STRENGTHENING MANUFACTURING COMPETITIVENESS THROUGH SUSTAINABLE MANUFACTURING AMONG INDUSTRIAL ESTATE IN WEST JAVA, INDONESIA
List of Authors
  • , SRI SARJANA, SRI SARJANA

Keyword
  • Competitive strategy, sustainable manufacturing, manufacturing competitiveness, industrial estate

Abstract
  • Sustainable manufacturing utilizes environmentally friendly resources and minimizes waste. It prioritizes efficiency in production. This study investigated the economic, environmental, social, science and technology factors to create sustainable manufacturing in an industrial estate, as well as to determine the impact on strengthening manufacturing competitiveness. A survey was conducted on 175 managers in the manufacturing industry at an industrial estate in West Java, Indonesia. Data analyzed through Structural Equation Modelling found that economic, environmental, social, science and technology factors have a significant effect on sustainable manufacturing and on manufacturing competitiveness. Costs, level of pollution, number of customers, research and development are some important indicators in strengthening sustainable manufacturing, and economic factors are the most significant in affecting the development of sustainable manufacturing. To increase manufacturing competitiveness, it is necessary to have sustainable manufacturing through optimizing economic, environmental, social, science, and technology factors. This study recommends that to manufacturing industry stakeholders pay attention to principles of sustainable manufacturing through several variables that encourage the creations of superior manufacturing competitiveness.

Reference
  • Ahmadi-Gh, Z., & Bello-Pintado, A. (2022). Why is manufacturing not more sustainable? The effects of different sustainability practices on sustainability outcomes and competitive advantage. Journal of Cleaner Production, 337(130392), 1–11. https://doi. org/10.1016/j.jclepro.2022.130392
    Alayón, C. (2016). Exploring Sustainable Manufacturing Principles and Practices. Jönköping University.
    Alomari, M. W. (2019). The link between infrastructure and the competitiveness of the Gcc countries (pp. 8-13). 174th The IRES International Conference. https:// www.worldresearchlibrary.org/up_proc/ pdf/3168-15725026548-13.pdf
    Avendano, R., Bontadini, F., Mulder, N., & Zaclicever, D. (2019). Latin America ’ s faltering manufacturing competitiveness (No. 148; International Trade). https:// repositorio.cepal.org/bitstream/ handle/11362/45061/1/S1901076_en.pdf
    Azapagic, A., & Perdan, S. (2000). Indicator of sustainable development for industry: A general framework. Process Safety and Environmental Protection, 78, 243–261. https://doi.org/10.1205/095758200530763
    Beber, C. L., Carpio, A. F. R., Almadani, M. I., & Theuvsend, L. (2019). Dairy supply chain in Southern Brazil: Barriers to competitiveness. International Food and Agribusiness Management Review, 22(5), 651–673. https://doi.org/10.22434/ IFAMR2018.0091
    Bryson, J., Clark, J., & Mulhall, R. (2013). The competitiveness and evolving geography of British manufacturing: Where is manufacturing tied locally and how might this change? In Future of Manufacturing Project: Evidence Paper 3. Government Office for Science. https://assets. publishing.service.gov.uk/government/ uploads/system/uploads/attachment_ data/file/277161/ep3-geography-ofmanufacturing.pdf
    Byrne, G., & Monostori, Biologicalisation L. for (2021). sustainable and competitive manufacturing – Editorial. CIRP Journal of Manufacturing Science and Technology, 34, 2–5. https://doi. org/10.1016/j.cirpj.2021.08.001
    Carley, S., Jasinowski, J., Glassley, G., Strahan, P., Attari, S., & Shackelford, S. (2014). Success Paths to Sustainable Manufacturing. School of Public and Environmental AFF Airs. https://oneill.indiana.edu/doc/ research/sustainability-2014.pdf
    Chao-Hung, W., & Li-Chang, H. (2010). The influence of dynamic capability on performance in the high technology industry: The moderating roles of governance and competitive posture. African Journal of Business Management, 4(5), 562–577.
