IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i16p12339-d1216682.html
   My bibliography  Save this article

The Sustainability of Small Industries Thriving across Generation in Rural Areas

Author

Listed:
  • Anne Charina

    (Agribusiness Study Program, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Ganjar Kurnia

    (Agribusiness Study Program, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Asep Mulyana

    (Faculty of Economics and Business, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

This study investigates the sustainability level of small industries that have persevered for up to three generations in rural areas of Indonesia, addressing the significant issue of high failure rates among small industries. Utilizing the Triple Bottom Line framework, this study examined the economic, social, and environmental performance of four small industries that have thrived for multiple generations in Indonesia. Data collection involved semi-structured interviews, focus group discussions (FGDs), and secondary company data. Thematic analysis principles using N-Vivo 12 software were applied to analyze qualitative data, while the RAP 2016 software version R was used for assessing the sustainability index and status. The research findings revealed that the sustainability status of small industries that survived for up to three generations in rural areas was predominantly unsustainable. Economic performance exhibited variability, some falling into the less sustainable category, while social and environmental performances were deemed moderately sustainable. The practical implications of the findings are as follows: the level of competition, government policy, and market access are the most sensitive factors that should be considered to improve economic performance. Meanwhile, small industries must maintain and enhance their social and environmental performance to ensure stability. In addition, the theoretical implication of this finding suggests that the concept of “sustainability” cannot solely be represented by the company’s longevity. Long-lasting small industries may not necessarily be economically, socially, and environmentally sustainable.

Suggested Citation

  • Anne Charina & Ganjar Kurnia & Asep Mulyana, 2023. "The Sustainability of Small Industries Thriving across Generation in Rural Areas," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
  • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12339-:d:1216682
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/16/12339/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/15/16/12339/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Melia Famiola & Amia Wulansari, 2019. "SMEs’ social and environmental initiatives in Indonesia: an institutional and resource-based analysis," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 16(1), pages 15-27, January.
    2. Aleksandr Ključnikov & Ladislav Mura & David Sklenár, 2019. "Information security management in SMEs: factors of success," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(4), pages 2081-2094, June.
    3. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    4. Cohen, Boyd & Winn, Monika I., 2007. "Market imperfections, opportunity and sustainable entrepreneurship," Journal of Business Venturing, Elsevier, vol. 22(1), pages 29-49, January.
    5. Eva Collins & Juliet Roper & Stewart Lawrence, 2010. "Sustainability practices: trends in New Zealand businesses," Business Strategy and the Environment, Wiley Blackwell, vol. 19(8), pages 479-494, December.
    6. Desislava Tsvetkova & Emma Bengtsson & Susanne Durst, 2020. "Maintaining Sustainable Practices in SMEs: Insights from Sweden," Sustainability, MDPI, vol. 12(24), pages 1-26, December.
    7. Hanan Alhaddi, 2015. "Triple Bottom Line and Sustainability: A Literature Review," Business and Management Studies, Redfame publishing, vol. 1(2), pages 6-10, September.
    8. Anne Charina & Ganjar Kurnia & Asep Mulyana & Kosuke Mizuno, 2022. "The Impacts of Traditional Culture on Small Industries Longevity and Sustainability: A Case on Sundanese in Indonesia," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    9. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    10. Mario Parrilli & Aitziber Elola, 2012. "The strength of science and technology drivers for SME innovation," Small Business Economics, Springer, vol. 39(4), pages 897-907, November.
    11. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta Kumar & Evangelinos, Konstantinos, 2021. "Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anne Charina & Ganjar Kurnia & Asep Mulyana & Kosuke Mizuno, 2022. "The Impacts of Traditional Culture on Small Industries Longevity and Sustainability: A Case on Sundanese in Indonesia," Sustainability, MDPI, vol. 14(21), pages 1-16, November.
    2. Nanditha Mathew & George Paily, 2022. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," The Journal of Technology Transfer, Springer, vol. 47(2), pages 435-458, April.
    3. Mathew, Nanditha & Paily, George, 2020. "STI-DUI innovation modes and firm performance in the Indian capital goods industry: Do small firms differ from large ones?," MERIT Working Papers 2020-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Stefan Schaltegger & Marcus Wagner, 2011. "Sustainable entrepreneurship and sustainability innovation: categories and interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 20(4), pages 222-237, May.
    5. Desirée Knoppen & Louise Knight, 2022. "Pursuing sustainability advantage: The dynamic capabilities of born sustainable firms," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1789-1813, May.
    6. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.
    7. Mª Del Mar Ramos-González & Mercedes Rubio-Andrés & Miguel Ángel Sastre-Castillo, 2017. "Building Corporate Reputation through Sustainable Entrepreneurship: The Mediating Effect of Ethical Behavior," Sustainability, MDPI, vol. 9(9), pages 1-19, September.
    8. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    9. Craig, Justin B. & Dibrell, Clay & Garrett, Robert, 2014. "Examining relationships among family influence, family culture, flexible planning systems, innovativeness and firm performance," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 229-238.
    10. Arnaldo Coelho & Jorge Ferreira & Catarina Proença, 2024. "The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3184-3202, May.
    11. Pantano, Eleonora, 2014. "Innovation drivers in retail industry," International Journal of Information Management, Elsevier, vol. 34(3), pages 344-350.
    12. Ghulam Raza Sargani & Deyi Zhou & Muhammad Haseeb Raza & Yuzhi Wei, 2020. "Sustainable Entrepreneurship in the Agriculture Sector: The Nexus of the Triple Bottom Line Measurement Approach," Sustainability, MDPI, vol. 12(8), pages 1-24, April.
    13. Alicia Mas-Tur & Maria Guijarro & Agustín Carrilero, 2021. "What Type of Entrepreneurship Leads to Sustainable Development? A Configurational Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 29-42, August.
    14. Philip Hallinger, 2021. "A Meta-Synthesis of Bibliometric Reviews of Research on Managing for Sustainability, 1982–2019," Sustainability, MDPI, vol. 13(6), pages 1-22, March.
    15. Leonidas C. Leonidou & Paul Christodoulides & Lida P. Kyrgidou & Daydanda Palihawadana, 2017. "Internal Drivers and Performance Consequences of Small Firm Green Business Strategy: The Moderating Role of External Forces," Journal of Business Ethics, Springer, vol. 140(3), pages 585-606, February.
    16. Fernhaber, Stephanie A. & Zou, Huan, 2022. "Advancing societal grand challenge research at the interface of entrepreneurship and international business: A review and research agenda," Journal of Business Venturing, Elsevier, vol. 37(5).
    17. Nasser Alhamar Alkathiri & Foued Ben Said & Natanya Meyer & Mohammad Soliman, 2024. "Knowledge management and sustainable entrepreneurship: a bibliometric overview and research agenda," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-24, December.
    18. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    19. Kibaek Lee & Jaeheung Yoo & Munkee Choi & Hangjung Zo & Andrew P Ciganek, 2016. "Does External Knowledge Sourcing Enhance Market Performance? Evidence from the Korean Manufacturing Industry," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-19, December.
    20. Panagiotis Trivellas & Georgios Malindretos & Panagiotis Reklitis, 2020. "Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector," Sustainability, MDPI, vol. 12(24), pages 1-29, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12339-:d:1216682. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.