i SUSTAINABLE ENTREPRENEURIAL BUSINESS MODEL TO UPHOLD SRI LANKAN TEXTILE HANDLOOM COMMUNITIES WANNIARACHCHI KANKANAMGE DEEPA THUSHARI 168025B Degree of Doctor of Philosophy Department of Textile & Apparel Engineering University of Moratuwa Sri Lanka April 2023 ii SUSTAINABLE ENTREPRENEURIAL BUSINESS MODEL TO UPHOLD SRI LANKAN TEXTILE HANDLOOM COMMUNITIES WANNIARACHCHI KANKANAMGE DEEPA THUSHARI 168025B Thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy in Textile & Apparel Engineering Department of Textile & Apparel Engineering University of Moratuwa Sri Lanka April 2023 iii DECLARATION PAGE OF THE CANDIDATE & SUPERVISOR “I declare that this is my own work and this thesis does not incorporate without acknowledgement any material previously submitted for a degree or diploma in any other university or institute of higher learning and to the best of my knowledge and belief it does not contain any material previously published or written by another person except where the acknowledgement is made in the text. Also, I hereby grant to the University of Moratuwa the non-exclusive right to reproduce and distribute my thesis, in whole or in part in print, electronic or other medium. I retain the right to use this content in whole or part in future works (such as articles or books). Signature Date 26. 05 2022 The above candidate has carried out research for the PhD thesis dissertation under my supervision. Dr D G K Dissanayake Dr Carolyn Downs Name of the supervisor Name of the supervisor Signature of the supervisor Signature of the supervisor Date 22.04.2023 Date 22.04.2023 iv PUBLICATIONS Journal 1. Wanniarachchi, T., Dissanayake, D. G. K., & Downs, C. (2022). Application of design intervention in the Sri Lankan handloom industry. Journal of Fashion Practice https://doi.org/10.1080/17569370.2022.2112423 2. Wanniarachchi, T., Dissanayake, D. G. K., & Downs, C. (2022). Community-based family enterprise and sustainable development in rural Sri Lanka. Community, Work & Family, 1-19. https://doi.org/10.1080/13668803.2022.2068406 3. Wanniarachchi, T., Dissanayake, K. & Downs, C. (2020). Improving sustainability and encouraging innovation in traditional craft sectors: the case of the Sri Lankan handloom industry. Research Journal of Textile and Apparel, 24 (2), 111- 130. https://doi.org/10.1108/RJTA-09-2019-0041 Conference 4. Wanniarachchi, T., Dissanayake, K. & Downs, C. (2018). Developing creative industries in Sri Lanka: The case of handloom textiles. The 91st Textile Institute World Conference: Integrating Design with sustainable design, Leeds UK, 23-26 July 2018. https://www.textileinstitute.org/wp-content/uploads/2021/03/TIWC-2018- Programme-Final.pdf 5. Wanniarachchi, T., Dissanayake, K. & Downs, C. (2018). Exploring opportunities and barriers of community-based entrepreneurship within handloom communities in Sri Lanka International Conference on Business Research, Business Faculty, University of Moratuwa, Moratuwa, Sri Lanka, June 13, 2018, 1-9. https://doi.org/10.31705/ICBR.2018.2 v Abstract This study develops a sustainable business model that can foster the growth of the textile handloom industry in Sri Lanka. The research identified opportunities for product innovations through design intervention and highlighted the potential for community-based entrepreneurship, allowing the development of a novel theoretical model that emphasizes diversified interventions to encourage benefits including and beyond economic growth. This study relied on qualitative data from empirical work, including 9 case studies, 35 semi- structured interviews and field observations. Additionally, three participatory action research focus group workshops were conducted using the KETSO tool. The study reveals the textile handloom industry is inherently sustainable but structural barriers hinder innovation and growth. The environmentally conscious manufacturing process and social inclusion within weaving communities are the key driving forces of sustainability in the sector but the structure of the industry, lack of skills in product design and development, and limited access to markets act as barriers to innovation and growth. The study further discovered that entrepreneurial culture is not prevalent in community life. As a result, the study proposes a theoretical notion of sustainable community-based entrepreneurship within the textile