A Beyond Budgeting Approach to Sustainable Development of MSMEs in Educational Pottery Tourism in Plumpungrejo

Abstract

This study examines the application of the Beyond Budgeting (BB) approach as an adaptive budgeting solution to improve business sustainability. This research method is qualitative with a case study design on two pottery MSMEs in Plumpungrejo, namelyMr. Burhan's Pottery World Educational Tourand another Pokdarwis group. The results indicate that current budgeting practices are ad-hoc: production cost calculations exclude several important components (e.g., fuel, depreciation), and target setting is based on estimates without formal planning. MSME managers are not yet familiar with rolling forecast mechanisms or market-based evaluations. However, they recognize the importance of responding quickly to market fluctuations (e.g., surges in pottery demand) and are open to decentralizing decision-making. The application of Beyond Budgeting principles such as relative targets, business unit autonomy, information transparency, and holistic performance evaluation has the potential to increase operational agility and product innovation.