Journal of Business Ethics

, Volume 126, Issue 3, pp 381–393 | Cite as

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

  • Patricia S. Sánchez-Medina
  • René Díaz-Pichardo
  • Angélica Bautista-Cruz
  • Arcelia Toledo-López
Article

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.

Keywords

Environmental compliance Economic performance Environmental performance Environmental innovation Small businesses Emerging economy Porter hypothesis 

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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  • Patricia S. Sánchez-Medina
    • 1
  • René Díaz-Pichardo
    • 2
  • Angélica Bautista-Cruz
    • 1
  • Arcelia Toledo-López
    • 1
  1. 1.Instituto Politécnico Nacional/CIIDIR Unidad OaxacaSanta Cruz XoxocotlánMexico
  2. 2.Groupe ESC Troyes Troyes, CedexFrance

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