Depok, July 3, 2025 — A doctoral graduate from the Faculty of Administrative Sciences, Universitas Indonesia (FIA UI), has designed a business model aimed at improving the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia’s fashion sector. The dissertation, titled “Designing a Business Model for Modest Fashion MSMEs to Enhance the Business Performance of Indonesia’s Modest Fashion MSMEs,” was authored by Munawaroh from the Doctoral Program in Administrative Sciences at FIA UI.

The research highlights the importance of localism, sustainable supply chains, and social media marketing in driving the growth of fashion MSMEs, and analyzes how government support moderates the relationships between these variables.

“This study applied a mixed-method approach, gathering qualitative data through Focus Group Discussions (FGDs) with 15 modest fashion entrepreneurs, in-depth interviews with 7 key informants, and 2 representatives from government ministries. Quantitative data were analyzed using Partial Least Square-based Structural Equation Modeling (SEM-PLS) with responses from 180 participants,” explained Dr. Munawaroh.

In her presentation, Dr. Munawaroh stated that the study’s findings reveal all three independent variables—localism, sustainable supply chains, and social media marketing—have a direct, positive, and significant effect on business performance. Among them, social media marketing was found to be the most dominant factor influencing business performance.

Further qualitative findings emphasized that strengthening localism through cultural values, ensuring supply chain sustainability, building communities, and storytelling are key characteristics of fashion MSME practices.

“Government support plays a crucial moderating role, strengthening the impact of social media marketing on business performance. However, its influence on sustainable supply chain practices remains insufficient, and its role in enhancing localism is not yet optimal due to a lack of contextual alignment with local dynamics,” Dr. Munawaroh explained.

She also conveyed several recommendations in her dissertation, suggesting that fashion entrepreneurs should integrate local strengths, adopt sustainable practices within their supply chains, and maximize digital marketing efforts. By doing so, they can create an authentic brand identity, expand market access, and improve operational efficiency.

On the other hand, the government is encouraged to develop more contextual and participatory policies to effectively support the development of the MSME sector. This research also presents a business model design that integrates localism, sustainability, and digitalization as a strategic framework to sustainably improve the performance of fashion MSMEs at both national and global levels.

Dr. Munawaroh concluded her remarks by expressing hope that this research would make a meaningful contribution to the development of business administration science, particularly in managing and developing fashion MSMEs in Indonesia. She also hopes it will serve as a guide for entrepreneurs and policymakers to address global challenges and strengthen an inclusive and sustainable local economy.

The doctoral defense was chaired by Prof. Bernardus Yuliarto Nugroho, MSM, Ph.D., with Dr. Effy Z. Rusfian, M.Si. as the main supervisor and Dr. Fibria Indriati Dwi Liestiawati, M.Si. as the co-supervisor. Committee members included Dr. Miftah Farid, STp, M.Si., Prof. Dr. Retno Kusumastuti Hardjono, M.Si., Dr. Pantius Drahen Soeling, M.Si., and Dr. Eko Sakapurnama, MBA. The event was also attended by the Minister of Trade Dr. Budi Santoso, Deputy Minister of Home Affairs Dr. Bima Arya Sugiarto, Secretary General of the Ministry of Industry Eko S.A. Cahyanto, and the Governor of Bengkulu Helmi Hasan.