Dynamic Capabilities for Sustainable Continuity in Surakarta Craft Enterprises
Sendhang Nurseto, Mochammad. Al Musadieq, Edy Yulianto, and Edriana Pangestuti

Universitas Diponegoro and Universitas Brawijaya

Abstract

Craft-based micro and small enterprises were required to respond to unstable demand, material constraints, digital change, and environmental pressure without weakening the cultural foundations of their products. This study systematically reviewed research on dynamic capabilities, business resilience, sustainable business, and craft entrepreneurship to explain how such enterprises sustained continuity. A protocol-based qualitative synthesis reassessed a precursor corpus and an update search, producing 39 peer-reviewed studies for thematic analysis. Study quality was appraised through six criteria, and evidence was coded in two passes. The review identified three connected capability processes. Heritage-sensitive sensing combined market, material, cultural, and institutional information. Selective seizing translated those signals into small, reversible commitments and authenticity-aligned innovation. Relational transforming renewed routines, knowledge, suppliers, and ecosystem relationships. Business resilience linked these processes to anticipation, coping, and adaptation, whereas sustainable continuity represented economic viability, cultural-social reproduction, and environmental viability. The findings also showed that digitalization, circular practices, and institutional support were conditional on perceived displacement of craft skill, technical feasibility, resource slack, governance quality, and subsector. The study developed an integrated framework, seven propositions, and a research agenda for craft enterprises in Surakarta.

Keywords: business resilience, craft enterprises, dynamic capabilities, sustainable continuity, systematic literature review.

Topic: Responsible Digital Entrepreneurship: Fostering Sustainable Business Ecosystems through Innovation and Ethical Governance (Digital Entrepreneurship- Sustainable Ecosystems- Business Innovation)