A Fuzzy Multi-Criteria Analysis of Barriers and Policy Strategies for Small and Medium Enterprises to Adopt Green Innovation

Abstract

Recently, small and medium enterprises (SMEs) are increasingly focusing on the implementation of green innovation, mainly due to customers’ increasing environmental consciousness. However, SMEs have not yet achieved any significant accomplishment. The lack of success in implementing green practices is due to various barriers. So, it is crucial to analyze and address these barriers prior to introducing green initiatives. This study prioritizes barriers and solutions to adopt green practices in the context of SMEs in Saudi Arabia. The study develops an integrated decision framework based on symmetry principles to identify main-barriers, sub-barriers, and strategies to overcome these barriers. Six main barriers, 24 sub-barriers, and 10 strategic solutions were identified through literature survey. Then, fuzzy analytical hierarchy process (FAHP) was employed to evaluate main-barriers and sub-barriers. Later, fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) methodology was used to rank strategies. Results of FAHP revealed that the political barrier category holds higher importance than other barriers. Results of FTOPSIS showed that the strategic solution ‘developing research practices to carryout green innovation in SMEs’ is more important in addressing green innovation barriers in SMEs.