AHP-Based Green Innovation Practices Index for assessing Corporate Performance on Indian Manufacturing Firms
DOI:
https://doi.org/10.31305/trjtm2026.v06.n03.001Keywords:
Green innovation, Analytic hierarchy process (AHP), Green technology and R&D, Green process innovation, Composite index, Corporate performance, Manufacturing firmsAbstract
Green innovation is widely recognised as a route through which manufacturing firms can reconcile environmental responsibility with corporate performance, yet firms operating under resource constraints have little guidance on which green innovation practices deserve priority. This study prioritises the dimensions and attributes of green innovation practices and constructs a weighted Green Innovation Practices Index (GIPI) for manufacturing firms. Twenty-five attributes grouped into five constructs (green product innovation, green process innovation, green managerial innovation, green supply chain innovation, and green technology and R&D) were identified from the literature and refined through expert discussion. Pairwise comparison judgements were obtained from fifteen senior executives of manufacturing firms in the National Capital Region (NCR) of India, selected through snowball sampling, and analysed using the Analytic Hierarchy Process (AHP). Green technology and R&D emerged as the most important construct (28.08%), followed by green process innovation (25.06%), green managerial innovation (19.48%), green product innovation (19.21%) and green supply chain innovation (8.17%). At the attribute level, investment in green R&D (7.80%), adoption of advanced eco-friendly technologies (7.49%), integration of environmental objectives into business strategy (6.83%) and energy-efficient manufacturing processes (6.64%) were the leading priorities, whereas encouraging customers to adopt eco-friendly practices (0.43%) and use of biodegradable materials (0.63%) were the least emphasised. The judgements were highly consistent (CR = 0.0024). The study offers an expert-weighted, five-dimensional index of green innovation practices that replaces the equal-weighting assumption common in prior work, provides evidence from an emerging-economy manufacturing context, and gives managers and policymakers a practical tool for benchmarking and resource allocation.
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