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Abstract
Abstract. Traditional markets in non-metropolitan regions need to adapt to changing service expectations, retail competition, and digital transaction practices. However, previous studies have often examined market revitalization, service quality, digital payment adoption, or governance separately, while limited attention has been given to how these factors explain trader satisfaction as an evaluation of market management practices. This study examines the influence of infrastructure quality, service quality, government support, technological innovation, and market governance on trader satisfaction in traditional markets in Garut Regency. Market governance is defined in this study as the clarity of rules, fair treatment, transparency, complaint mechanisms, and communication between traders and market managers. Data were collected from 100 active traders using purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3. The results show that infrastructure quality, service quality, technological innovation, and market governance significantly influence trader satisfaction, while government support does not show a significant effect. Market governance has the strongest effect, and the model explains 64.4% of the variance in trader satisfaction. These findings provide empirical insight that trader satisfaction is shaped by the alignment of physical facilities, service delivery, technological practices, and governance mechanisms. Practically, local governments and market managers should translate support programs into concrete improvements that traders can directly experience.
Keywords: Infrastructure quality, market governance, service quality, technological innovation, trader satisfaction
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Copyright @2017. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (http://creativecommons.org/licenses/by-nc-sa/4.0/) which permits unrestricted non-commercial used, distribution and reproduction in any medium
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References
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References
Badan Pusat Statistik Kabupaten Garut. (2024). Kabupaten Garut dalam angka 2024. Badan Pusat Statistik Kabupaten Garut.
Bank Indonesia. (2023, August 3). Atas kontribusinya akselerasi digitalisasi di masyarakat, QRIS terima penghargaan. https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2521123.aspx
Chege, S. M., & Wang, D. (2020). The influence of technology innovation on SME performance through environmental sustainability practices in Kenya. Technology in Society, 60, 101210. doi: 10.1016/j.techsoc.2019.101210
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.
Dellyana, D., Arina, N., & Fauzan, T. R. (2023). Digital innovative governance of the Indonesian creative economy: A governmental perspective. Sustainability, 15(23), Article 16234. doi: 10.3390/su152316234
Google, Temasek, & Bain & Company. (2024). e-Conomy SEA 2024: Indonesia report. Google, Temasek, & Bain & Company.
Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer. doi: 10.1007/978-3-030-80519-7
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. doi: 10.1007/s11747-014-0403-8
Kania, I., Alamanda, D. T., Prabowo, F. S. A., Ramdhani, A., & Fitria, R. R. K. (2020). The key metrics of traditional market revitalisation from tenant’s perspective. International Journal of Trade and Global Markets, 13(1), 89–97. doi: 10.1504/IJTGM.2020.104918
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10. doi: 10.4018/ijec.2015100101
Kock, N., & Hadaya, P. (2018). Minimum sample size estimation in PLS‐SEM: The inverse square root and gamma‐exponential methods. Information Systems Journal, 28(1), 227–261. doi: 10.1111/isj.12131
Lubis, A. N., Lumbanraja, P., Gultom, P., & Rini, E. S. (2021). The effect of traditional market revitalization in Medan City on competitiveness, trader satisfaction and increases in sales of traders with perceived value as a mediation variable. In Proceedings of the 2nd Economics and Business International Conference (pp. 457–465). SCITEPRESS. doi: 10.5220/0009216204570465
Naini, N. F., Santoso, S., Andriani, T. S., Claudia, U. G., & Nurfadillah. (2022). The effect of product quality, service quality, customer satisfaction on customer loyalty. Journal of Consumer Sciences, 7(1), 34–50. doi: 10.29244/jcs.7.1.34-50
Nurhapsari, R., & Sholihah, E. (2022). Analysis of the factors of intention to use QRIS for MSMEs in Semarang City’s traditional market. Jurnal Ekonomi Modernisasi, 18(2), 199–211. doi: 10.21067/jem.v18i2.7291
Open Data Jabar. (2024). Jumlah pasar rakyat berdasarkan kabupaten/kota di Jawa Barat. Pemerintah Daerah Provinsi Jawa Barat. https://opendata.jabarprov.go.id/en/dataset/jumlah-pasar-rakyat-berdasarkan-kabupatenkota-di-jawa-barat
Prasannath, V., Adhikari, R. P., Gronum, S., & Miles, M. P. (2024). Impact of government support policies on entrepreneurial orientation and SME performance. International Entrepreneurship and Management Journal, 20, 1533–1595. doi: /10.1007/s11365-024-00993-3
Purnomo, M. P., Otten, F., & Faust, H. (2018). Indonesian traditional market flexibility amidst state promoted market competition. Social Sciences, 7(11), Article 238. doi: 10.3390/socsci7110238
Schilling, M. A. (2020). Strategic management of technological innovation (6th ed.). McGraw-Hill Education.
Susanty, A., Puspitasari, N. B., & Jati, S. G. (2022). Analysis of the factors affecting the intention of the traders in traditional market to adopt e-payment. Journal of Science and Technology Policy Management, 13(1), 102–123.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. doi: 10.1016/j.lrp.2017.06.007
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Qi Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889–901. doi: 10.1016/j.jbusres.2019.09.022
Wibawa, S., Firdaus, R. S. M., Indroyono, P., & Dumairy, D. (2024). Preserving traditional market in Indonesia based on the new public governance perspective. International Journal of Asian Business and Information Management, 15(1). doi: 10.4018/IJABIM.349223
Wirtz, J., & Lovelock, C. (2021). Services marketing: People, technology, strategy (9th ed.). World Scientific.
Yi, Y.-M., & Gim, T.-H. T. (2018). What makes an old market sustainable? An empirical analysis on the economic and leisure performances of traditional retail markets in Seoul. Sustainability, 10(6), Article 1779. doi: 10.3390/su10061779
Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2018). Services marketing: Integrating customer focus across the firm (7th ed.). McGraw-Hill Education.