An Integrated Soft Systems Framework for Sustainable Manufacturing: Evidence from the Indonesian Footwear Industry

Abstract

The footwear sector is a major contributor to Indonesia’s labour-intensive economy but faces complex challenges in balancing economic performance with environmental sustainability and social considerations. Previous research has predominantly relied on static linear optimization approaches, which may not adequately capture the dynamic socio-technical interactions within manufacturing ecosystems. This study addresses these limitations by developing an integrated conceptual framework for sustainable manufacturing systems using the Soft Systems Methodology (SSM).  The main novelty of this study lies in its methodological integration, which combines VOSviewer bibliometric analysis, qualitative problem structuring (Rich Picture and CATWOE), and system dynamics modelling (Causal Loop Diagram / CLD). This methodology structures the problem through seven stages that identify nine key variables and synthesize them into five main subsystems: the global market, the workforce and work environment, raw materials, production processes, and outputs. This study also reveals key feedback loops including a Reinforcing Loop (R1) related to labour productivity and Balancing Loops (B1 and B2) related to environmental impact and automation. These findings identify the systemic archetype of “Limits to Growth,” demonstrating that the adoption of ICT automation without improving worker skills and fostering cultural adaptation will result in high operational costs. To address this, a strategic roadmap containing six action recommendations was developed. This framework also offers advantages over other conventional static assessment models by predicting operational bottlenecks before interventions are implemented, and it has a high degree of transferability to other labour-intensive manufacturing sectors in developing countries.