Packaging innovation scorecard

Abstract

AbstractInnovation literature shows that the characteristics of a company's innovation processes determine their performance in different areas. In this study, we adopt a general conceptual model from innovation theory and apply it to packaging innovation. This helps identify and describe subprocesses in packaging innovation and how to measure their performance. It also links the packaging innovation process to the cost and climate performance of packaging. Based on the modified model for packaging innovation, the purpose of this paper is to develop and apply a scorecard for assessing the packaging innovation process.The first step in the methodology was the conceptual development of a model describing the packaging innovation process and a scorecard for assessing this process. The second step was to demonstrate and validate the scorecard in a case study covering packaging innovation at a major retail company. Data were captured from six semi‐structured interviews and two workshops, as well as observations and site visits.The conceptual model defines packaging innovation using seven interrelated subprocesses and their impacts on cost and climate performance. The scorecard that was developed in the research study describes how to measure the subprocesses and their output. The quality of each of the seven processes is measured on two to four dimensions. Each dimension can reach a score of one to four, where each score is clearly defined.The case study showed that the scorecard seems to be an effective way of measuring the complex packaging innovation process and identifying concrete ways to improve packaging innovation. The case study validated the scorecard and demonstrated how it can be applied. The application also showed how the case company performs in packaging innovation compared to best practice in each subprocess. The validation showed that the scorecard is sufficiently functional and useful, although it requires input from multiple sources. The usability could only be partly assessed—it showed promising value as a basis for formulating action plans—but future studies should validate the scorecard's long‐term usefulness in creating action plans and assess their impact.The theoretically‐based scorecard is novel in terms of assessing packaging innovation and its impact on packaging performance in supply chains. It links the packaging innovation process to performance and helps companies identify improvement possibilities. The paper shows how the scorecard helps address packaging issues strategically by measuring the activities conducted in the packaging innovation process. One limitation of the study is that the long‐term usefulness of the scorecard could not be validated, as the validation would take longer than the time available for this study.