FISM-FMICMAC-based analysis of challenges affecting potato processing by SMEs in India

Purpose India has been cultivating potatoes for more than 300 years. Potato is now among the most widely grown crops due to its affordability as a cheap source of food and energy. Small and Medium Enterprises (SMEs) have the opportunity to grow their businesses and satisfy consumer demand by adding to the variety of potato-based products available in the Indian market. This study identifies and analyses the challenges faced by SMEs in potato processing. Design/methodology/approach The study used a two-phase qualitative methodology. The first step employed an exploratory research design to obtain data from 150 food processing entrepreneurs in North India was collected which resulted in the identification of 11 major challenges they face. The second step involved two phases: (1) the development of the Fuzzy Interpretive Structural Modelling (FISM) and (2) the application of the Fuzzy Cross-impact matrix multiplication to classification (FMICMAC). Domain experts participated in the development of the hierarchy-based contextual relationship among the identified challenges and categorizing them based on their driving and dependence power. Findings Of the 11 challenges identified, low education level and stringent laws were the most prominent driving challenges, and lack of value-added products was the most dependent challenge. Research limitations/implications Based on the obtained results, the study proposes the preliminary policy framework to facilitate policy planners to work towards minimizing the impact of challenges and support growth for food processing SMEs in India. Future research can use SEM to validate these results. Originality/value The paper is the outcome of the original research conducted by the authors.