Sustainable Decision‐Making in SMEs of the Textile Industry: Integrating Methodologies, Practices, and Barriers

Israel Naranjo, Rocío de la Torre and Andres Boza

Business Strategy and the Environment, 2025, vol. 34, issue 6, 6385-6441

Abstract: Despite its economic importance, the textile industry is one of the most polluting sectors. This study addresses the critical gap in understanding sustainable decision‐making in textile SMEs, where decision processes often remain informal and lack structured frameworks. It seeks to identify the decisions made in productive environments that incorporate environmental, economic, and social sustainability, while also exploring those that overlook these dimensions. Through a systematic literature review, the research examines key themes such as (i) decision‐making for sustainable development in SMEs; (ii) sustainable supply chain management in the textile industry; (iii) sustainable practices to achieve the SDGs; and (iv) environmental, social, and economic sustainability in textile SMEs. The analysis (i) explores the most commonly used sustainability pillars and practices related to products, processes, and organizations; (ii) categorizes aspects, strategies, indicators, and barriers faced by textile SMEs; and (iii) identifies types of decisions, methodologies, and criteria that can guide these companies toward sustainability. The findings highlight the predominance of the environmental dimension, with life cycle assessment, circular economy, and sustainable business models being the most well‐defined practices. Decision‐making methodologies often rely on multiattribute decision‐making (MADM), particularly the analytic hierarchy process (AHP). However, the use of mathematical programming models remains limited. This paper provides a valuable resource for improving sustainability initiatives in textile SMEs by connecting categorized elements with production environments and sustainability dimensions.

Date: 2025
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