PurposeThe purpose of this paper is to design a research model and analyze the relationship between open innovation and cleaner production. The paper maps and characterizes the conditions of open innovation against cleaner production in Indonesian batik small and medium enterprise (SME), particularly in Java and Madura. The mapping process is executed by classifying the batik SME into four quadrants. The diagram is a quadrant in which there are four parts to distinguish each of the ability of batik SMEs in understanding and achieving cleaner production through open innovation. This research will obtain a new method or model that can be applied by organizations to achieve cleaner production through an open innovation. The data is obtained from 182 batik SMEs located in Laweyan, Madura and Lasem (in Java Island, Indonesia).Design/methodology/approachOne of the problems in batik SME is the waste management from the dyeing and wax removal process. In the first stages of this research, a number of initial models were elaborated as a reference, then the results of the elaboration became a new research model. The research model that has been produced is then tested using data from respondents. Based on the test results, the model can be stated valid or not. In this study, the model is valid after testing data from 182 respondents, because all outer loading for all indicators is above 0.7. The composite reliability and AVE values of all constructs were above 0.7 and 0.5. Based on the validated research model, the data is statistically processed by using the Structural Equation Modeling (SEM). By using the SEM method and statistical software SMART PLS 3.0this research can be supported to achieve the research objectives.FindingsBased on data testing and processing, open innovation climate could predict a sustained relationship to open innovation with an accuracy rate of 0.466 and influence rate of 0.427, whereas open innovation could predict a sustained relationship to cleaner production with an accuracy rate of 0.183 and influence rate of 0.324. The relationships between open innovation climate and open innovation; including open innovation toward cleaner production, are statistically significant because all prediction values and accuracy in the model have met the criteria for measurement parameters based on the value of R2, p value and T-statistics to be stated as a significant relationship.Research limitations/implicationsThis research provides an overview of the influence and importance of open innovation in creating an environmentally friendly production process in the context of cleaner production. Cleaner production on batik SMEs can be achieved through open innovation, both for inbound open innovation and outbound open innovation. Open innovation comprehensively provides support for batik SMEs in achieving cleaner production. Open innovation can be run well and optimally if it gets support from a conducive climate open innovation. Furthermore, the implementation of cleaner production could be a guideline for the owner to minimize the waste from batik SME production, both for natural and synthetic dyes. Some limitations in these study include the absence of influence from the existing stakeholders on batik SMEs on the implementation process of open innovation; the use of the cross-sectional approach that results in the unavailability of further analysis regarding the dynamics or improvements that occur in attaining cleaner production through open innovation; and finally providing no analysis of the differences in characteristics at each location of batik SMEs.Originality/valueThe implementation of cleaner production model is considered as one of the new methods and references in conjunction with reducing the negative impact of waste toward the environment, particularly in the traditional textile industry which is limited in waste management capability.

This paper describes the influence of job characteristics, rewards, relations with superiors, relations with coworkers, and fulfillment of higher order needs, as job facets, on the job satisfaction of workers in Indonesian construction companies. A questionnaire survey was conducted in Jakarta (the capital city) and Bandung (one of Indonesia's major cities). The results revealed that workers in different occupational groups and managerial positions perceive differently the conditions of job facets and that there are different levels of job satisfaction among different categories of workers. This research indicates that workers care about the quality of their work and company's performance and that these aspects affect significantly their job satisfaction. Reward is also revealed to have an important influence on workers' job satisfaction.

This study aims to measure and analyze the effect of several restaurant-related quality attributes toward customer loyalty with a mediating effect from customer satisfaction in the local fast-food industry in Indonesia. The nature of local fast-food industry is different compared to its global counterpart, so a new perspective has to be taken into account. Based on literature review of previous studies, the quality attributes that are selected for this study are food quality, service quality, environment, price, and location. Data in this study were collected from the responses of 461 participants and analyzed using Structural Equation Model (SEM). The SEM result shows that only price and location significantly affect customer loyalty through customer satisfaction. When customer satisfaction is removed and restaurant-related quality attributes is directly tested towards customer loyalty, only price and food quality significantly affect customer loyalty. Both with and without mediating effect from customer satisfaction, price keeps influencing customer loyalty. This result is against the majority of fast-food customer loyalty studies which usually emphasize on food or service quality as the main factor that influences customer loyalty and customer satisfaction.

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