UNDERSTANDING BARRIERS TO DESIGN THINKING ADOPTION IN INDIAN MANUFACTURING MSMES: EVIDENCE FROM A SEQUENTIAL MIXED-METHODS STUDY

Meraj Alam  Idrisi; Ranganath M.  Singari

doi:10.29121/shodhkosh.v7.i7s.2026.8222

Authors

Meraj Alam Idrisi Department of Design, Delhi Technological University, Delhi 110042, India
Ranganath M. Singari Department of Design, Delhi Technological University, Delhi 110042, India

DOI:

https://doi.org/10.29121/shodhkosh.v7.i7s.2026.8222

Keywords:

Design Thinking Adoption, Barriers, Indian Msmes, Manufacturing, Mixed-Methods, Structural Equation Modelling, Emerging Economy, Innovation Capability, Design-Led Innovation, Industry 5.0

Abstract [English]

The formulation of Human centred Innovation, Design Thinking (DT) is gaining traction as a key methodology for innovation, but its implementation within the Indian manufacturing Micro, Small, and Medium Enterprise (MSME) sector, which contributes about 45% of the manufacturing output in the country, is limited and patchy. In this paper, the multi-level barriers for DT adoption in Indian manufacturing MSMEs are empirically identified and quantified, and the barriers are theorised. A sequential explanatory mixed-methods design was employed: a 47-item structured survey of 312 MSMEs across five major industrial clusters was followed by 28 in-depth interviews. Exploratory and Confirmatory Factor Analysis identified seven barrier dimensions explaining 68.4% of variance. Covariance-based Structural Equation Modelling (n = 312; CFI = 0.94; RMSEA = 0.063; R² = 0.58) supported all seven hypotheses. Financial Constraints (β = −0.41) and Awareness Deficit (β = −0.38) emerged as the strongest inhibitors, while Policy Ecosystem quality positively moderated the readiness–adoption pathway (β = +0.31). Qualitative themes-the “design blindspot,” the “thin-margin trap,” and the policy “last-mile” gap-explain the cognitive, financial, and institutional mechanisms underlying these effects. The study contributes (a) the first statistically validated barrier taxonomy for DT adoption in Indian manufacturing MSMEs, (b) a three-tier (micro–meso–macro) Layered Barrier Model integrating four theoretical lenses (Diffusion of Innovations, TAM, RBV, Institutional Theory), and (c) a five-stage adoption roadmap with a matching policy-intervention matrix for emerging-economy SME ecosystems.

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