IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v13y2020i11p249-d432926.html
   My bibliography  Save this article

Barriers to Green Entrepreneurship: An ISM-Based Investigation

Author

Listed:
  • Anas A. Makki

    (Department of Industrial Engineering, Faculty of Engineering—Rabigh Branch, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Hisham Alidrisi

    (Department of Industrial Engineering, Faculty of Engineering, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

  • Asif Iqbal

    (Faculty of Integrated Technologies, Universiti Brunei Darussalam, Jalan Tungku Link, Gadong BE 1410, Brunei)

  • Basil O. Al-Sasi

    (Department of Industrial Engineering, Faculty of Engineering, King Abdulaziz University, Jeddah 21589, Saudi Arabia)

Abstract

Green entrepreneurship is a novel sustainability term. A strategy has recently been put forward to make a business greener by minimizing the harmful impact on the environment and committing to sustainability while maintaining financial imperishability. However, some barriers prevent its implementation to its full potential. This study aims at investigating such barriers following the interpretive structural modeling (ISM) approach for analyzing relationships among them and for their prioritization, for the effective construction of green entrepreneurship. The study revealed that collaboration among stakeholders of business activities is vital to green entrepreneurship. Results also show that R&D and technology are foundational to overcoming other barriers, such as the costs associated with green initiatives, lack of knowledge and subjective awareness in the market, shortage of investors and involvement of private sectors, government regulations, cultural differences, dominating industries, lack of incentive and support mechanism, and bureaucracy. Subsequently, the results indicated that overcoming these barriers will enable us to change the short-term mindset of investors towards green entrepreneurship. Implications of this study include using the revealed set of barriers and their modeled relationships for policymaking as well as the development of better targeted and more effective strategies to overcome these barriers, enabling its implementation to its full potential.

