Drivers and barriers of green practices adoption: A survey of small and medium-sized manufacturing enterprises in an emerging economy
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Oladoye Muritala Oyetola(1*)
Department of Business Administration, Faculty of Management Sciences, Osun State University, Osogbo, Osun State
-
Badiru Nafiu Isola(2)
Department of Marketing, Faculty of Management Sciences, Osun State University, Osogbo, Osun State
-
Oyedepo Oluwafemi Hezekiah(3)
Department of General Studies, Open and Distance Learning Centre, Ladoke Akintola University of Technology, Ogbomoso, Oyo State
(*) Corresponding Author
Keywords:
Small and Medium-sized Manufacturing Enterprises, Drivers, Barriers, Green Practices, Adoption
Abstract
This study examines the key drivers and barriers influencing GP adoption among SMMEs in Southwestern Nigeria. A quantitative survey design was employed using a structured questionnaire administered to 320 SMMEs across Lagos, Ogun, Oyo, and Osun States. Respondents were selected through a combination of convenience and purposive sampling, and the data were analyzed using the Relative Importance Index (RII) to rank the identified drivers and barriers. The findings indicate that government regulations, financial incentives, supportive organizational policies, resource commitment, and competitive pressures are the most influential drivers of GP adoption. In contrast, limited awareness of the benefits of green practices, high implementation costs, inadequate government financial incentives, insufficient regulatory guidance, and limited flexibility in transitioning to green systems constitute the most prominent barriers. These findings demonstrate that green-practice adoption among SMMEs is shaped by the interaction of institutional support, financial capacity, organizational readiness, and competitive pressures. The study contributes to the sustainable manufacturing literature by providing empirical evidence from a developing-country context and identifying the relative importance of the factors that facilitate or constrain green-practice adoption. The findings also offer practical implications for policymakers and industry stakeholders by highlighting the need for coordinated regulatory support, accessible financial incentives, clear implementation guidance, and targeted capacity-building initiatives to accelerate sustainable manufacturing among SMMEs.
Keywords: Small and Medium-sized Manufacturing Enterprises; Drivers; Barriers; Green Practices; Adoption
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References
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Bhome, S., Jha, N., Chandwani, V., Desai, S., Prabhudesai, A. & Koshti, S. D. (2013). Research methodology. Mumbai: Himalaya Publishing House Pvt Limited.www.himpub.com
Chenari A. (2023). Understanding barriers to sustainable resource practices in small and medium enterprises. Journal of Resource Management and Decision Engineering, 2(2), 32-38. https://doi.org/10.61838/kman.jrmde.2.2.6
Chuckwu, V. E. (2020). Potentials, drivers and barriers to green economy transition: Implications for Africa. Advanced Journal of Plant Biology,1(1), 7-17.
DCED (2025). Renewed SME Agenda in the Context of Green and Just Transition. Policy Brief. http://www.enterprise-development.org/
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https://doi.org/10.20448/ijsam.v9i1.7265
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DOI: 10.22034/GJESM.2023.09.SI.13
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Ghazilla, R. A. R.., Sakundarini, N., Abdul-Rashid, S. H., Ayub, N. S, Olugu, E. U., & Musa, S. N. (2015). Drivers and barriers analysis for green manufacturing practices in Malaysian SMEs: A Preliminary Findings. Procedia CIRP, 26, 658 – 663.
Hashim, N. A., Satchapappicttit, S., & Hussin, Z. (2016). Internal factors and their influence on the adoption of green practices among small and medrum sized hotels in Thailand. Proceedings: The 2nd International Conference on Business Management, 2 (1), 69-84.
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Iqbal, U. P., Nooney, L.K., Al Ghafri, F. S. S. & Danie, T. M. (2025). Sustainable business practices in SMEs: a retrospective insight on catalysts and hurdles, Cogent Business & Management, 12:1, 2456114, doi: 10.1080/23311975.2025.2456114.
Ifije, O. & Aigbavboa, C. (2020). Identifying barriers of sustainable construction: A Nigerian case study. MATEC Web of Conferences 312, 04004. https://doi.org/10.1051/matecconf/202031204004.
