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<p>Manufacturing supply chains are pivotal to global industrial decarbonization, yet face the dual challenge of reducing emissions while maintaining competitiveness. This study examines how Circular-Frugal Innovation (CFI), a synergistic integration of circular economy and frugal innovation principles, can be strategically leveraged for supply chain decarbonization in the Indonesian manufacturing sector. Employing an integrated ISM-MICMAC-MABAC methodology, the research first identifies 13 critical CFI enablers through literature synthesis and expert validation, then models their structural interdependencies and driving power, and finally prioritizes actionable strategic alternatives. The findings reveal a six-level hierarchical structure, identifying five independent foundational drivers: regulatory pressure, top management commitment, cross-functional collaboration, frugal-circular R&amp;D, and workforce skills. The MICMAC analysis classifies these as high-driving, low-dependence strategic levers, while the MABAC method prioritizes “Innovation &amp; Capability Development” as the most effective strategy, followed by “Operational Ecosystem Collaboration.” The results demonstrate that decarbonization is a dependent outcome of a mature CFI system, challenging isolated efficiency or compliance-based approaches. This study contributes a novel, holistic decision-support framework that integrates structural diagnosis with strategic prescription, offering managers and policymakers a validated pathway to accelerate low-carbon transitions through systemic innovation.</p>

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Examining Circular-Frugal Innovation for Manufacturing Supply Chain Decarbonization: An Integrated ISM-MICMAC-MABAC Analysis

  • 期刊论文

  • 发表日期：

    2026年2月21日

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  • Ilyas Masudin,
  • Rangga Primadasa,
  • Dian Palupi Restuputri,
  • Erly Ekayanti Rosyida

摘要

Manufacturing supply chains are pivotal to global industrial decarbonization, yet face the dual challenge of reducing emissions while maintaining competitiveness. This study examines how Circular-Frugal Innovation (CFI), a synergistic integration of circular economy and frugal innovation principles, can be strategically leveraged for supply chain decarbonization in the Indonesian manufacturing sector. Employing an integrated ISM-MICMAC-MABAC methodology, the research first identifies 13 critical CFI enablers through literature synthesis and expert validation, then models their structural interdependencies and driving power, and finally prioritizes actionable strategic alternatives. The findings reveal a six-level hierarchical structure, identifying five independent foundational drivers: regulatory pressure, top management commitment, cross-functional collaboration, frugal-circular R&D, and workforce skills. The MICMAC analysis classifies these as high-driving, low-dependence strategic levers, while the MABAC method prioritizes “Innovation & Capability Development” as the most effective strategy, followed by “Operational Ecosystem Collaboration.” The results demonstrate that decarbonization is a dependent outcome of a mature CFI system, challenging isolated efficiency or compliance-based approaches. This study contributes a novel, holistic decision-support framework that integrates structural diagnosis with strategic prescription, offering managers and policymakers a validated pathway to accelerate low-carbon transitions through systemic innovation.