How does the Green Industry Policy Impact a Developing Country? A Case Study of the Electronic Products and Electrical Equipment Manufacturing Sector in Thailand 10.32526/ennrj/19/2021028

Main Article Content

Phurita Noranarttakun
Chanathip Pharino


Implementation of Green Industry (GI) strategy has long been recommended for industrial sectors to achieve sustainable production. Among various approaches, GI certification as a voluntary scheme has been implemented widely to promote the adoption of environmental-friendly practices for Thai industrial entrepreneurs. This research examined the progress and lessons learnt from existing schemes and identified the challenges of GI implementation and future improvement. The study particularly focused on small and medium-sized enterprises (SMEs) in the electronic products and electrical equipment manufacturing sector. A questionnaire-based survey was used to collect data, and the Mann-Whitney U Test was used to verify significant barriers and drivers among the samples. The results indicated that major common practices of SMEs are widely approved for fulfilling GI criteria, i.e., waste segregation and minimization, and energy saving, so as to comply with environmental law. While other environmental practices, such as greenhouse gas accounting, green labelling, and green supply chain management were limited in adoption. SMEs, both certified with GI and non-certified with GI, expressed the same opinion that all factors including financial, legal, social, personnel, technological and policies were barriers to GI adoption but significantly different from the economic factor. SMEs in both groups revealed the same opinion that incentive, expertise and technology were drivers of GI adoption but differ significantly from the financial support. Incentive-based instruments such as subsidies and voluntary schemes for green product certification are proposed as appropriate measures to encourage SMEs to adopt GI.


Download data is not yet available.

Article Details

How to Cite
Noranarttakun, P., & Pharino, C. (2021). How does the Green Industry Policy Impact a Developing Country? A Case Study of the Electronic Products and Electrical Equipment Manufacturing Sector in Thailand: 10.32526/ennrj/19/2021028. Environment and Natural Resources Journal, 19(5), 402–412. Retrieved from
Original Research Articles


Bohari AAM, Skitmore M, Xia B, Teo M, Zhang X, Adham KN. The path towards greening the Malaysian construction industry. Renewable and Sustainable Energy Reviews 2015;52:1742-8.

Caldera HTS, Desha C, Dawes L. Evaluating the enablers and barriers for successful implementation of sustainable business practice in ‘lean’ SMEs. Journal of Cleaner Production 2019;218:575-90.

Chen W, Chen J, Xu D, Liu J, Niu N. Assessment of the practices and contributions of China's green industry to the socio-economic development. Journal of Cleaner Production 2017;153:648-56.

Department of Industry Works. Plan 2564 [Internet]. 2021 [cited 2021 Apr 22]. Available from: hawk/manual/policy/plan2564.pdf.

Frey M, Iraldo F, Testa F. The determinants of innovation in green supply chains: Evidence from an Italian sectoral study. R&D Management 2013;43(4):352-64.

Ghadge A, Kaklamanou M, Choudhary S, Bourlakis M. Implementing environmental practices within the Greek dairy supply chain. Industrial Management and Data Systems 2017;117(9):1995-14.

Ghazilla RAR, Sakundarini N, Abdul-Rashid SH, Ayub NS, Olugu EU, Musa SN. Drivers and barriers analysis for green manufacturing practices in Malaysian SMEs: A preliminary findings. Procedia CIRP 2015;26:658-63.

Jones P, Comfort D, Hillier D. Common ground: The sustainable development goals and the marketing and advertising industry. Journal of Public Affairs 2018;18:1-7.

Jove-Llopis E, Segarra-Blasco A. Eco-Efficiency Actions and Firm Growth in European SMEs. Sustainability 2018;10:281.

Jung TY. Climate technology promotion in the Republic of Korea. Advances in Climate Change Research 2015;6(3-4):229-33.

Katz‐Gerro T, López Sintas J. Mapping circular economy activities in the European Union: Patterns of implementation and their correlates in small and medium‐sized enterprises. Business Strategy and the Environment 2019;28:485-96.

Kesidou E, Demirel P. On the drivers of eco-innovations: Empirical evidence from the UK. Research Policy 2012; 41(5):862-70.

Kiefer CP, Del Río González P, Carrillo-Hermosilla J. Drivers and barriers of eco-innovation types for sustainable transitions: A quantitative perspective. Business Strategy and the Environment 2019;28(1):155-72.

Lee K-H. Why and how to adopt green management into business organizations? The case study of Korean SMEs in manufacturing industry. Management Decision 2009;47: 1101-21.

Lefebvre E, Lefebvre LA, Talbot S. Life cycle design approach in SMEs. The International Journal of Life Cycle Assessment 2001;6(5):273-80.

Luan CJ, Tien C, Chen WL. Which "green" is better? An empirical study of the impact of green activities on firm performance. Asia Pacific Management Review 2016;21(2):102-10.

Mann HB, Whitney DR. On a test of whether one of two random variables is stochastically larger than the other. Annals of Mathematical Statistics 1947;18(1):50‐60.

Mathews JA. Green growth strategies-Korean initiatives. Futures 2012;44(8):761-9.

