Developing a Sustainable Performance Measurement Model for Food and Beverage MSMEs: An Exploratory Factor Analysis Approach

Abstract

This study develops a preliminary sustainable performance measurement model for Food and Beverage (F&B) Micro, Small, and Medium Enterprises (MSMEs) by identifying context-specific sustainability dimensions through an exploratory quantitative approach. Existing sustainability measurement frameworks are predominantly designed for large corporations and fail to capture the operational realities of micro-enterprises characterized by informality, limited resources, and high dependence on communal resources. A survey of 85 F&B MSME owners and managers was conducted from March to June 2026 using a structured five-point Likert questionnaire comprising 17 initial indicators derived from the Triple Bottom Line and Natural-Resource-Based View frameworks. The questionnaire was distributed electronically via Google Forms to participants attending training programs organized by the Cooperatives and MSMEs Office of Yogyakarta. Purposive sampling was applied with eligibility criteria requiring businesses to have operated for at least three years, participated in official training, and implemented basic waste management practices. Data were analyzed using Exploratory Factor Analysis with Principal Axis Factoring extraction and Varimax rotation. The data were suitable for factor analysis (KMO = 0.768; Bartlett's Test, p < 0.001). Four factors with eigenvalues greater than one were retained, collectively explaining 66.98% of the total variance, representing economic performance (4 indicators), environmental performance (5 indicators), social performance (5 indicators), and digital adaptation and innovation (3 indicators). Cronbach's alpha values ranged from 0.833 to 0.882, indicating satisfactory internal consistency. The findings suggest that sustainable performance in F&B MSMEs is multidimensional and extends beyond conventional financial indicators by incorporating environmental stewardship, community-oriented social responsibility, and digital capabilities. Theoretically, this study extends the Triple Bottom Line framework by identifying digital adaptation as an empirically distinct factor and highlights the role of local cultural values in shaping social performance. Practically, the proposed framework offers a contextual assessment tool for business operators, incubators, and government agencies to monitor sustainability contributions towards the 2030 Sustainable Development Goals. However, the proposed model remains exploratory and requires further validation using larger samples and Confirmatory Factor Analysis before broader application.