Digital Orientation as a Mediator in Achieving Competitive Advantage in Coffee Shops: Insights from Bukittinggi

Abstract

 This study explores the impact of human capital and social capital on the competitive advantage of coffee 
shops in Bukittinggi, with digital orientation acting as a mediating factor. Human capital, which includes creativity, 
skills, and knowledge, along with social capital, encompassing trust and networking, are examined for their role in 
enhancing a business’s competitive positioning in today’s digital age. The research adopts a quantitative methodology, 
collecting data from 88 coffee shop owners through structured surveys. The analysis was conducted using Structural 
Equation Modeling (SEM) to understand the relationships among the variables. The results reveal that both human 
capital and social capital significantly influence digital orientation, which subsequently strengthens the competitive 
advantage of coffee shops. These findings highlight the critical role of digital strategies in improving small business 
performance and emphasize the importance of investing in human and social capital for long-term success. This study 
provides practical implications for coffee shop owners and stakeholders, particularly in the context of supporting small 
businesses in the tourism sector through digital transformation.