Suggested Citation

  • Anas A. Makki & Hisham Alidrisi & Asif Iqbal & Basil O. Al-Sasi, 2020. "Barriers to Green Entrepreneurship: An ISM-Based Investigation," JRFM, MDPI, vol. 13(11), pages 1-17, October.
    • Handle: RePEc:gam:jjrfmx:v:13:y:2020:i:11:p:249-:d:432926
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/13/11/249/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/13/11/249/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Giovanni Marin & Alberto Marzucchi & Roberto Zoboli, 2015. "SMEs and barriers to Eco-innovation in the EU: exploring different firm profiles," Journal of Evolutionary Economics, Springer, vol. 25(3), pages 671-705, July.
    2. Rahbauer, Sebastian & Menapace, Luisa & Menrad, Klaus & Decker, Thomas, 2016. "Adoption of green electricity by small- and medium-sized enterprises in Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1185-1194.
    3. Wafa Alwakid & Sebastian Aparicio & David Urbano, 2020. "Cultural Antecedents of Green Entrepreneurship in Saudi Arabia: An Institutional Approach," Sustainability, MDPI, vol. 12(9), pages 1-20, May.
    4. Henk J. Steinz & Frank J. Van Rijnsoever & Frans Nauta, 2016. "How to Green the red Dragon: A Start‐ups' Little Helper for Sustainable Development in China," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 593-608, December.
    5. Travis Gliedt & Paul Parker, 2007. "Green community entrepreneurship: creative destruction in the social economy," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(8), pages 538-553, July.
    6. Kate Kearins & Eva Collins, 2012. "Making Sense of Ecopreneurs' Decisions to Sell Up," Business Strategy and the Environment, Wiley Blackwell, vol. 21(2), pages 71-85, February.
    7. Neck, Heidi & Brush, Candida & Allen, Elaine, 2009. "The landscape of social entrepreneurship," Business Horizons, Elsevier, vol. 52(1), pages 13-19.
    8. G. Kannan & A. Noorul Haq & P. Sasikumar & Subramaniam Arunachalam, 2008. "Analysis and selection of green suppliers using interpretative structural modelling and analytic hierarchy process," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 9(2), pages 163-182.
    9. Cristina Santini, 2017. "Ecopreneurship and Ecopreneurs: Limits, Trends and Characteristics," Sustainability, MDPI, vol. 9(4), pages 1-12, March.
    10. Travis Gliedt & Paul Parker, 2014. "Green community entrepreneurship 2.0," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(7), pages 609-625, July.
    11. Anna, Petrenko, 2016. "Мaркування готової продукції як складова частина інформаційного забезпечення маркетингової діяльності підприємств овочепродуктового підкомплексу," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 2(1), March.
    12. David W. Taylor & E.E. (Liz) Walley, 2004. "The green entrepreneur: Opportunist, Maverick or Visionary?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 1(1/2), pages 56-69.
    13. Boris Mrkajic & Samuele Murtinu & Vittoria G. Scalera, 2019. "Is green the new gold? Venture capital and green entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 929-950, April.
    14. Hall, Jeremy K. & Daneke, Gregory A. & Lenox, Michael J., 2010. "Sustainable development and entrepreneurship: Past contributions and future directions," Journal of Business Venturing, Elsevier, vol. 25(5), pages 439-448, September.
    15. Pelin Demirel & Qian Cher Li & Francesco Rentocchini & J. Pawan Tamvada, 2019. "Born to be green: new insights into the economics and management of green entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 759-771, April.
    16. Chipo Mukonza, 2020. "An Analysis of Factors Influencing Green Entrepreneurship Activities in South Africa," Advances in African Economic, Social and Political Development, in: Calvin Atewamba & Dorothé Yong Ngondjeb (ed.), Inclusive Green Growth, chapter 0, pages 47-67, Springer.
    17. Michael Migendt & Friedemann Polzin & Florian Schock & Florian A Täube & Paschen von Flotow, 2017. "Beyond venture capital: an exploratory study of the finance-innovation-policy nexus in cleantech," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(6), pages 973-996.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ammar Y. Alqahtani & Anas A. Makki, 2022. "Barriers to the Sustainable Implementation of Environmentally Conscious Manufacturing: A Contextual-Based Interpretive Structural Model," Sustainability, MDPI, vol. 14(16), pages 1-14, August.
    2. Anas A. Makki & Ammar Y. Alqahtani, 2022. "Modeling the Barriers Surrounding Digital Government Implementation: Revealing Prospect Opportunities in Saudi Arabia," Sustainability, MDPI, vol. 14(23), pages 1-17, November.
    3. Anuli Njoku & Kamel Mouloudj & Ahmed Chemseddine Bouarar & Marian A. Evans & Dachel Martínez Asanza & Smail Mouloudj & Achouak Bouarar, 2024. "Intentions to Create Green Start-Ups for Collection of Unwanted Drugs: An Empirical Study," Sustainability, MDPI, vol. 16(7), pages 1-20, March.