handloom industry is determined by the four factors of social capital (networks), family web, social status and innovation mix. The proposed business model consists of four layers; economic, social, environmental and entrepreneurial. Keywords Handloom communities; Design intervention; Sustainable community development; Community- based entrepreneurship; Social networks; Family web; Innovation mix; Social status vi DEDICATION To My amazing husband For his endless love, support, encouragement and blessing beyond words. vii ACKNOWLEDGEMENT I wish to express my sincere gratitude to my research supervisors, Dr G D K Dissanayake, Senior Lecturer, Department of Textile & Apparel Engineering, Faculty of Engineering, University of Moratuwa and Dr Carolyn Downs, Senior Lecturer, Lancaster University Management School for their invaluable support and guidance given throughout the research. Furthermore, I would like to thank my research progress reviewer, Dr Traves Perera, for their insightful comments and encouragement, but also for the very hard question which incented me to widen my research from various perspectives. Moreover, a special thanks go out to Madmpelle, Thalagune and Marathamunie handloom community members, Southern, Western and North Central Provincial handloom divisions, and handloom private business owners who contributed towards data collection. I acknowledge the assistance rendered by Mr Chinthaka Dharmakeerthi and Mr Prabod Munasinghe in conducting data collection workshops. I am grateful to my loving husband, Samantha, for his spiritual and financial support in making this task possible. I express my sincere appreciation to my wonderful sons, Ovin and Mihin, for their understanding, sacrifices and support by which I was motivated and managed to complete this thesis. viii TABLE OF CONTENTS Declaration page of the candidate & supervisors iii Publications iv Abstract v Dedication vi Acknowledgement vii Table of content viii List of figures xv List of tables xix List of abbreviations xx Appendices xxi CHAPTER 1 - INTRODUCTION 1.1 Introduction to the chapter 1 1.2 Background of the study 1 1.3 Research problem 4 1.4 Aim and objectives of the research 7 1.5 Significance of the study 8 1.6 Limitations of the research 9 1.7 Chapter Summary 10 CHAPTER 2 - LITRATURE REVIEW 2.1 Introduction to the chapter 12 2.2 Creative economy and creative industries 12 2.3 Sustainable development and goals 15 2.3.1 Sustainability and craft 17 2.4 Design intervention 19 ix 2.4.1 Design intervention in craft practice 23 2.4.2 Co-creation design process 27 2.5 Entrepreneurship 28 2.5.1 Community-based entrepreneurship 29 2.5.2 Sustainable Entrepreneurship 32 2.6 Business model development 36 2.6.1 Sustainable business model 40 2.6.2 Business models and entrepreneurship 44 2.7 Knowledge gap 46 2.8 Chapter summary 47 CHAPTER 3 - RESEARCH METHODOLOGY 3.1 Introduction to the chapter 48 3.2 Conceptual framework and unit of analysis 48 3.2.1 Textile handloom industry stakeholders 51 3.3 Philosophical approach 52 3.3.1 Philosophical approach of the study 54 3.4 Methodological approach 54 3.4.1 Qualitative approach 55 3.4.2 Deductive and inductive approach 56 3.5 Research strategy 57 3.5.1 Case study 58 3.5.2 Participatory action research (PAR) 59 3.5.3 Grounded Theory 61 3.6 Data collection methods 62 3.6.1 Observations 62 3.6.2 Interviews 63 3.6.3 PAR workshops by Ketso tool 64 x 3.7 Sampling Strategy and study sample 65 3.7.1 Case study sampling 67 3.7.1.1 Sample characteristics 70 3.7.2 PAR workshops (Ketso) 71 3.7.2.1 PAR Sampling 72 3.7.2.2 Sample characteristics 74 3.8 Data Analysis 75 3.8.1 Analytical framework 75 3.8.2 Grounded theory analysis 77 3.9 Validity and Reliability 80 3.9.1 Triangulation adaptation and multi method research strategy 82 3.10 Research Ethics 83 3.11 Research Implementation 84 3.12 Chapter Summary 85 CHAPTER 4 - EMPIRICAL DATA 4.1 Introduction to chapter 87 4.2 Empirical data 87 4.2.1 Preliminary investigative data 87 4.3 Key data 95 4.3.1 Empirical data from case studies and field observations 96 4.3.1.1 Case studies with Handloom Communities 97 4.3.1.1.1 CASE STUDY 1 - Thalagune Community 97 4.3.1.1.2 CASE STUDY 2 - Madampella Community 104 4.3.1.1.3 CASE STUDY 3 - Marathamunie Community 109 4.3.1.2 CASE STUDY 4, 5 and 6 - Government provincial council-based handloom business 114 xi 4.3.2 Empirical