Improving sustainability and encouraging innovation in traditional craft sectors: the case of the Sri Lankan handloom industry

Abstract

PurposeThe purpose of this study is to assess sustainability across the handloom industry in Sri Lanka and identify opportunities for sustainable innovations supporting new markets, development of small-and-medium enterprises (SMEs) and growth in the Sri Lankan craft sector.Design/methodology/approachUsing a multiple case studies methodology, 10 case studies and 37 semi-structured interviews were analysed along with the triple-layered business model canvas.FindingsThe study reveals the handloom industry to be fundamentally sustainable but with structural barriers that hinder both innovation and growth. The environmentally conscious production process and social inclusion within weaving communities are the key driving forces of sustainability in the sector; however, the structure of the industry and lack of access to markets and information act as barriers to both innovation and growth. The incorporation of design interventions, closed-loop manufacturing strategies and the encouragement of community-based entrepreneurship would support sustainability-orientated business innovation in the handloom industry.Originality/valueThe rapidly increasing market share for high-quality, hand-made goods indicates the potential of the creative industries to accelerate socio-economic growth. Handloom textiles is attracting growing interest in fashion markets because of increasing concern about exploitation in production, thus encouraging interest in the economic benefits of fairly traded, high quality materials and the potential contribution of handloom to sustainability in the fashion industry. The results of this study will support the handloom industry and policy-makers in developing support for sustainable innovation in the handloom industry.