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Environmental Compliance and Economic and Environmental Performance: Evidence from Handicrafts Small Businesses in Mexico

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Abstract

This research aims to fill a major gap in the relevant literature on small businesses in developing countries, specifically concerning the development of models to better explain economic and environmental performance as a result of environmental compliance, thus moving toward an explanation of the sustainable behavior of these businesses. Data from 186 pottery craft businesses located in three Mexican states (Oaxaca, Puebla and Tlaxcala) reveal that environmental compliance significantly influences economic and environmental performance, with the mediating role of environmental innovation, confirming the Porter hypothesis in the context of small businesses in an emerging economy. Environmental compliance is an important factor in improving the economic and environmental performance of small businesses in emerging economies.

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Notes

  1. The Mexican Official Standard establishes limits to the amount of lead and cadmium pottery items intended to contain food and beverages can admit.

  2. Ceramic ware in contact with food and beverages can release lead and cadmium—Part: 2 permissible limits.

  3. Glassware and glass ceramic ware in contact with food and beverages can release lead and cadmium—Part: 2 permissible limits.

  4. Secretary of the Environment and Natural Resources.

  5. Mexican Official Standard that establishes procedures for the sustainable use of bark, stems and plants.

  6. Mexican Official Standard that identifies the species or populations of wildlife at risk.

  7. Tobin’s q is the ratio between market value and replacement value of the same physical asset.

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Authors and Affiliations

  1. Instituto Politécnico Nacional/CIIDIR Unidad Oaxaca, Calle Hornos No. 1003, 71230, Santa Cruz Xoxocotlán, Oaxaca, Mexico

    Patricia S. Sánchez-Medina, Angélica Bautista-Cruz & Arcelia Toledo-López

  2. Groupe ESC Troyes, 217 Avenue Pierre Brossolette, BP 710, 10000, Troyes, Cedex, France

    René Díaz-Pichardo

Authors
  1. Patricia S. Sánchez-Medina
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  2. René Díaz-Pichardo
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  3. Angélica Bautista-Cruz
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  4. Arcelia Toledo-López
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Correspondence to Patricia S. Sánchez-Medina.

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Sánchez-Medina, P.S., Díaz-Pichardo, R., Bautista-Cruz, A. et al. Environmental Compliance and Economic and Environmental Performance: Evidence from Handicrafts Small Businesses in Mexico. J Bus Ethics 126, 381–393 (2015). https://doi.org/10.1007/s10551-013-1945-2

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