data from PAR 125 4.3.2.1 PAR WORKSHOP 1 - Thalagune Community 125 4.3.2.2 PAR WORKSHOP 2 - Madampella Community 131 4.3.2.3 PAR WORKSHOP 3 - Marathamunie Community 135 4.4 Implementation – Design interventions 140 4.4.1 Design workshops followed by co-creation process 140 4.5 Chapter Summary 143 CHAPTER 5 - DATA ANALYSIS 5.1 Introduction 144 5.2 Cross case analysis 144 5.3 BM analysis 147 5.3.1 Economic layer analysis 147 5.3.2 Environment layer analysis 156 5.3.3 Social layer analysis 163 5.4 PAR workshop data analysis for CBE development 168 5.4.1. Cross PAR workshop open coding and the axial coding analysis 169 5.4.1.1 Theme 1 - Current business situation 163 5.4.1.2 Theme 2: Barriers to entrepreneurship 165 5.4.1.3 Theme 3: entrepreneurial education 166 5.4.2 Selective coding analysis 175 5.5 Modelling Community Based Entrepreneurship 177 5.5.1 Social networks 178 5.5.2 Family Web 180 5.5.3 Innovation mix 181 5.5.3.1 Designing 182 5.5.3.2 Marketing 184 5.5.3.3 Manufacturing 186 5.5.3.4 Infrastructural Support 187 xii 5.5.4 Social status 188 5.6 Foundation for community entrepreneurship layer 190 5.6.1 Social Status 191 5.6.2 Craft communities 191 5.6.3 Innovation 192 5.6.4 Culture 192 5.6.5 Networks 193 5.6.6 User base 193 5.6.7 Entrepreneurial inventive 193 5.6.8 Livelihood growth 193 5.7 Design intervention in the textile handloom industry through 194 the co-creation process 5.8 Community entrepreneurial approach towards sustainable BM 202 5.7.1 Social Layer 203 5.7.2 Economic Layer 204 5.7.3 Environment Layer 205 5.7.4 Entrepreneurship Layer 206 5.9 Chapter Summary 209 CHAPTER 6 - DISCUSSION AND CONCLUSION 6.1 Introduction 210 6.2 Objective 1 210 6.2.1 Economic layer 211 6.2.2 Environmental layer 212 6.2.3 Social Layer 214 6.3 Objective 2 216 6.3.1 Sustainable DI incorporation 216 6.3.1.1 Design intervention through a co-creation process 218 xiii 6.3.2 Incorporating sustainable CBE 221 6.3.2.1 Network incorporation with CBE 222 6.3.2.2 Family web perception towards CEB 223 6.3.2.3 Social status influences of communities 224 6.3.2.4 Innovative support for CBE 225 6.4 Objective 3 227 6.4.1 Design intervention incorporation to SEEE BM 227 6.4.2 CBE strategy incorporation to SEEE BM 231 6.4.3 SEEE model coherence 234 6.4.3.1 Horizontal coherence 234 6.4.3.2 Vertical coherence 235 6.5 Proposed conceptual framework and suggested sustainable BM 236 6.6 Recommendations 236 6.7 Research implications 239 6.7.1 Theoretical implications 239 6.7.2 Practical implications 241 6.8 Conclusion 244 REFERENCE LIST 246 APPENDICES 280 xiv LIST OF FIGURES Figure 2.1 Sustainable DI Concept 21 Figure 2.2 Sustainable Design Strategies 23 Figure 2.3 Retrieving Bangchaocha’s indigenous knowledge model 25 Figure 2.4 Craft design collaboration process 26 Figure 2.5 Associated notions of sustainable entrepreneurship 34 Figure 2.6 Basic Business Model 37 Figure 2.7 Element of successful BM 38 Figure 2.8 Economic BM Canvas 39 Figure 2.9 Sustainable Triple Layered BM 43 Figure 3.1 Conceptual Framework 50 Figure 3.2 Stakeholders of the textile handloom industry 52 Figure 3.3 Ketso tool 64 Figure 3.4 Research design 65 Figure 3.5 Systematic model for the data structure 77 Figure 3.6 Grounded theory data collection and analysis 78 Figure 3.7 Data analysis flow 79 Figure 4.1 Yarn use in provincial councils 93 Figure 4.2 A private business setup 95 Figure 4.3 Traditional designs 98 Figure 4.4 Modern designs 99 Figure 4.5 Products influenced by designer ideas 99 Figure 4.6 Thalagune community product range 100 Figure 4.7 Pit loom 100 Figure 4.8 Production facility 101 Figure 4.9 Supply chain flow-Thalagune community 102 Figure 4.10 Community product design 105 Figure 4.11 Community product categories 106 Figure 4.12 Community production facilities 106 xv Figure 4.13 Supply chain flow-Madampella community 107 Figure 4.14 Home based production 111 Figure 4.15 Factory based production 111 Figure 4.16 Maruthamunai handloom supply chain flow 112 Figure 4.17 Design development in southern province 116 Figure 4.18 Sales outlet of North Central Province 117 Figure 4.19 Production facility village center in Western Provincial Council 118 Figure 4.20 Supply chain process flow of Provincial council-based business 118 Figure 4.21 Yarn use in provincial councils 119 Figure 4.22 Supply chain flow of private handloom businesses 123 Figure 4.23 PAR workshop