    Chikán, A., Czakó, E., Kiss-Dobronyi, B., & Losonci, D. (2022). Firm competitiveness: A general model and a manufacturing application. International Journal of Production Economics, 243(108316), 1–13. https://doi.org/10.1016/j.ijpe.2021.108316
    Chowdhury, N., & Yasmin, J. (2018). A Study on Sustainable Manufacturing Practices In RMG Industries of Bangladesh (No. 87104). Munich Personal RePEc Archive. https://mpra.ub.uni-muenchen.de/87104/1/ MPRA_paper_87104.pdf
    Djajadiningrat, S. T., & Famiola, M. (2004). Kawasan Industri Berwawasan Lingkungan. Rekayasa Sains. Bryson, J., Clark, J., & Mulhall, R. (2013). The competitiveness and evolving geography of British manufacturing: Where is manufacturing tied locally and how might this change? In Future of Manufacturing Project: Evidence Paper 3. Government Office for Science. https://assets. publishing.service.gov.uk/government/ uploads/system/uploads/attachment_ data/file/277161/ep3-geography-ofmanufacturing.pdf
    Fafurida, F., Setiawan, A. B., & Irmawati, S. (2016). A strategy to increase the competitiveness of leading industries in Central Java province to face ASEAN economics community 2015. International Journal of Economics and Financial Issues, 6(6S), 60–66. Retrieved from https://www. econjournals.com/index.php/ijefi/article/ view/3115
    Fatimah, Y. A., Biswas, W., Mazhar, I., & Islam, M. N. (2013). Sustainable manufacturing for Indonesian small- and mediumsized enterprises (SMEs): The case of remanufactured alternators. Journal of Remanufacturing, 3, 1–11. https://doi. org/10.1186/2210-4690-3-6
    Florescu, A., & Barabas, B. (2018). Integrating the Lean manufacturing concept in sustainable development. IOP Conference Series: Materials Science and Engineering PAPER, 399, 1–7. https://doi. org/10.1088/1757-899X/399/1/012018
    Gates, G. E. & Adetunji O. (2018). Repositioning a country for global manufacturing competitiveness: A case of South Africa. Competitiveness Review, 30(2), 151-174. https://doi.org/10.1108/CR-09-2018-0058
    Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(7), 1–77. https:// doi.org/10.17705/1cais.00407
    Giffi, C. A., Rodriguez, M., Gangula, B., Roth, A., & Hanley, T. (2016). 2016 Global Manufacturing Competitiveness Index. Deloitte. https://www2.deloitte. com/content/dam/Deloitte/global/ Documents/Manufacturing/gx-global-mfgcompetitiveness-index-2016.pdf
    Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (2005). Multivariate Data Analysis (Vol. 6). Pearson Prentice Hall.
    Hariyani, D., & Mishra, S. (2022). Drivers for the adoption of integrated sustainable green lean six sigma agile manufacturing system (ISGLSAMS) and research directions. Cleaner Engineering and Technology, 7(100449), 1–30. https://doi.org/10.1016/j. clet.2022.100449
    Hussain, S., & Jahanzaib, M. (2018). Sustainable manufacturing – An overview and a conceptual framework for continuous transformation and competitiveness. Advances in Production Engineering & Management, 13(3), 237–253.
    Jawahir, I. S., Badurdeen, F., & Rouch, K. E. (2013). Innovation in sustainable manufacturing education. 11th Global Conference on Sustainable Manufacturing - Innovative Solutions, 9–16. https://www. gcsm.eu/Papers/28/0.3%20Jawahir.pdf
    Joung, C. B., Carrell, J., Sarkar, P., & Feng, S. C. (2012). Categorization of indicators for sustainable manufacturing. Ecological Indicators, 24, 148–157.
    Kaku, I. (2017). Is Seru a Sustainable Manufacturing System? Procedia Manufacturing, 8, 723–730. https://doi. org/10.1016/j.promfg.2017.02.093
    Kandiawan, F. U., Hani’ah, & Subiyanto, S. (2017). Penentuan kawasan peruntukan industri menggunakan Analytical Hierarchy Process (AHP) dan Sistem informasi geografis. Jurnal Geodesi Undip, 6(4), 9–17.
