Eco-innovation as a mechanism for increasing the competitiveness of an enterprise

Abstract

Introduction. The ecological aspect of enterprise functioning has recently become one of the key success factors influencing its competitive position.

 The purpose of the article. The purpose of this article is to identify the opportunities for an enterprise to gain a competitive advantage by enhancing its eco-innovation potential.

Methods. The methodological basis of the study comprises theoretical principles of management science and scientific works of renowned economists in the field of enterprise competitiveness and innovation management. To address the research objectives, the study employs the dialectical method of scientific cognition to identify the concepts of competitiveness, innovativeness, and eco-innovation. Additionally, conceptual-logical analysis and a systemic approach are used to highlight the challenges of implementing eco-innovations aimed at maintaining and improving enterprise competitiveness after the onset of war.

Results. It has been established that competitiveness is the state of an enterprise in which it can engage in competitive struggle. The presence of competitive potential and the competitive advantages formed on its basis reflect the ability to compete effectively and avoid competitive miscalculations. Competitive advantage should primarily be sought in the enterprise’s ability to be innovative, continuously improve, and thus achieve optimal efficiency. It has been proven that enterprise innovativeness is its ability to seek and commercially utilize the results of scientific research, new concepts, ideas, or inventions, leading to an increased level of modernity and strengthened competitive positions. Eco-innovations are substantiated as innovations consisting of new processes, methods, practices, systems, and products that enable the avoidance or reduction of environmental impact. Eco-innovations form part of a business philosophy aimed at creating competitive advantages. The implementation of eco-innovations enhances environmental efficiency, directly contributing to the reduction of production energy intensity and, indirectly, to increased enterprise competitiveness.

Conclusion. A propensity for innovation demonstrates enterprises’ aspiration to meet competitive conditions and enhance their competitiveness. Environmental competitiveness is of particular importance, defined as an enterprise’s ability to adapt to market conditions, linked to the eco-friendly behavior of other entities (both producers and consumers), as well as its ability to compete and benefit from activities aimed at improving the environment.