The effect of green strategies and eco-innovation on Mexican automotive industry sustainable and financial performance: Sustainable supply chains as a mediating variable

This work focuses on the study of how green strategies (GBS) and eco-innovation (EI) contribute to increasing sustainable and financial performance in the context of the Mexican manufacturing industry, and whether these relationships are mediated by the practices involved in sustainable supply chains (SSCs). This analysis is carried out through an empirical study of a sample of 460 companies in the automotive industry. The results reveal direct positive effects of GBS and EI on performance both, sustainable and financial. In spite of the key role played by SSC, this variable only exerts a mediating effect on the sustainable performance. Nevertheless, although the significant direct effect of sustainable supply chains on financial performance is not verified, there is an indirect effect of supply chains on financial performance through their influence on sustainable development. The findings reveal important implications for managers. They provide rational arguments (increase in performance) that should motivate companies in the Mexican automotive industry to incorporate values, standards, and actions focused on reducing the effects of their activities on the environment. These considerations will lead to a change in behavior which is better aligned with global environmental demands.

Automated summary

This study examines the contribution of green strategies and eco-innovation to sustainable and financial performance in the Mexican manufacturing industry, and the mediating role of sustainable supply chains. The results show direct positive effects of green strategies and eco-innovation on both sustainable and financial performance. Sustainable supply chains have a mediating effect on sustainable performance, but no significant direct effect on financial performance. However, supply chains indirectly affect financial performance through their influence on sustainable development.