Is Adaptive Capability Sufficient for Business Sustainability? The Contingent Role of Innovation in Silk Weaving SMEs
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Abstract
This study investigates the relationship between adaptive capability and company sustainability, while also analysing the impact of innovation contingencies on silk weaving micro, small, and medium enterprises (MSMEs). A qualitative case study methodology was employed to gather data by observation, comprehensive interviews, and documentation from chosen MSMEs in Wajo Regency, South Sulawesi, Indonesia. The results demonstrate that adaptive aptitude alone cannot maintain a business unless it is converted into tangible innovations. These innovations encompass product diversification from conventional fabrics to apparel, bags, and wallets; process enhancement via the implementation of non-mechanical looms (ATBM); workforce adaptation to the incorporation of male weavers; and digital innovation through the utilisation of social media platforms such as Instagram, Facebook, and WhatsApp for marketing silk weaving enterprises. The research illustrates that innovation serves as a vital contingent mechanism that converts adaptive capabilities into enduring economic results. This research theoretically enhances the literature on dynamic capabilities by highlighting the facilitative function of innovation in conventional SMEs. It underscores the significance of incorporating flexibility and innovation tactics to attain long-term sustainability. Future investigations are recommended to examine these links employing quantitative or mixed-method approaches in various circumstances.
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References
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