. Innov. Manag., 2022.

A. AHAMAT, M. S. S. ALI, M. A. AZAMI, N. V. Prasad, F. P. T. dan Teknousahawanan, and A. Dhabi, “Innovation Marketing from the Perspective of New Technologies in the Food and Beverage Industry,” 2022.

A. Hassoun et al., “The fourth industrial revolution in the food industry—part II: Emerging food trends,” Crit. Rev. Food Sci. Nutr., pp. 1–31, 2022.

D. Budiman, Y. Iskandar, and A. Y. Jasuni, “Millennials’ Development Strategy Agri-Socio-Preneur in West Java,” in International Conference on Economics, Management and Accounting (ICEMAC 2021), Atlantis Press, 2022, pp. 315–323.

N. Trinandari Prasetyo Nugrahanti, “Dysfunctional Audit Behavior and Sign Off Premature Audit Procedures: Case Study of Jakarta Public Accounting Firm,” 2020.

D. Destari, H. Tannady, A. G. Zainal, S. Nurjanah, and J. M. J. Renwarin, “The Improvement of Employee’s Performance in Plastic Ore Industry: Mediating Role of Work Motivation.,” Turkish Online J. Qual. Inq., vol. 12, no. 7, 2021.

C. Sassanelli, A. De Carolis, and S. Terzi, “Integrating Failure Mode, Effect and Criticality Analysis in the Overall Equipment Effectiveness Framework to Set a Digital Servitized Machinery: An Application Case,” in IFIP International Conference on Advances in Production Management Systems, Springer, 2021, pp. 143–152.

S. Akter, K. Michael, M. R. Uddin, G. McCarthy, and M. Rahman, “Transforming business using digital innovations: The application of AI, blockchain, cloud and data analytics,” Ann. Oper. Res., pp. 1–33, 2022.

B. Carlsson, “The Digital Economy: what is new and what is not?,” Struct. Chang. Econ. Dyn., vol. 15, no. 3, pp. 245–264, 2004.

S. Kavadias, K. Ladas, and C. Loch, “The transformative business model,” Harv. Bus. Rev., vol. 94, no. 10, pp. 91–98, 2016.

B. Brenner, “Transformative sustainable business models in the light of the digital imperative—A global business economics perspective,” Sustainability, vol. 10, no. 12, p. 4428, 2018.

M. M. Marianti, R. N. Pratikna, F. Fernando, and C. K. Muntu, “DO CREATIVE AND INNOVATIVE LEADERSHIP AFFECT PRODUCT QUALITY? EVIDENCE FROM CULINARY MSMEs,” J. Apl. Manaj., vol. 21, no. 2, 2023.

R. Wandri, G. K. Andhini, and A. S. Ramadhan, “Impact of Marketing Orientation, Learning Orientation and Entrepreneurial Orientation on Business Performance of Culinary SME in Jakarta,” in Proceedings of the 2023 7th International Conference on E-Commerce, E-Business and E-Government, 2023, pp. 139–147.

R. Priyanto, “The Effect of Store Atmosphere, Country of Origin, And Lifestyle on Repurchase Intention at The Ramen Store in Bandung City,” Media Wisata, vol. 20, no. 2, pp. 332–344, 2022.

S. Adhiesa and R. P. Putra, “Strategi Komunikasi Pemasaran Digital Kedai Kopi@ critoe_,” in Bandung Conference Series: Communication Management, 2023, pp. 153–160.

R. Ramadhan and A. Anandya, “Pengaruh Literasi Keuangan dan Penggunaan Media Sosial terhadap Kinerja UMKM,” J. Ris. Akunt., pp. 107–114, 2022.

H. Castro et al., “Data Science for Industry 4.0 and Sustainability: A Survey and Analysis Based on Open Data,” Machines, vol. 11, no. 4, p. 452, 2023.

P. H. Patel, A. K. Angrish, and V. Nadda, “A Cross-Sector Comparison of Industry 5.0: Digital Technologies in Supply Chain Management of FMCG and the Automotive Sector,” in Opportunities and Challenges of Business 5.0 in Emerging Markets, IGI Global, 2023, pp. 99–123.

D. Berardi, F. Callegati, A. Giovine, A. Melis, M. Prandini, and L. Rinieri, “When Operation Technology Meets Information Technology: Challenges and Opportunities,” Futur. Internet, vol. 15, no. 3, p. 95, 2023.

