Eco-innovation practices’ adoption in the automotive industry

Abstract

PurposeEco-innovation is a relatively recent construct in the literature, which nowadays more and more researchers and academics consider as one of the strategies that generate a higher level of sustainable and business performance. However, little is known about the influence of eco-innovation practices on sustainable performance and business performance, particularly in the automotive and auto parts industry. Therefore, this paper aims to fill this knowledge gap and explore the aforementioned interdependence.Design/methodology/approachThe influence of eco-innovation practices on sustainable performance and business performance is investigated through a research framework consisting of 5 constructs, 25 items and 6 hypotheses derived from an extensive review of the literature. A self-administered questionnaire was distributed to 460 companies in the automotive and auto parts industry in Mexico. The data were analyzed through a confirmatory factor analysis, descriptive statistics and structural equation modeling.FindingsThe results obtained indicated that eco-innovation practices have a positive influence on both sustainable performance and business performance in the automotive and auto parts industry.Originality/valueThis paper provides further insightful evidence of the influence of eco-innovation practices on sustainable performance and business performance, particularly in the automotive and auto parts industry.