System Dynamics Approach in Supporting The Achievement of The Sustainable Development on MSMEs: A Collection of Case Studies

Sustainable development in MSMEs is very important to encourage economic growth, improve the welfare of people, and ensure environmental sustainability. However, achieving sustainability in the MSME sector faces many challenges due to the complex interdependencies and dynamic interactions among various factors. The system dynamics approach makes it possible to model and simulate dynamic feedback loops, time delays, and nonlinear relationships between these factors. This paper provides an overview of the system dynamics approach and its suitability to address the complexities inherent in the MSME sector in its application to sustainable development. It explores the issues faced by MSMEs in achieving sustainable development and how the system dynamics approach models and analyzes the behavior of these MSMEs. These issues cover the dimensions of product development, technology and ICT inclusion, supply chain, business development, financial resources, and organizational support. This study was conducted on several case studies from various industries, namely the steel industry, agro-industry, craft industry, tourism industry, plastic molding, manufacturing, cosmetics, and digital companies; who come from various countries. From this study it was concluded that the system dynamics approach has significant potential to support the achievement of sustainable development in MSMEs, because it allows MSMEs to be able to effectively model and simulate the behavior of various factors that affect their operations, such as resource allocation, environmental impacts, and social considerations; proactively addressing sustainability challenges, adapting to changing market conditions, and contributing to broader socio-economic and environmental objectives.

@article{Kurniasih2023,
  title     = {System Dynamics Approach in Supporting The Achievement of The Sustainable Development on MSMEs: A Collection of Case Studies},
  journal   = {International Journal of Advanced Computer Science and Applications},
  volume    = {14},
  number    = {6},
  year      = {2023},
  publisher = {The Science and Information Organization},
  author    = {Julia Kurniasih and Zuraida Abal Abas and Siti Azirah Asmai and Agung Budhi Wibowo},
  doi       = {10.14569/IJACSA.2023.01406106},
  url       = {https://doi.org/10.14569/IJACSA.2023.01406106}
}