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Abstract. Eco-process innovation has been recognised as one of the important strategies for mitigating the growing environmental challenges. Its concept has succeeded in drawing the interests of many scholars worldwide. The aim of this paper is to review the literature to clarify how one actually measure eco-process innovation performance. Critical analysis of literature has been performed in this study. Database searches were mainly relied to compile the literature. In relation to eco-process innovation assessment, results revealed that most prior works focused on the economic and environmental performance with the exclusion of social performance and very limited attempts done in analysing real operational data. It was identified that there is a need for empirical investigations on measuring the social performance of eco-process innovation along with the economic and environmental performance, and on development of operational measuring instrument as these study area have not been well explored.

In the recent decade, eco-process innovation practice has been prioritised over other green strategies to help manufacturing firm becoming more sustainable. This paper evaluates the improvement in production cycle time as an outcome of the eco-process innovation, using the actual data of a manufacturing facility. Discrete event simulation approach was adopted to model and simulate the cycle time of previous state and current state of an eco-innovated production line. Result of cycle time per entity revealed a 6% reduction, thus proving that implementation of eco-process innovation could improve the economic performance of manufacturing firm. The study is a small part of a larger research work of which the authors are developing indicators for measuring eco-process innovation performance at firm level.

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