at Thalagune community village 126 Figure 4.24 Current Business Situation 127 Figure.4.25 Business opportunities and barriers for the business 127 Figure 4.26 Entrepreneurial opportunities and Marketing & networking 128 Figure 4.27 Barriers to entrepreneurship 128 Figure 4.28 Social barriers and Cultural barriers 129 Figure 4.29 Technical barriers and Marketing & networking barriers 129 Figure 4.30 Entrepreneurial Education 130 Figure 4.31 Entrepreneurial education, Entrepreneurial efficacy and Confidence building 130 Figure 4.32 Current Business Situation 131 Figure 4.33 Business opportunities and Barriers for the business 132 Figure 4.34 Entrepreneurial opportunities and Marketing & networking 132 Figure 4.35 Barriers to entrepreneurship 133 Figure 4.36 Social barriers and Cultural barriers 133 Figure 4.37 Technical barriers and Marketing & networking barriers 134 Figure 4.38 Entrepreneurial Education 134 Figure 4.39 Entrepreneurial education, Entrepreneurial efficacy and Confidence building 135 xvi Figure 4.40 Current Business Situation 136 Figure 4.41 Business opportunities and Barriers for the business 136 Figure 4.42 Entrepreneurial opportunities and Marketing & networking 137 Figure 4.43 Barriers to entrepreneurship 137 Figure 4.44 Social barriers and cultural barriers 138 Figure 4.45 Technical barriers and Marketing & networking barriers 138 Figure 4.46 Entrepreneurial education 139 Figure 4.47 Entrepreneurial skills and Entrepreneurial efficacy 139 Figure 4.48 Confidence building and Entrepreneurial education 140 Figure 4.49 Design workshop 141 Figure 4.50 Designer and craft person collaboration process 141 Figure 4.51 Main products and byproducts range from the waste fabric 142 Figure 5.1 Economic layer analysis - Osterwalder and Pigneur (2010) 148 Figure 5.2 Economic layer of the textile handloom industry 156 Figure 5.3 Environmental layer analysis reference to TLBMC 157 Figure 5.4 Environment layer of the textile handloom industry 162 Figure 5.5 Social layer analysis - TLBMC of Joyce & Paquin (2016) 163 Figure 5.6 Social layer of the textile handloom industry 168 Figure 5.7 PAR analysis outcome 176 Figure 5.8 CBE Model 177 Figure 5.9 Community entrepreneurship layer of the handloom industry 191 Figure 5.10 SEEE BM for textile handloom craft industry 203 Figure 5.11 Social layer of the textile handloom business 203 Figure 5.12 Economic layer of the textile handloom business 204 Figure 5.13 Economic layer of the textile handloom business 205 Figure 5.14 Entrepreneurship layer of the textile handloom business 206 Figure 5.15 Interrelationship of the layers 207 Figure 5.16 Detailed SEEE Model 208 xvii Figure 6.1 Economic layer 211 Figure 6.2 Environmental layer 113 Figure 6.3 Social Layer 215 Figure 6.4 Horizontal and vertical coherence of SEEE model 235 xviii LIST OF TABLES Table 3.1 Overview of the case study design 69 Table 3.2 The participants detail of the case studies 70 Table 3.3 Overview of data collection design of PAR 73 Table 3.4 The participants detail of the PAR Workshops 74 Table 3.5 Participants' information on the design workshop 85 Table 4.1 Summery of the preliminary data collection 88 Table 4.2 Summery of the data collection of the study 96 Table 4.3 Workshop 1 Information - Thalagune Community 126 Table 4.4 Workshop 3 Information - Madampella Community 131 Table 4.5 Workshop 3 Information - Marathamunie Community 135 Table 5.1 Common theme derivation from case studies 146 Table 5.2 Open and axial coding analysis - Theme 1 169 Table 5.3 Open & axial coding analysis - Theme 2 171 Table 5.4 Open & axial coding analysis - Theme 3 173 Table 5.5 Selective coding cross analysis 175 Table 5.6 Theme analysis of design intervention 195 xix LIST OF ABBREVIATIONS BM Business model CBE Community Based Entrepreneurship CBPAR Community Based Participatory Action Research DI Design Intervention EDB Export Development Board GDP Gross Domestic Product GVA Gross Value Added PAR Participatory Action Research SME Small and Medium Entrepreneurs UN United Nation TBL Triple Bottom Line TLBMC Triple Layered Business Model Canvas xx LIST OF APPENDICES Appendix - A Ethical approval 283 Appendix - B Participant informed consent form 285 Appendix - C Case study interview guide 288 Appendix - D Feedback form the design workshop 293 Appendix - E Case Study Coding analysis 294 Appendix - F PAR coding analysis 306