    4. Steffen Foldager Jensen & Jesper Hemdrup Kristensen & Jonas Nygaard Uhrenholt & Maria Camila Rincón & Sofie Adamsen & Brian Vejrum Waehrens, 2022. "Unlocking Barriers to Circular Economy: An ISM-Based Approach to Contextualizing Dependencies," Sustainability, MDPI, vol. 14(15), pages 1-17, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Séverine Le Loarne Lemaire & Meriam Razgallah & Adnane Maalaoui & Sascha Kraus, 2022. "Becoming a green entrepreneur: An advanced entrepreneurial cognition model based on a practiced-based approach," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 801-828, June.
    2. Régis Y. Chenavaz & Alexandra Couston & Stéphanie Heichelbech & Isabelle Pignatel & Stanko Dimitrov, 2023. "Corporate Social Responsibility and Entrepreneurial Ventures: A Conceptual Framework and Research Agenda," Sustainability, MDPI, vol. 15(11), pages 1-30, May.
    3. Torbjörn Ljungkvist & Jim Andersén, 2021. "A taxonomy of ecopreneurship in small manufacturing firms: A multidimensional cluster analysis," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1374-1388, February.
    4. Pelin Demirel & Qian Cher Li & Francesco Rentocchini & J. Pawan Tamvada, 2019. "Born to be green: new insights into the economics and management of green entrepreneurship," Small Business Economics, Springer, vol. 52(4), pages 759-771, April.
    5. Lars Speckemeier & Dimitrios Tsivrikos, 2022. "Green Entrepreneurship: Should Legislators Invest in the Formation of Sustainable Hubs?," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    6. Menuka Jayaratne & Gillian Sullivan Mort & Clare D’Souza, 2019. "Sustainability Entrepreneurship: From Consumer Concern Towards Entrepreneurial Commitment," Sustainability, MDPI, vol. 11(24), pages 1-13, December.
    7. Ali Saleh Alshebami & Abdullah Hamoud Ali Seraj & Ibrahim A. Elshaer & Abdullah Sultan Al Shammre & Salem Handhal Al Marri & Abdalwali Lutfi & Mostafa Aboulnour Salem & Ashraf Mahrous Nour Zaher, 2023. "Improving Social Performance through Innovative Small Green Businesses: Knowledge Sharing and Green Entrepreneurial Intention as Antecedents," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    8. Qing Ye & Rongting Zhou & Muhammad Azfar Anwar & Ahmad Nabeel Siddiquei & Fahad Asmi, 2020. "Entrepreneurs and Environmental Sustainability in the Digital Era: Regional and Institutional Perspectives," IJERPH, MDPI, vol. 17(4), pages 1-21, February.
    9. Rafik Abdesselam & Malia Kedjar & Patricia Renou-Maissant, 2024. "What are the drivers of eco-innovation? Empirical evidence from French start-ups," Post-Print hal-04304153, HAL.
    10. Cristian Negrutiu & Cristinel Vasiliu & Calcedonia Enache, 2020. "Sustainable Entrepreneurship in the Transport and Retail Supply Chain Sector," JRFM, MDPI, vol. 13(11), pages 1-12, November.
    11. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    12. Mubariz Mammadli, 2022. "Environmentally Responsible Business Approaches in Azerbaijan," Sustainability, MDPI, vol. 14(10), pages 1-25, May.
    13. Iftikhar Hussain & Mehrab Nazir & Saadia Bano Hashmi & Assunta Di Vaio & Imrab Shaheen & Muhammad Arfaq Waseem & Adeel Arshad, 2021. "Green and Sustainable Entrepreneurial Intentions: A Mediation-Moderation Perspective," Sustainability, MDPI, vol. 13(15), pages 1-13, August.
    14. Maiti, Moinak, 2022. "Does development in venture capital investments influence green growth?," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    15. Jay Sheppard & Maral Mahdad, 2021. "Unpacking Hybrid Organizing in a Born Green Entrepreneurial Company," Sustainability, MDPI, vol. 13(20), pages 1-30, October.
    16. Wafa Alwakid & Sebastian Aparicio & David Urbano, 2021. "The Influence of Green Entrepreneurship on Sustainable Development in Saudi Arabia: The Role of Formal Institutions," IJERPH, MDPI, vol. 18(10), pages 1-23, May.
    17. Tamara Galkina, 2021. "International ECOpreneurship: Environmental commitment and international partner selection of Finnish firms from the energy sector," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 300-320, June.
    18. Giuseppe Crapa & Maria Elena Latino & Paolo Roma, 2024. "The performance of green communication across social media: Evidence from large‐scale retail industry in Italy," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 493-513, January.
    19. Alfonso Carfora & Giuseppe Scandurra & Antonio Thomas, 2021. "Determinants of environmental innovations supporting small‐ and medium‐sized enterprises sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2621-2636, July.
    20. Yann Truong & Brian G. Nagy, 2021. "Nascent ventures’ green initiatives and angel investor judgments of legitimacy and funding," Small Business Economics, Springer, vol. 57(4), pages 1801-1818, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:13:y:2020:i:11:p:249-:d:432926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.