I. Javeed, “The Impact of Industry 4.0 on Employability and the Skills Required in India,” Glob. Econ. Sci., pp. 1–10, 2023.

N. S. Kolhe, A. Panicker, S. Mhatre, and J. Vichare, “Industry 4.0 and Chemical Industry: The Technology Enablers behind Strategic Growth of Chemical Companies”.

M. Xu, J. M. David, and S. H. Kim, “The fourth industrial revolution: Opportunities and challenges,” Int. J. Financ. Res., vol. 9, no. 2, pp. 90–95, 2018.

K. Anjum, J. Mirza, and A. Wakeel, “Process Re-design and Automation Using Enterprise Resource Planning System for Manufacturing Industry,” in MATEC Web of Conferences, EDP Sciences, 2023, p. 1013.

J. Jayakumar, “Role of Industry 4.0 in Energy Management Systems,” in Energy Audit and Management, CRC Press, 2022, pp. 275–279.

I. G. Olaizola, M. Quartulli, E. Unzueta, J. I. Goicolea, and J. Flórez, “Refinery 4.0, a Review of the Main Challenges of the Industry 4.0 Paradigm in Oil & Gas Downstream,” Sensors, vol. 22, no. 23, p. 9164, 2022.

M. A. Khashan, M. M. Elsotouhy, M. Ashraf Aziz, T. H. Alasker, and M. A. Ghonim, “Mediating customer engagement in the relationship between fast-food restaurants’ innovativeness and brand evangelism during COVID-19: evidence from emergent markets,” Int. J. Contemp. Hosp. Manag., 2023.

V.-H. Nguyen and T. Ho, “Analysing online customer experience in hotel sector using dynamic topic modelling and net promoter score,” J. Hosp. Tour. Technol., vol. 14, no. 2, pp. 258–277, 2023.

M. F. Matias, A. I. Martins, and S. Rebelo, “Business Performance Valuation and Value Creation,” in Dynamic Strategic Thinking for Improved Competitiveness and Performance, IGI Global, 2020, pp. 185–215.

A. Nelly, “Business performance measurement: Unifying theory and integrating practice.” NewYork: Cambridge University Press, 2007.

R. L. Garnasih, K. Kurniawaty, and D. Suryatiningsih, “Determinants of culinary business performance,” Garnasih, RL, pp. 1–9, 2020.

R. Widyaningrum, C. E. Ayuningtyas, D. Suryani, H. Khofifah, S. Mutmainah, and S. N. Putri, “Peningkatan Pengetahuan UMKM Pangan tentang Produk Pangan Bergizi, Aman, dan Halal: Improving Knowledge of Food Nutritional Value, Safety, and Halal Aspects of Small and Medium Enterprises Food Products,” PengabdianMu J. Ilm. Pengabdi. Kpd. Masy., vol. 7, no. 3, pp. 401–406, 2022.

M. Sugiat, “The influence of Bandung’s online culinary business marketing innovation on competitive strategy during the COVID-19 pandemic,” in Acceleration of Digital Innovation & Technology towards Society 5.0, Routledge, 2022, pp. 325–330.

F. Schimperna, R. Lombardi, and Z. Belyaeva, “Technological transformation, culinary tourism and stakeholder engagement: Emerging trends from a systematic literature review,” J. Place Manag. Dev., vol. 14, no. 1, pp. 66–80, 2021.

F. Minarelli, M. Raggi, and D. Viaggi, “Innovation in European food SMEs: determinants and links between types,” Bio-based Appl. Econ., vol. 4, no. 1, pp. 33–53, 2015.

Downloads

Published

2023-04-30

How to Cite

Effendi, M., Jasman, J., Utami, E. Y., & Judijanto, L. (2023). Transformation of Traditional Food and Beverage Industry with Industry 4.0 Approach: Case Study on Culinary Business in Bandung Area. West Science Journal Economic and Entrepreneurship, 1(04), 137–144. https://doi.org/10.58812/wsjee.v1i04.390

Issue

Vol. 1 No. 04 (2023): West Science Journal Economic and Entrepreneurship

Section

Articles

License

Copyright (c) 2023 Marwan Effendi, Jasman Jasman, Eva Yuniarti Utami, Loso Judijanto

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.