Improving sustainability and encouraging innovation in traditional craft sectors: the case of the Sri Lankan handloom industry

Abstract

Purpose The purpose of this study is to assess sustainability across the handloom industry in Sri Lanka and identify opportunities for sustainable innovations supporting new markets, development of small-and-medium enterprises (SMEs) and growth in the Sri Lankan craft sector. Design/methodology/approach Using a multiple case studies methodology, 10 case studies and 37 semi-structured interviews were analysed along with the triple-layered business model canvas. Findings The study reveals the handloom industry to be fundamentally sustainable but with structural barriers that hinder both innovation and growth. The environmentally conscious production process and social inclusion within weaving communities are the key driving forces of sustainability in the sector; however, the structure of the industry and lack of access to markets and information act as barriers to both innovation and growth. The incorporation of design interventions, closed-loop manufacturing strategies and the encouragement of community-based entrepreneurship would support sustainability-orientated business innovation in the handloom industry. Originality/value The rapidly increasing market share for high-quality, hand-made goods indicates the potential of the creative industries to accelerate socio-economic growth. Handloom textiles is attracting growing interest in fashion markets because of increasing concern about exploitation in production, thus encouraging interest in the economic benefits of fairly traded, high quality materials and the potential contribution of handloom to sustainability in the fashion industry. The results of this study will support the handloom industry and policy-makers in developing support for sustainable innovation in the handloom industry.

Sustainable Business Models: A Systematic Review of Approaches and Challenges in Manufacturing

“…García-Muiña, Medina-Salgado, Ferrari and Cucchi (2020) and Wanniarachchi, Dissanayake and Downs (2020) studied circular economy in local contexts of manufacturing. Wanniarachchi et al (2020) investigated the sustainable and ethical manufacturing practices of Sri Lankan textile manufacturer. The companies focused on employing fair trade practices and using 100% of textile waste to create various by-products for export.…”

Challenges, Open Innovation, and Engagement Theory at Craft SMEs: Evidence from Indonesian Batik

“…Today, young people are reluctant to learn craft skills and prefer to work in other fields. This put the craft business at risk due to the loss of its future successors [34]. Also, craft SMEs are managed by the elderly will be slow to grow.…”

“…Meanwhile, SMEs' design abilities are still lacking. They design products using traditional knowledge and lack access to modern product design skills or techniques [34]. This is important because craft SMEs must compete with other SMEs or big capital firms that produce similar products [35].…”

“…Consumers prefer to find products through digital media [36,37]. However, SMEs have not optimally carried out advertising and marketing strategies or have grasped or used online marketplaces and promotions [34]. Even many craft SMEs have used digital media, but they have not used it effectively [38].…”

“…Even though there is an example of good open innovation for this waste management in Sri Lanka. Woven fabric dye factory waste in this country is processed correctly to meet environmental standards, then treated water is used for agricultural purposes [34]. Several research findings illustrate different methods or materials for batik wastewater treatment [66].…”