GREEN ECONOMY MODEL DEVELOPMENT IN INDONESIAN BATIK SMES: NATURAL RESOURCE-BASED VIEW APPROACH AND SYSTEMS THINKING METHODOLOGY

Abstract

Indonesian batik SMEs still face various challenges in developing green business processes due to limited understanding of the framework for developing a green economy. This study aims to develop a conceptual hierarchy model that can guide batik SMEs in developing a green economy based on the NRBV. This study used a survey method to collect data. The surveyed companies were six traditional batik producers in Cirebon Regency, West Java Province. The study combined the Delphi, MICMAC, and ISM methods to analyze the data. The results of this study indicate the existence of 14 relevant supporting factors in the development of a green economy based on the NRBV. These factors can be grouped into three: dependency factors (organizational culture, green financing, corporate networks, association support, and consumer development), linkage factors (green supply chains, resource efficiency, waste management, and green product design), and independent factors (innovation capabilities, environmentally friendly production processes, skilled labor, leadership commitment, and supportive policies and regulations). The results of the study provide implications for the importance of waste management, product management, and sustainability in building a sustainable green economy for batik SMEs.