Influence of technology and government regulations on the competitiveness of the textile industry: Case study of Indonesia

Abstract

This paper promotes supply chain performance, sustainability, and Industry 4.0 integration to boost competitiveness. Indonesia's textile industry's competitiveness depends on many factors. Indigenous factors, technology, vertical integration, and global supply networks drive competitiveness. This study uses descriptive data to examine 143 textile workers in Indonesia and provides important context for the sector. It demonstrates that various factors, such as native elements, technical readiness, vertical integration, and global supply chain participation, impact the competitiveness of Indonesia's textile sector. The findings suggest that policymakers and industry leaders should take strategic actions to enhance competitiveness, including encouraging collaboration, technical advancement, and local enterprise, as well as investing in technology, vertical integration, and global networking. Despite its cross-sectional approach and contextual complexity, the study is believed to enhance the competitiveness of the global textile industry. Our guidelines help stakeholders make strategic decisions that utilize regional strengths, adopt cutting-edge technologies, and integrate into global supply networks. Subsequent studies can examine industry differences and how these links change. This research helps Indonesian textile industry stakeholders make competitive decisions.