Jefimovaite L., Vienazindiene M. (2022). factors influencing the application of green logistics: findings from the Lithuanian logistics center. polish journal of management studies, 25(1), 193-212. doi: 10.17512/pjms.2022.25.1.12
Kehinde, O. F., & Onuoha, B. C. (2023). Green management practices and the sustainable business performance of SMEs in Rivers State. International Journal of Business and Economics, 8, (6), 28-41. doi: 647214523863
Kifordu, A. A., Erimafuru, O. F. & Erijiromah O. L. (2023). Enhancing business performance of SMEs through green business strategy: South-South Nigeria in Focus. Direct Research Journal of Management and Strategic Studies, 4(3), 40-52. doi: https://doi.org/10.26765/DRJMSS11051908
Koirala, S. (2019), “SMEs: Key drivers of green and inclusive growth”, OECD Green Growth Papers. Paris: OECD Publishing.
Kothari, C. R. (2004). Research methodology methods and techniques (2nd ed.). New Delhi: New Age International (P) Limited, Publishers.
www.newagepublishers.com
Lutfi, A., Alqudah, H., Alrawad, M., Alshira’h, A.F., Alshirah, M.H., Almaiah, M.A., Alsyouf, A., & Hassan, M.F. (2023). Green environmental management system to support environmental performance: What factors influence SMEs to adopt green innovations? Sustainability, 15, 10645. https://doi.org/10.3390/ su15131064
Mahagamage, V. C., & Perera, J. L. S. R. (2024). Barriers to adopting and implementing green practices: A Study of small and medium-sized enterprises (SMEs) in Sri Lanka. Annual International Conference on Business Innovation, 156-170.
Mei, T. S. (2023). Drivers and barriers of green manufacturing implementation in Klang Valley, Malaysia, MBA research project, Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman.
Mwanaumo, E. T., & Mwanza, B. G. (2024). Assessment of the drivers and barriers to adoption of green supply chain management practices: A case of the beverage manufacturing industry. International Journal of Research and Innovation in Social Sciences, 8(14), 401-416.
DOI: https://dx.doi.org/10.47772/IJRISS.2024.814MG0034
Nkiruka, O. E., & Nmoenyelu, O. G. (2025). Adoption of green business practices among small and medium-scale enterprises (SMEs) for sustainable development in Anambra State, Nigeria. Unizik Journal of Business Education and Entrepreneurship,1(1)159-169.
Nyahuna, T., Doorasamy, M., & Baldavoo, K. (2023). Barriers to implementation of environmental management accounting in South African small and medium enterprises for sustainable performance. Indonesian Journal of Social and Environmental Issues, 4 (3), 258-266. doi: 10.47540/ijsei.v4i3.995
OECD (2025). Advancing SME sustainability for resilient and competitive economies. OECD Platform on Financing SMEs for Sustainability: Fourth Annual Conference
Ojo, O., Shah S., & Ganji, E. N. (2024). Sustainable manufacturing evaluation of the food industry: a case of rice manufacturing. Academia Engineering,1, 1-10. https://doi.org/10.20935/AcadEng6189
Okeke, C. L.; Mbah, S., & Okeke, M.C. (2025). Green management and performance sustainability of small and medium enterprises (SMES) in Anambra State, Nigeria. International Journal of Business & Law Research, 13(2),70-87. www.seahipublications.org
Oladoye, M. O., & Akinlo, I. (2023). An appraisal of supply chain management practices adoption level among small and medium scale manufacturing firms in Southwestern Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 8(2), 12-22.
Omopariola, E. D., Albert, I., & Windapo, A. (2019). Appropriate drivers for sustainable construction practices on construction sites in Nigeria In: Laryea, S. and Essah, E. (Eds) Proceedings 10th West Africa Built Environment Research (WABER) Conference, 5-7 August, Accra, Ghana, 103-115
Omowole, B. M., Olufemi-Phillips, A. Q., Ofodile, O, C., Eyo-Udo, N. L., & Ewim, S. E. (2024). Conceptualizing green business practices in SMEs for sustainable development. International Journal of Management & Entrepreneurship Research, 6(11), 3778-3805. doi: 10.51594/ijmer.v6i11.1719
Onososen, A. O., Osanyin, O., & Adeyemo, M. O. (2019). Drivers and barriers to the implementation of green building development. PM World Journal 8 (9).
