Evaluating the Role of Open Innovation and Circular Economy in Enhancing Organizational Performance: Insights from Batik Small and Medium Enterprises in Banyuwangi, Indonesia

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

The influence of Open Innovation (OI) and Circular Economy (CE) practices on the performance of Batik SMEs in Banyuwangi, Indonesia, is examined in this well-structured and perceptive research. Several important findings and suggestions to improve the paper's impact and clarity are outlined below.

.Areas for Improvement:

·         The study's overall impact could be increased by extending the discussion and conclusion. A more comprehensive view could be obtained by contrasting results with comparable research conducted in other industries, such as building, agriculture, or textiles. Furthermore, emphasizing certain difficulties that Batik SMEs face in implementing Open Innovation (OI) and Circular Economy (CE) practices, such as financial or operational hurdles, would add a layer of practical relevance.

·         A more practical approach might increase the effect of the conclusions. The gap between theory and practice could be closed by providing case studies or examples and elaborating on the findings' practical consequences. The conclusions could be more accessible and substantiated if there were examples of Batik SMEs—or other small enterprises of a similar nature—applying OI and CE successfully.

·         In the methodology section, adding more detail around sample selection criteria and justification for sample size would clarify the rigor of the research design and make it clear how representative the findings are. It is also advised to include timeframe of data collection. This information would assist establish the findings' relevance and provide context for evaluating the results.

·         There is also a note about the AVE values in the analysis (line 294). Double-checking these values ("Constructs like "Open Innovation (OI)" and "Social (SOC)"show particularly strong AVE values of 0.785 and 0.967, respectively, implying high convergent validity…")

 

·         The paper does not fully adhere to MDPI’s guidelines for formatting references. Ensuring consistency with MDPI’s reference. I recommend carefully reviewing the reference list and adjusting the format to align with MDPI requirements, including punctuation, and styling for journal titles, authors, and publication years.

 

Author Response

Thank you for your feedback, I have attached the revised results in the file

Author Response File: Author Response.pdf

Reviewer 2 Report

Comments and Suggestions for Authors

1. Scope Expansion: Consider expanding the study’s scope to a broader range of SMEs or different industries. This would boost the generalizability of the findings.
2. Theoretical Framework Strengthening: consider enhancing the theoretical framework by incorporating additional theories and concepts like resource-based view, institutional theory, or social network theory to provide a more comprehensive understanding of the relationships between the variables.
3. Enhance Data Analysis: Consider enhancing structural equation modeling (SEM)  or employing more advanced statistical methods like hierarchical linear modeling (HLM), to analyze the complex relationships between the variables.
4. Policy Implications: Consider boosting the section further by exploring the broader policy implications of the findings. For instance,  potential government policies or industry initiatives supporting the adoption of circular economy practices and open innovation in the Batik sector.
5. Discussion of Limitations: Consider expounding on the study's limitations, such as the sample size, data collection methods, and the specific context of the research.

Comments on the Quality of English Language

The paper's clarity can be further improved by minor English editing efforts.

Author Response

Thank you for your feedback, I have attached the revised results in the file

Author Response File: Author Response.pdf