FACTORS AFFECTING THE ADOPTION OF GREEN INNOVATION IN THE FRAGRANCE MANUFACTURING INDUSTRY IN THAILAND

Abstract

This research investigates the strategic determinants influencing the adoption of green innovation within Thailand's fragrance manufacturing industry. The study applies the Technology-Organization-Environment (TOE) framework to analyze the influence of factors on the implementation of green practices across four dimensions: production processes, raw materials, energy and resource efficiency, and eco-friendly packaging. A quantitative research design was employed, gathering data via structured questionnaires from 251 manufacturers in Thailand registered under the Thailand Standard Industrial Classification (TSIC) Code 20232, which officially encompasses the manufacture of perfumes, cosmetics, and personal care products as a single industrial category. Statistical analyses included descriptive statistics, Pearson's Correlation, Multiple Regression Analysis, and One-Way ANOVA. The findings demonstrate that all dimensions of the TOE framework correlate positively and significantly with green innovation adoption. Organizational factors are the primary predictors of adoption across all dimensions, while green packaging innovation is significantly influenced by all three TOE pillars simultaneously. Firm size significantly affects adoption levels; large enterprises with high investment capital (>100 million THB) exhibit substantially higher green innovation implementation compared to SMEs. Notably, although 100% of respondents joined the Green Industry (GI) program, 69.7% remained at Level 1 (Green Commitment), indicating a Decoupling phenomenon between symbolic and substantive adoption. Major barriers include high initial investment costs, uncertainty regarding short-term returns, and bureaucratic complexity in accessing government support.