A Multi-Criteria Decision-Making Approach to Identifying Barriers to Environmental Improvement in Indian Chemical MSMEs

Abstract

Environmental sustainability in Micro, Small, and Medium Enterprises (MSMEs), especially in the chemical sector, faces a range of obstacles that hinder green adoption. This study identifies and prioritizes 15 critical environmental improvement barriers faced by Indian chemical MSMEs through an integrated application of MCDM techniques—AHP, TOPSIS, Fuzzy TOPSIS, and DEMATEL. The barriers are evaluated across five decision criteria: Impact, Frequency, Cost, Ease, and Policy Influence. Based on expert input from various Indian MSME sectors, results indicate that lack of green logistics implementation, weak eco-design practices, and poor R&D infrastructure are the most significant obstacles. Fuzzy TOPSIS and DEMATEL methods provided deeper insights by incorporating uncertainty and interdependence between barriers. The study offers a comprehensive prioritization of environmental challenges, supported by mathematical modeling and visual analysis. The findings are validated through cross-comparison of results and illustrated with sector-specific examples, making them practical for policy formulation and industry transformation.