Modelling Barriers of Sustainable Manufacturing Adoption in MSMEs Using ISM Approach

Micro, small and medium-sized enterprises (MSMEs) make a significant contribution to India’s economic growth, yet they struggle to adopt sustainable practices in their manufacturing operations. This study aims to investigate the key barriers that prevent MSMEs in the eastern states of India from adopting sustainable practices. Previous studies have overlooked the barriers in economically disadvantaged regions of India and have examined these barriers in isolation without establishing their interconnectedness. Using the Interpretive Structural Modelling method, this article organises 12 barriers hierarchically, identified through extensive interviews with 18 MSME entrepreneurs based in the selected five eastern states. Key findings reveal significant concerns, including the risk of failing to achieve financial targets, skill deficiencies during transitions, uncertainty about related benefits, a lack of knowledge and training on sustainability and a lack of stakeholder partnership. Deeper challenges, including a lack of organisational resources, underpin these barriers. This study offers policymakers and MSME stakeholders practical insights, enabling them to strategically target intervention methods that facilitate the adoption of sustainable manufacturing practices.