Model For Small Enterprises Innovation Strategies Adaptation On Climate Change: Learn From Traditional Textile Sumba

Abstract

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. There are still few studies conducted on small and traditional businesses related to strategic actions in dealing with climate change, especially non-agricultural businesses. Therefore, 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 conducted in-depth qualitative interviews with traditional textile producers in East Sumba. The main criterion in determining the respondents is the length of the business run by the traditional weaver. The study found that while most traditional weavers of Sumba textile rely on status quo technology, some strategies emerged to adapt to climate uncertainty in weaving production. The authors also identify three benchmarks of climate adaptation measures by the traditional weavers.