Purwandani, J. A., & Michaud, G. (2021). What are the drivers and barriers for green business practice adoption for SMEs? Environment Systems and Decisions 41, 577–593 https://doi.org/10.1007/s10669-021-09821-3
Rekik, L. (2017). Green practice motivators and performance in smes: a qualitative comparative analysis. Journal of Small Business Strategy, 27(1).
Shaharudin, M. R., Akbar, J., Zainal, N. N. Hassam, S. F., Zainoddin, A. I. Nizam, M. F. M. (2018). Factors That Influence Green Practices Adoption Amongst Logistics Services Providers. International Journal of Supply Chain Management, 7(6), 242-253.
Shukla, G. P., Swarnakar, V· & Singh, S. J. (2023). Assessment of Drivers and Barriers of Green Manufacturing Practices in Indian Manufacturing Companies. Journal of The Institution of Engineers. Series C. https://doi: 10.1007/s40032-022-00902-z
Solaja (2022), prospects and challenges of green practices adoption by manufacturing companies in ogun state, Nigeria. journal of the institute of African Studies, 1(58), 17-30. doi:10.31132/2412-5717-2022-51-1-17-30
Surbakti, R. T., Hanoum, S., Anshori, M. Y., Korpysa, J., & Shubbak, M., (2025). Green practices in business: A systematic review in enhancing environmental and economic sustainability. International Journal of Sustainable Development and Planning, 20(6), 2445-2454.
Wasiq, M.; Kamal, M.; Ali, N. (2023). Factors influencing green innovation adoption and its impact on the sustainability performance of small- and medium-sized enterprises in Saudi Arabia. Sustainability, 15, 2447.
https:// doi.org/10.3390/su15032447
Wildnerova, L., Menon, C., Dehghan,R., Kinne, J., & Lenz, D. (2024). Which SMEs are greening? Cross-country evidence from one million websites. OECD SME and Entrepreneurship Papers, 60.
Zulu, S. L., Zulu, E., Chabala, M., & Chunda, N. (2023) Drivers and barriers to sustainability practices in the Zambian Construction Industry, International Journal of Construction Management, 23(12), 2116-2125.
doi: 10.1080/15623599.2022.2045425
Agboola, S. A., Idowu, F. A., Yusuf, F. M., & Musa, A. K. (2023). Barriers to sustainable green building practices in Nigeria. UDMA Journal of Sciences, 7(6), 157-163. https://doi.org/10.33003/fjs-2023-0706-2114
Aghelie, A. (2017). Exploring drivers and barriers to sustainability green business practices within small medium sized enterprises: Primary findings. International Journal of Business and Economic Development, 5(1), 41-48.
Ahmad, M. F., Ismail, S. N., Hassan, M. F., Wei, C. S., Abdul, N., Ahmad, A. N. A., Nawi, M. N. M., & Rahman, N. A. A. (2019). A study of green factory practices in Malaysia manufacturing industry. International Journal of Supply Chain Management, 8(1), 772-776.
Bhome, S., Jha, N., Chandwani, V., Desai, S., Prabhudesai, A. & Koshti, S. D. (2013). Research methodology. Mumbai: Himalaya Publishing House Pvt Limited.www.himpub.com
Chenari A. (2023). Understanding barriers to sustainable resource practices in small and medium enterprises. Journal of Resource Management and Decision Engineering, 2(2), 32-38. https://doi.org/10.61838/kman.jrmde.2.2.6
Chuckwu, V. E. (2020). Potentials, drivers and barriers to green economy transition: Implications for Africa. Advanced Journal of Plant Biology,1(1), 7-17.
DCED (2025). Renewed SME Agenda in the Context of Green and Just Transition. Policy Brief. http://www.enterprise-development.org/
Ernawati, E., & Fauziana, D. R. (2025). Investigating determinants of SMEs’ green practices: A literature review and proposed model. Indonesian Journal of Sustainability Accounting and Management, 9(1), 144–165.
https://doi.org/10.20448/ijsam.v9i1.7265
Escobar, A., Luna, J., & Caraballo, A, (2023). Barriers to sustainable green innovation in meeting the challenges of the global economy of firms. Global Journal of Environmental Science and Management, 9(SI), 219-232.
