Eco-Innovation as a Positive and Happy Industry Externality: Evidence from Mexico

Abstract

This research has carried out structural equation modelling to empirically examine whether Mexican industrial firms have a green policy to reduce their environmental impact. It will allow them to enjoy sustainable development based on eco-innovation and happiness management principles. This type of innovation can be initiated by the companies’ own will or by external factors, such as market requirements, the demands of customers, consumers, suppliers, and civil society through corporate social responsibility. The findings of this article highlight three main aspects. The first is that the statistically analysed eco-innovation actions undertaken by the companies are essentially motivated by market pressures through customers, the financial sector, and civil society. Secondly, economic incentives in Mexico are crucial for manufacturing companies to implement environmentally friendly production patterns within their organisations since this generates the possibility of developing new businesses. Furthermore, eco-innovation generates competitive advantages when the production of the examined companies minimises environmental pollution. It allows access to new markets. In this way, eco-innovation becomes a cornerstone in the economic and international growth of the corporations in this study.