Sustaining Traditional Craft Enterprises Through System Dynamics: An Empirical Study of Poshakmaking in The Mathura–Vrindavan Region

Traditional craft-based enterprises constitute a vital component of cultural economies, yet many remain embedded within informal and structurally vulnerable systems. Poshak making the traditional craft of designing and producing deity clothing in the Mathura-Vrindavan (Braj Bhoomi) region of Uttar Pradesh, India represents a culturally significant but economically unorganized sector. Despite sustained demand driven by temple economies and devotional practices, the sector is characterized by low income levels, absence of formal skill development mechanisms, weak institutional support, and exploitative market structures.This study employs a System Dynamics approach to analyze the structural complexity and long-term behavior of the poshak-making ecosystem. Primary data were collected through unstructured interviews and semi-structured schedules involving artisans and workshop owners. Key variables were systematically categorized into four domains: skill-related, business-related, society-related, and human resource-related factors. Using causal loop analysis, the study identifies reinforcing (virtuous) and balancing (vicious) feedback loops that influence sustainability outcomes.The findings indicate that while strong cultural demand creates inherent growth potential, systemic inefficiencies particularly income instability, lack of standardization, and absence of organized market structures contribute to skill attrition and declining productivity. The study further identifies critical leverage points for intervention and proposes strategic pathways based on Blue Ocean Strategy, emphasizing value innovation through heritage branding, experiential integration with religious tourism, and market diversification.By integrating System Dynamics with strategic management perspectives, this study contributes to the limited literature on traditional craft sustainability and offers actionable insights for policymakers, development agencies, and cultural entrepreneurs seeking to formalize and revitalize craft-based economies.