    Liu, F., Ding, Y., Gao, J., & Gong, P. (2017). Effects of cost factors on national manufacturing based on global perspectives. Economies, 5(4), 1–16. https://doi. org/10.3390/economies5040045
    Mundra, N., & Mishra, R. P. (2021). Business sustainability in post COVID-19 era by integrated LSS-AM model in manufacturing: A structural equation modeling. Procedia CIRP, 98, 535–540. https://doi. org/10.1016/j.procir.2021.01.147
    Nambiar, A. N. (2010). Challenges in sustainable manufacturing. The 2010 International Conference on Industrial Engineering and Operations Management, 10–15. https:// citeseerx.ist.psu.edu/document?repid=rep1 &type=pdf&doi=fd2537dabdd13d0a0c3dc a89aae71fb2016f34a6
    Ocampo, J. R., Hernández-matías, J. C., & Vizán, A. (2017). Method for estimating manufacturing competitiveness: The case of the apparel maquiladora industry in Central America. DYNA, 84(200), 97–106. https:// doi.org/10.15446/dyna.v84n200.60620
    OECD. (2011). OECD Sustainable Manufacturing Toolkit. www.oecd.org/ innovation/green/toolkit
    Oral, M., & Reisman, A. (1988). Measuring industrial competitiveness. Industrial Marketing Management, 17(3), 263272. https://doi.org/10.1016/00198501(88)90009-0
    Patalas-Maliszewska, J., Rehm, M., & Łosyk, M. H. (2022). Manufacturing knowledge map for sustainable manufacturing: A case study. IFAC PapersOnLine, 55(2), 217–222. https://doi.org/10.1016/j. ifacol.2022.04.196
    Porter, M. E. (1998). Competitive advantage of nations. Competitive Intelligence Review, 1(1), 1-14. https://doi.org/10.1002/ cir.3880010112
    Rachuri, S., Sriram, R. D., Narayanan, A., Sarkar, P., Lee, J. H., Lyons, K. W., & Kemmerer, S. J. (2010). Sustainable manufacturing : Metrics, standards and infrastructure - workshop summary. International Journal of Sustainable Manufacturing, 2(2/3), 144149. https://citeseerx.ist.psu.edu/viewdoc/ download;jsessionid=29102D164571BA0 A97DC2E105E114E9A?doi=10.1.1.165.3 085&rep=rep1&type=pdf
    Sarjana, S., Kartini, D., Rufaidah, P., & Yunizar. (2018). Reputation development strategy for corporate operating in industrial estate. Academy of Strategic Management Journal, 17(2), 1–12.
    Sarjana, S., Khayati, N., Warini, L., & Praswiyati. (2020). Business sustainability: Efforts to strengthen sustainability corporate in industrial estate. E-MABIS: Jurnal Ekonomi Manajemen Dan Bisnis, 21(1), 48–64. https://doi.org/10.29103/emabis.v21i1.451
    Sarjana, S., & Widokarti, J. R. (2020). Quality management system and environmental 27(1), 6–37. https://doi.org/10.1108/ JMTM-04-2014-0043
    Schwab, K. (2018). The Global Competitiveness Report (Insight Report). World Economic Forum. https://www3.weforum. org/docs/GCR2018/05FullReport/ TheGlobalCompetitivenessReport2018.pdf
    Soosay, C., Nunes, B., Bennett, D. J., Sohal, A., Jabar, J., & Winroth, M. (2016). Strategies for sustaining manufacturing competitiveness: Comparative case studies in Australia and Sweden. Journal of Manufacturing Technology Management, 27(1), 6–37. https://doi.org/10.1108/ JMTM-04-2014-0043
    Stock, T., & Seliger, G. (2016). Opportunities of sustainable manufacturing in industry 4.0. Procedia CIRP, 40, 536–541. https://doi. org/10.1016/j.procir.2016.01.129
    Uchehara, F. O. (2019). Building a Corporate Competitiveness through Corporate Social Responsibility Drives. International Journal of Academic Research Business and Social Sciences, 9(5), 531–541. https:// doi.org/10.6007/IJARBSS/v9-i5/5903 management system: What is its role in manufacturing industry. Advances in Economics, Business and Management Research, 132, 74–80. https://doi. org/10.2991/aebmr.k.200331.017
    Westkamper, E., Alting, L., & Arndt, G. (2000). Life cycle management and assessment: Approaches and visions towards sustainable manufacturing. CIRP Annals – Manufacturing Technology, 49(2), 501526.
    World-Bank. (2020). Ease of doing business rank (1=most business-friendly regulations) - Indonesia. The World Bank, IBRD - IDA. https://data.worldbank.org/indicator/ IC.BUS.EASE.XQ?locations=ID
    Yuan, C., Zhai, Q., & Dornfeld, D. (2012). Green manufacturing and sustainable manufacturing. CIRP Annals - Manufacturing Technology, 61(1), 39–42. https://doi.org/10.1016/j.cirp.2012.03.105