Assessing the Barriers of Green Innovation Implementation: Evidence from the Vietnamese Manufacturing Sector

Abstract

Sustainability concerns are rising as an interesting topic in both academia and industry. Many scholars revealed that green innovation is an excellent solution to enable organizations to achieve various benefits, such as enhancing their reputation and competitive advantages. Thus, this is the first study in Vietnam to consider the barriers to implementing green innovation. The research aims to identify the obstacles to green innovation practices in the Vietnamese manufacturing sector. The interpretive structural modeling (ISM) approach has been conducted to provide the interactions among the green innovation implementation barriers. The authors ground this study to bridge the theoretical and practical for green innovation practices in the Vietnam situation. Based on the experts’ perspectives, they proposed that Vietnamese manufacturers must deal with thirteen essential barriers to green innovation adoption. Further, six interaction levels and the MICMAC analysis clarified cross-relationships among challenges by evaluating the driving and dependence power. Indeed, the empirical results emphasized that financial capability constraints and lack of government support are the most decisive challenges. In contrast, market competition and uncertainty concern is the easiest obstacle to address by the Vietnamese manufacturers. Therefore, this study has provided some insightful contributions for the top managers and other scholars to consider.

Ambidexterity Behavior of Creative SMEs for Disruptive Flows of Innovation: A Comparative Study of Indonesia and Taiwan

“…Every organization faces a complex business environment and competition [1,2]. Several factors may cause an organization to transform immediately, including competition between organizations [3,4] and a shorter product life cycle [5].…”

“…Top managers have an essential role in creating ambidexterity [2,13]; several studies have documented that social networks help managers and companies prioritize positions to obtain information for the purposes of exploitation and exploration [14][15][16]. The concept of managerial social capital can be used to explain how top managers access and mobilize the dual knowledge required for ambidexterity [17].…”

“…Unsurprisingly, Taiwanese SMEs are the cornerstone of efforts to meet sustainable development goals [28]. Organizations can deal with competition and changes in their business environment by innovating [1,2]. Thus, innovation is essential for organizations to survive in a dynamic environment [29,30], and it is a vital tool for companies wanting to achieve competitive advantage in the global market [2,31].…”

“…Organizations can deal with competition and changes in their business environment by innovating [1,2]. Thus, innovation is essential for organizations to survive in a dynamic environment [29,30], and it is a vital tool for companies wanting to achieve competitive advantage in the global market [2,31]. An organization's successful innovation cannot be separated from the contribution of its human resources [32].…”

Adoption of Green Innovation in SMEs: A Literature Review

“…In a study conducted by Huang et al [27] revealed that there are several obstacles that can occur in efforts to adopt Green Innovation in SMEs. These include lack of courses or training in conducting Green Innovation, lack of knowledge related to environmental issues, lack of cooperation in partnerships, and lack of customer demand for environmentally friendly products.…”