Strategies to Improve Marketing Performance of Small and Medium Laundry Businesses in Riau Province Indonesia through Innovation and Religiosity Approaches

Abstract

This study, entitled “Strategies for Improving the Marketing Performance of Small and Medium-Sized Laundry Enterprises in Riau Province through Innovation and Religiosity Approaches”, aims to develop a marketing performance model based on the Resource-Based View (RBV) and Market-Based View (MBV) theories. The research seeks to provide both theoretical contributions and practical implications for enhancing the competitiveness of small and medium-sized enterprises (SMEs) in the laundry service sector. A quantitative research method was employed, using Structural Equation Modeling – Partial Least Squares (SEM-PLS) as the analytical tool. The study involved 356 laundry SME owners in Riau Province as respondents, selected due to the region’s highly competitive and rapidly evolving laundry industry. The findings reveal that entrepreneurial orientation, network capability, and religiosity significantly influence marketing performance. These results highlight that internal factors, such as entrepreneurial drive and religious values, as well as external factors, such as the ability to build business networks, are key determinants of successful marketing performance. Furthermore, innovation is confirmed as a mediating variable that strengthens the relationships between entrepreneurial orientation, network capability, religiosity, and marketing performance. In other words, these variables not only exert direct influence but also become more effective when integrated through innovation-driven strategies. This research contributes theoretically by extending the application of RBV and MBV theories to the context of service-oriented SMEs, while also emphasizing the importance of religiosity as a managerial and strategic dimension in marketing. From a practical perspective, the study suggests that laundry SMEs in Riau should enhance their innovation orientation in services, expand business networks, and integrate religious values into their operations and marketing strategies. By doing so, they can improve marketing performance, strengthen customer loyalty, and build sustainable competitive advantages in an increasingly dynamic market environment.