Method for Assessing Organizational Readiness to Innovate in Clothing and Textile Industry: Insights Towards Circular Economy

Within the all-encompassing approach towards the circular economy, the clothing and textile industry is also undergoing a significant transformation towards sustainability. Central to this transformation is the adoption of innovative practices. A thorough understanding of the key factors driving innovation adoption is needed. This research aims to identify and analyse the critical factors influencing innovation within the clothing and textile industry, focusing on integrating circular economy principles. The authors aim to design a method for assessing organizational readiness to innovate. The research question is: What are the critical factors driving innovation within the clothing and textile industry, specifically within the circular economy? The research methods include a systematic literature review, an online survey, correlation analysis, an analytic hierarchy process survey, and factor grouping. The findings reveal 21 crucial factors in 7 functional groups influencing various types of innovation: research and development, both in-house research and external research services, as the most important group of factors; knowledge acquisition from external sources such as investors, other companies and industries; conferences/exhibitions; higher education and research institutions; managerial intentions and communication; strategy and innovation culture; employee education, training and attitudes; and company parameters such as location and workers’ salaries. Each factor has a particular calculated importance level of weight; therefore, business managers can focus on solving the most relevant factors in conditions of limited resources. The research's originality and valuable practical implications are the designed organization’s readiness assessment method, which has real-world application as a complementary, practical management tool in the circular economy context.