IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/109668.html
   My bibliography  Save this paper

Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries

Author

Listed:
  • Chien, Fengsheng
  • Ngo, Quang-Thanh
  • Hsu, Ching-Chi
  • Chau, Ka Yin
  • Iram, Robina

Abstract

Due to their different abilities to improve financial growth and improve social development, small and medium enterprises (SMEs) have been referred to as the economy’s backbone. Small- and medium-sized enterprises are crucial for both high- and low-income nations’ financial development. Customers grow more conscious of their purchase choices, preferences, and environmental consequences. The financial opportunities for SMEs in the United Arab Emirates to use green innovation methods to address potential obstacles for increasing green goods, processes, and management are examined in this paper; as a result, it is critical to reduce clean technology adoption constraints in small- and medium-sized businesses. To identify significant hurdles, sub-barriers, and ways to overcome impediments to green innovation in the United Arab Emirates, we apply an integrated decision process. Following a detailed literature analysis and the assistance of twelve experts, six primary obstacles, twenty-five sub-obstacles, and strategies to reduce the barriers were identified. Primary and sub-barriers were assessed using the FAHP. The (FTOPSIS) approach was used to rank the strategies. Five SMEs in the United Arab Emirates are putting the suggested integrated decision model to the test. “Financial investment levels 0.646 to 11 percent growth level,” according to the FAHP, are the most significant hurdles to SMEs adopting green practices. This research demonstrated a considerable beneficial association between SMEs and financial development and funding in the United Arab Emirates. According to this study, using research methodologies to provide green innovation in SMEs is the best strategy to overcome green innovation and adoption hurdles in small and medium firms and increasing their economics.