Ministry of Commerce. Trade report 2021 [Internet]. 2021 [cited 2021 Apr 22]. Available from: TradeThai.aspx.

Ministry of Industry. Green industry [Internet]. 2018 [cited 2019 Jul 26]. Available from: greenindustry/searchfactory/.

Ministry of Industry. Green Industry. 8th ed. Bangkok, Thailand: Department of Industry Works; 2017.

Ministry of Industry. Summary of licensed factory 2016 [Internet]. 2016 [cited 2017 Apr 2]. Available from: of licensed factory.

Nachar N. The Mann‐Whitney U: A test for assessing whether two independent samples come from the same distribution. Tutorials in Quantitative Methods for Psychology 2008;4(1):13-20.

Organisation for Economic Cooperation and Development (OECD). OECD Environmental performance reviews: Japan 2010 [Internet]. 2010 [cited 2018 Jan 20]. Available from:

Organisation for Economic Cooperation and Development (OECD). OECD Environmental performance reviews: Korea 2017 [Internet]. 2017 [cited 2018 Jan 20]. Available from:

Office of Small and Medium Enterprises Promotion. Ministerial regulations of number of employment and the fix asset value of small and medium enterprise B.C. 2545 [Internet]. 2002 [cited 2017 Jun 26]. Available from:

Office of Small and Medium Enterprises Promotion. SME Promotion Plan No.3 [Internet]. 2015 [cited 2017 Jun 26]. Available from:

Office of Small and Medium Enterprises Promotion. SME situation report 2016 [Internet]. 2016 [cited 2017 Jun 26]. Available from: =348.

Office of Small and Medium Enterprises Promotion. SME situation report 2020 [Internet]. 2020 [cited 2021 Apr 22]. Available from: y=348.

Ormazabal M, Prieto-Sandoval V, Puga-Leal R, Jaca C. Circular Economy in Spanish SMEs: Challenges and opportunities. Journal of Cleaner Production 2018;185:157-67.

Pedersen CS. The UN Sustainable Development Goals (SDGs) are a great gift to business. Procedia CIRP 2018;69:21-4.

Peng S, Sun X. Research on challenges and strategies for China’s green economy development. Chinese Journal of Population Resources and Environment 2015;13(2):127-31.

Potros S, Enquist SB. ISO 14001 as a driving force for sustainable development and value creation. The TQM Magazine 2007;19(5):468-82.

Prieto‐Sandoval V, Ormazabal M, Jaca C, Viles E. Key elements in assessing circular economy implementation in small and medium‐sized enterprises. Business Strategy and the Environment 2018;27:1525-34.

Roy M-J, Boiral Q, Paillé P. Pursuing quality and environmental performance initiatives and supporting processes. Business Process Management Journal 2013;19(1):30-5.

Schoenherr T, Talluri S. Environmental sustainability initiatives: A comparative analysis of plant efficiencies in Europe and the U.S. IEEE Transactions on Engineering Management 2013;60(2):353-65.

Shrivastava M, Tamvada JP. Which green matters for whom? Greening and firm performance across age and size distribution of firms. Small Business Economics 2019;52: 951-68.

Stucki T. Which firms benefit from investments in green energy technologies? The effect of energy costs. Research Policy 2019;48(3):546-55.

Yamane T. Statistics: An Introductory Analysis. 2nd ed. New York, USA: Harper and Row; 1967.

Tavakol M, Dennick R. Making sense of Cronbach's alpha. International Journal of Medical Education 2011;2:53-5.

Triguero A, Moreno-Mondéjar L, Davia MA. Drivers of different types of eco-innovation in European SMEs. Ecological Economics 2013;92:25-33.

United Nations Industrial Development Organization (UNIDO). The 2030 Agenda for Sustainable Development: Achieving the Industry-related Goals and Targets. Vienna, Austria: UNIDO; 2018.

United Nations Industrial Development Organization (UNIDO). UNIDO Green Industry Initiative for Sustainable Industrial Development. Vienna, Austria: UNIDO; 2011.

Wang C, Ghadimi P, Lim MK, Tseng M-L. A literature review of sustainable consumption and production: A comparative analysis in developed and developing economies. Journal of Cleaner Production 2019;206:741-54.

Wang C-T, Chiu C-S. Competitive strategies for Taiwan's semiconductor industry in a new world economy. Technology in Society 2014;36:60-73.

Woodard R. Waste management in small and medium enterprises (SMEs): Compliance with duty of care and implications for the circular economy. Journal of Cleaner Production 2021;278:123770.

World Bank. Small and medium enterprises (SMEs) finance [Internet]. 2020 [cited 2020 May 22]. Available from: https://www.

Yusup MZ, Mahmood WH, Salleh MR, Ab Rahman MN. The implementation of cleaner production practices from Malaysian manufacturers' perspectives. Journal of Cleaner Production 2015;108:659-72.

Zamfir A-M, Mocanu C, Grigorescu A. Circular economy and decision models among European SMEs. Sustainability 2017;9(9):1507.