Abstract
In this study, the relationship between environmental innovation and sustainability is analyzed in 168 handicraft businesses in the Mexican states of Oaxaca, Puebla, and Tlaxcala. The results show a direct, positive relationship between environmental innovation and sustainability in three dimensions: economic, social, and environmental. In terms of determination, the variables that best explain sustainability are: organization type, product innovation, and process innovation. The age of the handicraft businesses was not a significant factor in explaining sustainability. This study concludes that handicraft businesses make sustainable choices more as a result of a desire for profit maximization than as a result of environmental consciousness, as can be explained by neoclassical view of economics.
Highlights
In the last decade, shareholders and stakeholders have increased pressure on companies to broaden their accountability beyond solely economic performance to include environmental performance and sustainability
To determine whether a relationship exists between environmental innovation and sustainability in handicraft businesses, a correlation analysis was performed between the two variables
The results showed that environmental innovation has a direct, positive relationship with sustainability (.453, P ≤ 0.01)
Summary
Shareholders and stakeholders have increased pressure on companies to broaden their accountability beyond solely economic performance to include environmental performance and sustainability. 613), mention that interest in SMEs and their impact on environmental deterioration began to emerge in the 1990s, in Mexico, this situation has not changed This problem is generalized, as there is a lack of empirical research dealing with the real problematic of innovation and sustainability on the level of enterprises, whether large, medium, or small. The majority employ rudimentary production processes, and have a low production volume; their sales are primarily confined to local and national markets This type of firm has traditionally been forgotten in the discussion of environmental administration; this is unfortunate, especially considering how these businesses base their production on the use of natural resources, and, in many cases, employ highly polluting processes.
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