Sustainable Industry, Culture and Community Development: A Case Study of Kampung Batik Laweyan, Indonesia

Abstract

This study aims to identify and analyse the sustainability factors of the batik industry in Kampung Batik Laweyan (KBL) in Surakarta and the way these factors relate to and shape successful local community development. Cross-sectional data collection was conducted through a survey questionnaire, involving 511 respondents that comprised 254 enterprises and 257 community members, selected through stratified random sampling techniques. This study used path analysis to examine the hypothetical model. The results of the path analysis support our hypothetical model in which industrial sustainability factors, i.e., economic, environmental, and social factors have a positive and significant relationship with the sustainability of batik enterprises in KBL. The sustainability of the batik enterprise has a positive and significant relationship with the well-being of the community and social capital. This study also proves that the influence of enterprises' sustainability on social capital was highly influenced by local culture. This, however, cannot be proven when the culture is linked to the relationship between the enterprises' sustainability and community well-being. Overall, this study concludes that the way sustainability of the batik industry in KBL contributes towards community development is also influenced by local cultural factors, particularly the social capital of the community.

Impact of Intellectual Capital and Risk Attitude Through Financial Literacy on Business Sustainability in Indonesia Batik Smes

“…Intangible resources are needed to develop batik SMEs in Indonesia (Isa et al, 2023). Intangible resources like the ability to think, be sensitive to opportunity, communicate, and have other skills to pursue a business are essential to the perpetrators of batik SMEs (Sarjiyanto et al, 2023). The importance of business transaction recording, profitability planning, working capital management, and financial report analysis preparation should be the responsibility of batik SMEs (Ambarriani & Purwanugraha, 2012).…”