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Analysis of Relationships among Organizational Barriers to Energy Efficiency Improvement: A Case Study in Indonesia’s Steel Industry

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  • Apriani Soepardi

    (Department of Industrial Engineering, University of National Development “Veteran”, Yogyakarta 55584, Indonesia)

  • Patrik Thollander

    (Department of Management and Engineering, Division of Energy System, Linköping University, Linköping SE-581 83, Sweden)

Abstract

The aim of this paper is to analyze and rank the managerial-organizational barriers to energy efficiency improvement from an industry perspective. To that end, this study utilizes the Interpretive Structural Modeling (ISM) methodology to identify the contextual relationships among the barriers. In a focus group discussion forum, five practitioners from the steel industry were consulted to identify these mutual linkages. The results indicated that five of the eight barriers proposed are in the linkage category. These barriers include that the energy manager or people in charge of energy management lack influence, there are higher priorities to production activity, there is management resistance to change, there is inadequate management capacity, and there are conflicts of interest within the organization. The management should focus more attention on these barriers, because they have both high driving power and dependency. The findings are intended to help managers from manufacturing sectors identify key barriers and thus develop strategic plans to address these issues.

Suggested Citation

  • Apriani Soepardi & Patrik Thollander, 2018. "Analysis of Relationships among Organizational Barriers to Energy Efficiency Improvement: A Case Study in Indonesia’s Steel Industry," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:1:p:216-:d:127284
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    References listed on IDEAS

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    3. Radosław Wolniak & Sebastian Saniuk & Sandra Grabowska & Bożena Gajdzik, 2020. "Identification of Energy Efficiency Trends in the Context of the Development of Industry 4.0 Using the Polish Steel Sector as an Example," Energies, MDPI, vol. 13(11), pages 1-16, June.
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    6. A. S. M. Monjurul Hasan & Rakib Hossain & Rashedul Amin Tuhin & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Empirical Investigation of Barriers and Driving Forces for Efficient Energy Management Practices in Non-Energy-Intensive Manufacturing Industries of Bangladesh," Sustainability, MDPI, vol. 11(9), pages 1-13, May.
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    8. Mehdi Bensouda & Mimoun Benali & Ghada Moufdi & Taoufik El Bouzekri El Idrissi & Abdelhamid El Bouhadi, 2023. "Energy Audit as an Instrument to Tackle Internal Barriers to Energy Efficiency: Lessons from Moroccan Industrial Firms," Sustainability, MDPI, vol. 15(15), pages 1-19, July.
    9. Bożena Gajdzik & Włodzimierz Sroka, 2021. "Resource Intensity vs. Investment in Production Installations—The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(2), pages 1-16, January.
    10. Mehdi Bensouda & Mimoun Benali, 2022. "Overcoming Risk Aversion Regarding Energy Efficiency Practices through Mimetic Pressure and Financial Slack: Findings from the Moroccan Manufacturing Sector," Sustainability, MDPI, vol. 14(23), pages 1-15, December.
    11. A S M Monjurul Hasan & Andrea Trianni, 2020. "A Review of Energy Management Assessment Models for Industrial Energy Efficiency," Energies, MDPI, vol. 13(21), pages 1-21, November.
    12. Joakim Haraldsson & Maria T. Johansson, 2019. "Barriers to and Drivers for Improved Energy Efficiency in the Swedish Aluminium Industry and Aluminium Casting Foundries," Sustainability, MDPI, vol. 11(7), pages 1-27, April.
    13. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.

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