An Integrated Approach to Evaluating Eco-Innovation Strategies from the Perspective of Strategic Green Transformation: A Case of the Lithuanian Furniture Industry

Abstract

Evaluation and selection of eco-innovation strategies is a significant and complex strategic decision, and despite the relevance and interest in the field of eco-innovation, the area of eco-innovation strategies has not been explored in depth in the scientific literature. Therefore, in this study, we propose an integrated approach to evaluating eco-innovation strategies from the perspective of strategic green transformation that helps decision-makers evaluate and select eco-innovation strategy aiming to achieve a competitive advantage. For this study, we adopted a validated multi-criteria decision-making methodology (MCDM) by combining Analytical Hierarchy Process (AHP) and The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). The reliability of the proposed framework was tested and applied in the context of the Lithuanian furniture industry. This study offers three contributions and provides a comprehensive and profound insights into eco-innovation strategies. First, this study conceptualizes eco-innovation strategy from the perspective of strategic green transformation and proposed a novel definition and classification of eco-innovation strategies leading to competitive advantage. Second, this study proposes a novel approach to the evaluation of eco-innovation strategies taking into account micro-, meso-, and macro-level environmental factors. Third, the findings of this study provide implications for scholars and decision-makers in the field of eco-innovation strategy and set an agenda for future research.