Suggested Citation

  • Chien, Fengsheng & Ngo, Quang-Thanh & Hsu, Ching-Chi & Chau, Ka Yin & Iram, Robina, 2021. "Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries," MPRA Paper 109668, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:109668
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/109668/1/MPRA_paper_109668.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    2. Eyup Dogan & Nigar Taspinar & Korhan K Gokmenoglu, 2019. "Determinants of ecological footprint in MINT countries," Energy & Environment, , vol. 30(6), pages 1065-1086, September.
    3. Stephen Brammer & Stefan Hoejmose & Kerry Marchant, 2012. "Environmental Management in SMEs in the UK: Practices, Pressures and Perceived Benefits," Business Strategy and the Environment, Wiley Blackwell, vol. 21(7), pages 423-434, November.
    4. Amandine Pinget & Rachel Bocquet & Caroline Mothe, 2015. "Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms," Post-Print hal-01300837, HAL.
    5. Matus, Kira J. M. & Xiao, Xin & Zimmerman, Julie B., 2012. "Green chemistry and green engineering in China: drivers, policies and barriers to innovation," LSE Research Online Documents on Economics 43535, London School of Economics and Political Science, LSE Library.
    6. Maria Jose Silva & Joao Leitao & Mario Raposo, 2008. "Barriers to innovation faced by manufacturing firms in Portugal: how to overcome it for fostering business excellence?," International Journal of Business Excellence, Inderscience Enterprises Ltd, vol. 1(1/2), pages 92-105.
    7. Mike Simpson & Nick Taylor & Karen Barker, 2004. "Environmental responsibility in SMEs: does it deliver competitive advantage?," Business Strategy and the Environment, Wiley Blackwell, vol. 13(3), pages 156-171, May.
    8. Awasthi, Anjali & Chauhan, Satyaveer S. & Goyal, S.K., 2010. "A fuzzy multicriteria approach for evaluating environmental performance of suppliers," International Journal of Production Economics, Elsevier, vol. 126(2), pages 370-378, August.
    9. Kannan, Devika & Jabbour, Ana Beatriz Lopes de Sousa & Jabbour, Charbel José Chiappetta, 2014. "Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company," European Journal of Operational Research, Elsevier, vol. 233(2), pages 432-447.
    10. Longoni, Annachiara & Golini, Ruggero & Cagliano, Raffaella, 2014. "The role of New Forms of Work Organization in developing sustainability strategies in operations," International Journal of Production Economics, Elsevier, vol. 147(PA), pages 147-160.
    11. Rosa Maria Dangelico, 2016. "Green Product Innovation: Where we are and Where we are Going," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 560-576, December.
    12. Sarkis, Joseph & Zhu, Qinghua & Lai, Kee-hung, 2011. "An organizational theoretic review of green supply chain management literature," International Journal of Production Economics, Elsevier, vol. 130(1), pages 1-15, March.
    13. Yu-Shan Chen & Shyh-Bao Lai & Chao-Tung Wen, 2006. "The Influence of Green Innovation Performance on Corporate Advantage in Taiwan," Journal of Business Ethics, Springer, vol. 67(4), pages 331-339, September.
    14. Fengsheng Chien & Chia-Nan Wang & Viet Tinh Nguyen & Van Thanh Nguyen & Ka Yin Chau, 2020. "An Evaluation Model of Quantitative and Qualitative Fuzzy Multi-Criteria Decision-Making Approach for Hydroelectric Plant Location Selection," Energies, MDPI, vol. 13(11), pages 1-14, June.
    15. Govindan, Kannan & Kaliyan, Mathiyazhagan & Kannan, Devika & Haq, A.N., 2014. "Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 555-568.
    16. Eltayeb, Tarig K. & Zailani, Suhaiza & Ramayah, T., 2011. "Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: Investigating the outcomes," Resources, Conservation & Recycling, Elsevier, vol. 55(5), pages 495-506.
    17. Christopoulos, Dimitris K. & Tsionas, Efthymios G., 2004. "Financial development and economic growth: evidence from panel unit root and cointegration tests," Journal of Development Economics, Elsevier, vol. 73(1), pages 55-74, February.
    18. Pablo del Río & Javier Carrillo‐Hermosilla & Totti Könnölä, 2010. "Policy Strategies to Promote Eco‐Innovation: An Integrated Framework," Journal of Industrial Ecology, Yale University, vol. 14(4), pages 541-557, August.
    19. Shi-Zheng Huang & Ka Yin Chau & Fengsheng Chien & Huawen Shen, 2020. "The Impact of Startups’ Dual Learning on Their Green Innovation Capability: The Effects of Business Executives’ Environmental Awareness and Environmental Regulations," Sustainability, MDPI, vol. 12(16), pages 1-17, August.
    20. Andrea Revell & Robert Rutherfoord, 2003. "UK environmental policy and the small firm: broadening the focus," Business Strategy and the Environment, Wiley Blackwell, vol. 12(1), pages 26-35, January.
    21. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    22. Hens Runhaar & Casper Tigchelaar & Walter J. V. Vermeulen, 2008. "Environmental leaders: making a difference. A typology of environmental leaders and recommendations for a differentiated policy approach," Business Strategy and the Environment, Wiley Blackwell, vol. 17(3), pages 160-178, March.
    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. Chien, Fengsheng & Ananzeh, Mohammed & Mirza, Farhan & Bakar, Abou & Vu, Hieu Minh & Ngo, Thanh Quang, 2021. "The effects of green growth, environmental-related tax, and eco-innovation towards carbon neutrality target in the US economy," MPRA Paper 109664, University Library of Munich, Germany.
    2. Zhao, Jin & Patwary, Ataul Karim & Qayyum, Abdul & Alharthi, Majed & Bashir, Furrukh & Mohsin, Muhammad & Hanif, Imran & Abbas, Qaiser, 2022. "The determinants of renewable energy sources for the fueling of green and sustainable economy," Energy, Elsevier, vol. 238(PC).
    3. Cai, Xiaotong & Li, Kun & Wang, Wenhua & Lu, Yuxin & Wang, Rui, 2023. "The role of resource rent in shaping CO2 emissions in BRICS countries: A panel data approach," Resources Policy, Elsevier, vol. 85(PB).
    4. Saxena Ashish & Tiwari Sadhana & Bhardwaj Shashank & Srivastava Shweta & Kumar Nitendra, 2023. "A Bibliometric Review of Green Finance: Current Status, Development and Future Directions," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 331-351, December.
    5. Cai, Yurong & Zhou, Pengfei & Zhang, Yiting & Shen, Yang, 2023. "Natural resources extraction and sustainable environment: COP26 perspective for China," Resources Policy, Elsevier, vol. 82(C).
    6. Yung-Fu Huang & Abbott Po-Shun Chen & Manh-Hoang Do & Jen-Chieh Chung, 2022. "Assessing the Barriers of Green Innovation Implementation: Evidence from the Vietnamese Manufacturing Sector," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
    7. Wang, Zankai & Le, Thanh Tiep, 2022. "The COVID-19 pandemic’s effects on SMEs and travel agencies: The critical role of corporate social responsibility," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 46-58.
    8. Goshu Desalegn & Anita Tangl, 2022. "Developing Countries in the Lead: A Bibliometric Approach to Green Finance," Energies, MDPI, vol. 15(12), pages 1-19, June.
    9. Ade Banani & Bambang Sunarko, 2022. "Nexus between Green Finance, Creativity, Energy Accounting and Financial Performance: Banks Sustainability Analysis from Developing Country," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 447-455, November.
    10. Miar & Sunaryo Neneng & Jeky Melkianus Sui, 2022. "The Impact Covid-19 Outbreak, Green Finance, Creativity and Sustainable Economic Development on the Economic Recovery in G20 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 432-440, November.
    11. Xingwei Li & Jiachi Dai & Xiaowen Zhu & Jingru Li & Jinrong He & Yicheng Huang & Xiang Liu & Qiong Shen, 2023. "Mechanism of attitude, subjective norms, and perceived behavioral control influence the green development behavior of construction enterprises," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    12. Wang, Zhe & Yao-Ping Peng, Michael & Anser, Muhammad Khalid & Chen, Zhong, 2023. "Research on the impact of green finance and renewable energy on energy efficiency: The case study E−7 economies," Renewable Energy, Elsevier, vol. 205(C), pages 166-173.

