Eco-Innovation in the Scandinavian and Finnish Furniture Industry: Investigating Drivers, Barriers and The Role of Company Age and Size

Sammanfattning: Thesis Purpose: This study explores the major drivers and barriers to eco-innovation in Scandinavian and Finnish furniture companies, examining the influence of company size and age. The findings benefit stakeholders including businesses, policymakers, professionals, investors, and consumers. Theoretical Perspective: This study’s theoretical framework was developed through an exploration of eco-innovation literature and the effects of firm size and age on innovation. Central theories incorporated include Technological Determinism (Veblen, 1921), Institutional Theory (DiMaggio & Powell, 1983), and Resource-based view (Barney, 1991), shaping the study’s framework. The size and age of firms were considered through the Schumpeterian Hypothesis (Schumpeter, 1942), the entrepreneurial firms perspective (Acs & Audretsch, 1990), the age-dependent and independent innovation views (Sørensen & Stuart, 2000; Zhou, Yim and Tse, 2005), and the contingent/contextual perspective (Nooteboom, 1994; Cohen & Klepper, 1996). These guided the hypothesis formulation and analysis within the target industry. Methodology: Utilising a mixed-methods approach, the study combines the breadth of survey data with the depth of semi-structured interviews, capturing insights from industry professionals across different company sizes and ages. The the survey responses averaged across the industry are analysed together with the interview insights to answer the research questions. Data Scope: This study used non-probability purposive sampling, selecting participants for their industry experience. The sample included 34 survey respondents and 8 interviewees from various furniture companies in the geographical location of interest. Findings: This research uncovered a multitude of drivers and barriers to eco-innovation within the Scandinavian and Finnish furniture industry. Predominantly, market demand, environmental factors such as climate change and resource scarcity, and corporate strategy emerged as key drivers. On the other hand, resource capabilities, availability of skilled staff, and supply-side market issues posed significant barriers. Interestingly, the study found the majority of the proposed hypotheses applicable to this context, with company size considered more influential for successful eco-innovation than company age. Implications: The insights gained from this study carry important implications for the future of the furniture industry in Scandinavia and Finland. These include the need for targeted policies and strategies to stimulate eco-innovation. To do this effectively, attention should be paid to enhancing resource capabilities, addressing skill gaps, and improving supply-side market conditions. By aligning with these findings, industry and policy stakeholders can better support businesses of different sizes and ages in their eco-innovation pursuits.