DOI: 10.22034/GJESM.2023.09.SI.13
Fatoki, O. (2019). Drivers and barriers to sustainability manufacturing practices by small and medium enterprises in South Africa. Academy of Entrepreneurship Journal, 25(3).
Ghazilla, R. A. R.., Sakundarini, N., Abdul-Rashid, S. H., Ayub, N. S, Olugu, E. U., & Musa, S. N. (2015). Drivers and barriers analysis for green manufacturing practices in Malaysian SMEs: A Preliminary Findings. Procedia CIRP, 26, 658 – 663.
Hashim, N. A., Satchapappicttit, S., & Hussin, Z. (2016). Internal factors and their influence on the adoption of green practices among small and medrum sized hotels in Thailand. Proceedings: The 2nd International Conference on Business Management, 2 (1), 69-84.
Huang, Y. F., Chen, A. P. S, Do, M. H., & Chung. J. C. (2022). Assessing the barriers of green innovation implementation: Evidence from the Vietnamese manufacturing sector. Sustainability, 14(4662). https:// doi.org/10.3390/su14084662
Iqbal, U. P., Nooney, L.K., Al Ghafri, F. S. S. & Danie, T. M. (2025). Sustainable business practices in SMEs: a retrospective insight on catalysts and hurdles, Cogent Business & Management, 12:1, 2456114, doi: 10.1080/23311975.2025.2456114.
Ifije, O. & Aigbavboa, C. (2020). Identifying barriers of sustainable construction: A Nigerian case study. MATEC Web of Conferences 312, 04004. https://doi.org/10.1051/matecconf/202031204004.
Jefimovaite L., Vienazindiene M. (2022). factors influencing the application of green logistics: findings from the Lithuanian logistics center. polish journal of management studies, 25(1), 193-212. doi: 10.17512/pjms.2022.25.1.12
Kehinde, O. F., & Onuoha, B. C. (2023). Green management practices and the sustainable business performance of SMEs in Rivers State. International Journal of Business and Economics, 8, (6), 28-41. doi: 647214523863
Kifordu, A. A., Erimafuru, O. F. & Erijiromah O. L. (2023). Enhancing business performance of SMEs through green business strategy: South-South Nigeria in Focus. Direct Research Journal of Management and Strategic Studies, 4(3), 40-52. doi: https://doi.org/10.26765/DRJMSS11051908
Koirala, S. (2019), “SMEs: Key drivers of green and inclusive growth”, OECD Green Growth Papers. Paris: OECD Publishing.
Kothari, C. R. (2004). Research methodology methods and techniques (2nd ed.). New Delhi: New Age International (P) Limited, Publishers.
www.newagepublishers.com
Lutfi, A., Alqudah, H., Alrawad, M., Alshira’h, A.F., Alshirah, M.H., Almaiah, M.A., Alsyouf, A., & Hassan, M.F. (2023). Green environmental management system to support environmental performance: What factors influence SMEs to adopt green innovations? Sustainability, 15, 10645. https://doi.org/10.3390/ su15131064
Mahagamage, V. C., & Perera, J. L. S. R. (2024). Barriers to adopting and implementing green practices: A Study of small and medium-sized enterprises (SMEs) in Sri Lanka. Annual International Conference on Business Innovation, 156-170.
Mei, T. S. (2023). Drivers and barriers of green manufacturing implementation in Klang Valley, Malaysia, MBA research project, Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman.
Mwanaumo, E. T., & Mwanza, B. G. (2024). Assessment of the drivers and barriers to adoption of green supply chain management practices: A case of the beverage manufacturing industry. International Journal of Research and Innovation in Social Sciences, 8(14), 401-416.
DOI: https://dx.doi.org/10.47772/IJRISS.2024.814MG0034
Nkiruka, O. E., & Nmoenyelu, O. G. (2025). Adoption of green business practices among small and medium-scale enterprises (SMEs) for sustainable development in Anambra State, Nigeria. Unizik Journal of Business Education and Entrepreneurship,1(1)159-169.
