Local Institution-Based Value Co-Creation in the Supply Chain Management of Towale Donggala Weaving: A Qualitative Study

Abstract

Abstract—This study examines how local institutions co-create value in the supply chain management (SCM) of Towale Donggala weaving, focusing on raw-material flows, working capital, production coordination, information transparency, and lead-time control. A qualitative case-study design was employed using coded field data from interviews with a village leader, a weaving-group coordinator, and a weaver. Data were analyzed through open coding, axial coding, constant comparison, and thematic integration. The findings show that the supply chain is coordinated through locally embedded institutions: the village provides legitimacy and access to external support, the group coordinator manages materials and payments, and weavers contribute production knowledge and manual labor capacity. Major constraints include dependence on external raw-material sources, limited working capital and advance-payment needs, non-circulating assistance, weak inventory records, and long manual-production lead times. The study proposes a local institution-based SCM model comprising joint raw-material planning, supplier and inventory recording, revolving input financing, production scheduling, and revenue reinvestment. It contributes to value co-creation and MSME supply chain literature by showing how rural creative-industry supply chains can be strengthened through locally recognized institutional practices.

Keywords—Local institutions, qualitative study, supply chain management, Towale Donggala weaving, value co-creation