Escaping the Captive Market: Strategic Innovation in Co-branding and Mitigating Community-induced Inefficiencies in Faith-Based Micro-Enterprises
Article Sidebar
Main Article Content
Abstract
This study evaluates the effectiveness of marketing strategies in religious-based business entities in developing countries, with a particular focus on Islamic boarding schools in Indonesia that receive government capital assistance. Using the Structural Equation Modeling (SEM-PLS) model on a sample of 230 business units, this study examines how co-branding and distribution channel management strategies affect marketing performance, both directly and through community marketing mediation. Empirical results show findings that contradict conventional wisdom: although co-branding strategies are proven to significantly improve performance (β=0.208), distribution channel management (β=-0.134) and community marketing (β=-0.217) are negatively correlated with marketing performance. Furthermore, community marketing was found to negatively mediate the relationship between co-branding, indicating the existence of “social costs” and “network exclusivity” phenomena that burden business efficiency. These findings provide important theoretical contributions regarding the limitations of bonding social capital in religious entrepreneurship, suggesting that over-reliance on internal communities and traditional distribution channels without digitalization support can hinder commercial growth.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
References
Abratt, R., & Motlana, P. (2002). Managing co-branding strategies : Global brands into local markets. Business Horizons, 45(5), 43–50. https://doi.org/10.1016/S0007-6813(02)00242-2
Aini, T. N., Nugraha, L., & Surbakti, A. H. (2025). Value-Based Branding in Islamic Boarding Schools : Efforts to Maintain Identity in Digitalization Dynamics. Jurnal Manajemen Pendidikan Islam, 09(02), 442–457. https://doi.org/10.33650/al-tanzim.v9i2.10753
Atjas, B., & Sitaniapessy, R. H. (2024). The Influence of Distributor Competence , Informational Sharing on Distribution Performance : The Role of Distributional Commitment. Journal of Economics, 13(03), 1451–1461. https://doi.org/10.54209/ekonomi.v13i01
Azizi, S., Movahed, S. A., & Khah, M. H. (2009). The effect of marketing strategy and marketing capability on business performance. Case study: Iran ’ s medical equipment sector. Medical Marketing, 9(4), 309–317. https://doi.org/10.1057/jmm.2009.33
Bawono, A., Saerozi, M., Irkhami, N., Nabila, R., Anwar, S., & Rofiuddin, M. (2020). The Determinants of Creative Economy in Developing the Independence of Pesantren. International Journal of Innovation, Creativity and Change, 13(7), 1540–1558.
Creswell, D., & Creswell, J. W. (2018). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. In SAGE Publications. SAGE Publications. https://doi.org/10.4324/9780429469237-3
Fayaz, R., & Azizinia, M. (2016). Current challenges in distribution channels of cultural goods and services. Marketing and Branding Research, 3, 75–85. https://doi.org/10.33844/mbr.2016.60219
Hair, J. F., Hult, G. T. M., & Ringle, C. M. (2014). A primer on partial least squares structural equation modeling (PLS-SEM). SAGE Publications, Inc.
Hammond, P. K. A. (2025). Community Engagement: How Authentic Community Engagement Builds Brand Trust, Loyalty, and Sustainable Growth. In Etika Jurnalisme Pada Koran Kuning : Sebuah Studi Mengenai Koran Lampu Hijau (Vol. 16, Issue 2, pp. 39–55). https://doi.org/10.2139/ssrn.5240793
Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing Performance Outcomes in Marketing. Journal of Marketing, 80(2), 1–20. https://doi.org/10.1509/jm.15.0287
Kementerian Agama RI. (2024a). Economy Hub dan Geliat Ekonomi di Pesantren. Kementerian Agama Republik Indonesia. https://kemenag.go.id/kolom/economy-hub-dan-geliat-ekonomi-di-pesantren-feBk4
Kementerian Agama RI. (2024b). Program Kemandirian Pesantren, Kemenag Kembangkan 432 Badan Usaha Milik Pesantren. Kementerian Agama Republik Indonesia. https://kemenag.go.id/pers-rilis/program-kemandirian-pesantren-kemenag-kembangkan-432-badan-usaha-milik-pesantren-G5kn0
Khoiroh, M., Aziz, A., & Fatimah, N. (2025). Branding Image of Higher Education Quality Based on Islamic Boarding Schools. Indonesian Journal of Research and Educational Review, 4(3), 540–548.
Kim, B. (2020). Impact of Negative Word of Mouth on Firm Value. Asia Marketing Journal, 22(3). https://doi.org/10.15830/amj.2020.22.3.1
Miju, V., Todorovi, A., & Obrenovica, M. (2022). The Relationship Between Logistics and Organizational Performance in a Supply Chain Contex. Serbian Journal of Management, 17(2), 333–349. https://doi.org/10.5937/sjm17-37401
Prakash, B., Indrajit, Kumar, I., & Verma, J. K. (2021). Barriers and potential solutions for MSMEs in developing economies : Evidence from India. Problems and Perspectives in Management, 19(4), 325–337. https://doi.org/10.21511/ppm.19(4).2021.26
Rahmawati, F., Rofiq, A., & Wijayanti, R. (2021). Community Social Capital and Firm Performance. Journal of International Conference Proceedings (JICP), 4(1), 219–229. https://doi.org/10.32535/jicp.v4i1.1144
Sadraei, R. (2025). Role of networks in driving innovation and global growth : Enhancing women-led start-ups in the internationalisation arena. The International Journal of Entrepreneurship and Innovation, 26(3), 239–250. https://doi.org/10.1177/14657503241294194
Sahani, A. (2024). Mediating And Moderating Role of Community Commitment in Creating Brand Loyalty in Case of Online Brand Community. IOSR Journal of Business and Management, 26(5), 56–65. https://doi.org/10.9790/487X-2605025665
Sari, F., Nur, S., Rita, L., Juliprijanto, W., & Septiani, Y. (2023). Measuring inefficiency of MSEs in the food processing sector. Jurnal Ekonomi Dan Bisnis, 26(1), 269–288.
Shidiq, M., & Saleha, L. (2022). Marketing Communication Strategy for Islamic Boarding School-Based Educational Institutions. Indonesian Journal of Educational Management, 4(3), 314–323. https://doi.org/10.52627/ijeam.v4i3.213
Werber, L., Mendel, P. J., & Derose, K. P. (2014). Social Entrepreneurship in Religious Congregations’ Efforts to Address Health Needs. Am J Health Promot, 28(4), 231–238. https://doi.org/10.4278/ajhp.110516-QUAL-200