Qualitative system dynamics model for composing industrial estate readiness factors
DOI:
https://doi.org/10.14488/BJOPM.2391.2025Keywords:
Indonesia, Industrial Estate, Readiness, System Dynamics, QualitativeAbstract
Goal: This paper analyzes the factors composing industrial estate (IE) readiness through Qualitative System Dynamics (SD) to provide an overview of the phenomena occurring in IE in Indonesia.
Design/Methodology/Approach: SD modeling analyzes all the factors that compose the IE's readiness. The stages were problem articulation, boundary selection, and formulation of the dynamic hypothesis by designing Model Boundary Diagrams (MBD) and Causal Loop Diagrams (CLD) using Vensim software.
Results: The CLD results capture the factors composing Indonesia's IE readiness model. Those factors include supply chain readiness, market readiness, human resources readiness, regulatory readiness, institutional readiness, and selection of the right industrial estate location. In addition, several policy recommendations are proposed to help overcome the problems faced by the development of IE in Indonesia.
Limitations of the investigation: The SD model used is still qualitative (up to the CLD stage), the factors that compose IE readiness have yet to be quantified, and there is no model validation. Further study is needed to quantify the model by obtaining empirical data and developing practical measurement indicators.
Practical implications: The model is expected to be beneficial for IE decision-makers and policymakers, including the government and other stakeholders, to develop the IE by measuring the readiness of IEs from all aspects so that the IE can attract more industrial tenants and optimize the IE occupancy rate will be optimal.
Originality / Value: Describe the cause-and-effect relationship model based on the diagram for IE readiness as a recommendation for designing a readiness measurement tool for IE development in Indonesia. In addition, it can complement existing readiness documents as evaluation material for developing IEs in Indonesia at this time.
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