Model for Small Enterprises Innovation on Climate Change and Tourism Industry: Learning from the Traditional Weaving Industry in Sumba

Abstract

Purpose: This research aims to provide an overview of the adaptation strategy of production process innovation in the small-scale weaving industry in Sumba Island, Indonesia. The research is used to address climate change, and also relevant to the context of the tourism industry in the region.   Theoretical framework: All business organizations face various risks that might arise from changes in the external macro and micro environment. One of the significant changes in the external macro-environment is climate change. Climate change and its derivative impacts on business activities need to be managed properly by adapting innovations in the production process. Various studies on the impact of climate change on business activities are more focused on conventional measures to gauge business risks which are more responsive and focused on large companies. Few studies are conducted on small and traditional businesses related to strategic actions in dealing with climate change and tourism, especially non-agricultural businesses. This research is carried out with the framework of making adaptation strategies to deal with climate change and tourism.   Methods: This study employed exploratory qualitative research involving 20 informants of ikat weaving craftsmen. The research was conducted in Kambera District in July 2021. The qualitative data in this study were obtained by semi-structured in-depth interviews with the participants. The main criterion in determining the respondents is the length of the business run by the traditional weavers. The main interview questions were about the participants’ understanding of climate change and its impact on their business, as well as what strategic actions have been taken related to innovation in the production process.   Findings: The study found that while most traditional weavers of Sumba textiles rely on status quo technology, some strategies emerged to adapt to climate uncertainty in weaving production to offer valuable products to the tourism industry. The authors also identify three benchmarks of climate adaptation measures by the traditional weavers.   Practicality implications: The results of this study propose a production process innovation model related to climate change adaptation by ikat craftsmen to capture opportunities for tourism development by offering products that maintain cultural value while having high economic value. By all means, this model needs to be approached more deeply, either by conducting qualitative or quantitative exploratory studies.   Originality/Value: The originality lies in its emphasis on the model of strategic actions toward climate change and the tourism industry. Furthermore, it improves the field's originality and value by shedding light into competitive business aspects that allow the industry to become a robust economic tourist attraction for the region, attracting tourists with its high-quality products. The emphasis on cultural values in the process of making Sumba ikat weaving adds a rich dimension to local culture, enriching the experience of tourists interested in the uniqueness of regional culture. Thus, the local economy can be strengthened via the increased tourism in Sumba.