Uncovering Barriers for Industrial Symbiosis: Assessing Prospects for Eco-Industrialization through Small and Medium-Sized Enterprises in Developing Regions

Industrialization is indispensable for socio-economic development but poses far-reaching implications for resources and the environment. Consequently, industrial symbiosis-based collaborations are gaining recognition as a viable strategy to manage resource consumption for mitigating environmental distress. However, these types of synergistic collaborations are more prevalent in developed regions and are linked to larger-sized industries. Admittedly, such collaborative partnerships are less focused in developing regions and small- to medium-size enterprises (SMEs). This calls for discovering the potentials for synergistic partnerships among the small and medium scaled industrial entities in developing economies. Therefore, the study was designed to identify, assess and explore the prospects of symbiotic collaborations among SMEs in Pakistan. Moreover, the inputs are equally relevant for developing and expanding such productive associations in developing regions. Data regarding inputs and outputs was collected from sixty-one (61) SMEs through field survey during the year 2019. It was processed and analyzed to uncover existing and potential synergies among SMEs. The significant findings transpired that the majority of collaborative linkages are bilateral and are driven to maximize economic gains. However, informal networks of recyclers and absence of a stringent regulatory regime are the ground realities in developing/transforming economies. These factors symptomatically interfere with the process of formal/informal exchanges between and among firms. Furthermore, it was observed that the lack of awareness and impulsiveness of SMEs, as well as the inconsistent supply of by-products, act as barriers for such partnerships in developing countries. It calls for proactive engagements and facilitations from the state institutions through policy instruments. The study addresses a broad audience including industrialists, investors, policy makers and researchers engaged in IS studies. Moreover, the inputs will provide impetus for stimulating eco-industrial progress in developing regions such as Pakistan.

Automated summary

Industrial symbiosis-based collaborations are more prevalent in developed regions and larger industries, while less focused in developing regions and small- to medium-sized enterprises (SMEs). A study in Pakistan explores the potential for symbiotic collaborations among SMEs and finds that most collaborations are bilateral and driven by economic gains. However, informal networks of recyclers and a lack of a stringent regulatory regime hinder formal/informal exchanges between firms. Additionally, lack of awareness and inconsistent supply of by-products act as barriers for such partnerships in developing countries. Proactive engagements and facilitations from state institutions are needed to overcome these barriers.