Innovations in organizational systems

The model’s first dimension pertains to the organizational system’s innovation. Current research indicates that invention within the organizational system encompasses several elements, which researchers have historically examined in isolation, measuring individually rather than collectively. The innovation of the organizational system includes the following aspects: fostering an organizational culture that supports and rewards innovative processes, as evidenced by the work of Bortolotti, Boscarib, and Daneseb (2015), Dubey et al. (2017), and Fayyaz et al. (2020); enhancing the organizational climate for innovation as discussed by Bonacci et al. (2020) and Zhang et al. (2022); and reforming the human resource management system to favour employee innovativeness, including reward systems for employees, as explored by Hakoola (2020) and Aschenbrücker and Kretschmer (2022).

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Innovations in sustainable water use materials and processes

In the realm of sustainable and efficient water use, the second dimension of the model includes innovations in materials and technological processes. Scholars have identified various innovative strides in this area, including the generation of new ideas and practical suggestions to reduce potable water consumption during product manufacturing, as highlighted by Sachidananda, Webb, and Rahimifard (2016). There has been progress in modifying production processes to incorporate alternative water sources, a transformation discussed by Partzsch (2009), Moretti (2015), and Moretti and Markič (2016). Additionally, innovative wastewater treatment approaches (including technological, cooling, and stormwater) have been developed to mitigate environmental impacts, as researched by Lazarova et al. (2013) and Moretti and Markič (2016). Innovations also extend to adapting production processes for water reuse, as Menenes, Stratton, and Flores (2017) examined.

Furthermore, advancements in information and communication technology (ICT) have been directed at reducing drinking water usage and enhancing water quality and consumption monitoring, as well as the removal of salts and other impurities for water reclamation, as evidenced by the studies of Søgaard (2014), Coca-Prados and Gutiérrez-Cervelló (2011), Moretti and Markič (2016), and Gude (2016). In light of environmental conservation pressures, green innovations are essential for companies to gain a competitive edge, including in the manufacturing sector where industrial water is used. With the fusion and application of digital and emerging technologies such as smart factories, artificial intelligence systems, and robotics, production, and material consumption methods are changing (Skilton & Hovsepian, 2018; Adepoju et al., 2022), including water usage. This represents a revolutionary shift impacting all industries, including the manufacturing sector.

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Benchmarking and goal-setting in water usage innovation

The third dimension of the model is composed of elements that researchers have studied in a fragmented manner, assessing them individually: the comparison of achievements planned budgeting, and working groups dedicated to innovating in water usage (Dwivedi et al., 2023), along with defined goals towards the use of alternative water sources (Moretti, 2015; Moretti & Markič, 2016).

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Sustainable water management reporting

The fourth dimension is concerned with the acquisition and reporting of information on sustainable and efficient water management. The study by Gallardo-Vázquez and Sánchez-Hernández (2014) suggests that the information gathered by employees on actions and awareness of measures related to sustainable and efficient water management, market research outcomes, and participation in seminars, conferences, and workshops positively influences sustainable practices of an organization. This is presumed to extend to manufacturing sector organizations that utilize industrial water for production, cooling, or both. Research by Orlitzky & Swanson (2012) and Gallardo-Vázquez & Ortas (2017) has found that reporting on sustainable and efficient environmental practices can act as a robust tool for transparent communication with stakeholders and distinguish successful organizations from less successful ones. Reporting on sustainable and efficient water management includes disseminating information about these measures in the organization’s vision and strategy, codes of conduct, internal reports, websites, and collaboration with other organizations (Moretti, 2022).

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Measuring success in water usage innovation

The fifth dimension of the model represents innovation performance in water treatment, reduction of potable water use, and water quality. Innovations in this field can lead to solutions for reducing and reusing water in manufacturing processes (European Commission, 2023). We have utilized performance indicators from Moretti’s study (2015) on the reduction of potable water consumption (improvements in materials and technological processes towards reducing potable water use and wastewater treatment, enhanced exploitation of alternative water sources) as a measure of organizational innovation performance in water usage, considering the success (over the past three years compared to previous years) in implementing these innovations.

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Innovative success in water treatment and conservation

The sixth dimension of the model reflects innovation performance in the number of approved and implemented change proposals in water usage. A commonality among successful organizations is their continual innovation (Tidd, Bessant, & Pavitt, 2005; Moretti, 2015; Moretti & Markič, 2016) – new and innovative environmental technologies can contribute to economic growth and enable, for example, the maintenance of standards at lower costs or improved environmental protection for less money. To assess the innovation performance/ success increase in the adoption of these innovations over the past three years compared to previous years indicators from Moretti’s research (2015) regarding the success in the number of approved and implemented change proposals in water usage (increase in employee numbers, the volume of change proposals submitted, the percentage of approved change proposals, the number of implemented change proposals, with the nature of water usage innovations) were used.

MORETTI, Melita.  Validating a Scale for Innovation in Sustainable Water Management in the Manufacturing Sector: A Slovenian Study. Naše gospodarstvo, ISSN 0547-3101. 2023, 69(4):12-25. 

Scientific implications

Our study identified the factors most frequently discussed in professional literature that influence the innovation success of water consumption in the manufacturing sector. Building on theoretical insights, we developed a reliable, measurable, and valid scale for Innovation in Sustainable Water Management in the Manufacturing Sector (ISWMMS).

Managerial implications

The scale developed in this research holds managerial or business significance and application, particularly in measuring the innovation success of water usage in the manufacturing sector, where so-called industrial water is utilized (for production, cooling, or both). This can enable managers within these organizations to understand the benefits and recognize opportunities within their practices and the potential for water usage innovations. Moreover, organizations that measure can become aware of their capability level, thereby identifying opportunity areas in their value creation process within the sector in which they operate. Additionally, the scale can assist these organizations in assessing regions of their water usage innovation success that may require further development. This could lead to improved ecological practices and greater efficiency in the production process, potentially increasing their profitability. The scale could also apply to other types of energy used in organizations, such as electricity, natural gas, district heating, liquid fuels, etc., and with appropriate translation and adaptation in other EU countries and beyond.

Policy implications

The ISWMMS scale, developed by this research, can be instrumental for government bodies, providing policy makerswith an awareness of the innovation capacity level in sustainable water management within the manufacturing sector. It also offers a benchmark for determining the innovation performance in water usage in production environments that utilize industrial water (for production, cooling, or both). These insights can enable policymakers to discern the strengths and weaknesses of organizations in the manufacturing sector regarding innovations in the field. With this knowledge, policymakers could draft necessary legislation to support or incentivize organizations to develop the required innovation capabilities in water usage. Governments can also encourage organizations to adhere to regulations and set standards, such as pollution norms. Government and its agencies can influence the extent of water usage reduction and the improved utilization of water already in use (for cooling) through their recommendations, policy formation, and external enforcement.