6 Engagement of Small and Medium-Sized Manufacturing Enterprises …
117
Conclusions
SMEs—a central pillar for economic development and employment—are heavily
exposed to floods and face many business disruptions. To date, state-led flood mitigation policies largely miss considering their susceptibility. Also, flood governance
that integrates SMEs is lacking. Therefore, the book chapter had two goals. First,
we analyzed how SMEs are affected by flood hazards, and we identified the implemented individual adaptation measures and their deficiencies. Second, we discussed
the shortcomings of flood governance. This study was based on a quantitative survey
with 120 SMEs and qualitative in-depth interviews with 47 business owners or
directors and 21 representatives from public, business associations, industrial park
management authorities.
Since research on firms’ adaptation strategies is scarce and lacks a detailed understanding of firms’ competencies to implement individual adaptation measures, we
referred to the concepts from the organizational studies, namely routines and dynamic
capabilities. The analysis showed that most enterprises implement individual flood
adaptation measures, preferably elevation. The in-depth interviews revealed that individual adaptation measures are not sufficient to reduce flood risk. Furthermore, SMEs
commonly miss support or collaboration with public authorities and industrial park
management authorities. Due to this shortcoming, we discussed how SMEs could be
stronger integrated into flood governance and proposes four policy designs. Overall,
the engagement of SMEs should be pooled within joint efforts of flood mitigation in
order to achieve a more effective flood risk reduction and a higher resource efficiency.
In sum, the chapter raised a hot topic for further scientific assessment and within
policy debates. Considering a tendency of increasing exposures due to Climate
Change in coastal cities in Indonesia and globally, there is a high need to utilize and
synchronize the potential of all stakeholders, notably the whole private sector (i.e.,
SMEs) to accomplish an effective flood risk reduction. Integrating the private sector,
notably SMEs, into flood governance is still unsatisfactory. However, SMEs should
be a pivotal player in achieving flood adaptation because their viability is necessary
to sustain and improve livelihoods and economic prosperity. Hence, SMEs also have
a strong interest in implementing an integrative flood adaptation policy.
References
Agrawala S, Maëlis C, Kingsmill N et al (2011) Private sector engagement in adaptation to climate
change: approaches to managing climate risks. OECD, Paris
Archer D, Almansi F, DiGregorio M et al (2014) Moving towards inclusive urban adaptation.
Approaches to integrating community-based adaptation to climate change at city and national
scale. Clim Dev 6(4):345–356. https://doi.org/10.1080/17565529.2014.918868
Bahinipati CS, Rajasekar U, Acharya A et al (2017) Flood-induced loss and damage to textile
industry in Surat city India. Environ Urban Asia 8(2):170–187. https://doi.org/10.1177%2F0975
425317714903
117
Conclusions
SMEs—a central pillar for economic development and employment—are heavily
exposed to floods and face many business disruptions. To date, state-led flood mitigation policies largely miss considering their susceptibility. Also, flood governance
that integrates SMEs is lacking. Therefore, the book chapter had two goals. First,
we analyzed how SMEs are affected by flood hazards, and we identified the implemented individual adaptation measures and their deficiencies. Second, we discussed
the shortcomings of flood governance. This study was based on a quantitative survey
with 120 SMEs and qualitative in-depth interviews with 47 business owners or
directors and 21 representatives from public, business associations, industrial park
management authorities.
Since research on firms’ adaptation strategies is scarce and lacks a detailed understanding of firms’ competencies to implement individual adaptation measures, we
referred to the concepts from the organizational studies, namely routines and dynamic
capabilities. The analysis showed that most enterprises implement individual flood
adaptation measures, preferably elevation. The in-depth interviews revealed that individual adaptation measures are not sufficient to reduce flood risk. Furthermore, SMEs
commonly miss support or collaboration with public authorities and industrial park
management authorities. Due to this shortcoming, we discussed how SMEs could be
stronger integrated into flood governance and proposes four policy designs. Overall,
the engagement of SMEs should be pooled within joint efforts of flood mitigation in
order to achieve a more effective flood risk reduction and a higher resource efficiency.
In sum, the chapter raised a hot topic for further scientific assessment and within
policy debates. Considering a tendency of increasing exposures due to Climate
Change in coastal cities in Indonesia and globally, there is a high need to utilize and
synchronize the potential of all stakeholders, notably the whole private sector (i.e.,
SMEs) to accomplish an effective flood risk reduction. Integrating the private sector,
notably SMEs, into flood governance is still unsatisfactory. However, SMEs should
be a pivotal player in achieving flood adaptation because their viability is necessary
to sustain and improve livelihoods and economic prosperity. Hence, SMEs also have
a strong interest in implementing an integrative flood adaptation policy.
References
Agrawala S, Maëlis C, Kingsmill N et al (2011) Private sector engagement in adaptation to climate
change: approaches to managing climate risks. OECD, Paris
Archer D, Almansi F, DiGregorio M et al (2014) Moving towards inclusive urban adaptation.
Approaches to integrating community-based adaptation to climate change at city and national
scale. Clim Dev 6(4):345–356. https://doi.org/10.1080/17565529.2014.918868
Bahinipati CS, Rajasekar U, Acharya A et al (2017) Flood-induced loss and damage to textile
industry in Surat city India. Environ Urban Asia 8(2):170–187. https://doi.org/10.1177%2F0975
425317714903