Abstract
This paper investigates the strategic dimensions influencing the adoption of environmental innovations (EIs) in small and medium-sized manufacturing enterprises (SMEs) in Mexico City. The study aims to understand the fundamental strategic dimensions defining eco-innovation and examine how SMEs manage the complexities of incorporating these practices. Employing a mixed-methods approach with documentary analysis and expert interviews, the study identifies key factors influencing EI adoption through causal maps and the viable system model. Findings highlight the significance of external and internal factors such as competitive pressure, economic constraints, technological capabilities, political support, and social influence. This integrative approach emphasizes the importance of adaptability and responsiveness, presenting eco-innovation as a source of sustainable competitive advantage for SMEs.
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