the case analysis also suggests that lack of finance in fact leads to all other barriers.
Green innovations or any other innovation requires lot of research and development
activities within the organizations; organizations are often short on funds and hence
are unable to spend much on the research and development activities related to the
greening of their activities and products (Kerr and Nanda 2015; Hall et al. 2011).
Organizations often fail to get subsidies from government as well as subsidized loans
from the financial institutions for their technology upgradation. Often the interest
rates are so high that organizations avoid taking loans at such high interest rates and
end up using the same old technologies over the years that are not suitable for
producing environmental friendly products (Cecere et al. 2018). Also since organizations are already lagging in terms of technology, they are not able to dispose of the
hazardous waste products due to high cost of outsourcing and hence act as deterrent
to environmental management initiatives (Govindan et al. 2014). Another major
barrier to green innovation is the lack of required infrastructure to carry out green
innovations; the organizations don’t have both latest technologies as well as infrastructure. Greening the processes requires processing of environmental friendly
materials, disposing of hazardous materials, and recycling materials, but organizations are found to be lacking in having the required infrastructure to do this
processing (Xia et al. 2019).
Economic development of any country depends upon the use and availability of
natural resources. The more resources are available, the more of them can be utilized
for the consumption-related needs and production to meet the demand of industry.
Rapid industrialization has led to improvement in lifestyles and growth but at the
same time has also caused replenishment of the resources along with deterioration of
the environment. Environmental sustainability has gained attention in recent few
years due to the havoc created by mass industrialization. These issues have forced
managers to think of innovative ways to tackle environmental concerns and at the
same time being sustainable so that future generations can also have sufficient
availability of the resources for their survival. Green and sustainable innovation at
the organizations is one such solution to achieve these goals. Managers need to find
innovative ways of reduction in resource consumption like energy, material, and
manpower. Also, they have to modify their current processes so that the whole
production process emits the minimum hazardous substances in the environment.
The current work focused on identifying internal barriers to green innovation. ISM
and best worst analysis results can help managers of different organizations to
identify the important barriers impacting green innovation and environmental goals.
The current research work has certain limitations, the current study is limited to
manufacturing organizations only, and the results need to be compared with other
sectors to further validate the results. Also, structural equation modeling can be
applied on the hierarchal model obtained through ISM to statistically test the model.
8 Evaluation of Manufacturing Organizations Ability to Overcome Internal Barriers. . .
157
Green innovations or any other innovation requires lot of research and development
activities within the organizations; organizations are often short on funds and hence
are unable to spend much on the research and development activities related to the
greening of their activities and products (Kerr and Nanda 2015; Hall et al. 2011).
Organizations often fail to get subsidies from government as well as subsidized loans
from the financial institutions for their technology upgradation. Often the interest
rates are so high that organizations avoid taking loans at such high interest rates and
end up using the same old technologies over the years that are not suitable for
producing environmental friendly products (Cecere et al. 2018). Also since organizations are already lagging in terms of technology, they are not able to dispose of the
hazardous waste products due to high cost of outsourcing and hence act as deterrent
to environmental management initiatives (Govindan et al. 2014). Another major
barrier to green innovation is the lack of required infrastructure to carry out green
innovations; the organizations don’t have both latest technologies as well as infrastructure. Greening the processes requires processing of environmental friendly
materials, disposing of hazardous materials, and recycling materials, but organizations are found to be lacking in having the required infrastructure to do this
processing (Xia et al. 2019).
Economic development of any country depends upon the use and availability of
natural resources. The more resources are available, the more of them can be utilized
for the consumption-related needs and production to meet the demand of industry.
Rapid industrialization has led to improvement in lifestyles and growth but at the
same time has also caused replenishment of the resources along with deterioration of
the environment. Environmental sustainability has gained attention in recent few
years due to the havoc created by mass industrialization. These issues have forced
managers to think of innovative ways to tackle environmental concerns and at the
same time being sustainable so that future generations can also have sufficient
availability of the resources for their survival. Green and sustainable innovation at
the organizations is one such solution to achieve these goals. Managers need to find
innovative ways of reduction in resource consumption like energy, material, and
manpower. Also, they have to modify their current processes so that the whole
production process emits the minimum hazardous substances in the environment.
The current work focused on identifying internal barriers to green innovation. ISM
and best worst analysis results can help managers of different organizations to
identify the important barriers impacting green innovation and environmental goals.
The current research work has certain limitations, the current study is limited to
manufacturing organizations only, and the results need to be compared with other
sectors to further validate the results. Also, structural equation modeling can be
applied on the hierarchal model obtained through ISM to statistically test the model.
8 Evaluation of Manufacturing Organizations Ability to Overcome Internal Barriers. . .
157