An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry

Aries Susanty, Benny Tjahjono, Rahayu Sulistyani

Research output: Contribution to journal › Article

Abstract

Despite the growing awareness about Circular Economy (CE) in production and supply chain management, there is little evidence linking CE practices to environmental and economic performances, especially within the traditional wood furniture industry in Indonesia. As with other management practices, implementation of CE can be supported by various factors. Among these factors are the so-called environmental-oriented supply chain cooperation (ESCC) practices. The study reported in this paper has three purposes. First, to investigate how the different levels of ESCC practices will affect the CE practices across the traditional wooden furniture industry in Central Java, Indonesia; second, to investigate the relationship between varying ESCC practices (which is grouped based on the implementation of CE practices) on the CE-targeted performances; and third, to examine the role of ESCC practices as a moderating variable in the relationship between CE practices and CE-targeted performances. This study uses primary data which were collected through closed questionnaires to 190 valid samples of wooden furniture SMEs across the cities of Jepara, Kudus, Rembang, Semarang, Blora and Surakarta. The data were processed using confirmatory factor analysis (CFA), K-means clustering analysis, Multivariate Analysis of Variance (MANOVA) and regression analysis. The results indicated that, depending on the levels of ESCC practices, the SMEs could be grouped into leaders, followers and laggard, which also determined the extent to which they practised the CE principles. The study also elaborated on the interactions between ESCC and CE practices, and how these might affect the CE-targeted environmental and economic performances.
Original languageEnglish
Pages (from-to)(In-press)
JournalProduction Planning & Control: The Management of Operations
Volume(In-press)
Early online date3 Jan 2020
DOIs
Publication statusE-pub ahead of print - 3 Jan 2020

Fingerprint

Supply chains
Industry
Economics
Supply chain management
Factor analysis
Analysis of variance (ANOVA)
Regression analysis
Circular economy
Furniture industry
Wood
Supply chain

Keywords

  • traditional wooden furniture
  • circular economy
  • supply chain cooperation
  • environmental performance
  • economic performance

Cite this

An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry. / Susanty, Aries; Tjahjono, Benny; Sulistyani, Rahayu.

In: Production Planning & Control: The Management of Operations, Vol. (In-press), 03.01.2020, p. (In-press).

Research output: Contribution to journal › Article

Susanty, A, Tjahjono, B & Sulistyani, R 2020, 'An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry' Production Planning & Control: The Management of Operations, vol. (In-press), pp. (In-press). https://doi.org/10.1080/09537287.2019.1707322
Susanty A, Tjahjono B, Sulistyani R. An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry. Production Planning & Control: The Management of Operations. 2020 Jan 3;(In-press):(In-press). https://doi.org/10.1080/09537287.2019.1707322
Susanty, Aries ; Tjahjono, Benny ; Sulistyani, Rahayu. / An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry. In: Production Planning & Control: The Management of Operations. 2020 ; Vol. (In-press). pp. (In-press).
@article{99d034b5afa44ef4b8998525770df75a,
title = "An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry",
abstract = "Despite the growing awareness about Circular Economy (CE) in production and supply chain management, there is little evidence linking CE practices to environmental and economic performances, especially within the traditional wood furniture industry in Indonesia. As with other management practices, implementation of CE can be supported by various factors. Among these factors are the so-called environmental-oriented supply chain cooperation (ESCC) practices. The study reported in this paper has three purposes. First, to investigate how the different levels of ESCC practices will affect the CE practices across the traditional wooden furniture industry in Central Java, Indonesia; second, to investigate the relationship between varying ESCC practices (which is grouped based on the implementation of CE practices) on the CE-targeted performances; and third, to examine the role of ESCC practices as a moderating variable in the relationship between CE practices and CE-targeted performances. This study uses primary data which were collected through closed questionnaires to 190 valid samples of wooden furniture SMEs across the cities of Jepara, Kudus, Rembang, Semarang, Blora and Surakarta. The data were processed using confirmatory factor analysis (CFA), K-means clustering analysis, Multivariate Analysis of Variance (MANOVA) and regression analysis. The results indicated that, depending on the levels of ESCC practices, the SMEs could be grouped into leaders, followers and laggard, which also determined the extent to which they practised the CE principles. The study also elaborated on the interactions between ESCC and CE practices, and how these might affect the CE-targeted environmental and economic performances.",
keywords = "traditional wooden furniture, circular economy, supply chain cooperation, environmental performance, economic performance",
author = "Aries Susanty and Benny Tjahjono and Rahayu Sulistyani",
year = "2020",
month = "1",
day = "3",
doi = "10.1080/09537287.2019.1707322",
language = "English",
volume = "(In-press)",
pages = "(In--press)",
journal = "Production Planning & Control: The Management of Operations",
issn = "0953-7287",
publisher = "Taylor & Francis",

