Why Can Smes Not Adopt Green Innovation? An Assessment Via Fuzzy ISM-MICMAC-DEMATEL

Abstract

Innovation has become an important competitive tool as it increases the efficiency and profitability of enterprises and provides the opportunity to enter new markets and grow in the existing market area. The important thing is not to harm the environment while the businesses continue their activities. Therefore, the innovations and activities carried out are happened to be environmentally friendly and have an aspect that will reduce the negative effects on the environment. However, Small and Medium Enterprises (SMEs) cannot adopt green practices due to various barriers. In this context, this study aims to analyze and solve the factors that hinder green innovation and green initiatives in SMEs. In the study, firstly, the literature was searched, and six main barriers were determined as economic barriers, market barriers, political barriers, lack of information, technological barriers and administrative barriers. Barriers were analyzed using Fuzzy ISM-MICMAC and Fuzzy DEMATEL methods by taking expert opinions from 18 SMEs in the Electrical and Electronics sector. The structural relationship model between the barriers was revealed with the Fuzzy ISM-MICMAC analysis methods. The effect-importance degree of the barriers was determined by the Fuzzy DEMATEL method, and their weights were calculated. As a result of the research, the most influential barriers to other barriers were determined as economic barriers, political barriers and lack of information