Unveiling eco-innovation drivers in a developing country: A deep dive into a pioneering agribusiness SME

This study examines the influence of internal and external drivers on the survival and growth of eco-innovation (EI). Prior research has identified EI drivers through quantitative methods, but the mechanisms and contextual variables shaping EI in small and medium-sized enterprises (SMEs) in developing countries remain underexplored. This study advances a theoretical framework for EI by integrating resource-based view, institutional, stakeholder, and evolutionary perspectives. Drawing on a qualitative case study of a Mexican SME specializing in bio-organic technologies and employing a flexible pattern-matching approach, this study presents three patterns: first, it extends the resource-based view by identifying entrepreneurial resourcefulness, environmental proactivity, and communication skills as critical intangible resources; second, via stakeholder theory, it highlights that collaboration fosters EI success through a farmer-community-centric approach; third, it challenges assumptions that firm size or a developing context hamper EI, showing they can instead enable this success. Furthermore, the challenges faced by female management teams and the skills enabling them to overcome social barriers in advancing agricultural EI are highlighted. Together, these patterns enrich the current theories analyzing EI. The findings offer actionable guidance for managers and policymakers in developing countries to support EI by leveraging intangible capabilities, engaging diverse stakeholders, and promoting female leadership.