The Impact of Strategic Marketing Innovation, Service Quality, and SME Empowerment on Brand Equity to Drive Customer Loyalty among SME Customers of PT Sriboga Flour Mill

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Handayani, Maria Wuri (2026) The Impact of Strategic Marketing Innovation, Service Quality, and SME Empowerment on Brand Equity to Drive Customer Loyalty among SME Customers of PT Sriboga Flour Mill. Graduate thesis, IPMI Institute.

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Abstract

This study examines the impact of strategic marketing innovation, service quality, and SME empowerment on brand equity and customer loyalty among SME customers of PT Sriboga Flour Mill in Indonesia. In increasingly competitive and commoditized industrial markets, understanding the key drivers of customer loyalty is critical for sustaining long-term business performance. This study adopts a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) with data collected from 200 SME respondents across Java. The results indicate that SME empowerment is the strongest driver of brand equity (β = 0.460; p < 0.001), followed by service quality (β = 0.331; p < 0.001), while strategic marketing innovation does not show a significant effect (β = 0.073; p > 0.05). Furthermore, brand equity has a strong positive effect on customer loyalty (β = 0.884; p < 0.001), confirming its central role in shaping long-term customer relationships. These findings suggest that relational capabilities play a more critical role than innovation alone in strengthening brand equity and driving customer loyalty in SME-driven industrial markets. This study contributes by extending the application of Customer-Based Brand Equity (CBBE) and Resource-Based View (RBV) in a B2B2C SME context. Managerially, the results highlight the importance of prioritizing SME empowerment and service quality while ensuring that marketing innovation is aligned with the operational needs of SME customers. Keywords: Strategic Marketing Innovation, Service Quality, SME Empowerment, Brand Equity, Customer Loyalty, Resource-Based View, Relationship Marketing, PLS-SEM, B2B Marketing, SMEs

Item Type: Thesis (Graduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Thesis > Master of Business Administration
Depositing User: sandra margaretha
Date Deposited: 29 Apr 2026 04:24
Last Modified: 29 Apr 2026 04:24
URI: http://repository.ipmi.ac.id/id/eprint/2974

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