Abstract

Abstract The Indonesian government is targeting leather products, especially from West Java to become one of the export commodities that will encourage national economic growth. The existence of a leather industry particularly in the city of Garut has attracted many Indonesian researchers over the years to investigate the condition through many fields of research. However, the latest research identified several barriers related to the leather business development in Garut city, which was related to the optimization ratio of its performance and product quality. This study aimed to design a quality management model and key performance indicators to make this sector competitive in the global market. The research method used was inductive with a qualitative approach and a constructivist grounded theory in developing a quality management model. Theoretical and snowball sampling was chosen in identifying potential participants. The findings of this study contribute to the knowledge and practice of quality management models with key performance indicators that can be used to measure current conditions as a foundation for future improvement in the leather industry to produce competitive products that meet global standard. KPIs were formulated with certain criteria and should be applied by business actors.

Highlights

  • In the latest research, there are still various obstacles faced by the leather business in the city of Garut, which are related to the inadequate achievement of performance and product quality (Aslamiah & Zulfikar, 2019; Satyarini & Palesangi, 2012), the government has targeted leather products from the city of Garut to become one of the export commodities

  • This study aims to identify the current conditions of business actors in the leather industry located in the centre of Garut city, especially those related to aspects of operations management to create a quality management model containing key performance indicators

  • Garut leather products have succeeded in attracting shopping tours of domestic and foreign tourists, their potential should be developed so the products meet the quality in global competitiveness

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Summary

Introduction

The centre of the leather industry in the city of Garut has been studied for years by Indonesian researchers from various research fields such as quality management, supply chain, entrepreneurial orientation, employee health, waste management, and the use of HOLISTICA Vol 12, Issue 2, 2021, pp. information technology (Aslamiah & Zulfikar, 2019; Desyanawati & Siagian, 2019; Dewi & Gomulia, 2011; Dora & Putri, 2018; Dzikron, Ceha, & Muhammad, 2016; Edison, Kartika, & Lestari, 2017; Fajar, 2018; Gandara, 2019; Garnida & Hidayat, 2018; Satyarini & Palesangi, 2012; Setiawan, Rukmi, & Bakar, 2015; Sumarni, 2018; Suryaman & Maqin, 2018). The status of most leather businesses is registering ‘survival’ levels rather than building a long-term vision for business development (Satyarini & Palesangi, 2012). This contradicts the fact that Garut is a city famous for its native sheep genetic resources (SDGT) in West Java, the SDGT being one of the essential materials for making leather products in the Garut centre of the leather industry (Desyanawati & Siagian, 2019). Raw materials and human resources are potential strengths for the Garut leather industry centre (Aslamiah & Zulfikar, 2019; Satyarini & Palesangi, 2012), that can be used to expand the marketing of the products to the global market

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