Designing a Sustainable Business Model through Supply Chain Integration: A Business Model Canvas Approach for Disposable Baby Diaper Waste Management

Abstract

Disposable baby diaper waste has evolved into an urban environmental crisis in Indonesia due to its high volume, complex materials, and the limitations of waste management systems that remain predominantly linear in orientation. National data indicate that diaper waste is one of the largest components of household residual waste and contributes significantly to overcapacity at final disposal sites (landfills), greenhouse gas emissions, and public health risks. Although numerous studies have examined diaper waste treatment from a technical perspective, most have not integrated multi-actor governance, economic feasibility, and social ethical values within a single systemic framework. This study aims to design a sustainable business model for managing disposable baby diaper waste through supply chain integration, using the Business Model Canvas (BMC) approach. A qualitative case study method is employed, with data collected through semi structured interviews, field observations, and documentation studies involving key stakeholders in the waste management supply chain. The data are analyzed thematically and mapped into the nine elements of the BMC. The results indicate that supply chain integration among households, collection service providers, processing facilities, and recycling partners plays a crucial role in improving operational efficiency, reducing environmental burdens, and creating economic and social value. The proposed business model emphasizes shared value creation, strengthening strategic partnerships, and diversifying revenue streams, while adhering to the principles of the circular economy and moral responsibility toward the environment. This study contributes by providing an integrated business model framework for managing disposable baby diaper waste in developing countries.