}

TY - JOUR

T1 - An Investigation into Circular Economy Practices in the Traditional Wooden Furniture Industry

AU - Susanty, Aries

AU - Tjahjono, Benny

AU - Sulistyani, Rahayu

PY - 2020/1/3

Y1 - 2020/1/3

N2 - Despite the growing awareness about Circular Economy (CE) in production and supply chain management, there is little evidence linking CE practices to environmental and economic performances, especially within the traditional wood furniture industry in Indonesia. As with other management practices, implementation of CE can be supported by various factors. Among these factors are the so-called environmental-oriented supply chain cooperation (ESCC) practices. The study reported in this paper has three purposes. First, to investigate how the different levels of ESCC practices will affect the CE practices across the traditional wooden furniture industry in Central Java, Indonesia; second, to investigate the relationship between varying ESCC practices (which is grouped based on the implementation of CE practices) on the CE-targeted performances; and third, to examine the role of ESCC practices as a moderating variable in the relationship between CE practices and CE-targeted performances. This study uses primary data which were collected through closed questionnaires to 190 valid samples of wooden furniture SMEs across the cities of Jepara, Kudus, Rembang, Semarang, Blora and Surakarta. The data were processed using confirmatory factor analysis (CFA), K-means clustering analysis, Multivariate Analysis of Variance (MANOVA) and regression analysis. The results indicated that, depending on the levels of ESCC practices, the SMEs could be grouped into leaders, followers and laggard, which also determined the extent to which they practised the CE principles. The study also elaborated on the interactions between ESCC and CE practices, and how these might affect the CE-targeted environmental and economic performances.

AB - Despite the growing awareness about Circular Economy (CE) in production and supply chain management, there is little evidence linking CE practices to environmental and economic performances, especially within the traditional wood furniture industry in Indonesia. As with other management practices, implementation of CE can be supported by various factors. Among these factors are the so-called environmental-oriented supply chain cooperation (ESCC) practices. The study reported in this paper has three purposes. First, to investigate how the different levels of ESCC practices will affect the CE practices across the traditional wooden furniture industry in Central Java, Indonesia; second, to investigate the relationship between varying ESCC practices (which is grouped based on the implementation of CE practices) on the CE-targeted performances; and third, to examine the role of ESCC practices as a moderating variable in the relationship between CE practices and CE-targeted performances. This study uses primary data which were collected through closed questionnaires to 190 valid samples of wooden furniture SMEs across the cities of Jepara, Kudus, Rembang, Semarang, Blora and Surakarta. The data were processed using confirmatory factor analysis (CFA), K-means clustering analysis, Multivariate Analysis of Variance (MANOVA) and regression analysis. The results indicated that, depending on the levels of ESCC practices, the SMEs could be grouped into leaders, followers and laggard, which also determined the extent to which they practised the CE principles. The study also elaborated on the interactions between ESCC and CE practices, and how these might affect the CE-targeted environmental and economic performances.

KW - traditional wooden furniture

KW - circular economy

KW - supply chain cooperation

KW - environmental performance

KW - economic performance

UR - http://www.scopus.com/inward/record.url?scp=85078601560&partnerID=8YFLogxK

U2 - 10.1080/09537287.2019.1707322

DO - 10.1080/09537287.2019.1707322

M3 - Article

VL - (In-press)

SP - (In-press)

JO - Production Planning & Control: The Management of Operations

JF - Production Planning & Control: The Management of Operations

SN - 0953-7287

ER -

Access to Document