Identification and testing of barriers to sustainable manufacturing in the automobile industry: a focus on Indian MSMEs

Abstract

Purpose – The purpose of the study is two-fold. First, to find out the different barriers that prevent the implementation of sustainable manufacturing practices in the case of Micro, Small and Medium Enterprises (MSMEs). Second, quantifying the relative intensity of these barriers to understand the importance and dependence power of the observed variables. Design/methodology/approach – Primary data were collected via structured questionnaires from 150 Indian MSMEs working in the automobile industry. Exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) was performed. Finally, barriers are ranked using graph theory and matrix approach (GTMA), considering the inheritance and interaction among the observed variables. Findings – There are a total of 22 barriers to “sustainable manufacturing”. EFA and CFA models confirmed four different categories of barriers. In order of importance, they are ranked as – production and operations related; organization related; collaboration related; and government rules and regulations. Practical implications – The findings show that there are multiple barriers to sustainable manufacturing. The barriers are categorized into four major categories, and their ranking provides an opportunity for prioritization from both policy and managerial perspectives. The barriers can be overcome through both policy interventions as well as through best practice sharing, benchmarking and organizational-wide initiatives. Originality/value – The study is among the first studies that provide valuables insights on what are the 22 different barriers to sustainable manufacturing and its relevance to the MSMEs working in the automobile industry. The study would provide further opportunities for similar studies in different sectors.