    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. Fengsheng Chien & Hafiz Waqas Kamran & Muhammad Atif Nawaz & Nguyen Ngoc Thach & Pham Dinh Long & Zulfiqar Ali Baloch, 2022. "Assessing the prioritization of barriers toward green innovation: small and medium enterprises Nexus," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1897-1927, February.
    2. Sajid Ullah & Naveed Ahmad & Farman Ullah Khan & Alina Badulescu & Daniel Badulescu, 2021. "Mapping Interactions among Green Innovations Barriers in Manufacturing Industry Using Hybrid Methodology: Insights from a Developing Country," IJERPH, MDPI, vol. 18(15), pages 1-25, July.
    3. Luthra, Sunil & Garg, Dixit & Haleem, Abid, 2015. "An analysis of interactions among critical success factors to implement green supply chain management towards sustainability: An Indian perspective," Resources Policy, Elsevier, vol. 46(P1), pages 37-50.
    4. Govindan, K. & Muduli, K. & Devika, K. & Barve, A., 2016. "Investigation of the influential strength of factors on adoption of green supply chain management practices: An Indian mining scenario," Resources, Conservation & Recycling, Elsevier, vol. 107(C), pages 185-194.
    5. Hisham Alidrisi, 2021. "Measuring the Environmental Maturity of the Supply Chain Finance: A Big Data-Based Multi-Criteria Perspective," Logistics, MDPI, vol. 5(2), pages 1-24, April.
    6. Morteza Akbari & Hamid Padash & Zahra Shahabaldini Parizi & Haniye Rezaei & Elmira Shahriari & Ala Khosravani, 2022. "A bibliometric review of green innovation research: identifying knowledge domain and network," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 3993-4023, December.
    7. Pinget, Amandine, 2016. "Spécificités des déterminants des innovations environnementales : une approche appliquée aux PME [Specificities of determinants for environmental innovation : an approach applied to SMEs]," MPRA Paper 80108, University Library of Munich, Germany.
    8. 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.
    9. Blanka Tundys & Tomasz Wiśniewski, 2018. "The Selected Method and Tools for Performance Measurement in the Green Supply Chain—Survey Analysis in Poland," Sustainability, MDPI, vol. 10(2), pages 1-26, February.
    10. Wenwen Zhu & Zhiqiang Wang, 2018. "The Collaborative Networks and Thematic Trends of Research on Purchasing and Supply Management for Environmental Sustainability: A Bibliometric Review," Sustainability, MDPI, vol. 10(5), pages 1-28, May.
    11. García-Granero, Eva M. & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2020. "Measuring eco-innovation dimensions: The role of environmental corporate culture and commercial orientation," MPRA Paper 119909, University Library of Munich, Germany.
    12. Andersén, Jim, 2021. "A relational natural-resource-based view on product innovation: The influence of green product innovation and green suppliers on differentiation advantage in small manufacturing firms," Technovation, Elsevier, vol. 104(C).
    13. Calabrese, Armando & Costa, Roberta & Levialdi, Nathan & Menichini, Tamara, 2019. "Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 155-168.
    14. Yongbo Sun & Hong Sun, 2021. "Executives’ Environmental Awareness and Eco-Innovation: An Attention-Based View," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    15. Magdalena Pichlak, 2021. "The Drivers of Technological Eco-Innovation—Dynamic Capabilities and Leadership," Sustainability, MDPI, vol. 13(10), pages 1-17, May.
    16. García-Granero, Eva M. & Piedra-Muñoz, Laura & Galdeano-Gómez, Emilio, 2020. "Measuring eco-innovation dimensions: The role of environmental corporate culture and commercial orientation," Research Policy, Elsevier, vol. 49(8).
    17. Wang, Haiyan & Masi, Donato & Dhamotharan, Lalitha & Day, Steven & Kumar, Ajay & Li, Tong & Singh, Gurmeet, 2022. "Unconventional path dependence: How adopting product take-back and recycling systems contributes to future eco-innovations," Journal of Business Research, Elsevier, vol. 142(C), pages 707-717.
    18. Jean-Marie Courrent & Sonia Chassé & Waleed Omri, 2018. "Do Entrepreneurial SMEs Perform Better Because They are More Responsible?," Journal of Business Ethics, Springer, vol. 153(2), pages 317-336, December.
    19. Abhijeet Digalwar & Rakesh D. Raut & Vinay S. Yadav & Balkrishna Narkhede & Bhaskar B. Gardas & Ashwini Gotmare, 2020. "Evaluation of critical constructs for measurement of sustainable supply chain practices in lean‐agile firms of Indian origin: A hybrid ISM‐ANP approach," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1575-1596, March.
    20. Kate V. Lewis & Sue Cassells & Hernan Roxas, 2015. "SMEs and the Potential for A Collaborative Path to Environmental Responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 24(8), pages 750-764, December.

    More about this item

    Keywords

    SMEs; Barriers; Green innovation; Financial; FAHP; Financial development; United Arab Emirates;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:109668. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.