Institutional Barriers and Facilitators of Sustainability for Indonesian Batik SMEs: A Policy Agenda

Abstract

The implementation of sustainability-oriented practices in small- and medium-sized enterprises (SMEs) has been discussed frequently over the years. Recent studies on sustainability have focused mainly on links between ecological and economic sustainability. This exploratory study aims to explore institutional barriers and facilitators regarding the implementation of sustainability-oriented practices in the Indonesian batik industry and to provide policy recommendations. The Indonesian batik industry is well-known for its cultural heritage and for being part of the Indonesian identity. Batik products are mostly hand-crafted by women crafters. The study used in-depth insights from two focus groups conducted with entrepreneurs active in the batik industry, while also building on earlier empirical insights. The lack of customer knowledge and socio-cultural and regulatory factors were found to be barriers to sustainability in batik SMEs. Ecological, technological, socio-cultural, and political factors were found to facilitate achieving sustainability objectives. This study contributes to the sustainable entrepreneurship and women entrepreneurship literature by considering facilitators and barriers as they are experienced by batik entrepreneurs and by furthering the conceptualization of sustainable entrepreneurs as either “committed” or “followers”.

A Study on the Barriers to Entrepreneurship in the UAE

“…The literature has also extensively investigated institutional barriers to the growth of entrepreneurship (Daneshniya et al 2021;Gunawan et al 2022). Institutional barriers are essential to consider because they can significantly impact the growth and development of entrepreneurship (Hoogendoorn et al 2019).…”

“…These institutional barriers are vital because they can limit the number of individuals who can start and grow successful businesses. This can negatively impact economic growth, job creation, and innovation (Gunawan et al 2022). Addressing these barriers can help create a more supportive environment for entrepreneurs, enabling them to start and grow successful businesses and contribute to the economy (Daneshniya et al 2021).…”

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“…Batik is well known as an art and cultural heritage representing Indonesia's national identity (Gunawan et al ., 2022). In 2009, United Nations Educational, Scientific and Cultural Organization (UNESCO) designated Indonesian Batik as an Intangible Cultural Heritage of Humanity, which further cemented its important position in Indonesian society (UNESCO, 2009).…”

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“…The values in traditional Batik are lifted from the process of cultural acculturation. Batik can be a representative of the emblem of the art region of each region (Gunawan et al, 2022). However, Indonesian Batik has meaning in every motif caused, so it is not a mass product.…”