Key Performance Indicators & Strategies to Achieve Sustainability & Improve Performance of Clothing Services SME Using Fuzzy AHP Method

Abstract

Small and Medium Enterprises (SMEs) play a crucial role in economic growth in Indonesia, both in terms of job creation and contribution to Indonesia's GDP. One of the five industries that contributes the highest to Indonesia's GDP is the textile and apparel industry. However, most of the businesses in this industry have not considered sustainability strategies due to challenges in measuring the sustainability of their business. Based on that, this research aims to design performance measurements and strategies to be carried out by enterprises to determine their performance, conditions, and business position in the industry. The method applied in this research is the Fuzzy Analytical Hierarchy Process (FAHP) method to gain weighting of each performance indicator used to measure the successful achievement of sustainability. This study succeeded in providing a design of performance indicators & six main business strategy recommendations that exist in each of the key performance indicators and have been measured in one of the clothing service businesses in Indonesia based on sustainability aspects which include economic, environmental, and social. All business strategy recommendations on each of the key performance indicators are prioritized based on the weights for each key performance indicator.