<![CDATA[Purpose – This study aims to analyze sustainable business strategies implemented by creative industry SMEs to build competitive advantage while preserving local cultural heritage. The research seeks to understand how traditional cultural assets can be integrated with modern business strategies to support long-term business sustainability in a competitive creative industry environment. Design/Methodology/Approach – This study employs a descriptive qualitative approach. Data were collected through in-depth interviews and direct observations involving business owners and related stakeholders in Kediri. Data analysis was conducted using an interactive model consisting of data reduction, data display, and conclusion drawing. A framework analysis was applied to identify strategic factors affecting business sustainability from economic, social, and environmental perspectives. Findings – The findings reveal that the company implements sustainable business strategies through product innovation, quality improvement, cultural-based branding, digital marketing utilization, and preservation of Kediri’s traditional ikat weaving heritage. SWOT analysis shows that unique motifs, product quality, and artisan expertise are key strengths, while limited capital, declining artisan regeneration, and competition from modern textile products remain major challenges. The results indicate that combining modern business strategies with cultural preservation can strengthen competitive advantage and improve the long-term resilience of creative-industry SMEs. Originality/Value – This study contributes to sustainable business and creative industry literature by highlighting the role of cultural heritage as a strategic resource for developing competitive advantage. The research provides practical insights for SMEs on integrating innovation, digital transformation, and cultural preservation to achieve sustainable growth while maintaining local identity.]]>
