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

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

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. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Patricia Sánchez-Medina & René Díaz-Pichardo & Angélica Bautista-Cruz & Arcelia Toledo-López, 2015. "Environmental Compliance and Economic and Environmental Performance: Evidence from Handicrafts Small Businesses in Mexico," Journal of Business Ethics, Springer, vol. 126(3), pages 381-393, February.
    • Handle: RePEc:kap:jbuset:v:126:y:2015:i:3:p:381-393
    DOI: 10.1007/s10551-013-1945-2
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    Cited by:

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    2. José Antonio Clemente-Almendros & Tomás González-Cruz & Sergio Camisón-Haba, 2025. "Does innovation practices enhance the impact of environmental criteria adoption over entrepreneurial SMEs’ performance?," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-26, December.
    3. Lijuan Tao & Xiaoju Wei & Wenjing Wang, 2023. "Does Enterprise Internal Control Improve Environmental Performance—Empirical Evidence from China," Sustainability, MDPI, vol. 15(13), pages 1-20, June.
    4. Jin, Youliang & Wang, Shujuan & Cheng, Xu & Zeng, Huixiang, 2024. "Can environmental tax reform curb corporate environmental violations? A quasi-natural experiment based on China's “environmental fees to taxes”," Journal of Business Research, Elsevier, vol. 171(C).
    5. Farooq, Umar & Wen, Jun & Tabash, Mosab I. & Fadoul, Modawi, 2024. "Environmental regulations and capital investment: Does green innovation allow to grow?," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 878-893.
    6. Nahyun Kim & Jon J. Moon & Haitao Yin, 2016. "Environmental Pressure and the Performance of Foreign Firms in an Emerging Economy," Journal of Business Ethics, Springer, vol. 137(3), pages 475-490, September.
    7. Defeng Yang & Zhanqing Wang & Fangmin Lu, 2019. "The Influence of Corporate Governance and Operating Characteristics on Corporate Environmental Investment: Evidence from China," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    8. Esther Ortiz & Salvador Marín & Paul Thompson, 2024. "The role of small- and medium-sized practices in the sustainable transition of SMEs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 19299-19323, August.
    9. Shun-Pin Chuang & Sun-Jen Huang, 2018. "The Effect of Environmental Corporate Social Responsibility on Environmental Performance and Business Competitiveness: The Mediation of Green Information Technology Capital," Journal of Business Ethics, Springer, vol. 150(4), pages 991-1009, July.
    10. Xiaoshu Xu & Airong Yue & Xuechen Meng, 2023. "Increase in Industrial Sulfur Dioxide Pollution Fee and Polluting Firms’ Green Total Factor Productivity: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-12, July.
    11. Gricelda Juarez-Luis & Patricia S. Sanchez-Medina & Rene Diaz-Pichardo, 2019. "Environmental Innovation: Advancing The Resource-Advantage Theory Of Competition," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 12(1), pages 23-36.

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