A Model-Based Strategy for Developing Sustainable Cosmetics Small and Medium Industries with System Dynamics
Open accessAbstract
Global customer consciousness for more sustainable products and government requirements for a more sustainable industry have motivated cosmetics small and medium industries (SMIs) to innovate the strategy by integrating sustainability principles into their manufacturing processes.However, the dynamic complexity of balancing sustainability efforts, stakeholders' interests, and uncertainty in material pricing require a conceptual reference model to help managers and decisionmakers cope with the transition process.This work therefore proposes a model-based strategy using system dynamics to assist managers and stakeholders in SMIs to clarify their possible pathways and to offer a framework to understand, guide, and generate future strategies.In multiactor, multistakeholder conditions, the proposed methodology can provide insights into how stakeholders can effectively intervene to improve sustainability through open innovation dynamics models.The case study presented here on a personal care cosmetics company demonstrates several leverage points and obstacles, thereby allowing each stakeholder to understand their strategic role in realizing sustainable cosmetics SMIs.
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The difference in sustainability focus between international and small/medium cosmetic companies is due to lack of resources and holistic understanding of life cycle impact.
“The reason for this situation is the lack of resources and a holistic understanding of the impact of the life cycle [9,33–36].”
From Use of Waste from the Food Industry and Applications of the Fermentation Process to Create Sustainable Cosmetic Products: A Review (2024) · cites this paper as [34]
The Introduction says cosmetics SMIs face sustainability challenges because of their smaller scale, limited workforce skills and old equipment, and that their production focus leads them to neglect environmental impacts. It does not attribute a difference from international companies to a lack of holistic understanding of life-cycle impacts. (LLM, conf=0.85)
Experimental — accuracy not yet measuredInternational cosmetic companies pursue initiatives to improve sustainability dimensions holistically across the entire product life cycle, while small or medium local companies focus on natural, green, or organic ingredients.
“Research shows that international cosmetic companies pursue initiatives to improve sustainability dimensions holistically, taking into account the entire product life cycle, while small or medium local companies focus on the use of natural, green, or organic ingredients as main part of their sustainable products.”
From Use of Waste from the Food Industry and Applications of the Fermentation Process to Create Sustainable Cosmetic Products: A Review (2024) · cites this paper as [34]
The Introduction (page unavailable) discusses sustainability in cosmetics and says ordinary cosmetics SMIs focus on short-term profits and production-side concerns. It does not compare international companies with local firms, describe life-cycle-wide initiatives by the former, or say the latter focus on natural, green, or organic ingredients. Searches for those terms and the company comparison found no passage addressing the claim. (LLM, conf=0.72)
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- Authors
- Amrina, U., Hidayatno, A., & Zagloel, T. Y. M.
- Affiliations
- University of Indonesia (ID)
- Corresponding author
- Hidayatno, Akhmad
- Venue
- Journal of Open Innovation: Technology, Market, and Complexity
- Publisher
- Elsevier BV
- Published
- 2021-12
- Volume
- 7
- Issue
- 4
- Pages
- 225
- ISSN
- 2199-8531 (ISSN-L)
- OpenAlex
- W3213804857
- Cited by
- 23
- References
- 53
- Citations by year
- 2026: 5 · 2025: 3 · 2024: 5 · 2023: 3 · 2022: 7
- FWCI
- 2.28
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Journal of Open Innovation Technology Market and Complexity (publishedVersion, cc-by-nc-nd)
- RePEc: Research Papers in Economics (submittedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Econstor (Econstor) (submittedVersion, cc-by)
- Funders
- University of Indonesia (NKB-655/UN2.RST/HKP.05.00/2020)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Complex Systems and Decision Making
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Sustainability and Innovation in Business
- Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
- Keywords
- sustainable cosmetics, small and medium industries, system dynamics modeling, sustainability strategy, stakeholder engagement, open innovation, leverage points, personal care industry, transition pathways
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