Mapping Sustainability Risk of Sarong Supply Chain: Evidence from SMEs Industrial Cluster in Indonesia

The ability to adapt to a turbulent business climate needs to be maintained to sustain business continuity. Sarong, one of the traditional clothing products, has been recognised as one of the national competitive advantages in terms of entry. The majority of sarong business operators belong to the category of small and medium enterprises. Establishing a sarong industry cluster is one of the government’s strategies to improve business continuity and elevate SME entrepreneurship. The rapid business fluctuations and the many actors involved in the sarong business process require a comprehensive approach to distinguish business risks along the sarong industry supply chain. This study aimed to map the sustainability risks along the supply chain of the sarong business process. Supply chain operations reference was used as a research approach. Risk events were identified based on planning, sourcing, manufacturing, shipping and return factors. Seventeen respondents were involved in this study, and the data was collected from January to June 2022. The classification of risk agents based on people, planet and profit sustainability was mapped. The results of this study identify the entities along the supply chain upstream, midstream and downstream of the sarong industry cluster. The results also identified 42 potential risk events and 22 potential risk agents. Social factors ranked highest as the cause of risk, followed by economic and environmental factors along the supply chain of the sarong industry.