Mapping the systemic inhibitors to adoption of green business practices in Indian SMEs: an ISM and MICMAC approach

Purpose This study aims to identify, analyse and model the key inhibitors hindering the adoption of green business practices (GBPs) among Indian small and medium-sized enterprises (SMEs). Despite increasing environmental awareness and regulatory pressures, the transition towards sustainable operations remains slow in the SME sector. The research investigates the interrelationships among these inhibitors to provide actionable insights for policymakers, industry bodies and SME owners. Design/methodology/approach Critical inhibitors were identified through an extensive literature review and in-depth consultations with domain experts. Interpretive structural modelling (ISM) was applied to develop a hierarchical framework mapping the contextual relationships among these inhibitors. Subsequently, the Matrice d’Impacts Croisés Multiplication Appliquée à un Classement (MICMAC) analysis classified the inhibitors according to their driving and dependence power, enabling a deeper understanding of their systemic impact. Findings Results indicate that factors like high initial investment costs, insufficient government support, inadequate employee competence and limited consumer pressure are the most influential inhibitors, possessing strong driving power. Conversely, factors such as perception of high risk, lack of awareness and perception of no benefit to the company emerged as dependent variables influenced by the dominant drivers. The ISM model elucidates the hierarchical influence pathways, while the MICMAC analysis highlights the strategic priority areas that require intervention for accelerating GBP adoption in SMEs. Originality/value This research offers a novel application of ISM–MICMAC in the Indian SME context to model systemic inhibitor interdependencies. By integrating qualitative insights with structured modelling, it provides a robust decision-support framework to guide targeted policy formulation, strategic interventions and capacity-building initiatives in emerging economies.