Waste Reduction Strategies in Jepara Furniture SMEs: Evidence from Indonesia's Wood Industry Cluster

by furniture companies in the Jepara Industrial Cluster and their impact on operational efficiency and environmental sustainability. Research Design & Methods: This study employs a mixed-methods approach that combines quantitative survey data from 87 furniture SMEs in Jepara with qualitative in-depth interviews with 12 company managers. The data were analyzed using descriptive statistics, multiple regression analysis, and thematic analysis. Findings: The results show that the implementation of lean manufacturing principles, material optimization techniques, and circular economy practices significantly reduced production waste by 23–38%. Companies that systematically implemented waste reduction programs reported a 17.4% increase in operational efficiency and a 21.2% reduction in raw material costs. Contributions: This study provides empirical evidence supporting the implementation of waste reduction strategies in Indonesian furniture SMEs and offers practical recommendations for industry stakeholders and policymakers to promote green manufacturing in the Jepara cluster. Novelty: Unlike previous studies that focused on large-scale manufacturing, this study integrates lean manufacturing, the circular economy, and SME-specific constraints within the unique socioeconomic context of the traditional Jepara furniture cluster.