Nyahuna, T., Doorasamy, M., & Baldavoo, K. (2023). Barriers to implementation of environmental management accounting in South African small and medium enterprises for sustainable performance. Indonesian Journal of Social and Environmental Issues, 4 (3), 258-266. doi: 10.47540/ijsei.v4i3.995
OECD (2025). Advancing SME sustainability for resilient and competitive economies. OECD Platform on Financing SMEs for Sustainability: Fourth Annual Conference
Ojo, O., Shah S., & Ganji, E. N. (2024). Sustainable manufacturing evaluation of the food industry: a case of rice manufacturing. Academia Engineering,1, 1-10. https://doi.org/10.20935/AcadEng6189
Okeke, C. L.; Mbah, S., & Okeke, M.C. (2025). Green management and performance sustainability of small and medium enterprises (SMES) in Anambra State, Nigeria. International Journal of Business & Law Research, 13(2),70-87. www.seahipublications.org
Oladoye, M. O., & Akinlo, I. (2023). An appraisal of supply chain management practices adoption level among small and medium scale manufacturing firms in Southwestern Nigeria. International Journal of Innovative Research in Accounting and Sustainability, 8(2), 12-22.
Omopariola, E. D., Albert, I., & Windapo, A. (2019). Appropriate drivers for sustainable construction practices on construction sites in Nigeria In: Laryea, S. and Essah, E. (Eds) Proceedings 10th West Africa Built Environment Research (WABER) Conference, 5-7 August, Accra, Ghana, 103-115
Omowole, B. M., Olufemi-Phillips, A. Q., Ofodile, O, C., Eyo-Udo, N. L., & Ewim, S. E. (2024). Conceptualizing green business practices in SMEs for sustainable development. International Journal of Management & Entrepreneurship Research, 6(11), 3778-3805. doi: 10.51594/ijmer.v6i11.1719
Onososen, A. O., Osanyin, O., & Adeyemo, M. O. (2019). Drivers and barriers to the implementation of green building development. PM World Journal 8 (9).
Purwandani, J. A., & Michaud, G. (2021). What are the drivers and barriers for green business practice adoption for SMEs? Environment Systems and Decisions 41, 577–593 https://doi.org/10.1007/s10669-021-09821-3
Rekik, L. (2017). Green practice motivators and performance in smes: a qualitative comparative analysis. Journal of Small Business Strategy, 27(1).
Shaharudin, M. R., Akbar, J., Zainal, N. N. Hassam, S. F., Zainoddin, A. I. Nizam, M. F. M. (2018). Factors That Influence Green Practices Adoption Amongst Logistics Services Providers. International Journal of Supply Chain Management, 7(6), 242-253.
Shukla, G. P., Swarnakar, V· & Singh, S. J. (2023). Assessment of Drivers and Barriers of Green Manufacturing Practices in Indian Manufacturing Companies. Journal of The Institution of Engineers. Series C. https://doi: 10.1007/s40032-022-00902-z
Solaja (2022), prospects and challenges of green practices adoption by manufacturing companies in ogun state, Nigeria. journal of the institute of African Studies, 1(58), 17-30. doi:10.31132/2412-5717-2022-51-1-17-30
Surbakti, R. T., Hanoum, S., Anshori, M. Y., Korpysa, J., & Shubbak, M., (2025). Green practices in business: A systematic review in enhancing environmental and economic sustainability. International Journal of Sustainable Development and Planning, 20(6), 2445-2454.
Wasiq, M.; Kamal, M.; Ali, N. (2023). Factors influencing green innovation adoption and its impact on the sustainability performance of small- and medium-sized enterprises in Saudi Arabia. Sustainability, 15, 2447.
https:// doi.org/10.3390/su15032447
Wildnerova, L., Menon, C., Dehghan,R., Kinne, J., & Lenz, D. (2024). Which SMEs are greening? Cross-country evidence from one million websites. OECD SME and Entrepreneurship Papers, 60.
Zulu, S. L., Zulu, E., Chabala, M., & Chunda, N. (2023) Drivers and barriers to sustainability practices in the Zambian Construction Industry, International Journal of Construction Management, 23(12), 2116-2125.
doi: 10.1080/15623599.2022.2045425
Published
2026-11-01
How to Cite
Oyetola, O., Isola, B., & Hezekiah, O. (2026). Drivers and barriers of green practices adoption: A survey of small and medium-sized manufacturing enterprises in an emerging economy. Journal of Management : Small and Medium Enterprises (SMEs), 19(3), 2175-2191. https://doi.org/10.35508/jom.v19i3.29424
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